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Utility Bidder Limited

Registered number: 06954978
Annual report and audited financial statements
For the year ended 31 December 2023

 
UTILITY BIDDER LIMITED
 
 
COMPANY INFORMATION


Directors
J Longley 
G M Wood CBE 
C Shaw 
M Robson 
N Baker 
M Porter (appointed 1 January 2024)




Registered number
06954978



Registered office
Corby Innovation Hub
Bangrave Road South

Corby

NN17 1NN




Independent auditor
Forvis Mazars LLP
Chartered Accountants & Statutory Auditor

One St. Peter's Square

Manchester

M2 3DE





 
UTILITY BIDDER LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 5
Directors' Report
 
6 - 8
Independent Auditor's Report
 
9 - 12
Statement of Comprehensive Income
 
13
Statement of Financial Position
 
14
Statement of Changes in Equity
 
15
Notes to the Financial Statements
 
16 - 34


 
UTILITY BIDDER LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their Strategic Report for the year ended 31 December 2023 and which refer to the Group consolidated results (the Group headed by Project Steel Topco Limited).

Business review
 
The principal activity of the Group is to provide small and medium sized enterprises (“SMEs”) with comparison, switching and intermediary services for utilities and other services. These services are provided either directly by our own sales agents or through our sub broker channel for whom we act as an aggregator. Utility Bidder is one of the leading providers and over the period has continued to grow with more customers using the services.
The growth in the business has been achieved through;
- Seeking to provide a trusted and quality service to all of our customers and who subsequently renew their energy contracts through the Group;
- Through only working with suppliers that will provide suitable pricing and a high standard of service to  our customers; and;
 - Ongoing investment in our digital and call centre channels to maintain standards for our customers.
The directors plan to maintain the Group’s position as a leading provider of energy broking services through continued training and development of our sales teams and ongoing investment in our CRM and customer contact systems that support the customer journey whether via our call centres or digitally.  
COVID 19
With the series of lockdowns through 2020 and 2021, as seen with many of our competitors, the Group experienced a downturn in business both in terms of commission contract volumes and average contract value. The reduction in contract values was seen across both our call centre and digital channels and was due to the utility suppliers no longer offering longer term contracts to our customers beyond 3 years and based on reduced consumptions across the SME business sector during the lockdowns, reducing the contracted levels of consumption on new contracts. The impact of COVID 19 continues to be felt as contracts entered into during that period continue to be finalised with lower than normal consumption values being recognised over their life. 
The Ukraine War & Energy Prices
During late 2021 and with the outbreak of the war in Ukraine and the subsequent energy supply crisis through the second half of 2022, energy prices for both gas and electricity were extremely volatile throughout the whole of this period. Consequently, there were short periods when suppliers were either unable to provide fixed term contract pricing or only fixed term contracts for short periods. Whilst these issues have at times impeded the sales growth opportunities for the year ended 31 December 2022 and the early part of the year ended 31 December 2023, the directors are pleased with the way our agents have at all times sought to help secure the best competitive alternative pricing to help our customers save money and meet their energy requirements. 

- 1 -

 
UTILITY BIDDER LIMITED
 

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

Key performance indicators
 
The directors measure and monitor business performance on a weekly and monthly basis using a wide range of key performance indicators to ensure continuous improvement and progress towards achieving the annual targets and strategic objectives.
The directors believe that the following Key Performance Indicators provide the necessary measures of business performance:
-  Revenue
 - Growth in customer & contract numbers
 - EBITDA before exceptional items
 - Operating cashflow
 - Customer satisfaction

