REGISTERED NUMBER: 04171774 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
FOR |
ERG PROCESS TECHNOLOGIES LIMITED |
REGISTERED NUMBER: 04171774 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
FOR |
ERG PROCESS TECHNOLOGIES LIMITED |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
Page |
Group Strategic Report | 1 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Statement of Comprehensive Income | 7 |
Consolidated Balance Sheet | 8 |
Company Balance Sheet | 9 |
Consolidated Statement of Changes in Equity | 10 |
Company Statement of Changes in Equity | 11 |
Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Financial Statements | 13 |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
The directors present their strategic report of the company and the group for the year ended 29 February 2024. |
REVIEW OF BUSINESS PERFORMANCE |
Overall consolidated group sales reported for the year are £13,493,918. This is a 4% increase compared to sales the previous year of £12,987,926. This modest growth belies the underlying healthy orderbook, and performance was expected to be higher but has been tempered by client-side project delays. |
Some reduction in profit compared to 2023 was expected due to increased overheads is balanced with maintaining the proportion of gross profit to turnover when compared to previous years. ERG has made significant investments in the period with recruitment of additional staff and other resources needed to support a very healthy order book for 2024-2025 financial year that has increased our overheads, temporarily decreasing profitability. |
Trading conditions during the year have slightly eased with a gradual reduction in inflationary pressures, price instability and interest rates. The group has largely been successful in being able to navigate through these headwinds and pass on price increases to customers and has managed to slightly increase our overall gross profit margins. The company's strong financial position and tight cash management has minimised working capital borrowing cost pressures from interest rates. |
The board therefore is confident in asserting that the business has a solid foundation and is well-placed for future growth. |
- The Projects division has continued its strategy for growth in industrial air pollution contracts. These have a high technology and engineering design content and generate higher margins. The company's thermal systems technology and engineering expertise have also been significant in winning business where clients require total systems solutions and gives ERG a competitive advantage. |
- The Middle East division continues to be a major contributor to the group strategy and its performance. The Middle East team are fully focussed on the twin strategy of repeat business with current customers as well as extending the customer base, and during the year have been successful in gaining more contracts in Saudi Arabia and winning our repeat business contracts in Algeria. Hitherto we have been operating from our regional office in Jordan with a branch office in Dubai. The company has now opened a fully trading subsidiary in Dubai. This will strengthen our ability to qualify for local government contracts in the UAE. |
- The Maintenance division continues to perform in line with expectation and remains a key business bedrock with steady income flow and solid gross margins. It also acts as an important generator for new project sales for our UK odour control projects. The management team has now been strengthened and the medium-term strategy is to target faster growth which has largely been held back by our delivery capacity. |
- The Plastic Fabrication division continues to support the Projects division supplying the majority of the specialist plastic fabrication required for their projects. Vertical integration with regard to plastic fabrication continues to prove a successful strategy, and the Plastic Fabrication division continues to perform a vital role within the Group and allows ERG to control and maintain high quality manufacturing. The physical location of the new factory workshop on the same site as the new group HQ offices at Slinfold has given the expected benefits of better manufacturing scheduling and quality control. |
- For completion the group also includes ERG APC Property Ltd., as a special purpose vehicle that was created purely to acquire, build and manage the company's property estate. It has no trading role. |
RISKS AND UNCERTAINTIES |
In line with standard practice in our industry, ERG accrues provisions for possible post commissioning challenges in the plants we supply and install. These provisions are kept under review by the board, and the directors think that the current provisions level offers appropriate cover for any foreseeable costs. |
In order to undertake the volume of international export contracts that we win, ERG enjoys the support of our corporate bankers, HSBC. HSBC continues to support ERG through the provision of trading facilities which include credit lines for: bank guarantees, import letters of credit and working capital loans secured against confirmed export letters of credit. With ERG's many years of export experience, together with access to the expertise of HSBC's international trade relationship directors, ERG is content that any risks are identified, and appropriate mitigated, |
