Company registration number 10886821 (England and Wales)
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr L Jepson
(Appointed 25 January 2024)
Mr C P Lawton
(Appointed 25 January 2024)
Mr L Higgins
(Appointed 25 January 2024)
Company number
10886821
Registered office
Bankwood Processing Site
Bankwood Lane
Rossington
Doncaster
South Yorkshire
DN11 0PS
Auditor
Champion Accountants LLP
2nd Floor Refuge House
33-37 Watergate Row
Chester
CH1 2LE
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 33
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

The directors present the strategic report for the year ended 31 October 2023.

Fair review of the business

The principal activity of the group continues to be that of a supplier of fully integrated, waste management solutions, specifically the processing of commercial/Industrial and Construction/Demolition waste. The group works in line with the waste hierarchy by mechanically separating waste streams for recycling such as wood, plastics, paper, card and metals, soils, soil conditioning additives and aggregates.

 

The remaining non-recyclable fractions are used in the production of Solid Recovered Fuel (SRF), Refuse Derived Fuel (RDF) which are used by energy intensive industries to replace finite fossil fuels.

Review of the year and future developments

During the 12 month period to 31st October 2023, the group has continued to operate as a key supplier of fully integrated, waste management solutions within the UK.

 

The UK waste management market remains challenging particularly with respect to higher operating costs, energy costs and labour shortages, the market continues to improve and we are seeing more stability with respect to operating costs, albeit at a higher level.

 

Eco-Power continues to concentrate on its more traditional recycling and recovery markets derived from UK's construction and demolition sector.

 

These market changes have enabled the business to maintain stability from a lower turnover position due to a reduction in operating and disposal cost and an increase in commodity returns.

 

The group will continue to focus on its key operations, and specifically its aim to divert 95% of material that it manages from landfill, with a capacity to handle more than 1.2 million tonnes of material per year, and additionally develop complimentary supply chain offerings to strategically grow the business.

Principal risks and uncertainties

The principal risks and uncertainties faced by the company are the general uncertain economic climate in which it currently trades.

 

The directors and management team continually monitor such risks and meet to discuss how best to protect the business.

Key performance indicators

The directors utilise the following key performance indicators to assess the performance of the group:

Year ended 31 October 2023
Year ended 31 October 2022
£'000
£'000
Turnover
11,755
18,254
Gross profit/(loss)
356
4,419
Gross profit/(loss) percentage
3.03%
24.21%
Profit/(loss) before tax and goodwill amortisation
(2,391)
157
Profit/(loss) before taxation
(2,740)
(191)
Profit/(loss) before tax percentage
(23.31)%
(1.05)%
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -

On behalf of the board

Mr L Higgins
Director
31 October 2024
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 October 2023.

Principal activities

The principal activity of the company and group continued to be that of managing the waste recycling operations of the group as detailed in the Strategic Report on page 1.

Results and dividends

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

Ordinary dividends were paid amounting to £80,000. The directors do not recommend payment of a further 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 L Calders
(Resigned 25 January 2024)
Mr L Jepson
(Appointed 25 January 2024)
Mr C P Lawton
(Appointed 25 January 2024)
Mr L Higgins
(Appointed 25 January 2024)
Mr Martin Graves
(Resigned 31 March 2023)
Auditor

**Champion Accountants LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out on page 1 of the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr L Higgins
Director
31 October 2024
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Eco-Power Environmental Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 group and parent 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 group's and parent 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:

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

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:

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
- 7 -

Extent to which the audit is considered capable of detecting irregularities, including fraud

 

The responsibility for the prevention and detection of irregularities, including fraud, lies with the directors and with those charged with governance. The objectives of our audit in respect of irregularities and fraud are to assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient, appropriate audit evidence regarding the assessed risks and to respond appropriately to fraud or suspected fraud identified during the audit.