1. Revenue
With an increased number of sales agents and their improving productivity, along with the availability of longer term fixed price contracts through 2023, the year on year revenue for Utility Bidder Limited grew by 33.7% to £19.7million. This included increased year on year gross contract sales from our own agents (43.6% growth) (2022 – 3.6% growth) with the sub brokers sales declining by 11.4% (2022 – 7.8% decline) as this channel was further reviewed and a number of sub-broker agreements allowed to lapse. The sales for 2023 included continued year on year gross sales growth of 38.8% (2022- 31.4%) from our digital platforms including PPC and SEO revenue activities. 
2. Growth in customer & contract numbers
The growth in customer & contract numbers is an important indicator of overall growth and improving market share in addition to future revenue opportunities in providing additional services to our customers and renewing existing energy contracts when they come up for renewal. For the year to 31 December 2023 the number of contracts sold by Utility Bidder Limited agents increased by 61.4% year on year to 14,624 (2022 – 9,058). In terms of customer accounts and meters, these indices grew year on year by 18.2% - 17,083 accounts (2022 - 10.6% to 14,453) and by 18.9% - 24,818 meters (2022-11.6% to 20,868) respectively.
3. Adjusted proforma EBITDA before exceptional items
The directors use adjusted proforma EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) before exceptional items as this measure excludes expenditure which is one off in nature. 
The directors have disclosed the adjusted proforma EBITDA before exceptional items as they believe this provides a better understanding of the Group’s underlying financial performance and is consistent with the measure used in monitoring the performance of the business..
 
- 2 -

 
UTILITY BIDDER LIMITED
 

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


The Group achieved adjusted proforma EBITDA before exceptional items of: 
 


2023
2022

£'000
 
£'000
Operating profit/(loss)
(1,912)
 
1,094
Exceptional administrative expenses/(credit)
3,338
 
(62)
Depreciation
83
 
61
Amortisation
1,402
 
1,458
Adjusted Proforma EBITDA
2,911
2,551

The 14.1% (2022 – 6.0%) increase in year on year EBITDA was due to the growth in Utility Bidder Limited’s contract volumes and contract value growth with higher margin own agent sales in comparison to sub-broker sales.  
4. Operating cashflow
The net cash generated by operating activities was £1,789k, a year on year movement of £203k, with a closing cash balance at 31 December 2023 of £3,300k.
The year on year improvement in cash generation was due to the contract volume and sales growth reported for the year together with improved payment terms agreed with certain suppliers. In addition, during the COVID-19 lockdowns in 2020 & 2021, utility suppliers adjusted contract values through more frequent reconciliations using consumptions that were impacted by the lockdowns and temporary business closures. The supplier consumption reconciliations at the end of contracts have reflected higher levels of consumptions and contract values and resulting in improved levels of receipts from suppliers.
5. Customer satisfaction
Customer satisfaction is monitored through our customer services team with measures including Net Promoter Scores (“NPS”) and Trustpilot where we have consistently achieved high ratings. The NPS scores together with the customer feedback are reviewed on a monthly basis with feedback given to the sales agents and plans agreed to continually improve the scores.

