Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31true2023-01-01truetrueTelecomunications Activitiesfalse67118truefalse 04021816 2023-01-01 2023-12-31 04021816 2022-01-01 2022-12-31 04021816 2023-12-31 04021816 2022-12-31 04021816 2022-01-01 04021816 1 2023-01-01 2023-12-31 04021816 1 2022-01-01 2022-12-31 04021816 4 2023-01-01 2023-12-31 04021816 4 2022-01-01 2022-12-31 04021816 d:Director1 2023-01-01 2023-12-31 04021816 d:Director1 2023-12-31 04021816 d:Director2 2023-01-01 2023-12-31 04021816 d:Director3 2023-01-01 2023-12-31 04021816 d:Director3 2023-12-31 04021816 d:Director4 2023-01-01 2023-12-31 04021816 d:Director4 2023-12-31 04021816 d:Director5 2023-01-01 2023-12-31 04021816 d:Director5 2023-12-31 04021816 d:RegisteredOffice 2023-01-01 2023-12-31 04021816 e:MotorVehicles 2023-01-01 2023-12-31 04021816 e:MotorVehicles 2023-12-31 04021816 e:MotorVehicles 2022-12-31 04021816 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 04021816 e:FurnitureFittings 2023-01-01 2023-12-31 04021816 e:FurnitureFittings 2023-12-31 04021816 e:FurnitureFittings 2022-12-31 04021816 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 04021816 e:ComputerEquipment 2023-01-01 2023-12-31 04021816 e:ComputerEquipment 2023-12-31 04021816 e:ComputerEquipment 2022-12-31 04021816 e:ComputerEquipment e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 04021816 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 04021816 e:PatentsTrademarksLicencesConcessionsSimilar 2023-12-31 04021816 e:PatentsTrademarksLicencesConcessionsSimilar 2022-12-31 04021816 e:CurrentFinancialInstruments 2023-12-31 04021816 e:CurrentFinancialInstruments 2022-12-31 04021816 e:Non-currentFinancialInstruments 2023-12-31 04021816 e:Non-currentFinancialInstruments 2022-12-31 04021816 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 04021816 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 04021816 e:Non-currentFinancialInstruments e:AfterOneYear 2023-12-31 04021816 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-31 04021816 e:UKTax 2023-01-01 2023-12-31 04021816 e:UKTax 2022-01-01 2022-12-31 04021816 e:ShareCapital 2023-01-01 2023-12-31 04021816 e:ShareCapital 2023-12-31 04021816 e:ShareCapital 2022-01-01 2022-12-31 04021816 e:ShareCapital 2022-12-31 04021816 e:ShareCapital 2022-01-01 04021816 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 04021816 e:RetainedEarningsAccumulatedLosses 2023-12-31 04021816 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 04021816 e:RetainedEarningsAccumulatedLosses 2022-12-31 04021816 e:RetainedEarningsAccumulatedLosses 2022-01-01 04021816 d:OrdinaryShareClass1 2023-01-01 2023-12-31 04021816 d:OrdinaryShareClass1 2023-12-31 04021816 d:OrdinaryShareClass1 2022-12-31 04021816 d:OrdinaryShareClass2 2023-01-01 2023-12-31 04021816 d:OrdinaryShareClass2 2023-12-31 04021816 d:OrdinaryShareClass2 2022-12-31 04021816 d:FRS102 2023-01-01 2023-12-31 04021816 d:Audited 2023-01-01 2023-12-31 04021816 d:FullAccounts 2023-01-01 2023-12-31 04021816 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 04021816 e:WithinOneYear 2023-12-31 04021816 e:WithinOneYear 2022-12-31 04021816 e:BetweenOneFiveYears 2023-12-31 04021816 e:BetweenOneFiveYears 2022-12-31 04021816 e:MoreThanFiveYears 2023-12-31 04021816 e:MoreThanFiveYears 2022-12-31 04021816 e:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-12-31 04021816 e:PlantEquipmentOtherAssetsUnderOperatingLeases 2022-12-31 04021816 e:PlantEquipmentOtherAssetsUnderOperatingLeases e:WithinOneYear 2023-12-31 04021816 e:PlantEquipmentOtherAssetsUnderOperatingLeases e:WithinOneYear 2022-12-31 04021816 e:PlantEquipmentOtherAssetsUnderOperatingLeases e:BetweenOneFiveYears 2023-12-31 04021816 e:PlantEquipmentOtherAssetsUnderOperatingLeases e:BetweenOneFiveYears 2022-12-31 04021816 2 2023-01-01 2023-12-31 04021816 e:PatentsTrademarksLicencesConcessionsSimilar e:OwnedIntangibleAssets 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 04021816