 

Audit procedures

 

We determine significant applicable laws and regulations through discussion with those charged with governance and our own knowledge of the industry and design audit procedures to help identify instances of non-compliance with those laws and regulations that may have a material effect on the financial statements.

 

We consider the applicable laws and regulations to be the financial reporting framework (FRS 102 and the Companies Act 2006), the relevant tax regulations in the UK, employment law and the Health and Safety at Work Act 1974.

 

We consider the control environment and the procedures in place to address identified risks, including management override, non-compliance with laws and regulations and to prevent and detect fraud or irregularity. Our procedures are designed to provide reasonable assurance that the financial statements are free from material misstatement or error and include: enquiries of management and of staff in key compliance functions; review of minutes of meetings of those charged with governance; review and testing of manual journals and significant transactions outside the normal course of business; review of financial statement disclosures and testing to supporting documentation; performance of analytical procedures.

 

We are not responsible for preventing non-compliance and due to the inherent limitations of an audit, as described above, the audit cannot be relied upon to detect all instances of non-compliance with laws and regulations.

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.

Mr Andrew Hopwood BSc (Hons) FCA (Senior Statutory Auditor)
For and on behalf of Champion Accountants LLP
31 October 2024
Chartered Accountants
Statutory Auditor
2nd Floor Refuge House
33-37 Watergate Row
Chester
CH1 2LE
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
11,755,305
18,253,884
Cost of sales
(11,399,139)
(13,834,722)
Gross profit
356,166
4,419,162
Administrative expenses
(5,432,999)
(6,404,081)
Other operating income
3,269,251
2,186,865
Exceptional items
4
526,794
-
0
Operating (loss)/profit
5
(1,280,788)
201,946
Interest payable and similar expenses
9
(84,237)
(344,828)
Amounts written off loans
10
(1,375,308)
(48,780)
Loss before taxation
(2,740,333)
(191,662)
Tax on loss
11
195,494
(63,359)
Loss for the financial year
(2,544,839)
(255,021)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
1,342,236
1,690,752
Tangible assets
14
10,677,008
10,889,016
12,019,244
12,579,768
Current assets
Debtors
17
7,164,767
5,960,634
Cash at bank and in hand
11,774
377,968
7,176,541
6,338,602
Creditors: amounts falling due within one year
18
(13,721,321)
(8,956,464)
Net current liabilities
(6,544,780)
(2,617,862)
Total assets less current liabilities
5,474,464
9,961,906
Creditors: amounts falling due after more than one year
19
(511,678)
(2,258,787)
Provisions for liabilities
Deferred tax liability
22
1,600,506
1,716,000
(1,600,506)
(1,716,000)
Net assets
3,362,280
5,987,119
Capital and reserves
Called up share capital
24
643
643
Revaluation reserve
5,619
5,619
Other reserves
4,030,904
4,030,904
Profit and loss reserves
(674,886)
1,949,953
Total equity
3,362,280
5,987,119
The financial statements were approved by the board of directors and authorised for issue on 31 October 2024 and are signed on its behalf by:
31 October 2024
Mr L Higgins
Director
Company registration number 10886821 (England and Wales)
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
15
6,046,500
6,046,500
Current assets
Debtors
17
547
547
Creditors: amounts falling due within one year
18
(765,500)
(765,500)
Net current liabilities
(764,953)
(764,953)
Net assets
5,281,547
5,281,547
Capital and reserves
Called up share capital
24
643
643
Other reserves
4,030,904
4,030,904
Profit and loss reserves
1,250,000
1,250,000
Total equity
5,281,547
5,281,547

