Company registration number 03840493 (England and Wales)
KENDRA ENERGY SOLUTIONS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
KENDRA ENERGY SOLUTIONS LTD
COMPANY INFORMATION
Directors
Mr G G Ford
Mr C W Mills
Secretary
Mr G G Ford
Company number
03840493
Registered office
C/O Craufurd Hale Group
Ground Floor, Arena Court
Crown Lane
MAIDENHEAD
SL6 8QZ
Auditor
Craufurd Hale Audit Services Limited
C/O Craufurd Hale Group
Ground Floor, Arena Court
Crown Lane
MAIDENHEAD
SL6 8QZ
Business address
Cavendish House
Bourne End Business Park
Cores End Road
BOURNE END
SL8 5AS
KENDRA ENERGY SOLUTIONS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
KENDRA ENERGY SOLUTIONS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

Overall for the year customer demand for our products and services continued to grow to a new high across most regions in the UK. Cost prices stabilised during the year so margins became more predictable and showed an improvement on prior year.

The company’s net worth and cash reserves improved, and the business remains completely self-funded by its shareholders without the need for external third-party funding.

Order books at year end were strong and provide the opportunity for further incremental growth going forward in to 24/25.


Future developments

The company look forward to a further period of growth through increased customer demand and increasing market share in most territories in the UK via its regional office structure. In addition, the company continues to develop new energy related service offerings to its existing and new clients to increase its product and service range.

 

During the year the company took preliminary steps to transition the ownership of the business to an Employee Ownership Trust as the shareholders believe this would be beneficial to all stakeholders including the employees.

Principal risks and uncertainties

The board are responsible for assessing and monitoring business risk and this is achieved through regular business reviews with the senior management team. The principal risks and uncertainties going forward are:

 

Operational risk

Supply chains, although at year end where relatively stable, continue to be at risk through further global economic and political uncertainties with delays in delivery of products and inflationary cost increases possible that may affect performance under fixed price and fixed timeline contracts. This is being mitigated by obtaining fixed prices and performance guarantees from the company’s supply chain where possible.

 

Recruiting and retaining skilled staff

As the company continues to experience a sustained period of further growth the recruitment and retention of skilled staff will be vital to its continued success. This risk is mitigated by the company’s training policies with a number of apprentices enrolled in the industry apprentice scheme, as well as its own fast track training program for training and developing new employees from related industries. Staff turnover remains at a low level.

 

Financial and cash-flow risk

Potential bad debts of the company’s customers remain a key financial risk. This is mitigated by a spread of clients in terms of size and industry segment as well as a robust credit control policy. Credit checks are undertaken for all new clients and where not satisfactory then prepayment is required. Where the company does offer credit terms payments are closely monitored. The company does not rely on third party finance and the cash position at year end is strong so provides the ability to deal with unexpected payment delays if they do occur.

Key performance indicators

 

            23/24        22/23

Turnover         £24.3m £20.3m

Gross Profit         £6.9m         £5.1m

GP %             28%         25%

Operating Profit         £2.3m         £1.3m

Net Assets         £4.5m         £3.1m

KENDRA ENERGY SOLUTIONS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Research and development activities

The company continues to undertake research and development activities in the building energy management systems and services field by developing new and novel systems and service offerings as obsolete systems are replaced with new technology and buildings become smarter.

On behalf of the board

Mr G G Ford
Director
23 October 2024
KENDRA ENERGY SOLUTIONS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

Kendra Energy Solutions Limited's principal activity is the installation, service and maintenance of Building Energy Management Systems (BEMS) and related energy management services.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £543,863. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr G G Ford
Mr C W Mills
Auditor

The auditor, Craufurd Hale Audit Services Limited, is deemed to be appointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.

KENDRA ENERGY SOLUTIONS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr G G Ford
Director
23 October 2024
KENDRA ENERGY SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KENDRA ENERGY SOLUTIONS LTD
- 5 -
Opinion

We have audited the financial statements of Kendra Energy Solutions Ltd (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The 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:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

Opinions on other matters prescribed by the Companies Act 2006

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

KENDRA ENERGY SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KENDRA ENERGY SOLUTIONS LTD (CONTINUED)
- 6 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including non-compliance with laws and regulations, was as follows:

 