ENREACH UK LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
ENREACH UK LIMITED
 
 
COMPANY INFORMATION


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




Registered number
04021816



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 UK LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditors' Report
 
6 - 9
Statement of Comprehensive Income
 
10
Balance Sheet
 
11 - 12
Statement of Changes in Equity
 
13
Notes to the Financial Statements
 
14 - 28


 
ENREACH UK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Business review
 
The Company is a provider of business telephony and IT products and services serving mainly small and medium sized entities across       the UK and is part of the Enreach Holdings Limited group of companies, which in turn is owned by 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 products 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 Company 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 UK LIMITED
 

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

Principal risks and uncertainties
 
The risks facing the Company are constantly monitored. Management are of the opinion that the principal risks facing the Company relate to the wider economic conditions which may influence the demand for its products and services.
Information Systems
The Company is reliant upon a number of 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 Company’s business. Management regularly assesses the business support systems and has in place several contingency plans to mitigate the impact of such failures. These plans are constantly reviewed.
Supply Chain
The Company is not solely reliant on one manufacturer and has contingency plans for alternative suppliers. 
Competition
The Company competes predominantly in the telecommunications and IT market, where the principal risks are that of changes to technology. The Company continually assesses the latest changes to technology to ensure it retains and develops market share.
Dependence on Key Members of Management and Staff
The Company continues to add to its key people and undertakes significant knowledge share and training to ensure both continuity and coverage.
Regulatory Compliance
The Company 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 Company manages risk through close monitoring of regulatory compliance and seeking the latest professional guidance and support if required.

Page 2

 
ENREACH UK LIMITED
 

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

Financial key performance indicators
 
The Company 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 Company uses a suite of non-financial KPIs to monitor and measure success monthly which cover 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 UK 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 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 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 profit for the year, after taxation, amounted to £645,021 (2022 - loss £3,187,425).

The Company paid no dividends in the year (2022 - £nil).

Directors

The Directors who served during the year were:

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

Page 4

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


Future developments and post balance sheet events

In 2024, we anticipate further own intellectual property products to be launched in the UK market as the Company continues the move away from the hardware focused market to the unified communications space.
The Company 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 year, 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 Strategic Report

Business review, principal risks and uncertainties, financial key performance indicators, other key performance indicators and future developments 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'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's auditors are aware of that information.

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 5

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

Opinion


We have audited the financial statements of Enreach UK Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the 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 Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Page 6

 
ENREACH UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENREACH UK 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 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 the 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.


Page 7

 
ENREACH UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENREACH UK 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 Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


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 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 Company 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 Company 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 Company'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 8

 
ENREACH UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENREACH UK 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 9

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

2023
2022
Note
£
£

  

Turnover
 4 
11,850,162
12,118,958

Cost of sales
  
(5,079,659)
(5,439,667)

Gross profit
  
6,770,503
6,679,291

Administrative expenses
  
(6,011,635)
(9,849,349)

Other operating income
 5 
-
(12,846)

Operating profit/(loss)
 6 
758,868
(3,182,904)

Interest receivable and similar income
 9 
2,458
440

Interest payable and similar expenses
 10 
(107,964)
(20,387)

Profit/(loss) before tax
  
653,362
(3,202,851)

Tax on profit/(loss)
 11 
(8,341)
15,426

Profit/(loss) for the financial year
  
645,021
(3,187,425)

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 14 to 28 form part of these financial statements.