- 3 -

 
UTILITY BIDDER LIMITED
 

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

Principal risks & uncertainties
 
The principal risks and uncertainties faced by the Group are outlined below and include an outline of how these risks are managed and mitigated where applicable.
1. Estimation of revenue by contract & accrued revenue recoverability
The revenue recognised for each contract is based upon assumptions including an estimation of the expected future consumption for utility contracts. This estimation will have inherent uncertainty, particularly with those contracts entered into during COVID-19 and the extended periods of the lockdowns and with business’ temporary closures or reduced activity. This is discussed further in the revenue recognition accounting policy.
The Group has controls & processes to continually review and manage the estimation of consumption, including:
a. Verification of customer’s consumption levels with either the customers’ or suppliers’ records,
b. Stringent review of contract paperwork and supporting records prior to recording the sale,
c. Regular reporting and monitoring, including exception reporting, of all the key contract matrices,
d. Regular matching of cash receipts for each customer contract and follow up measures, and,
e. Regular management review of the level of provisions   based on historic performance, supplier information and other factors.
2. Cyber security 
The Group faces the ongoing risk of being subject to a cyber security attack which if successful could impact operations, customer data and the goodwill of the business. Continuous investment is being made in the IT infrastructure, staff training, processes and procedures to reduce the risk and prevent cyber attacks. 
3. Recruitment & retention of key management & staff
The requirement for the recruitment and retention of staff is key to the successful operation and future growth of the business. 
To manage this risk, management continues to invest in the recruitment and assessment of personnel joining the Group, including induction training and development programmes as staff gain experience in their roles.  Regular feedback and engagement scores are sought from every level of staff and management. Staff benefits, incentives and other initiatives are also in place to support, motivate and engender the culture within the business. This investment is reflected in the Investor in People Silver award held by the Group.
4. Strategic risks
The ongoing geopolitical uncertainties including the war in Ukraine and the energy supply crisis, as well as the residual effects of COVID-19, have all impacted to varying levels the markets in which the group, our suppliers, competitors and our customers operate. In addition, the general economic situation in the UK including high inflation rates have put financial pressures on the SME sector and their ability to absorb the additional costs within their businesses. The directors continually monitor the markets and liaise with key suppliers to ensure that any changes to their products can be quickly addressed. The directors will also in due course be looking to start to provide additional services to our existing customer base.
The energy broking sector in which the Group operates has been subject to regulatory review. Ofgem, as a result of its’ microbusiness review, introduced the full disclosure of commissions and the Alternative Dispute Resolution process both of which have been fully implemented in the Utility Bidder business. Utility Bidder Limited is also a founding member of the Energy Consultants Association (“ECA”), an organisation that seeks to adhere to regulatory requirements as well as promoting bast practices across the Third Party Introducer / Energy Broking membership and has taken a prominent role being part of the executive team within the ECA.

- 4 -

 
UTILITY BIDDER LIMITED
 

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


This report was approved by the board on 23 September 2024 and signed on its behalf.



M Robson
Director

- 5 -

 
UTILITY BIDDER 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' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 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 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £862,161 (2022 - profit £1,533,791).

Directors

The directors who served during the year were:

J Longley 
G M Wood CBE 
C Shaw 
M Robson 
N Baker 

- 6 -

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

Going concern

The Group manages its day to day working capital requirements and the levels of cash and cash equivalents, trade debtors and creditors. As set out in the Directors’ report, the Group through 2023 has seen recoveries in overall trading as suppliers have returned with price books and improving contract terms.
The directors regularly prepare forecasts and mitigating actions that would be taken to help manage the Group's cash positions. The directors regularly prepare forecasts and projections seek to take account of ongoing changes in trading performance and working capital. These forecasts are then tested to assess the potential effects of suppliers changing price books, introducing shorter term contracts, or temporarily withdrawing price books or accelerating supplier consumption reconciliations or higher levels of clawbacks arising from the closure of customers’ businesses. If one of these events was to take effect then the directors would implement changes within the business seeking to mitigate the impact of one or more of the above changes. The Group continues to show over £3m of cash at year end and remains in a net asset position.
These forecasts show that the Group can continue to operate and after making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern in preparing its financial statements.

Engagement with employees

The Directors and Senior Managers engage with its employees continuously and in ways to suit their different working patterns. These include:
 - Monthly company wide meetings
 - Line manager briefings
 - Communication forums and focus groups
 - Email news alerts
 - Employee social media groups
Details of sales and economic factors effecting the performance of the company are shared with all employees at the appropriate time using the methods listed above. 
We provide opportunities for employees to give their feedback to the company including from team meetings, employee forums, focus groups and on-line surveys.
The business also has an online learning platform with interactive courses and videos that are used for employee inductions and ongoing development of our employees.

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'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's auditor is aware of that information.

Auditor

The auditor, Forvis Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

- 7 -

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

This report was approved by the board on 23 September 2024 and signed on its behalf.
 