ERG benefits from a 15-year capital repayment mortgage that was taken out in 2021 to enable site purchase and construction of a new purpose-built office and factory. The mortgage is on normal commercial terms, and the loan to value ratio is well under the maximum bank limits for the type of property |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
BRANCHES |
The group has branches in Jordan and in Dubai. |
ON BEHALF OF THE BOARD: |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 29 February 2024. |
DIVIDENDS |
The total distribution of dividends for the year ended 29 February 2024 will be £ 138,332 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 March 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen, in accordance with the Companies Act 2006 s414C(11), to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ERG PROCESS TECHNOLOGIES LIMITED |
Opinion |
We have audited the financial statements of ERG Process Technologies Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 29 February 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ERG PROCESS TECHNOLOGIES LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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: |
Based on our understanding of the company and industry, we considered the risk of non-compliance with laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed included: |
- | Enquiring of management whether there were instances of non-compliance with laws and regulation or fraud; |
- | Review of legal expenses for evidence of fees relating to non-compliance; |
- | Comparison of the property valuation accounting estimate to market data; |
- | Review of journal entries, non-sales bank receipts and non-purchase bank payments for unusual accounting entries; and |
- | Review of contracts and contract balance substantive testing to confirm that revenue had been correctly recognised. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ERG PROCESS TECHNOLOGIES LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
Atlas Chambers |
33 West Street |
Brighton |
East Sussex |
BN1 2RE |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 13,493,918 | 12,987,926 |
Cost of sales | 8,460,865 | 8,342,694 |
GROSS PROFIT | 5,033,053 | 4,645,232 |
Administrative expenses | 4,789,595 | 4,056,019 |
OPERATING PROFIT | 5 | 243,458 | 589,213 |
Interest receivable and similar income | 29,484 | 6,189 |
272,942 | 595,402 |
Interest payable and similar expenses | 6 | 191,397 | 88,676 |
PROFIT BEFORE TAXATION | 81,545 | 506,726 |
Tax on profit | 7 | (51,596 | ) | 64,269 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Freehold property revaluation | 837,246 | - |
Income tax relating to other comprehensive income |
(158,435 |
) |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
678,811 |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
811,952 |
442,457 |
Profit attributable to: |
Owners of the parent | 133,141 | 442,457 |
Total comprehensive income attributable to: |
Owners of the parent | 811,952 | 442,457 |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
CONSOLIDATED BALANCE SHEET |
29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | - |
Tangible assets | 11 | 5,337,211 | 4,480,272 |
Investments | 12 | - | - |
5,337,211 | 4,480,272 |
CURRENT ASSETS |
Stocks | 13 | 214,003 | 39,972 |
Debtors | 14 | 3,612,032 | 4,065,473 |
Cash at bank and in hand | 1,292,942 | 1,485,812 |
5,118,977 | 5,591,257 |
CREDITORS |
Amounts falling due within one year | 15 | 5,517,334 | 5,820,793 |
NET CURRENT LIABILITIES | (398,357 | ) | (229,536 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,938,854 |
4,250,736 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(2,092,991 |
) |
(2,126,971 |
) |
PROVISIONS FOR LIABILITIES | 21 | (196,988 | ) | (148,510 | ) |
NET ASSETS | 2,648,875 | 1,975,255 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 50,000 | 50,000 |
Revaluation reserve | 678,811 | - |
Retained earnings | 1,920,064 | 1,925,255 |
SHAREHOLDERS' FUNDS | 2,648,875 | 1,975,255 |
The financial statements were approved by the Board of Directors and authorised for issue on 22 November 2024 and were signed on its behalf by: |
P I Batt - Director |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
COMPANY BALANCE SHEET |
29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year | (358,686 | ) | 479,508 |
The financial statements were approved by the Board of Directors and authorised for issue on |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 March 2022 | 50,000 | 1,646,015 | - | 1,696,015 |
Changes in equity |
Profit for the year | - | 442,457 | - | 442,457 |
Total comprehensive income | - | 442,457 | - | 442,457 |
Dividends | - | (163,217 | ) | - | (163,217 | ) |
Balance at 28 February 2023 | 50,000 | 1,925,255 | - | 1,975,255 |
Changes in equity |
Profit for the year | - | 133,141 | - | 133,141 |