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £80,000 (2022 - £0 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 31 October 2024 and are signed on its behalf by:
31 October 2024
Mr L Higgins
Director
Company registration number 10886821 (England and Wales)
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 November 2021
643
5,619
4,030,904
2,204,974
6,242,140
Year ended 31 October 2022:
Loss and total comprehensive income
-
-
-
(255,021)
(255,021)
Balance at 31 October 2022
643
5,619
4,030,904
1,949,953
5,987,119
Year ended 31 October 2023:
Loss and total comprehensive income
-
-
-
(2,544,839)
(2,544,839)
Dividends
12
-
-
-
(80,000)
(80,000)
Balance at 31 October 2023
643
5,619
4,030,904
(674,886)
3,362,280
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2021
643
4,030,904
1,250,000
5,281,547
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
-
-
-
0
Balance at 31 October 2022
643
4,030,904
1,250,000
5,281,547
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
80,000
80,000
Dividends
12
-
-
(80,000)
(80,000)
Balance at 31 October 2023
643
4,030,904
1,250,000
5,281,547
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
2,925,346
2,072,746
Interest paid
(84,237)
(344,828)
Net cash inflow from operating activities
2,841,109
1,727,918
Investing activities
Purchase of tangible fixed assets
(705,124)
(351,090)
Proceeds from disposal of tangible fixed assets
298,155
38,000
Proceeds from disposal of investments
(308,776)
-
Repayment of loans
(1,131,359)
(121,000)
Net cash used in investing activities
(1,847,104)
(434,090)
Financing activities
Repayment of borrowings
(297,456)
(79,500)
Payment of finance leases obligations
(982,743)
(1,060,835)
Dividends paid to equity shareholders
(80,000)
-
0
Net cash used in financing activities
(1,360,199)
(1,140,335)
Net (decrease)/increase in cash and cash equivalents
(366,194)
153,493
Cash and cash equivalents at beginning of year
377,968
224,475
Cash and cash equivalents at end of year
11,774
377,968
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Investing activities
Dividends received
80,000
-
0
Net cash generated from/(used in) investing activities
80,000
-
Financing activities
Dividends paid to equity shareholders
(80,000)
-
Net cash used in financing activities
(80,000)
-
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
1
Accounting policies
Company information

Eco-Power Environmental Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Eco-Power Environmental Holdings Limited and all of its subsidiaries.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Eco-Power Environmental Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

Eco-Power Environmental (Hull) Limited remains in liquidation, and as with the prior year is wholly excluded from these consolidated accounts.

 

All financial statements are made up to 31 October 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The directors are aware of uncertainties and financial challenges which the business will face in the coming 12 months given the company had net current liabilities at 31 October 2023. A proportion of these liabilities however are owed to undertakings under common control. Whilst the results for the year show a loss, the post year end management accounts and forward projections reflecting some operational changes show significant EBITDA improvement, sufficient to meet the businesses funding requirements. The completion of the sale of the Hull Plant on 11 March 2024 for £6.5M has helped the post year end postion.

1.4
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 and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Tangible fixed assets

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

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

Freehold land and buildings
Held at fair value as determined by an independent valuer
Leasehold land and buildings
10 years straight line basis
Plant and equipment
1 to 20 years straight line basis
Office equipment
5 years straight line basis
Motor vehicles
3 to 12 years straight line basis

Freehold land is not depreciated. Freehold properties are recognised on a revaluation basis instead. The land and buildings, which are not depreciated, depart from the requirement in the Companies Act 2006 for all fixed assets to be depreciated. This departure from the Act is required in order to achieve a fair presentation. Management has concluded that the financial statements present fairly the entity's financial position and financial performance.

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 recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -
1.8
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

 

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

1.9
Cash and cash equivalents

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

1.10
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, 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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
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 group’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 and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

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

 

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

 

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

1.14
Retirement benefits

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

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 20 -
1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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
2023
2022
£
£
Turnover analysed by class of business
Sales of services
11,755,305
18,253,884
2023
2022
£
£
Other revenue
Grants received
3,260,855
2,350,538
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
4
Exceptional items
2023
2022
£
£
Expenditure
Exceptional expenses
523,799
-
Exceptional income
(1,050,593)
-
(526,794)
-

The income included as exceptional in the year relates to money received during an exclusivity period entered into by the company for the potential sale of assets, licences and intellectual property at its Hull Plant. The sale didn't complete with this buyer but under the terms of the legal agreement entered into the payments received during the exclusivity period belong to Eco-Power Environmental Limited absolutely.

