Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-312023-12-31The principal activity of the Group is the provision of telecommunications services.false2023-01-01false00false 12101512 2023-01-01 2023-12-31 12101512 2022-01-01 2022-12-31 12101512 2023-12-31 12101512 2022-12-31 12101512 2022-01-01 12101512 c:Director1 2023-01-01 2023-12-31 12101512 c:Director1 2023-12-31 12101512 c:Director2 2023-01-01 2023-12-31 12101512 c:Director3 2023-01-01 2023-12-31 12101512 c:Director3 2023-12-31 12101512 c:Director4 2023-01-01 2023-12-31 12101512 c:Director5 2023-01-01 2023-12-31 12101512 c:Director5 2023-12-31 12101512 c:RegisteredOffice 2023-01-01 2023-12-31 12101512 d:PlantMachinery 2023-01-01 2023-12-31 12101512 d:MotorVehicles 2023-01-01 2023-12-31 12101512 d:FurnitureFittings 2023-01-01 2023-12-31 12101512 d:ComputerEquipment 2023-01-01 2023-12-31 12101512 d:PatentsTrademarksLicencesConcessionsSimilar 2023-01-01 2023-12-31 12101512 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-01-01 2023-12-31 12101512 d:Goodwill 2023-01-01 2023-12-31 12101512 d:CopyrightsPatentsTrademarksServiceOperatingRights 2023-01-01 2023-12-31 12101512 d:CurrentFinancialInstruments 2023-12-31 12101512 d:CurrentFinancialInstruments 2022-12-31 12101512 d:Non-currentFinancialInstruments 2023-12-31 12101512 d:Non-currentFinancialInstruments 2022-12-31 12101512 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 12101512 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 12101512 d:Non-currentFinancialInstruments d:AfterOneYear 2023-12-31 12101512 d:Non-currentFinancialInstruments d:AfterOneYear 2022-12-31 12101512 d:ShareCapital 2023-01-01 2023-12-31 12101512 d:ShareCapital 2023-12-31 12101512 d:ShareCapital 2022-01-01 2022-12-31 12101512 d:ShareCapital 2022-12-31 12101512 d:ShareCapital 2022-01-01 12101512 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 12101512 d:RetainedEarningsAccumulatedLosses 2023-12-31 12101512 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 12101512 d:RetainedEarningsAccumulatedLosses 2022-12-31 12101512 d:RetainedEarningsAccumulatedLosses 2022-01-01 12101512 c:OrdinaryShareClass1 2023-01-01 2023-12-31 12101512 c:OrdinaryShareClass1 2023-12-31 12101512 c:OrdinaryShareClass1 2022-12-31 12101512 c:FRS102 2023-01-01 2023-12-31 12101512 c:Audited 2023-01-01 2023-12-31 12101512 c:FullAccounts 2023-01-01 2023-12-31 12101512 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 12101512 d:Subsidiary1 2023-01-01 2023-12-31 12101512 d:Subsidiary1 1 2023-01-01 2023-12-31 12101512 d:Subsidiary2 2023-01-01 2023-12-31 12101512 d:Subsidiary2 1 2023-01-01 2023-12-31 12101512 c:Consolidated 2023-12-31 12101512 c:ConsolidatedGroupCompanyAccounts 2023-01-01 2023-12-31 12101512 2 2023-01-01 2023-12-31 12101512 6 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 12101512










ENREACH HOLDINGS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
ENREACH HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
R Ebbinghaus (resigned 16 November 2023)
S Nijhuis 
M N A Van Der Pas (resigned 16 November 2023)
Enreach Holding B.V 
D R Ward (resigned 13 January 2023)




Registered number
12101512



Registered office
Communications House
Hadley Park

Telford

Shropshire

TF1 6QJ




Independent auditors
WR Partners
Chartered Accountants & Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG





 
ENREACH HOLDINGS LIMITED
 

CONTENTS



Page
Group strategic report
 
1 - 3
Directors' report
 
4 - 6
Independent auditors' report
 
7 - 10
Consolidated statement of comprehensive income
 
11
Consolidated balance sheet
 
12 - 13
Company balance sheet
 
14
Consolidated statement of changes in equity
 
15
Company statement of changes in equity
 
16
Consolidated Statement of cash flows
 
17 - 18
Notes to the financial statements
 
19 - 42


 
ENREACH HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Business review
 
These accounts are for the year ended 31 December 2023. The Company is a wholly owned subsidiary of Enreach Holding B.V. a company incorporated in the Netherlands.
Enreach, as a group of companies across Europe, collectively provides collaborative technology and telecommunications services that are transformative for small and medium size entities and their people. By being a member of the Enreach Group, it benefits from Enreach in-house developed and branded products and services. The Group invests significantly in the research and development of its product and services.
The financial performance in 2023 was significantly improved, following a subpar performance in 2022; which was affected by the transition from an upfront revenue model to a recurring revenue model, combined with a mis-timed growth strategy execution following the COVID period and shift in market demands. This resulted in a significant misalignment between the cost base of the business and its revenue and gross margin performance, resulting in the Group implementing a restructuring program in the second half of 2022 with the aim of realigning its cost base and focusing on its core activities (primarily unified communication solutions and connectivity services), as well as improving the sales and customer journeys. All costs associated with the restructuring activities were incurred in 2022.
The restructuring changes made in 2022 have resulted in the business returning to solid profitable performance in 2023, allowing focus to return to the future strategy of the business, including the introduction of new products and services to the existing revenue streams.  
The Group is now well positioned to take advantage of the market demands for unified communication solutions with our solutions being a key enabler for the changing working models for businesses. Through 2024 and 2025, new products and services will be launched into the UK market supporting the growth ambitions of the business.

Page 1

 
ENREACH HOLDINGS LIMITED
 

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

Principal risks and uncertainties
 
The risks facing the Group are reviewed and appropriate mitigations considered and where possible implemented. The principal risks and uncertainties facing the business are people risk, business environment and market risks.
People risk
Employees are the Group’s key asset. The Group’s success relies on recruiting, retaining and motivating key employees. The Group has staff engagement policies to mitigate this risk.
Business environment and market risks
The Group’s revenues are in the telecommunications industry which is highly competitive and undergoing change. Significant changes in the industry or customer requirements, or the emergence of competitive products with new capabilities or technologies could adversely affect the Group’s operations. Being part of the wider Enreach group, mitigates product risk by benefiting from new products meeting customer demands.
The Group is managing and mitigating the impact of the following operational risks: 
Information Systems
The Group is reliant upon several business systems which, if disrupted for any length of time due to damage or interruption of service could have an adverse effect on the efficient running of the Group’s business. Management regularly assesses the business support systems and has in place several contingency plans to mitigate the impact of such failures.
Supply Chain
The Group is not solely reliant on one manufacturer and has contingency plans for alternative suppliers. 
Regulatory Compliance
The Group is subject to regulatory compliance risk which could arise from failure to comply with relevant law, regulation or codes of practice. Failure to comply could result in fines, cessation of some business activities or a public reprimand. The Group manages risk through close monitoring of regulatory compliance and seeking the latest professional guidance.

Page 2

 
ENREACH HOLDINGS LIMITED
 

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

Financial key performance indicators
 
The Group measures its financial performance and position by references to key performance indicators. The key performance indicators used by the business include those relating to turnover, gross profit, operating profit, net current assets and current assets. 

Other key performance indicators
 
The Group uses a suite of non-financial KPIs to monitor and measure success monthly which covers the whole business operating spectrum reflecting the changing needs of the business. 


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



Ian Rooker on behalf of Enreach Holding B.V
Director

Date: 3 October 2024

Page 3

 
ENREACH HOLDINGS 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 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 judgements 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 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 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 Company and the Group 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 £7,075,614 (2022 - loss £8,823,975).

The Group paid no dividends during the year (2022 - £nil). 

Directors

The directors who served during the year were:

R Ebbinghaus (resigned 16 November 2023)
S Nijhuis 
M N A Van Der Pas (resigned 16 November 2023)
Enreach Holding B.V 
D R Ward (resigned 13 January 2023)

Page 4

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


Future developments

In 2024, we anticipate further own intellectual property products to be launched in the UK market as the Group continues the move away from the hardware focused market to the unified communications space.
The Group is now well positioned to take advantage of the market demands for unified communication solutions with our solutions being a key enabler for the changing working models for businesses. Through 2024 and 2025, new products and services will be launched into the UK market supporting the growth ambitions of the business.