Other comprehensive income | - | - | 678,811 | 678,811 |
Total comprehensive income | - | 133,141 | 678,811 | 811,952 |
Dividends | - | (138,332 | ) | - | (138,332 | ) |
Balance at 29 February 2024 | 50,000 | 1,920,064 | 678,811 | 2,648,875 |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 March 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 28 February 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 29 February 2024 |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 27 | (474,313 | ) | 637,634 |
Tax paid | (82,764 | ) | 43,908 |
Net cash from operating activities | (557,077 | ) | 681,542 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (241,639 | ) | (108,050 | ) |
Sale of tangible fixed assets | 6,151 | 5,208 |
Interest received | 29,484 | 6,189 |
Net cash from investing activities | (206,004 | ) | (96,653 | ) |
Cash flows from financing activities |
New loans in year | 1,439,982 | - |
Loan repayments in year | (537,642 | ) | (729,276 | ) |
Amount introduced by directors | - | 1,108 |
Amount withdrawn by directors | (2,400 | ) | - |
Equity dividends paid | (138,332 | ) | (163,217 | ) |
Interest paid | (191,397 | ) | (88,676 | ) |
Net cash from financing activities | 570,211 | (980,061 | ) |
Decrease in cash and cash equivalents | (192,870 | ) | (395,172 | ) |
Cash and cash equivalents at beginning of year |
28 |
1,485,812 |
1,880,984 |
Cash and cash equivalents at end of year | 28 | 1,292,942 | 1,485,812 |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
1. | STATUTORY INFORMATION |
ERG Process Technologies Limited is a |
Registered number: |
Registered office: |
The presentation currency of the financial statements is the Pound Sterling (£). |
The group's principal activities are the supply, maintenance and manufacture of industrial air pollution control and odour control systems. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in pound sterling. |
Reduced disclosures |
The parent company has taken advantage of the exemption from disclosing the following information, as permitted by the reduced disclosure regime within FRS 102, since the financial statements of the parent company are consolidated in the group financial statements: |
- Section 7 ‘Statement of Cash Flows’ - Presentation of a Statement of Cash Flow and related notes and disclosures |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and entities controlled by the group (its subsidiaries). Control is achieved where the group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
The results of subsidiaries acquired or disposed of during the year are included in total comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate using accounting policies consistent with those of the parent. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. |
Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements. |
Significant accounting judgements and key sources of estimation uncertainty |
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include: |
Construction contract turnover |
Turnover from contracts is calculated using an estimation of the outcome of ongoing contracts and the cost towards their completion based on management's judgement. |
Freehold property valuation |
The freehold property fair value is an estimate based on the open market value of similar properties in the local area. The estimation involves assumptions related to the effect of the economy and market demand on the property's value. |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Changes in accounting policies |
The group has changed its accounting policy for freehold property from the cost model to the revaluation model. Under the cost model, the freehold property was carried at cost less accumulated depreciation. Under the revaluation model, the property is carried at a revalued amount, being its fair value at the date of revaluation less any subsequent accumulated depreciation. |
The change in accounting policy is not required to be retrospectively applied. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade |
discounts. The policies adopted for the recognition of turnover are as follows: |
Maintenance contracts |
When the outcome of a transaction can be estimated reliably, turnover from the start date of the period of the maintenance contract is recognised by reference to the stage of completion at the balance sheet date on a straight line basis over the period of the contract. Stage of completion is measured by reference to the maintenance contract end date. |
Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. |
Construction contracts |
When the outcome of a construction contract can be estimated reliably, contract costs and turnover are |
recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the contract. |
Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable. |
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision. |
Sale of goods |
Turnover from the sale of equipment is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on delivery. |
Goodwill |
Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values of the Group’s interest in the identifiable net assets acquired. |
Goodwill has been fully amortised. |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets, except freehold property, are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
The freehold property is carried at a revalued amount, being its fair value at the date of revaluation less any subsequent accumulated depreciation. |
The group has adopted a policy of capitalising borrowing costs that are directly attributable to the acquisition and construction of its freehold property. Directly attributable borrowing costs are those costs that would have been avoided if the expenditure on the qualifying asset had not been made. Capitalisation of the borrowing costs cease when substantially all the activities necessary to prepare the qualifying asset for its intended use are complete. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs in bringing stock to its present location and condition. Cost is calculated using the first in, first out formula,. provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Financial instruments |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Recognition of financial instruments |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost less any impairment. |
De-recognition of financial instruments |
Financial instruments are de-recognised only when the contractual rights to the cash flows from the instrument expire, are settled, or transferred. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable/receivable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Projects | 10,839,491 | 10,176,288 |
Maintenance | 2,609,079 | 2,757,449 |
Thermal oxidisers | 45,348 | 54,189 |
13,493,918 | 12,987,926 |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 10,906,668 | 9,094,698 |
Asia | - | 2,349,526 |
Middle East | 2,587,250 | 1,543,702 |
13,493,918 | 12,987,926 |
An analysis of turnover by category of revenue is given below: |
2024 | 2023 |
£ | £ |
Sale of goods | 41,167 | 15,147 |
Rendering of services | 13,452,751 | 12,972,779 |
13,493,918 | 12,987,926 |
Rendering of services includes £10,798,324 (2023: £10,161,141) relating to turnover from construction contracts. |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 4,656,852 | 3,840,453 |
Social security costs | 511,617 | 433,230 |
Other pension costs | 331,999 | 205,523 |
5,500,468 | 4,479,206 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Administration | 19 | 21 |
Production | 83 | 60 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 338,831 | 205,472 |
Directors' pension contributions to money purchase schemes | 20,185 | 10,748 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 4 | 2 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 120,271 | 103,825 |
Pension contributions to money purchase schemes | 9,403 | 7,268 |
During the year, the group made payments of £84,160 (2023: £74,444) to a third party for services of a director. |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases | 30,135 | 23,762 |
Depreciation - owned assets | 221,962 | 177,689 |
Profit on disposal of fixed assets | (6,167 | ) | (5,208 | ) |
Auditors' remuneration | 10,000 | 10,500 |
Foreign exchange differences | 9,656 | (53,922 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 193,556 | 86,516 |
Interest payable | (2,159 | ) | 2,160 |
191,397 | 88,676 |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | - | 104,972 |
Overprovision in prior year | (41,639 | ) | (39,648 | ) |
Total current tax | (41,639 | ) | 65,324 |
Deferred tax | (9,957 | ) | (1,055 | ) |
Tax on profit | (51,596 | ) | 64,269 |
UK corporation tax has been charged at 24.49 % (2023 - 19 %). |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 81,545 | 506,726 |
Profit multiplied by the standard rate of corporation tax in the UK of 24.490 % (2023 - 19 %) |
19,970 |
96,278 |
Effects of: |
Expenses not deductible for tax purposes | (147 | ) | (105 | ) |
Income not taxable for tax purposes | - | (990 | ) |
Utilisation of tax losses | (53,314 | ) | - |
Adjustments to tax charge in respect of previous periods | (41,639 | ) | (39,648 | ) |
Taxed at different rates | 6,654 | 8,734 |
Deferred tax asset not provided | 16,880 | - |
Total tax (credit)/charge | (51,596 | ) | 64,269 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Freehold property revaluation | 837,246 | (158,435 | ) | 678,811 |
From 1 April 2023, the corporation tax rate increased from 19% to 25%. |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Interim | 138,332 | 163,217 |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 March 2023 |
and 29 February 2024 | 164,056 |
AMORTISATION |
At 1 March 2023 |
and 29 February 2024 | 164,056 |
NET BOOK VALUE |
At 29 February 2024 | - |
At 28 February 2023 | - |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1 March 2023 | 4,336,202 | 328,397 | 86,754 |
Additions | - | 26,359 | 19,515 |
Disposals | - | (3,971 | ) | - |
Revaluations | 663,798 | - | - |
At 29 February 2024 | 5,000,000 | 350,785 | 106,269 |
DEPRECIATION |
At 1 March 2023 | 86,724 | 258,247 | 66,921 |
Charge for year | 86,724 | 44,559 | 19,193 |
Eliminated on disposal | - | (3,971 | ) | - |
Revaluation adjustments | (173,448 | ) | - | - |
At 29 February 2024 | - | 298,835 | 86,114 |
NET BOOK VALUE |
At 29 February 2024 | 5,000,000 | 51,950 | 20,155 |
At 28 February 2023 | 4,249,478 | 70,150 | 19,833 |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 March 2023 | 176,054 | 453,870 | 5,381,277 |
Additions | 135,030 | 60,735 | 241,639 |
Disposals | (22,435 | ) | - | (26,406 | ) |
Revaluations | - | - | 663,798 |
At 29 February 2024 | 288,649 | 514,605 | 6,260,308 |
DEPRECIATION |
At 1 March 2023 | 130,454 | 358,659 | 901,005 |
Charge for year | 36,938 | 34,548 | 221,962 |
Eliminated on disposal | (22,451 | ) | - | (26,422 | ) |
Revaluation adjustments | - | - | (173,448 | ) |
At 29 February 2024 | 144,941 | 393,207 | 923,097 |
NET BOOK VALUE |
At 29 February 2024 | 143,708 | 121,398 | 5,337,211 |
At 28 February 2023 | 45,600 | 95,211 | 4,480,272 |
The freehold property cost includes capitalised borrowing costs of £166,509 (2023 £166,509). |
The freehold property, with a carrying value of £5,000,000 (2023: £4,249,478) has been pledged as security for the bank loans (see note 19). |
The freehold property has been fair valued by the directors based on a post year end professional valuation. The fair value is based on the open market valuation of similar properties in the local area. |
Revaluations: | £ |
29 February 2024 | 837,246 |
The historic cost, depreciation and net book value of the freehold property are: |
2024 | 2023 |
£ | £ |
Cost | 4,336,203 | 4,336,202 |
Accumulated depreciation | (173,448 | ) | (87,724 | ) |
Net book value | 4,162,755 | 4,248,478 |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 March 2023 |
and 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Bridge House Environmental Centre, Bridge House Lane, Five Oaks Road, Slinfold, West Sussex RH13 0QW |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Bridge House Environmental Centre, Bridge House Lane, Five Oaks Road, Slinfold, West Sussex RH13 0QW |
Nature of business: |
% |
Class of shares: | holding |
ERG APC Maintenance Limited (company number 09990146) has claimed exemption from audit under section 479A of the Companies Act 2006, whereby ERG Process Technologies Limited provides a guarantee under section 479C of the Companies Act 2006. |
Registered office: Bridge House Environmental Centre, Bridge House Lane, Five Oaks Road, Slinfold, West Sussex RH13 0QW |
Nature of business: |
% |
Class of shares: | holding |
ERG (Plastic Fabrication) Limited is a subsidiary of ERG (Air Pollution Control) Limited. |
ERG (Plastic Fabrication) Limited (company number 04238669) has claimed exemption from audit under section 479A of the Companies Act 2006, whereby ERG Process Technologies Limited provides a guarantee under section 479C of the Companies Act 2006. |
Registered office: Bridge House Environmental Centre, Bridge House Lane, Five Oaks Road, Slinfold, West Sussex RH13 0QW |
Nature of business: |
% |
Class of shares: | holding |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: Bridge House Environmental Centre, Bridge House Lane, Five Oaks Road, Slinfold, West Sussex RH13 0QW |
Nature of business: |
% |
Class of shares: | holding |
APC Process Engineering Limited is a subsidiary of ERG (Air Pollution Control) Limited. |
All of the subsidiaries are included within these consolidated financial statements. |
13. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Raw materials | 180,098 | 39,972 |
Work-in-progress | 33,905 | - |
214,003 | 39,972 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 1,953,571 | 2,332,584 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on |
contracts | 1,377,131 | 1,583,556 |
Other debtors | 8,731 | 25,113 |
Tax | 19,431 | - |
VAT | 126,744 | - |
Prepayments and accrued income | 126,424 | 124,220 |
3,612,032 | 4,065,473 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 954,685 | 18,365 |
Payments on account | 2,503,943 | 3,516,493 |
Trade creditors | 1,479,906 | 1,544,047 |
Amounts owed to group undertakings | - | - |
Tax | - | 104,972 |
Social security and other taxes | 127,005 | 102,534 |
VAT | - | 124,451 | - | - |
Other creditors | 79,211 | 62,705 |
Directors' current accounts | - | 2,400 | - | - |
Accruals and deferred income | 372,584 | 344,826 |
5,517,334 | 5,820,793 |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Bank loans (see note 17) | 2,092,991 | 2,126,971 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 954,685 | 18,365 |
Amounts falling due between two and five | years: |
Bank loans - 1-5 years | 2,092,991 | 2,126,971 |
The mortgage of £2,127,735 (2023: £2,145,336) is repayable over five years, from August 2021, with monthly instalments of capital and interest and a final repayment of the outstanding balance. The interest rate is 3.25% per annum over the Bank of England Base Rate payable on the outstanding principal amount of the loan on a monthly basis and on the final repayment date. |
Trade loans amounting to £919,941 (2023: £nil) are short-term loans to specifically meet funding requirements of the group's projects. |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 5,687 | 6,323 |
Company |
Non-cancellable operating leases |