M Robson
Director

- 8 -

 
UTILITY BIDDER LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UTILITY BIDDER LIMITED
 

Opinion

We have audited the financial statements of Utility Bidder Limited (the ‘Company’) for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the 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 FRS 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 loss 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 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 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 Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Strategic report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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.
- 9 -

 
UTILITY BIDDER LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UTILITY BIDDER LIMITED
 

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:
 
the information given in the 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 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 light of the 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 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, 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.
- 10 -

 
UTILITY BIDDER LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UTILITY BIDDER LIMITED
 

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 6, 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 intend either to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

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 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. 

Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.  
- 11 -

 
UTILITY BIDDER LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UTILITY BIDDER LIMITED
 

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006. 

In addition, we evaluated the directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgments and assumptions in significant accounting estimates, in particular in relation to, revenue recognition (which we pinpointed to the cut off assertion), and significant one-off or unusual transactions. 

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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.

Use of the audit 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.




Neil Barton (Senior Statutory Auditor)

  
for and on behalf of

Forvis Mazars LLP
Chartered Accountants and Statutory Auditor 
One St. Peter's Square
Manchester
M2 3DE

23 September 2024
- 12 -

 
UTILITY BIDDER LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
 £
£

  

Turnover
 4 
19,683,184
14,723,969

Cost of sales
  
(7,991,121)
(6,682,778)

Gross profit
  
11,692,063
8,041,191

Administrative expenses
  
(9,878,496)
(6,385,853)

Exceptional administrative (expenses)/income
 5 
(3,128,126)
62,304

Other operating income
 6 
390,472
165,134

Operating (loss)/profit
 7 
(924,087)
1,882,776

Interest receivable and similar income
 11 
10,591
487

Interest payable and similar expenses
 12 
(41,509)
(64,723)

(Loss)/profit before tax
  
(955,005)
1,818,540

Tax on (loss)/profit
 13 
92,844
(284,749)

(Loss)/profit for the financial year
  
(862,161)
1,533,791

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022: £NIL).

The notes on pages 16 to 34 form part of these financial statements.

- 13 -

 
UTILITY BIDDER LIMITED
REGISTERED NUMBER: 06954978

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
464,357
492,802

Tangible assets
 15 
218,955
98,997

  
683,312
591,799

Current assets
  

Debtors: amounts falling due within one year
 16 
10,283,924
11,510,793

Cash at bank and in hand
 17 
3,278,499
3,053,305

  
13,562,423
14,564,098

Creditors: amounts falling due within one year
 18 
(4,101,741)
(3,878,680)

Net current assets
  
 
 
9,460,682
 
 
10,685,418

Total assets less current liabilities
  
10,143,994
11,277,217

Creditors: amounts falling due after more than one year
 19 
(1,427,424)
(1,605,642)

Provisions for liabilities
  

Deferred tax
 22 
-
(92,844)

Net assets
  
8,716,570
9,578,731


Capital and reserves
  

Called up share capital 
 23 
1,005
1,005

Profit and loss account
 24 
8,715,565
9,577,726

  
8,716,570
9,578,731


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 September 2024.




M Robson
Director

The notes on pages 16 to 34 form part of these financial statements.

- 14 -

 
UTILITY BIDDER LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
1,005
8,043,935
8,044,940


Comprehensive income for the year

Profit for the year
-
1,533,791
1,533,791
Total comprehensive income for the year
-
1,533,791
1,533,791



At 1 January 2023
1,005
9,577,726
9,578,731


Comprehensive loss for the year

Loss for the year
-
(862,161)
(862,161)
Total comprehensive loss for the year
-
(862,161)
(862,161)


At 31 December 2023
1,005
8,715,565
8,716,570


The notes on pages 16 to 34 form part of these financial statements.

- 15 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Utility Bidder Limited ("the Company") is a company, limited by shares, incorporated  in England and Wales. The address of the registered office is Corby Innovation Hub, Bangrave Road South, Corby, England, NN17 1NN. 
The financial statements have been presented in Pound Sterling as this is currency of the primary economic environment in which the company operates and is rounded to the nearest pound.

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.
These financial statements have been presented in pound sterling which is the functional currency of the Company.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced 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 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Project Steel Topco Limited  as at 31 December 2023 and these financial statements may be obtained from Corby Innovation Hub, Bangrave Road South, Corby, NN17 1NN.