Qualifying third party indemnity provisions

During the period, the Company maintained liability insurance and third-party indemnification provisions for its Directors, under which the Company has agreed to indemnify the Directors to the extent permitted by law in respect of all liabilities to third parties arising out of, or in connection with, the execution of their powers, duties and responsibilities as directors of the Company and any of its associated companies.

Matters covered in the Group Strategic Report

Business review, principal risks and uncertainties, financial key performance indicators and other key performance indicators are disclosed in the Strategic Report.

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Page 5

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


Auditors

The auditorsWR Partnerswill 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.
 





Ian Rooker on behalf of Enreach Holding B.V
Director

Date: 3 October 2024

Page 6

 
ENREACH HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENREACH HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Enreach Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and 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 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 Auditors' 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.


Material uncertainty related to going concern


We draw attention to note 2.3 of the financial statements, which indicates that Enreach Holdings Limited are preparing the financial statements on a going concern basis with the support of its immediate parent company, Enreach B.V.


As stated in note 2.3, the Directors note that the latest published financial information of the VOIP BV group, of which Enreach B.V is a subsidiary, includes a material uncertainty in relation to going concern which may limit the ability of Enreach B.V to fulfil its commitment to the Group.  These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.


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


Page 7

 
ENREACH HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENREACH HOLDINGS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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. 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.


Page 8

 
ENREACH HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENREACH HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 4, 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.


Auditors' 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 Auditors' 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:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR).
We understood how the Group is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements.
We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.


Page 9

 
ENREACH HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENREACH HOLDINGS LIMITED (CONTINUED)


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 Auditors' report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 Auditors' 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.





John Fletcher BA (Hons) FCA (Senior statutory auditor)
  
for and on behalf of
WR Partners
 
Chartered Accountants
Statutory Auditors
  
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

 
Date: 
4 October 2024
Page 10

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

2023
2022
Note
£
£

  

Turnover
 4 
13,564,574
15,824,383

Cost of sales
  
(6,202,437)
(7,406,133)

Gross profit
  
7,362,137
8,418,250

Administrative expenses
  
(10,205,165)
(14,559,827)

Other operating income
 5 
-
(12,646)

Operating loss
 6 
(2,843,028)
(6,154,223)

Interest receivable and similar income
 10 
399,207
269,870

Interest payable and similar expenses
 11 
(4,816,845)
(3,232,405)

Loss before tax
  
(7,260,666)
(9,116,758)

Tax on loss
 12 
185,052
292,783

Loss for the financial year
  
(7,075,614)
(8,823,975)

Loss for the year attributable to:
  

Owners of the parent company
  
7,075,614
8,823,975

  
7,075,614
8,823,975

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

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

The notes on pages 19 to 42 form part of these financial statements.

Page 11

 
ENREACH HOLDINGS LIMITED
REGISTERED NUMBER: 12101512

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
18,976,368
23,025,655

Tangible assets
 14 
207,775
379,755

  
19,184,143
23,405,410

Current assets
  

Stocks
 16 
90,916
261,008

Debtors: amounts falling due after more than one year
 17 
3,897,051
3,501,821

Debtors: amounts falling due within one year
 17 
2,953,038
3,478,322

Cash at bank and in hand
 18 
763,773
549,165

  
7,704,778
7,790,316

Creditors: amounts falling due within one year
 19 
(11,720,204)
(13,302,839)

Net current liabilities
  
 
 
(4,015,426)
 
 
(5,512,523)

Total assets less current liabilities
  
15,168,717
17,892,887

Creditors: amounts falling due after more than one year
 20 
(39,897,203)
(35,315,030)

Provisions for liabilities
  

Deferred tax
 21 
(644,828)
(875,557)

  
 
 
(644,828)
 
 
(875,557)

Net liabilities
  
(25,373,314)
(18,297,700)

Page 12

 
ENREACH HOLDINGS LIMITED
REGISTERED NUMBER: 12101512
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account
 23 
(25,373,414)
(18,297,800)

  
(25,373,314)
(18,297,700)


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




Ian Rooker on behalf of Enreach Holding B.V
Director

Date: 3 October 2024

The notes on pages 19 to 42 form part of these financial statements.