Page 10

 
ENREACH UK LIMITED
REGISTERED NUMBER: 04021816

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
-
18,295

Tangible assets
 13 
181,993
349,414

  
181,993
367,709

Current assets
  

Stocks
 14 
89,578
245,629

Debtors: amounts falling due within one year
 15 
10,188,639
10,462,900

Cash at bank and in hand
 16 
600,973
251,318

  
10,879,190
10,959,847

Creditors: amounts falling due within one year
 17 
(4,928,751)
(5,831,982)

Net current assets
  
 
 
5,950,439
 
 
5,127,865

Total assets less current liabilities
  
6,132,432
5,495,574

Creditors: amounts falling due after more than one year
 18 
-
(8,163)

  

Net assets
  
6,132,432
5,487,411

Page 11

 
ENREACH UK LIMITED
REGISTERED NUMBER: 04021816
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Capital and reserves
  

Called up share capital 
 19 
94
94

Profit and loss account
 20 
6,132,338
5,487,317

  
6,132,432
5,487,411


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 14 to 28 form part of these financial statements.

Page 12

 
ENREACH UK 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
94
8,674,742
8,674,836


Comprehensive income for the year

Loss for the year
-
(3,187,425)
(3,187,425)
Total comprehensive income for the year
-
(3,187,425)
(3,187,425)



At 1 January 2023
94
5,487,317
5,487,411


Comprehensive income for the year

Profit for the year
-
645,021
645,021
Total comprehensive income for the year
-
645,021
645,021


At 31 December 2023
94
6,132,338
6,132,432


The notes on pages 14 to 28 form part of these financial statements.

Page 13

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

1.


General information

Enreach UK Limited is a private limited company, limited by shares, incorporated in England and Wales. The principal activity of the Company is the provision of telecommunications services. The registered office and principal place of business is Communications House, Hadley Park, Telford, Shropshire, TF1 6QJ.
The principal activity of the business is the provision of telecommunication 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 management to exercise judgement 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 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Enreach Holdings Ltd as at 31 December 2023 and these financial statements may be obtained from Companies House or the registered office of Enreach Holdings Ltd which is located at Communications House, Hadley Park, Telford, Shropshire, United Kingdom, TF1 6QJ.

 
2.3

Going concern

After making enquires, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

Page 14

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

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 Company has transferred the significant risks and rewards of ownership to the buyer;
the Company 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 Company 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 Company 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.

 
2.5

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

Page 15

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

2.Accounting policies (continued)

 
2.6

Operating leases: the Company as lessee

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

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

 
2.7

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 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 16

 
ENREACH UK 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 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 Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.12

Taxation

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 operates and generates 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; 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 balance sheet date.

 
2.13

Intangible assets

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

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

Page 17

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

2.Accounting policies (continued)

 
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.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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:

Motor vehicles
-
20%
Fixtures & 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.

 
2.15

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.

 
2.16

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.

Page 18

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

2.Accounting policies (continued)

 
2.17

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.

 
2.18

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.

 
2.19

Financial instruments

The Company 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 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 Company would receive for the asset if it were to be sold at the balance sheet date.

Page 19

 
ENREACH UK 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 Company 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 there are are no 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.


4.


Turnover

The whole of the turnover is attributable to the provision of telecommunication services. 

All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Government grants receivable
-
(12,846)

-
(12,846)



6.


Operating profit/(loss)

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

2023
2022
£
£

Difference on foreign exchange
(58,289)
32,693

Fees payable to the Company's auditors for the audit of the financial statements
10,800
9,700

Profit/loss on sale of tangible assets
-
(14,408)

Page 20

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

7.


Employees

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


2023
2022
£
£

Wages and salaries
2,963,752
5,369,645

Social security costs
333,757
624,495

Cost of defined contribution scheme
47,080
78,004

3,344,589
6,072,144


The Key Management Personnel of the Company received remuneration totalling £535,074 (2022: £694,325) during the year.

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


        2023
        2022
            No.
            No.







67
118


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
-
285,977

Company contributions to defined contribution pension schemes
-
1,211

Compensation for loss of office
-
60,000

-
347,188


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: £347,188) from the Company.
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £nil (2022: £1,211).
No amounts are accrued under defined benefit pension schemes.
No share options were exercised during the year, with no shares received or receivable under long term incentive schemes.

Page 21

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

9.


Interest receivable

2023
2022
£
£


Other interest receivable
2,458
440

2,458
440


10.