 

The expenses included as exceptional in the year relate to costs incurred to maintain the Hull Plant ahead of a sale.

5
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Government grants
(3,260,855)
(2,350,538)
Depreciation of owned tangible fixed assets
550,397
483,135
Depreciation of tangible fixed assets held under finance leases
840,784
806,944
Profit on disposal of tangible fixed assets
(8,764)
(20,811)
Amortisation of intangible assets
348,516
348,516
Operating lease charges
289,535
233,045
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
3,700
Audit of the financial statements of the company's subsidiaries
24,000
17,640
24,000
21,340
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
21
38
-
-
14
17
-
-
Total
35
55
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,319,920
2,127,707
-
0
-
0
Social security costs
210,837
233,874
-
-
Pension costs
57,028
68,928
-
0
-
0
1,587,785
2,430,509
-
0
-
0
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
62,152
64,235
Company pension contributions to defined contribution schemes
749
590
62,901
64,825
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
270
Other finance costs:
Interest on finance leases and hire purchase contracts
78,762
344,558
Other interest
5,475
-
Total finance costs
84,237
344,828
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 23 -
10
Amounts written off loans
2023
2022
£
£
Amounts written off loans to related companies
(1,146,532)
(121,000)
Amounts written off loans to third parties
(308,776)
-
Amounts written off loans from related companies
80,000
-
Other gains and losses
-
72,220
(1,375,308)
(48,780)

The amounts written off loans receivable relate to balances due from Eco-Power Environmental (Hull) Limited a company in which Mr M Jepson had an indirect shareholding. This company remains in liquidation. An amount of £80,000 (2022: £121,000 credit) has been written off in relation to Eco-Power Environmental (Hull). This reflects a one off charge to the profit and loss account in the year and is not reflective of the underlying trade.

 

The balance also relates to amounts written off loans due from ESC Investments Limited a company owned by Mr D Colakovic. An amount of £1,146,532 has been written off in relation to ESC Investments Limited, this reflects a one off charge to the profit and loss account in the year and is not reflective of the underlying trade.

11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(60,948)
98,359
Adjustments in respect of prior periods
(19,052)
-
0
Total current tax
(80,000)
98,359
Deferred tax
Origination and reversal of timing differences
(115,494)
(35,000)
Total tax (credit)/charge
(195,494)
63,359
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
11
Taxation
(Continued)
- 24 -

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

2023
2022
£
£
Loss before taxation
(2,740,333)
(191,662)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(685,083)
(36,416)
Tax effect of expenses that are not deductible in determining taxable profit
416,143
89,917
Tax effect of income not taxable in determining taxable profit
-
0
(13,721)
Adjustments in respect of prior years
(19,052)
-
0
Deferred tax adjustments in respect of prior years
-
0
23,579
Fixed asset timing differences
19,071
-
0
Effect of revaluations of fixed assets
54,181
-
0
Small company relief adjustment to losses carried back
19,246
-
0
Taxation (credit)/charge
(195,494)
63,359
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
80,000
-
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 November 2022 and 31 October 2023
3,495,164
Amortisation and impairment
At 1 November 2022
1,804,412
Amortisation charged for the year
348,516
At 31 October 2023
2,152,928
Carrying amount
At 31 October 2023
1,342,236
At 31 October 2022
1,690,752
The company had no intangible fixed assets at 31 October 2023 or 31 October 2022.
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 25 -
14
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 November 2022
640,000
1,101,165
14,118,364
37,688
132,206
16,029,423
Additions
-
0
447,025
782,100
-
0
239,439
1,468,564
Disposals
-
0
-
0
(382,350)
-
0
(50,995)
(433,345)
At 31 October 2023
640,000
1,548,190
14,518,114
37,688
320,650
17,064,642
Depreciation and impairment
At 1 November 2022
-
0
511,789
4,502,268
36,913
89,437
5,140,407
Depreciation charged in the year
-
0
152,099
1,208,537
775
29,770
1,391,181
Eliminated in respect of disposals
-
0
-
0
(134,754)
-
0
(9,200)
(143,954)
At 31 October 2023
-
0
663,888
5,576,051
37,688
110,007
6,387,634
Carrying amount
At 31 October 2023
640,000
884,302
8,942,063
-
0
210,643
10,677,008
At 31 October 2022
640,000
589,376
9,616,096
775
42,769
10,889,016
The company had no tangible fixed assets at 31 October 2023 or 31 October 2022.
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
6,046,500
6,046,500
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2022 and 31 October 2023
6,046,500
Carrying amount
At 31 October 2023
6,046,500
At 31 October 2022
6,046,500
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 26 -
16
Subsidiaries

Details of the company's subsidiaries at 31 October 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Eco-Power Environmental Group Limited
Bankwood Lane Industrial Estate, Bankwood Lane, Rossington, Doncaster, South Yorkshire, DN11 0PS
Ordinary
100.00
-
Eco-Power Environmental Limited
As above
Ordinary
-
100.00
Wroot Drying Services Limited
As above
Ordinary
-
100.00
Eco-Power Green Energy Limited
As above
Ordinary
-
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Eco-Power Environmental Group Limited
12,004
80,000
Eco-Power Environmental Limited
2,035,068
(3,000,218)
Wroot Drying Services Limited
879,487
803,408
Eco-Power Green Energy Limited
486
485
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
287,778
816,855
-
0
-
0
Corporation tax recoverable
60,948
-
0
-
0
-
0
Other debtors
5,820,948
3,403,778
547
547
Prepayments and accrued income
995,093
1,740,001
-
0
-
0
7,164,767
5,960,634
547
547
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
21
2,593,955
1,141,149
-
0
-
0
Other borrowings
20
78,000
78,000
-
0
-
0
Trade creditors
2,208,416
3,183,483
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
715,500
715,500
Corporation tax payable
45,665
64,717
-
0
-
0
Other taxation and social security
398,451
264,545
-
-
Other creditors
7,266,320
3,794,084
50,000
50,000
Accruals and deferred income
1,130,514
430,486
-
0
-
0
13,721,321
8,956,464
765,500
765,500
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 27 -
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
21
422,178
2,094,287
-
0
-
0
Other borrowings
20
89,500
164,500
-
0
-
0
511,678
2,258,787
-
-
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Other loans
167,500
242,500
-
0
-
0
Payable within one year
78,000
78,000
-
0
-
0
Payable after one year
89,500
164,500
-
0
-
0
21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
2,593,955
1,141,149
-
0
-
0
In two to five years
422,178
2,094,287
-
0
-
0
3,016,133
3,235,436
-
-

Finance lease obligations are secured against the assets which they relate.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 28 -
22
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
1,745,407
1,604,000
Tax losses
(254,551)
-
Revaluations
(3,176)
-
Capital gains
112,826
112,000
1,600,506
1,716,000
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 November 2022
1,716,000
-
Credit to profit or loss
(115,494)
-
Liability at 31 October 2023
1,600,506
-
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
57,028
68,928

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 29 -
24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
304
304
304
304
Ordinary A of £1 each
304
304
304
304
Ordinary B of £1 each
33
33
33
33
Ordinary C of 1p each
100
100
1
1
Ordinary D of 1p each
100
100
1
1
841
841
643
643
25
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
61,476
19,598
-
-
Between two and five years
76,368
15,912
-
-
In over five years
-
5,967
-
-
137,844
41,477
-
-
26
Events after the reporting date

On 11 March 2024, the Hull Plant as referenced in note 4 of the accounts was ultimately sold. As a result of this, various assets left the group as part of this deal and various liabilities were settled with the proceeds. Eco-Power Green Energy Limited was sold and therefore left the group as part of this deal. Consideration of £6.5M was due on completion of which a proportion was due to Eco-Power Environmental Limited and the balance was due to Eco-Power Environmental Group Limited.