Page 13

 
ENREACH HOLDINGS LIMITED
REGISTERED NUMBER: 12101512

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 15 
31,575,194
31,575,194

  
31,575,194
31,575,194

  

Creditors: amounts falling due within one year
 19 
(19,040,604)
(19,006,633)

Net current liabilities
  
 
 
(19,040,604)
 
 
(19,006,633)

Total assets less current liabilities
  
12,534,590
12,568,561

  

Creditors: amounts falling due after more than one year
 20 
(39,897,173)
(35,306,837)

  

Net liabilities
  
(27,362,583)
(22,738,276)


Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account
 23 
(27,362,683)
(22,738,376)

  
(27,362,583)
(22,738,276)


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




Ian Rooker on behalf of Enreach Holding B.V
Director

Date: 3 October 2024

The notes on pages 19 to 42 form part of these financial statements.

Page 14

 
ENREACH HOLDINGS LIMITED
 

CONSOLIDATED 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
100
(9,473,825)
(9,473,725)


Comprehensive income for the year

Loss for the year
-
(8,823,975)
(8,823,975)
Total comprehensive income for the year
-
(8,823,975)
(8,823,975)



At 1 January 2023
100
(18,297,800)
(18,297,700)


Comprehensive income for the year

Loss for the year
-
(7,075,614)
(7,075,614)
Total comprehensive income for the year
-
(7,075,614)
(7,075,614)


At 31 December 2023
100
(25,373,414)
(25,373,314)


The notes on pages 19 to 42 form part of these financial statements.

Page 15

 
ENREACH HOLDINGS LIMITED
 

COMPANY 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
100
(5,352,046)
(5,351,946)


Comprehensive income for the year

Loss for the year
-
(17,386,330)
(17,386,330)
Total comprehensive income for the year
-
(17,386,330)
(17,386,330)



At 1 January 2023
100
(22,738,376)
(22,738,276)


Comprehensive income for the year

Loss for the year
-
(4,624,307)
(4,624,307)
Total comprehensive income for the year
-
(4,624,307)
(4,624,307)


At 31 December 2023
100
(27,362,683)
(27,362,583)


The notes on pages 19 to 42 form part of these financial statements.

Page 16

 
ENREACH HOLDINGS LIMITED
 

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

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(7,075,614)
(8,823,975)

Adjustments for:

Amortisation of intangible assets
4,049,287
4,070,586

Depreciation of tangible assets
189,378
148,034

Loss on disposal of tangible assets
-
(14,408)

Interest paid
4,816,845
3,232,405

Interest received
(399,207)
(269,870)

Taxation charge
(185,052)
(292,783)

Decrease in stocks
170,092
57,106

Decrease in debtors
331,401
584,672

(Increase) in amounts owed by groups
(418,713)
(302,257)

(Decrease) in creditors
(1,347,157)
(887,751)

Increase in amounts owed to groups
4,671,880
4,881,387

Corporation tax (paid)/received
(153,496)
88,298

Net cash generated from operating activities

4,649,644
2,471,444


Cash flows from investing activities

Purchase of intangible fixed assets
-
(92,063)

Purchase of tangible fixed assets
(17,398)
(122,926)

Sale of tangible fixed assets
-
17,492

Interest received
399,207
269,870

Net cash from investing activities

381,809
72,373
Page 17

 
ENREACH HOLDINGS LIMITED
 

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


2023
2022

£
£



Cash flows from financing activities

Interest paid
(4,816,845)
(3,232,405)

Net cash used in financing activities
(4,816,845)
(3,232,405)

Net increase/(decrease) in cash and cash equivalents
214,608
(688,588)

Cash and cash equivalents at beginning of year
549,165
1,237,753

Cash and cash equivalents at the end of year
763,773
549,165


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
763,773
549,165

763,773
549,165


Page 18

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Enreach Holdings Limited is a private company, limited by shares, domiciled in the UK and incorporated in England and Wales. The registered office and principal place of business is Communication House, Hadley Park, Telford, Shropshire, TF1 6QJ. The principal activities of the business are the provision of telecommunications services.

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 judgement 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.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the 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.

Page 19

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

The Directors assess whether the use of going concern is appropriate i.e, whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the group to continue as a going concern. The directors make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements. 
The Directors of the Company’s intermediate holding company, Enreach Holding B.V., have confirmed that Enreach Holding B.V. will continue to provide financial support to the Company as may be required to enable the Company to continue as a going concern for at least the next 12 months from the date of this report.
In making the above assessment the Directors have taken into account the financial commitment made by its parent company and have also considered the ultimate parent company of the group, Voip B.V., of which Enreach Holding B.V. is a subsidiary company. 
The Directors note that the latest published financial information for Voip B.V includes a material uncertainty in relation to going concern due to the scheduled refinancing of the Group's Recurring Credit Facility in August 2025. 
The inherent uncertainty on the ability of the Group headed by Voip B.V  to complete its planned refinancing  indicates the existence of a material uncertainty which may cast significant doubt about the Group's ability to continue as a going concern and therefore may limit the ability of Enreach B.V to fulfil its commitment to Enreach Holdings Limited.
However, despite the uncertainty management are confident that planned initiatives will be sufficient to continue its business and meet its obligations for the coming 12 months. 
After considering the above, the Directors have a reasonable expectation that the Company and Group have adequate resources to continue in operational existence for the foreseeable future. The Company and Group have therefore adopted the going concern basis in preparing these financial statements. 

Page 20

 
ENREACH HOLDINGS 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.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 21

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
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:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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.

 
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.

The Group has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard to continue to be charged over the period to the first market rent review rather than the term of the lease.

Page 22

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

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 23

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

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.

 
2.12

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.

Page 24

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other 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.

 Amortisation is provided on the following bases:

Brand Name
-
10%
Maintenance Contracts
-
11%
Goodwill
-
10%
Other intangible assets
-
17%
- 20%

 
2.14

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:

Plant and machinery
-
20%
Motor vehicles
-
20%
Fixtures and fittings
-
15%
Computer equipment
-
33%

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.

Page 25

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.16

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.

 
2.17

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.

 
2.18

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.

 
2.19

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.

Page 26

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.20

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.

 
2.21

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

Page 27

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the Directors the estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed below:
Investment Carrying Value: 
Investments in subsidiary undertakings are carried at cost less accumulated impairment with annual impairment reviews performed.
During the year, management performed an investment impairment review based on 10 year forecasts which included projected performance as at the date of signing the financial statements. Forecasts were discounted to their present value using a discount rate set by management. No impairment has been recognised in respect of the current year. The impairment reviews performed in the prior year identified impairment totalling £14,196,313 to be recognised within the prior year balance sheet. The carrying values of investments in the Company are £31,575,194  
(2022: £31,575,194)
Intangible Fixed Assets Carrying value: 
Intangible fixed assets including goodwill which arise on acquisition of subsidiary entities are carried at cost less accumulated amortisation. Annual impairment reviews are performed for each identified cash generating unit (CGU). 
During the year, management performed an impairment review based on 10 year forecasts which included projected performance as at the date of signing the financial statements. Forecasts were discounted to their present value using a discount rate set by management. The impairment reviews performed have not identified any impairment to be recognised as at the balance sheet date in respect of both the current year and comparative figures. The carrying values of intangible fixed assets including goodwill are £18,976,368 
(2022: £23,025,655)


4.


Turnover

The whole of the turnover is attributable to the Group's principal activity of the provision of telecommunications services.

All turnover arose within the United Kingdom.

Page 28

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Other operating income

2023
2022
£
£

Government grants receivable
-
(12,646)

-
(12,646)



6.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Exchange differences
(76,538)
34,546

Loss on sale of tangible assets
-
2,780


7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
35,700
32,400

Page 29

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

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


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


Wages and salaries
3,387,378
6,320,113
-
-

Social security costs
360,797
681,082
-
-

Cost of defined contribution scheme
53,724
90,076
-
-

3,801,899
7,091,271
-
-


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


        2023
        2022
            No.
            No.







Employees
75
130

The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL).
The Key Management Personnel of the Group received remuneration totalling £535,074 (2022: £694,325) during the year.
Page 30

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
-
342,152

Group contributions to defined contribution pension schemes
-
1,211

-
343,363


During the year retirement benefits were accruing to no directors (2022 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £NIL (2022 - £342,152).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2022 - £1,211).

During the year NIL directors received shares under the long-term incentive schemes (2022 -NIL)

The total accrued pension provision of the highest paid director at 31 December 2023 amounted to £NIL (2022 - £NIL).

The amount of the accrued lump sum in respect of the highest paid director at 31 December 2023 amounted to £NIL (2022 - £NIL).

No share options were exercised during the year, with no shares received or receivable under long term incentive schemes.
No directors received remuneration from the Company 
(2022: £nil).


10.


Interest receivable

2023
2022
£
£


Other interest receivable
399,207
269,870

399,207
269,870

Page 31

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
-
2,884,351

Other loan interest payable
4,643,744
280,769

Loans from group undertakings
173,101
67,285

4,816,845
3,232,405


12.


Taxation


2023
2022
£
£

Corporation tax


Adjustments in respect of previous periods
45,677
(20,340)


45,677
(20,340)


Total current tax
45,677
(20,340)

Deferred tax


Origination and reversal of timing differences
(230,729)
(272,443)

Total deferred tax
(230,729)
(272,443)


Taxation on loss on ordinary activities
(185,052)
(292,783)
Page 32

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(7,260,666)
(9,116,758)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
(1,706,257)
(1,732,184)

Effects of:


Non-tax deductible amortisation of goodwill and impairment
947,283
766,493

Expenses not deductible for tax purposes
1,115,428
625,763

Timing differences net of movement in tax rates
36,753
9,599

Utilisation of tax losses
(394,389)
-

Adjustments to tax charge in respect of prior periods
45,677
(20,340)

Other timing differences leading to an increase (decrease) in taxation
(229,547)
(272,443)

Book profit on chargeable assets
-
(2,738)

Unrelieved tax losses carried forward
-
333,067

Total tax charge for the year
(185,052)
(292,783)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 33

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Intangible assets

Group





Brand name
Maintenance contracts
Other intangible assets
Goodwill
Total

£
£
£
£
£



Cost


At 1 January 2023
1,035,644
5,952,000
728,703
27,464,138
35,180,485



At 31 December 2023

1,035,644
5,952,000
728,703
27,464,138
35,180,485



Amortisation


At 1 January 2023
284,222
3,009,096
587,769
8,273,743
12,154,830


Charge for the year on owned assets
103,560
1,065,804
85,148
2,794,775
4,049,287



At 31 December 2023

387,782
4,074,900
672,917
11,068,518
16,204,117



Net book value



At 31 December 2023
647,862
1,877,100
55,786
16,395,620
18,976,368



At 31 December 2022
751,422
2,942,904
140,934
19,190,395
23,025,655



Page 34

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Tangible fixed assets

Group






Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost


At 1 January 2023
38,036
21,819
655,244
904,144
1,619,243


Additions
2,748
-
-
14,650
17,398



At 31 December 2023

40,784
21,819
655,244
918,794
1,636,641



Depreciation


At 1 January 2023
7,695
21,819
571,756
638,218
1,239,488


Charge for the year on owned assets
7,307
-
33,383
148,688
189,378



At 31 December 2023

15,002
21,819
605,139
786,906
1,428,866



Net book value



At 31 December 2023
25,782
-
50,105
131,888
207,775



At 31 December 2022
30,341
-
83,488
265,926
379,755

Page 35

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 January 2023
31,575,194



At 31 December 2023
31,575,194






Net book value



At 31 December 2023
31,575,194



At 31 December 2022
31,575,194

Page 36

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Direct subsidiary undertakings


The following were direct subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

NT Technology Group Limited
Communications House, Hadley Park, Telford, TF1 6QJ
Ordinary
100%
Pace Telecom (Holdings) Limited
Communications House, Hadley Park, Telford, TF1 6QJ
Ordinary
100%


Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Enreach UK Limited
Communications House, Hadley Park, Telford, TF1 6QJ
Ordinary
100%
Pace Telecom Limited
Communications House, Hadley Park, Telford, TF1 6QJ
Ordinary
100%


16.