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

KENDRA ENERGY SOLUTIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KENDRA ENERGY SOLUTIONS LTD (CONTINUED)
- 7 -

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of management and inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Rayner FCA
Senior Statutory Auditor
For and on behalf of Craufurd Hale Audit Services Limited
23 October 2024
Chartered Accountants
Statutory Auditor
C/O Craufurd Hale Group
Ground Floor, Arena Court
Crown Lane
MAIDENHEAD
SL6 8QZ
KENDRA ENERGY SOLUTIONS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
24,252,413
20,256,039
Cost of sales
(17,397,113)
(15,201,694)
Gross profit
6,855,300
5,054,345
Administrative expenses
(4,563,701)
(3,766,321)
Operating profit
4
2,291,599
1,288,024
Interest receivable and similar income
8
405,073
5,862
Amounts written off investments
9
(372,381)
(1,253)
Share option expense
(876,000)
-
0
Profit before taxation
1,448,291
1,292,633
Tax on profit
10
(391,912)
(46,881)
Profit for the financial year
1,056,379
1,245,752

The profit and loss account has been prepared on the basis that all operations are continuing operations.

KENDRA ENERGY SOLUTIONS LTD
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
215,732
138,185
Investments
13
-
0
372,601
215,732
510,786
Current assets
Stocks
15
23,748
23,967
Debtors
16
6,146,204
5,874,417
Cash at bank and in hand
3,562,412
1,736,628
9,732,364
7,635,012
Creditors: amounts falling due within one year
17
(5,362,705)
(4,967,923)
Net current assets
4,369,659
2,667,089
Total assets less current liabilities
4,585,391
3,177,875
Provisions for liabilities
Deferred tax liability
18
54,000
35,000
(54,000)
(35,000)
Net assets
4,531,391
3,142,875
Capital and reserves
Called up share capital
21
100
100
Other reserves
876,000
-
0
Profit and loss reserves
3,655,291
3,142,775
Total equity
4,531,391
3,142,875
The financial statements were approved by the board of directors and authorised for issue on 23 October 2024 and are signed on its behalf by:
Mr G G Ford
Mr C W Mills
Director
Director
Company registration number 03840493 (England and Wales)
KENDRA ENERGY SOLUTIONS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Share option reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
100
-
2,425,143
2,425,243
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
1,245,752
1,245,752
Dividends
11
-
-
(528,120)
(528,120)
Balance at 31 March 2023
100
-
3,142,775
3,142,875
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
1,056,379
1,056,379
Dividends
11
-
-
(543,863)
(543,863)
Share option expense
-
876,000
-
0
876,000
Balance at 31 March 2024
100
876,000
3,655,291
4,531,391
KENDRA ENERGY SOLUTIONS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
2,326,345
1,135,215
Income taxes paid
(36,881)
(28,475)
Net cash inflow from operating activities
2,289,464
1,106,740
Investing activities
Purchase of tangible fixed assets
(165,504)
(112,190)
Proceeds from disposal of subsidiaries
220
-
0
Repayment of loans
(159,606)
(15,742)
Interest received
32,965
5,862
Dividends received
372,108
-
0
Net cash generated from/(used in) investing activities
80,183
(122,070)
Financing activities
Dividends paid
(543,863)
(528,120)
Net cash used in financing activities
(543,863)
(528,120)
Net increase in cash and cash equivalents
1,825,784
456,550
Cash and cash equivalents at beginning of year
1,736,628
1,280,078
Cash and cash equivalents at end of year
3,562,412
1,736,628
KENDRA ENERGY SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Kendra Energy Solutions Ltd is a private company limited by shares incorporated in England and Wales. The registered office is C/O Craufurd Hale Group, Ground Floor, Arena Court, Crown Lane, MAIDENHEAD, SL6 8QZ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

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

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.

1.3
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation.

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

Fixtures, fittings & equipment
15% and 33.3% reducing balance and 15% and 33.3% straight line
Motor vehicles
25% straight line

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

1.4
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

1.6
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held with banks.

KENDRA ENERGY SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.7
Financial instruments

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.

Other financial assets

Other financial assets are measured at transaction price including transactions costs.

Impairment of financial assets

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

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, are recognised at transaction price including transaction costs.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities as payment is due within one year or less.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

KENDRA ENERGY SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Equity instruments

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

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

1.11
Retirement benefits

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

1.12
Share-based payments

The company has issued share options to certain employees under an Enterprise Management Incentive scheme. Full details of the share-based payment transactions are disclosed in the notes.

KENDRA ENERGY SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.13
Leases

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Intelligent building energy systems services
24,252,413
20,256,039
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
24,252,413
20,256,039
2024
2023
£
£
Other revenue
Interest income
32,965
5,862
Dividends received
372,108
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,750
12,890
Depreciation of owned tangible fixed assets
67,397
56,802
Loss on disposal of tangible fixed assets
20,560
15,752
Operating lease charges
735,772
599,178
KENDRA ENERGY SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
14,750
12,890
6
Employees

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

2024
2023
Number
Number
Directors and administration
43
39
Engineers
115
99
Total
158
138

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
8,713,760
7,146,874
Social security costs
1,060,930
911,708
Pension costs
218,695
210,475
9,993,385
8,269,057
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
57,289
55,652
Company pension contributions to defined contribution schemes
-
4,000
57,289
59,652

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2023 - 1).