- 16 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

The Group manages its day to day working capital requirements and the levels of cash and cash equivalents, trade debtors and creditors. As set out in the Directors’ report, the Group through 2023 has seen recoveries in overall trading as suppliers have returned with price books and improving contract terms.
The directors regularly prepare forecasts and mitigating actions that would be taken to help manage the Group's cash positions. The directors regularly prepare forecasts and projections seek to take account of ongoing changes in trading performance and working capital. These forecasts are then tested to assess the potential effects of suppliers changing price books, introducing shorter term contracts, or temporarily withdrawing price books or accelerating supplier consumption reconciliations or higher levels of clawbacks arising from the closure of customers’ businesses. If one of these events was to take effect then the directors would implement changes within the business seeking to mitigate the impact of one or more of the above changes. The Group continues to show over £3m of cash at year end and remains in a net asset position.
These forecasts show that the Group can continue to operate and after making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern in preparing its financial statements.

  
2.4

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, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Customer Energy Contracts
Through procuring contracts with energy suppliers on behalf of SME customers, the Group generates revenues by way of commissions received directly from the energy suppliers. Commissions are variable as they are based upon the energy usage of the SME customer at agreed commission rates with the energy suppliers. The expected commission over the full term of the contract is recognised at the point the contract is authorised by the supplier as this is the point at which control of the service is seen to transfer to the customer. The expected commission is calculated based on the historical consumption of the contracted meter point. The revenue recognised is constrained and adjusted by the proportion of the revenue that is expected to reverse over the life of the contract, due to consumption variances and contract attrition.

  
2.5

Finance costs

Finance costs are charged to the Statement of Comprehensive Income 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.

- 17 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Finance leases

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
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.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

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 reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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 reporting date.

- 18 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

  
2.11

Intangible Assets

Intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses. Amortisation is calculated using the straight-line method. 
Software Development Costs
Software development costs are recognised as an intangible asset when all of the following criteria are demonstrated:
- The technical feasibility of completing the software so that it will be available for use. 
- The intention to complete the software and use it. 
- The ability to use the software.
- How the software will generate probable future economic benefits. 
- The availability of adequate technical, financial and other resources to complete the development    and to use the software. 
- The ability to measure reliably the expenditure attributable to the software during its development.
Amortisation is charged so as to allocate the cost of intangibles less their residual values over their estimated useful lives, using the straight-line method. Software development costs are amortised over their useful economic life of 3 years.

  
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, using the straight line method.
Depreciation is provided on the following basis:
    Fixtures & fittings   33% - 50% on cost
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 the Statement of Comprehensive Income.

- 19 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

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.

 
2.14

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.

 
2.15

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.

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

- 20 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Financial instruments

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

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of Financial Position 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 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 Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

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.

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.
 
- 21 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.17
Financial instruments (continued)


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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans 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.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

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 Company 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 Company 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 Company's contractual obligations expire or are discharged or cancelled.

- 22 -

 
UTILITY BIDDER 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 applying the Company’s accounting policies, the directors are required to make judgments, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgments, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgments, estimates and assumptions, the actual results and outcomes may differ.
(i) Estimating the value of services delivered
The Company recognises adjustments against turnover for contract attrition where signed customer contracts are ultimately not delivered due to the energy provider being unable to complete the switching process or the contract is terminated at some point after the switching process has taken place. The charge for customers that have not completed the switching process together with the estimate for those that will not complete switching is reviewed and updated on a monthly basis. 
 
For those contracts that terminate after the switching process has taken place, for instance with the closure of the customer’s business, an adjustment is made to the expected revenue for the effect of business closures and other early terminations. The charge has been calculated based upon the costs that have been incurred to the date of this report together with using early contract termination data provided by suppliers and an assessment of market and credit analysts data.
The Company also monitors the customer energy consumption data that is passed to suppliers and on which the basis of the commission receivable is initially calculated. However, over the course of a contract and particularly with the COVID-19 pandemic and energy price crisis, consumption levels fluctuate and to address these consumption variances, an adjustment is applied to the expected revenue at the point of sale based upon historical data and on estimation of future trends.