Stocks

Group
Group
2023
2022
£
£

Finished goods and goods for resale
90,916
261,008

90,916
261,008


The carrying value of stocks are stated net of impairment losses totalling £87,150 (2022 - £nil). Impairment losses totalling  £87,150 (2022 - £nil) were recognised in profit and loss.

Page 37

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Debtors

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

Due after more than one year

Amounts owed by group undertakings
3,897,051
3,501,821
-
-

3,897,051
3,501,821
-
-


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

Due within one year

Trade debtors
2,090,194
2,076,485
-
-

Amounts owed by group undertakings
59,711
36,228
-
-

Other debtors
43,786
21,026
-
-

Prepayments and accrued income
759,347
1,344,583
-
-

2,953,038
3,478,322
-
-



18.


Cash and cash equivalents

Group
Group
2023
2022
£
£

Cash at bank and in hand
763,773
549,165

763,773
549,165


Page 38

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Creditors: Amounts falling due within one year

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

Trade creditors
317,007
878,528
-
-

Amounts owed to group undertakings
10,149,686
10,303,167
19,040,602
19,006,632

Corporation tax
-
90,160
-
-

Other taxation and social security
586,969
506,897
-
-

Other creditors
17,818
53,848
2
1

Accruals and deferred income
648,724
1,470,239
-
-

11,720,204
13,302,839
19,040,604
19,006,633


Amounts owed to group undertakings are repayable on demand.


20.


Creditors: Amounts falling due after more than one year

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

Amounts owed to group undertakings
39,897,173
35,306,837
39,897,173
35,306,837

Other creditors
30
8,193
-
-

39,897,203
35,315,030
39,897,173
35,306,837




Page 39

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Deferred taxation


Group



2023


£






At beginning of year
(875,557)


Charged to profit or loss
230,729



At end of year
(644,828)

Group
Group
2023
2022
£
£

Accelerated capital allowances
(4,590)
(5,322)

Timing differences of intangible fixed assets recognised upon business combination
(640,688)
(870,235)

Other short term timing differences
450
-

(644,828)
(875,557)


22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



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


Page 40

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Reserves

Profit and loss account

The profit and loss account represents cumulative undistributed profits and losses since incorporation.

24.


Analysis of net debt




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

549,165

214,608

763,773

Debt due after 1 year

(35,306,837)

(4,590,336)

(39,897,173)

Debt due within 1 year

(6,814,369)

(30,741)

(6,845,110)


(41,572,041)
(4,406,469)
(45,978,510)


25.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £53,724 (2022: £90,076). Contributions totalling £10,697 were payable to the fund at the balance sheet date and included within creditors (2022: £13,926).

Page 41

 
ENREACH HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


Commitments under operating leases

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


Group
Group
2023
2022
£
£

Land & Buildings

Not later than 1 year
95,000
95,000

Later than 1 year and not later than 5 years
356,250
380,000

Later than 5 years
-
71,250

451,250
546,250


Group
Group
2023
2022
£
£

Other

Not later than 1 year
43,021
92,148

Later than 1 year and not later than 5 years
41,951
14,560

84,972
106,708

The total cost of operating leases recognised in the profit and loss account in the year was £261,130 (2022: £306,226).


27.


Related party transactions

The Company has taken advantage of the exemption within FRS102 to not disclose transactions with other wholly owned group entities. All such transactions are included in the consolidated accounts of Waterland Private Equity Investments B.V., the ultimate parent company and controlling party. The consolidated accounts of Waterland Private Equity Investments B.V. can be obtained from its registered office detailed below.


28.


Controlling party

The Group and Company are under the control of Waterland Private Equity Investments B.V., which does not have any single controlling party. The registered office of the ultimate parent is Brediusweg 16, 1401 AG Bussum, The Netherlands.

 
Page 42