2024 | 2023 |
£ | £ |
Within one year | 9,695 | 9,695 |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 3,047,676 | 2,145,336 |
Bank borrowings are secured by a debenture including a fixed charge over all present freehold and leasehold property; first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertakings both present and future. |
20. | FINANCIAL INSTRUMENTS |
The group enters into forward foreign currency contracts to mitigate the exchange rate risk for certain foreign currency payables. At the year end, the group had no commitments (2023: US$748,437, £152,769 and €86,400 and pay a fixed sterling amount and a fixed $ amount). At the prior year end, the outstanding contracts all matured within 12 months of the year end. |
The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key inputs used in valuing the derivatives are the forward exchange rates for GBP:USD and GBP:EUR. The fair value of the forward-foreign currency contracts is a liability of £nil (2023: £23,488 liability). |
21. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 43,305 | 48,510 |
Other timing differences | 153,683 | - |
196,988 | 48,510 |
Other provisions |
Provision for loss making contracts | - | 100,000 |
Aggregate amounts | 196,988 | 148,510 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 March 2023 | 48,510 | 100,000 |
Provided during year | 148,478 | - |
Unused amounts reversed during year | - | (100,000 | ) |
Balance at 29 February 2024 | 196,988 | - |
The net deferred tax liability expected to reverse in 2024/25 is £15,088. This relates to the reversal of timing differences on acquired tangible assets and capital allowances through depreciation. |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 50,000 | 50,000 |
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital. |
23. | PENSION COMMITMENTS |
The group operates a defined contribution pension plan for its employees. The amount recognised as an expense in the year was £331,999 (2023: £205,522). |
24. | CONTINGENT LIABILITIES |
Group |
At the year end, the group had performance guarantee bonds in place relating to projects that took place during the year. The bonds outstanding at the year end totalled £1,038,222 (2023: £887,705). |
Company |
At the year end, the company had performance guarantee bonds in place relating to projects that took place during the year. The bonds outstanding at the year end totalled £665,359 (2023: £nil). |
At the year end, the company had unlimited multilateral guarantees in place with the other companies within the group. At 28 February 2024, the total borrowings of all other group companies was £3,047,676 (2023: £2,145,336). |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
During the year, the group made advances of £nil (2023: £25,803) to a director and they made repayments of £nil (2023: £25,803). At the year end, the director owed the group £nil (2023: £nil). The advances were interest-free, unsecured and repayable on demand. |
26. | RELATED PARTY DISCLOSURES |
Parent company |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
During the year, the company voted dividends to a director amounting to £138,332 (2023: £163,217). |
Group |
During the year, the group voted dividends to a director amounting to £138,332 (2023: £163,217). The group owed a director £nil (2023: £2,400) which is interest-free, unsecured and repayable on demand. |
During the year, the group made payments of £84,160 (2023: £74,444) to a company controlled by a director. There were no amounts outstanding at the year end. |
During the year, a total of key management personnel compensation of £ 923,401 (2023 - £ 672,954 ) was paid. |
ERG PROCESS TECHNOLOGIES LIMITED (REGISTERED NUMBER: 04171774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 FEBRUARY 2024 |
27. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 81,545 | 506,726 |
Depreciation charges | 221,962 | 177,690 |
Profit on disposal of fixed assets | (6,167 | ) | (5,208 | ) |
Increase/(decrease) in provisions | (100,000 | ) | (66,347 | ) |
Finance costs | 191,397 | 88,676 |
Finance income | (29,484 | ) | (6,189 | ) |
359,253 | 695,348 |
Increase in stocks | (174,031 | ) | (373 | ) |
Decrease/(increase) in trade and other debtors | 472,872 | (986,100 | ) |
(Decrease)/increase in trade and other creditors | (1,132,407 | ) | 928,759 |
Cash generated from operations | (474,313 | ) | 637,634 |
28. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 29 February 2024 |
29.2.24 | 1.3.23 |
£ | £ |
Cash and cash equivalents | 1,292,942 | 1,485,812 |
Year ended 28 February 2023 |
28.2.23 | 1.3.22 |
£ | £ |
Cash and cash equivalents | 1,485,812 | 1,880,984 |
29. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.3.23 | Cash flow | At 29.2.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,485,812 | (192,870 | ) | 1,292,942 |
1,485,812 | (192,870 | ) | 1,292,942 |
Debt |
Debts falling due within 1 year | (18,365 | ) | (936,320 | ) | (954,685 | ) |
Debts falling due after 1 year | (2,126,971 | ) | 33,980 | (2,092,991 | ) |
(2,145,336 | ) | (902,340 | ) | (3,047,676 | ) |
Total | (659,524 | ) | (1,095,210 | ) | (1,754,734 | ) |