4.


Turnover

All turnover arose within the United Kingdom.

- 23 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Exceptional items

2023
2022
£
£


Professional fees
170,816
63,776

Redundancy costs
53,931
-

Contract charges
2,903,379
539,917

Insurance claim receivable
-
(665,997)

3,128,126
(62,304)

The contract charges in the current year represent a one-off charge in nature relating to the contract values impacted by reduced consumptions during the COVID lockdowns. As contracts have concluded and more data has become available, the consumption levels on these contracts have been at a far lower level than was initially expected.
Professional fees related to a project undertaken during the year that was considered more non recurring in nature.


6.


Other operating income

2023
2022
£
£

Other operating income
390,472
165,134



7.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2023
2022
£
£

Depreciation
83,364
60,677

Amortisation
543,131
598,819

Pension commitments
104,707
87,822

Other operating lease costs
430,119
379,249

- 24 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
21,450
19,800


9.


Employees

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


2023
2022
£
£

Wages and salaries
6,029,526
4,312,938

Social security costs
688,470
487,395

Cost of defined contribution pension scheme
104,707
87,822

6,822,703
4,888,155


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


        2023
        2022
            No.
            No.







Employees
136
115


10.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
21,050
18,501

Company contributions to defined contribution pension schemes
813
716

21,863
19,217


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

- 25 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Interest receivable

2023
2022
£
£


Other interest receivable
10,591
487


12.


Interest payable and similar expenses

2023
2022
£
£


Bank and other loan interest payable
41,509
64,723


13.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
24,689

Adjustments in respect of previous periods
-
217,862


-
242,551


Total current tax
-
242,551

Deferred tax


Origination and reversal of timing differences
(77,329)
419,381

Adjustments in respect of prior periods
(15,515)
(377,183)

Total deferred tax
(92,844)
42,198


Taxation on (loss)/profit on ordinary activities
(92,844)
284,749
- 26 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
13.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher 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
£
£


(Loss)/profit on ordinary activities before tax
(955,005)
1,818,540


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
(224,622)
345,523

Effects of:


Fixed asset differences
982
(2,649)

Expenses not deductible for tax purposes
1,479
12,896

Adjustments to tax charge in respect of prior periods
-
217,862

Adjustments in respect of prior periods - deferred tax
(15,515)
(377,183)

Remeasurement of deferred tax for changes in tax rates
(13,953)
100,651

Movement in deferred tax not recognised
158,451
-

Group relief surrendered/(claimed)
-
(12,351)

Other permanent differences
334
-

Total tax charge for the year
(92,844)
284,749


Factors that may affect future tax charges

From 1 April 2023, the rate of corporation tax in the United Kingdom increased from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.

- 27 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Intangible assets




Computer software

£



Cost


At 1 January 2023
1,520,062


Additions
514,686



At 31 December 2023

2,034,748



Amortisation


At 1 January 2023
1,027,260


Charge for the year
543,131



At 31 December 2023

1,570,391



Net book value



At 31 December 2023
464,357



At 31 December 2022
492,802

Included within the carrying value of computer software is £391,538 (2022: £182,818) of finance lease assets, relating to the CRM system.



- 28 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Tangible fixed assets





Fixtures & fittings

£



Cost


At 1 January 2023
384,077


Additions
204,279


Disposals
(49,310)



At 31 December 2023

539,046



Depreciation


At 1 January 2023
285,080


Charge for the year
83,364


Disposals
(48,353)



At 31 December 2023

320,091



Net book value



At 31 December 2023
218,955



At 31 December 2022
98,997

- 29 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Debtors

2023
2022
£
£


Trade debtors
365,673
193,872

Amounts owed by group undertakings
1,293,330
879,055

Other debtors
466,828
733,368

Prepayments and accrued income
7,832,178
9,704,498

Tax recoverable
325,915
-

10,283,924
11,510,793


Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
Included within prepayments and accrued income is £4,446,458 (2023: £5,562,966) of accrued income falling due after more than one year. 