27
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
519,780
612,000
ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
27
Related party transactions
(Continued)
- 30 -

Mr M Jepson and Mr D Colakovic are beneficial shareholders in the ultimate parent undertaking, Eco-Power Environmental Holdings Limited.

 

During the year, the group entered into the following transactions with related parties:

 

ESC Investments Limited

ESC Investments Limited is a company in which Mr D Colakovic is a director and shareholder.

 

At the year end, the group was owed £310,000 (2022: £1,138,407) from ESC Investments Limited. This amount is included in other debtors.

 

Eco Power Properties Limited

Eco Power Properties Limited is a company under the control of Mr D Colakovic, Mr M Jepson and Mr L Higgins.

 

During the year the group received income of £1,402 (2022: £60,050) from Eco Power Properties Limited.

 

At the year end, the group owed £152,505 (2022: £Nil) to Eco Power Properties Limited. This amount is included in other creditors.

 

Bankwood Commercial Properties Limited

Bankwood Commercial Properties Limited is a company under the control of Mr D Colakovic and Mr M Jepson.

 

At the year end, the group was owed £117,186 (2022: £117,186) by Bankwood Commercial Properties Limited. This amount is included in other debtors.

 

Retford Wood Fuels Limited

Retford Wood Fuels Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest.

 

During the year, the group made sales of £nil (2022: £3,711) to Retford Wood Fuels Limited.

 

At the year end, the group owed £556,323 (2022: £544,323) to Retford Wood Fuels Limited. This amount is included in other creditors.

 

Eco Power Wood Fuels Limited

Eco Power Wood Fuels Limited is a company in which Mr M Jepson is a director and both Mr M Jepson and Mr D Colakovic have an interest.

 

During the year, the group made sales of £nil (2022: £43,560) to Eco Power Wood Fuels Limited. In addition, £125,071 was written off in the prior year. No amounts have been written off in the current year.

 

During the year, the group made purchases of £51,457 (2022: £491,458) from Eco Power Wood Fuels Limited.

 

At the year end, the group was owed £1,408,838 (2022: £1,369,666) from Eco Power Wood Fuels Limited. This is included in other debtors. In addition, the group owed £550,831 (2022: £nil) to Eco Power Wood Fuels Limited. This is included in other creditors.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 31 -
27
Related party transactions
(Continued)

Eco-Railfreight Limited

Eco-Railfreight Limited is a company in which Mr M Jepson and Mr D Colakovic hold an interest.

 

During the year, the group made sales of £5,354 (2022: £48,667) to Eco-Railfreight Limited.

 

During the year, the group made purchases of £418,817 (2022: £1,043,672) from Eco-Railfreight Limited.

 

At the year end, the group owed £342,191 (2022: £453,440) to Eco-Railfreight Limited. This amount is included in other creditors.

 

Eco-Power Fuels Limited

Eco-Power Fuels Limited is a company in which Mr L Calders and Mr M Graves were directors during the year and hold an interest. In addition, Mr D Colakovic and Mr M Jepson hold an interest.

 

At the year end, the group was owed £32,845 (2022: £32,845) by Eco-Power Fuels Limited. This amount is included in other debtors.

 

Eco Power Skips Limited

Eco-Power Skips Limited is a company in which Mr L Calders and Mr M Graves are directors and Mr M Jepson and Mr D Colakovic have an interest.

 

During the year, the group made sales of £2,418,765 (2022: £261,905) to Eco-Power Skips Limited. During the year the group made purchases of £690,676 (2022: £228,466) from Eco-Power Skips Limited.

 

At the year end, the group was owed £3,212,937 (2022: £892,728) by Eco-Power Skips Limited. This amount is included in other debtors.