Interest payable and similar expenses

2023
2022
£
£


Loans from group undertakings
107,964
20,387

107,964
20,387


11.


Taxation


2023
2022
£
£

Corporation tax


Adjustments in respect of previous periods
8,341
-


8,341
-


Total current tax
8,341
-

Deferred tax


Origination and reversal of timing differences
-
(15,426)

Total deferred tax
-
(15,426)


Taxation on profit/(loss) on ordinary activities
8,341
(15,426)
Page 22

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


Factors affecting tax charge for the year

The tax assessed for the year is lower 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
£
£


Profit/(loss) on ordinary activities before tax
653,362
(3,202,851)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
153,540
(608,542)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
39,359
14,242

Capital allowances for year in excess of depreciation
36,825
6,400

Utilisation of tax losses
(229,724)
-

Adjustments to tax charge in respect of prior periods
8,341
-

Other timing differences leading to an increase (decrease) in taxation
-
(15,426)

Book profit on chargeable assets
-
(2,738)

Unrelieved tax losses carried forward
-
330,367

Group relief
-
260,271

Total tax charge for the year
8,341
(15,426)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 23

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

12.


Intangible assets




Licences

£



Cost


At 1 January 2023
372,444



At 31 December 2023

372,444



Amortisation


At 1 January 2023
354,149


Charge for the year on owned assets
18,295



At 31 December 2023

372,444



Net book value



At 31 December 2023
-



At 31 December 2022
18,295



Page 24

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

13.


Tangible fixed assets





Motor vehicles
Fixtures & fittings
Computer equipment
Total

£
£
£
£



Cost


At 1 January 2023
21,819
655,244
904,144
1,581,207


Additions
-
-
14,650
14,650



At 31 December 2023

21,819
655,244
918,794
1,595,857



Depreciation


At 1 January 2023
21,819
571,756
638,218
1,231,793


Charge for the year on owned assets
-
33,383
148,688
182,071



At 31 December 2023

21,819
605,139
786,906
1,413,864



Net book value



At 31 December 2023
-
50,105
131,888
181,993



At 31 December 2022
-
83,488
265,926
349,414


14.


Stocks

2023
2022
£
£

Finished goods and goods for resale
89,578
245,629

89,578
245,629


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 25

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

15.


Debtors

2023
2022
£
£


Trade debtors
1,928,292
1,697,515

Amounts owed by group undertakings
7,523,026
7,499,543

Other debtors
-
20,215

Prepayments and accrued income
737,321
1,245,627

10,188,639
10,462,900


Amounts owed by group undertakings are repayable on demand. There has been no interest charged on the balances.


16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
600,973
251,318

600,973
251,318



17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
234,423
706,224

Amounts owed to group undertakings
3,666,245
3,862,045

Other taxation and social security
582,856
408,035

Other creditors
17,815
20,260

Accruals and deferred income
427,412
835,418

4,928,751
5,831,982


Amounts owed to group undertakings are repayable on demand. There has been no interest charged on the balances.

Page 26

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

18.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Other creditors
-
8,163

-
8,163



19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



90 (2022 - 90) Ordinary Shares of £1 each
90
90
4 (2022 - 4) A Shares of £1 each
4
4

94

94



20.


Reserves

Profit & loss account

The Profit & loss account represents accumulated undistributed profits generated since incorporation.


21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £47,080 (2022: £78,004). Contributions totaling £10,697 (2022: £13,926) were payable to the fund at the balance sheet date.

Page 27

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


22.


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
£
£

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

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).


23.


Related party transactions

As the Company is a wholly owned subsidiary of the Enreach Holdings Limited sub-group, the Company has taken advantage of the exemption contained in FRS102 and has therefore not disclosed transactions or balances with other wholly owned subsidiaries that form part of the group. The financial statements of Enreach Holdings Limited, the parent Company of the sub-group, can be obtained from Companies House.


24.


Controlling party

The ultimate parent undertaking is Waterland Private Equity Investments B.V., a company incorporated in the Netherlands, which does not have any single controlling party. The registered office of the ultimate parent is Brediusweg 16, 1401 AG Bussum, The Netherlands.

 
Page 28