17.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
3,278,499
3,053,305



18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
176,676
170,676

Other loans
309,785
762,256

Trade creditors
582,097
334,308

Amounts owed to group undertakings
398,987
405,632

Other taxation and social security
1,072,207
905,790

Obligations under finance lease and hire purchase contracts
195,769
150,310

Other creditors
221,093
25,950

Accruals and deferred income
1,145,127
1,123,758

4,101,741
3,878,680


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

- 30 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
320,473
497,357

Net obligations under finance leases and hire purchase contracts
176,837
-

Accruals and deferred income
930,114
1,108,285

1,427,424
1,605,642


The bank loans are secured by a debenture creating a fixed and floating charge over the assets of the Company.


20.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
176,676
170,676

Other loans
309,785
762,256


486,461
932,932

Amounts falling due 1-2 years

Bank loans
176,676
170,011


176,676
170,011

Amounts falling due 2-5 years

Bank loans
143,797
327,346


143,797
327,346


806,934
1,430,289


- 31 -

 
UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
195,769
150,310

Between 1-5 years
176,837
-

372,606
150,310


22.


Deferred taxation




2023
2022


£

£






At beginning of year
(92,844)
(50,646)


Charged to profit or loss
92,844
(42,198)



At end of year
-
(92,844)

The deferred taxation balance is made up as follows:

2023
2022
£
£


Accelerated capital allowances
-
(97,082)

Short term timing differences
-
4,238

-
(92,844)


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,005 (2022 - 1,005) Ordinary shares of £1.00 each
1,005
1,005


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UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Reserves

Profit & loss account

This reserve represents the cumulative profits and losses of the Company. 


25.


Pension commitments

The Company operates a defined contribution pension plan for its employees. The pension cost charged represents contributions payable by the Company to the funds and amounted to £104,707 (2022: £87,822). 


26.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
575,724
419,526

Later than 1 year and not later than 5 years
2,013,258
587,822

2,588,982
1,007,348


27.


Related party transactions

The Company has taken advantage of the exemption permitted by Section 33 'Related Party Disclosures' not to provide disclosures of transactions entered into with wholly owned subsidiaries within the Group.
In 2022, a director of the Company made an unsecured working capital loan to the Company of £657,115 which is repayable on 31 December 2024. At 31 December 2023 the total outstanding was £267,963 (2022: £663,836).
A director of the Company is also a director of Steel Men Limited. The balance owed at the year end by Steel Men Limited was £1,256 (2022: £1,256).
At the Statement of Financial Position date, the Company owes £398,858 (2022: £405,503) to Project Steel Midco 2 Limited. Project Steel Midco 2 Limited is a related party by virtue of holding 88% of the share capital in the Company.
At the Statement of Financial Position date, the Company is owed £880,718 (2022: £462,732) from Project Steel Midco 1 Limited. Project Steel Midco 1 Limited is a related party by virtue of holding 88% of the share capital in the Company.
At the Statement of Financial Position date, the Company owes £129 (2022: £129) to Project Steel Topco Limited. Project Steel Topco Limited is a related party by virtue of holding 88% of the share capital in the Company.

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UTILITY BIDDER LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

28.


Controlling party

The immediate parent and controlling party is Utility Bidder Holdings Limited, its registered office address being Corby Innovation Hub, Bangrave Road South, Corby, England, NN17 1NN. 
The ultimate parent is Project Steel Topco Limited, its registered office address being Corby Innovation Hub, Bangrave Road South, Corby, United Kingdom, NN17 1NN, and the ultimate controlling party is Sovereign Capital IV Limited Partnership, its registered office address being 25 Victoria Street, London, SW1H 0EX. 
 
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