 

Eco Power Surfacing Limited

Eco Power Surfacing Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest.

 

At the year end, the group owed £169,866 to (2022: £94,500 owed from) Eco Power Surfacing Limited. This amount is included in other creditors.

 

Commercial Heating & Drying Limited

Commercial Heating & Drying Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest.

 

During the year, the group made sales of £nil (2022: £15,000) to Commercial Heating & Drying Limited.

 

At the year end, the group was owed £445,156 (2022: £494,779) by Commercial Heating & Drying Limited. This amount is included in other debtors.

 

Eco Power Civil Engineering Limited

Eco Power Civil Engineering Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest.

 

At the year end, the group was owed £296,556 (2022: £Nil) by Eco Power Civil Engineering Limited. This amount is included in other debtors.

 

Eco Power Recruitment Holdings Limited

Eco Power Recruitment Holdings Limited is a company in which Mr L Calders, Mr M Jepson and Mr D Colakovic have an interest.

 

At the year end, the group was owed £152,195 (2022: £Nil) by Eco Power Recruitment Holdings Limited. This amount is included in other debtors.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 32 -
27
Related party transactions
(Continued)

Eco Power Construction Group Limited

Eco Power Construction Group Limited is a company under the control of Mr D Colakovic and Mr M Jepson.

 

At the year end, the group owed £100,002 (2022: £nil) to Eco Power Construction Group Limited. This amount is included in other creditors.

 

Eco Power Star Design Interiors Limited

Eco Power Star Design Interiors Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest and Mr L Calder is a director.

 

At the year end, the group was owed £72,794 (2022: £Nil) by Eco Power Star Design interiors Limited. This amount is included in other debtors.

 

Eco Power Metals Limited

Eco Power Metals Limited is a company in which Mr M Jepson and Mr D Colakovic have an interest and Mr L Calders and Mr L Jepson are directors.

 

At the year end, the group was owed £33,176 (2022: £Nil) by Eco Power Star Design interiors Limited. This amount is included in other debtors.

 

Eco Power Racing Limited

Eco Power Racing Limited is a company in which Mr D Colakovic has an interest.

 

At the year end, the group was owed £209,428 (2022: £Nil) by Eco Power Racing Limited. This amount is included in other debtors.

 

Eco Power Health and Wellness Clinic Limited

Eco Power Health and Wellness Clinic Limited is a company in which Mr D Colakovic has an interest.

 

At the year end, the group was owed £230,802 (2022: £Nil) by Eco Power Health and Wellness Clinic Limited. This amount is included in other debtors.

 

Directors' Current Accounts
Directors' current account balances included in other debtors at the year end total £22,600 (2022: £Nil). The outstanding amounts are repayable on demand and no interest was charged on the loans in the year.

ECO-POWER ENVIRONMENTAL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 33 -
30
Cash generated from group operations
2023
2022
£
£
Loss for the year after tax
(2,544,839)
(255,021)
Adjustments for:
Taxation (credited)/charged
(195,494)
63,359
Finance costs
84,237
344,828
Gain on disposal of tangible fixed assets
(8,764)
(20,811)
Amortisation and impairment of intangible assets
348,516
348,516
Depreciation and impairment of tangible fixed assets
1,391,181
1,290,079
Other gains and losses
1,375,308
48,780
Movements in working capital:
Increase in debtors
(1,158,358)
(745,638)
Increase in creditors
3,633,559
998,654
Cash generated from operations
2,925,346
2,072,746
31
Analysis of changes in net debt - group
1 November 2022
Cash flows
New finance leases
Other non-cash changes
31 October 2023
£
£
£
£
£
Cash at bank and in hand
377,968
(366,194)
-
-
11,774
Borrowings excluding overdrafts
(242,500)
(5,000)
-
80,000
(167,500)
Obligations under finance leases
(3,235,436)
982,743
(763,440)
-
(3,016,133)
(3,099,968)
611,549
(763,440)
80,000
(3,171,859)
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