KENDRA ENERGY SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
22,496
-
0
Other interest income
10,469
5,862
Total interest revenue
32,965
5,862
Income from fixed asset investments
Income from shares in group undertakings
372,108
-
0
Total income
405,073
5,862
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
22,496
-
0
9
Amounts written off investments
2024
2023
£
£
Other gains and losses
(372,381)
(1,253)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
372,912
36,881
Deferred tax
Origination and reversal of timing differences
19,000
10,000
Total tax charge
391,912
46,881
KENDRA ENERGY SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 18 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,448,291
1,292,633
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
362,073
245,600
Tax effect of expenses that are not deductible in determining taxable profit
350,939
23,493
Tax effect of income not taxable in determining taxable profit
(93,027)
-
0
Group relief
-
0
(493)
Deferred tax movement on accelerated capital allowances
19,000
10,000
Capital allowances (below)/excess of depreciation
(19,387)
(12,691)
Tax relief in respect of research and development expenditure
(227,686)
(219,028)
Taxation charge for the year
391,912
46,881
11
Dividends
2024
2023
£
£
Interim paid
543,863
528,120
KENDRA ENERGY SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
12
Tangible fixed assets
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
Cost
At 1 April 2023
224,167
22,826
246,993
Additions
165,505
-
0
165,505
Disposals
(50,376)
-
0
(50,376)
At 31 March 2024
339,296
22,826
362,122
Depreciation and impairment
At 1 April 2023
99,866
8,942
108,808
Depreciation charged in the year
62,940
4,457
67,397
Eliminated in respect of disposals
(29,815)
-
0
(29,815)
At 31 March 2024
132,991
13,399
146,390
Carrying amount
At 31 March 2024
206,305
9,427
215,732
At 31 March 2023
124,301
13,884
138,185
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
-
0
372,601
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
372,601
Disposals
(372,601)
At 31 March 2024
-
Carrying amount
At 31 March 2024
-
At 31 March 2023
372,601

The subsidiary company, BMS Energy Controls Ltd, was dissolved on 2 April 2024.

KENDRA ENERGY SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
BMS Energy Controls Ltd
Westpoint 4 Redheugs Rigg, South Gyle, Edinburgh, EH12 9DQ
A,B and C
100.00
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
23,748
23,967
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,176,711
4,152,507
Gross amounts owed by contract customers
938,032
906,514
Other debtors
724,379
562,695
Prepayments and accrued income
307,082
252,701
6,146,204
5,874,417
17
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,128,539
1,963,196
Amounts owed to group undertakings
-
0
373,428
Corporation tax
372,912
36,881
Other taxation and social security
878,382
834,624
Accruals and deferred income
1,982,872
1,759,794
5,362,705
4,967,923
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
54,000
35,000
KENDRA ENERGY SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
18
Deferred taxation
(Continued)
- 21 -
2024
Movements in the year:
£
Liability at 1 April 2023
35,000
Charge to profit or loss
19,000
Liability at 31 March 2024
54,000

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
218,695
210,475

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

KENDRA ENERGY SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
20
Share-based payment transactions
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 April 2023 and 31 March 2024
1,218
1,218
7.31
7.31
Exercisable at 31 March 2024
-
0
-
0
-
0
-
0

 

The weighted average share price at the date of exercise for share options during the year was £7.31 (2023 - £7.31).

There were a number of options outstanding at 31 March 2024 with an exercise price of £4.50 and £13.00

 

The option holder may exercise the option in full if there is a transaction as a result of which the holders of the ordinary shares in the company sell at least 75% of their shareholding in the company, or there is a transfer of the whole, or substantially the whole, of the business of the company.

 

The company operated an Enterprise Management Incentive share option plan, under which total options over 10% of the share capital of the company have been previously granted to two employees at an exercise price of £4.50 per share and two employees at an exercise price of £13.00.

 

The estimated fair value of each share option granted has been calculated based on the value of the company with a discount applied for lack of marketability and control.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 1p each
5,000
5,000
50
50
B Ordinary shares of 1p each
5,000
5,000
50
50
10,000
10,000
100
100

A Ordinary shares and B Ordinary shares have equal voting rights and equal rights to dividends.

