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REGISTERED NUMBER: 13715318 (England and Wales)














Financial Statements

for the Year Ended 31 December 2023

for

Evec Ltd

Evec Ltd (Registered number: 13715318)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Balance Sheet 1

Notes to the Financial Statements 2


Evec Ltd (Registered number: 13715318)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 22,327 21,154
Tangible assets 5 2,917 36,157
25,244 57,311

CURRENT ASSETS
Stocks 261,103 439,024
Debtors 6 3,078,287 351,444
Cash at bank 21,217 61,273
3,360,607 851,741
CREDITORS
Amounts falling due within one year 7 3,072,739 847,788
NET CURRENT ASSETS 287,868 3,953
TOTAL ASSETS LESS CURRENT LIABILITIES 313,112 61,264

PROVISIONS FOR LIABILITIES 729 -
NET ASSETS 312,383 61,264

CAPITAL AND RESERVES
Called up share capital 100 100
Retained earnings 312,283 61,164
312,383 61,264

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

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 12 December 2024 and were signed on its behalf by:





S Johnson - Director


Evec Ltd (Registered number: 13715318)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Evec Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number: 13715318

Registered office: Unit 8
Centenary Park
Coronet Way
Salford
Greater Manchester
M50 1RE

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The financial statements have been prepared on the basis of going concern, which assumes that the company will continue to operate its business for the foreseeable future. The company's and the group's ability to continue as a going concern is dependent on the continued access to adequate headroom within its invoice financing facility together with the support of suppliers and enhanced terms of payment from suppliers. However, as at the date of signing these accounts, the company has agreed reduced covenant obligations with its lender until June 2025 and these amended covenants are pending a third party review by a firm of accountants, as requested by the lender, against trading forecasts prepared by the directors. These forecasts assess whether the company has sufficient working capital and cash flows to meet its obligations as they fall due over the 12 months following the signing of these financial statements, including servicing its debt, maintaining operations, and fulfilling its commitments to employees and suppliers.

The company's directors are actively addressing the situation and are working towards finding a resolution that takes into account the interests of all its stakeholders. In particular, the directors are working with the company's principal lender along with third party advisors to consider the optimal route forward, including a possible sale of business assets which would significantly reduce the group's exposure to requiring third party funding. The group's funding facility is disclosed in the notes.

If the company is unable to successfully address the situation and its associated challenges, it may have a material adverse effect on the company's financial condition and operating results. Given the outcome of the third party review is not yet complete, there is a material uncertainty in relation to the ability of the company to continue as a going concern. The financial statements presented do not include any adjustments to reflect the downside scenario.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised as the company becomes entitled to consideration for the goods supplied.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 15% on reducing balance
Motor vehicles - 15% on reducing balance

Evec Ltd (Registered number: 13715318)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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 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.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2022 - 1 ) .

4. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 January 2023 23,269
Additions 4,765
At 31 December 2023 28,034
AMORTISATION
At 1 January 2023 2,115
Amortisation for year 3,592
At 31 December 2023 5,707
NET BOOK VALUE
At 31 December 2023 22,327
At 31 December 2022 21,154

Evec Ltd (Registered number: 13715318)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

5. TANGIBLE FIXED ASSETS
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 January 2023 3,710 34,000 37,710
Disposals - (34,000 ) (34,000 )
At 31 December 2023 3,710 - 3,710
DEPRECIATION
At 1 January 2023 278 1,275 1,553
Charge for year 515 - 515
Eliminated on disposal - (1,275 ) (1,275 )
At 31 December 2023 793 - 793
NET BOOK VALUE
At 31 December 2023 2,917 - 2,917
At 31 December 2022 3,432 32,725 36,157

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 691,477 165,891
Amounts owed by group undertakings 2,327,019 150,212
Other debtors 59,791 35,341
3,078,287 351,444

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 126,279 594,452
Amounts owed to group undertakings 2,109,165 208,221
Taxation and social security 201,355 42,197
Other creditors 635,940 2,918
3,072,739 847,788

8. SECURED DEBTS

The company had an invoice finance facility of £558,047 (2022: £Nil) at the year end.

A fixed and floating charge over all company assets and undertakings is held by Lloyds Bank Commercial Finance Ltd, this charge contains a negative pledge.

The group has entered into a multilateral guarantee with the Lloyds Bank Commercial Finance Ltd as follows:

Debentures consisting of fixed and floating charged over all the assets and undertaking of the reporting entity, OEM Appliances, Coolmed Limited, Xingbang UK Limited, Ship It Appliances Limited, For Everyone Group Ltd, Evec Ltd, CWW Holdings Limited and Coolmed Calibration Ltd.

In addition a further debenture has been entered into with Close Brothers Limited which includes a fixed and floating charges of the assets of the company and its fellow group companies, Coolmed Limited, OEM Appliances Limited, Ship it Appliances Limited and Xingbang UK Limited.

As at 31 December 2023, the group had an invoice finance facility of £3,865,346 and a loan of £1,208,334.

Evec Ltd (Registered number: 13715318)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

9. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was qualified on the following basis:

Basis for qualified opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.

We were not appointed as auditors of Evec Ltd until after 31st December 2022 and thus did not observe the counting of physical stock at the beginning of the year. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 31st December 2022 which are stated in the balance sheet at £439,024.

As a result of this matter, we were unable to determine whether any adjustments might have been found necessary in respect of recorded or unrecorded stock, and the elements making up the profit and loss account, statement of changes in equity and statement of cash flows.

Material uncertainty related to going concern
We draw attention to Note 2 in the financial statements, which indicates that the company has held discussions regarding its principal financing.

As part of these discussions, revised forecasts have been prepared and reduced covenant obligations have been agreed until June 2025, as the original covenants were unable to be met. The revised forecasts are to be subject to a review by a competent third party firm of accountants as requested by the company's main lender of finances. If the third party's review of the revised forecasts indicates that the reduced covenants will not be met, the lender will complete a further internal review before deciding upon the future funding facility.

The wider group is also considering the potential sale of business assets, which would significantly reduce the group's exposure to requiring third party lending.

As stated in Note 2, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Richard Thompson BA FCA (Senior Statutory Auditor)
for and on behalf of Thompson Wright Limited

10. RELATED PARTY DISCLOSURES

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.

11. ULTIMATE CONTROLLING PARTY

The ultimate parent undertaking and controlling party is For Everyone Group Limited. The registered office of For Everyone Group Limited is Unit 8 Centenary Park, Coronet Way, Salford, Greater Manchester, England, M50 1RE.