KENDRA ENERGY SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
22
Operating lease commitments
Lessee

The company is committed to a property lease from which it undertakes its business and vehicle leases for employee use.

 

Included in debtors is £20,911 (2023 - £18,833) held as property rent deposits.

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

2024
2023
£
£
Within one year
443,259
298,340
Between two and five years
769,516
328,809
1,212,775
627,149
23
Related party transactions

BMS Energy Controls Ltd was a wholly-owned subsidiary of Kendra Energy Solutions Limited.

 

During the year a dividend of £372,108 was received from BMS Energy Controls Ltd and the value of the investment in the subsidiary was reduced by £372,381. BMS Energy Controls Ltd did not trade in the year to 31 March 2024, had a zero net asset value as at 31 March 2024 and was dissolved on 2 April 2024 subsequent to the application to strike off on 23 November 2023.

 

During the year close family members of company directors received remuneration totalling £50,000 (2023 - £50,000) which has been made at an arm lengths basis.

24
Directors' transactions

Included in other debtors is the balance of £446,372 (2023 - £397,930) on the current account of Mr C W Mills, company director. There are no formal repayment terms. Interest is charged on the balance at 2.25%.

 

Included in other debtors is the balance of £257,096 (2023 - £145,932) on the current account of Mr G Ford, company director. There are no formal repayment terms. Interest is charged on the balance at 2.25%.

 

Dividends of £543,863 (2023 - £528,120) were payable to the company directors.

KENDRA ENERGY SOLUTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,056,379
1,245,752
Adjustments for:
Taxation charged
391,912
46,881
Investment income
(405,073)
(5,862)
Loss on disposal of tangible fixed assets
20,560
15,752
Fair value loss on investment properties
876,000
-
0
Depreciation and impairment of tangible fixed assets
67,397
56,802
Other gains and losses
372,381
1,253
Movements in working capital:
Decrease/(increase) in stocks
219
(23,967)
Increase in debtors
(112,181)
(2,036,952)
Increase in creditors
58,751
1,835,556
Cash generated from operations
2,326,345
1,135,215
26
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,736,628
1,825,784
3,562,412
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.100Mr C W MillsMr C W MillsMr G G Fordfalsefalse038404932023-04-012024-03-3103840493bus:CompanySecretaryDirector12023-04-012024-03-3103840493bus:Director12023-04-012024-03-3103840493bus:CompanySecretary12023-04-012024-03-3103840493bus:Director22023-04-012024-03-3103840493bus:RegisteredOffice2023-04-012024-03-31038404932024-03-31038404932022-04-012023-03-3103840493core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3103840493core:RetainedEarningsAccumulatedLosses2023-04-012024-03-31038404932023-03-3103840493core:FurnitureFittings2024-03-3103840493core:MotorVehicles2024-03-3103840493core:FurnitureFittings2023-03-3103840493core:MotorVehicles2023-03-3103840493core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3103840493core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3103840493core:CurrentFinancialInstruments2024-03-3103840493core:CurrentFinancialInstruments2023-03-3103840493core:ShareCapital2024-03-3103840493core:ShareCapital2023-03-3103840493core:OtherMiscellaneousReserve2024-03-3103840493core:OtherMiscellaneousReserve2023-03-3103840493core:RetainedEarningsAccumulatedLosses2024-03-3103840493core:RetainedEarningsAccumulatedLosses2023-03-3103840493core:ShareCapital2022-03-3103840493core:RetainedEarningsAccumulatedLosses2022-03-3103840493core:ShareCapitalOrdinaryShares2024-03-3103840493core:ShareCapitalOrdinaryShares2023-03-31038404932023-03-31038404932022-03-3103840493core:FurnitureFittings2023-04-012024-03-3103840493core:MotorVehicles2023-04-012024-03-3103840493core:UKTax2023-04-012024-03-3103840493core:UKTax2022-04-012023-03-310384049312023-04-012024-03-310384049312022-04-012023-03-310384049322023-04-012024-03-310384049322022-04-012023-03-310384049332023-04-012024-03-310384049332022-04-012023-03-3103840493core:FurnitureFittings2023-03-3103840493core:MotorVehicles2023-03-3103840493core:Non-currentFinancialInstruments2024-03-3103840493core:Non-currentFinancialInstruments2023-03-3103840493core:WithinOneYear2024-03-3103840493core:WithinOneYear2023-03-3103840493core:BetweenTwoFiveYears2024-03-3103840493core:BetweenTwoFiveYears2023-03-3103840493bus:PrivateLimitedCompanyLtd2023-04-012024-03-3103840493bus:FRS1022023-04-012024-03-3103840493bus:Audited2023-04-012024-03-3103840493bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP