Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-03-31truetruetruetruetruefalse2023-04-01false1515truefalse 10797006 2023-04-01 2024-03-31 10797006 2022-04-01 2023-03-31 10797006 2024-03-31 10797006 2023-03-31 10797006 2022-04-01 10797006 c:Director1 2023-04-01 2024-03-31 10797006 c:Director2 2023-04-01 2024-03-31 10797006 c:Director3 2023-04-01 2024-03-31 10797006 c:Director4 2023-04-01 2024-03-31 10797006 c:Director5 2023-04-01 2024-03-31 10797006 c:Director5 2024-03-31 10797006 c:RegisteredOffice 2023-04-01 2024-03-31 10797006 d:Buildings d:LongLeaseholdAssets 2023-04-01 2024-03-31 10797006 d:Buildings d:LongLeaseholdAssets 2024-03-31 10797006 d:Buildings d:LongLeaseholdAssets 2023-03-31 10797006 d:PlantMachinery 2023-04-01 2024-03-31 10797006 d:PlantMachinery 2024-03-31 10797006 d:PlantMachinery 2023-03-31 10797006 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 10797006 d:OfficeEquipment 2023-04-01 2024-03-31 10797006 d:OfficeEquipment 2024-03-31 10797006 d:OfficeEquipment 2023-03-31 10797006 d:OfficeEquipment d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 10797006 d:ComputerEquipment 2023-04-01 2024-03-31 10797006 d:ComputerEquipment 2024-03-31 10797006 d:ComputerEquipment 2023-03-31 10797006 d:ComputerEquipment d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 10797006 d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 10797006 d:CurrentFinancialInstruments 2024-03-31 10797006 d:CurrentFinancialInstruments 2023-03-31 10797006 d:CurrentFinancialInstruments d:WithinOneYear 2024-03-31 10797006 d:CurrentFinancialInstruments d:WithinOneYear 2023-03-31 10797006 d:UKTax 2023-04-01 2024-03-31 10797006 d:UKTax 2022-04-01 2023-03-31 10797006 d:ShareCapital 2023-04-01 2024-03-31 10797006 d:ShareCapital 2024-03-31 10797006 d:ShareCapital 2022-04-01 2023-03-31 10797006 d:ShareCapital 2023-03-31 10797006 d:ShareCapital 2022-04-01 10797006 d:SharePremium 2023-04-01 2024-03-31 10797006 d:SharePremium 2024-03-31 10797006 d:SharePremium 2022-04-01 2023-03-31 10797006 d:SharePremium 2023-03-31 10797006 d:SharePremium 2022-04-01 10797006 d:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 10797006 d:RetainedEarningsAccumulatedLosses 2024-03-31 10797006 d:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 10797006 d:RetainedEarningsAccumulatedLosses 2023-03-31 10797006 d:RetainedEarningsAccumulatedLosses 2022-04-01 10797006 d:AcceleratedTaxDepreciationDeferredTax 2024-03-31 10797006 d:AcceleratedTaxDepreciationDeferredTax 2023-03-31 10797006 d:OtherDeferredTax 2024-03-31 10797006 d:OtherDeferredTax 2023-03-31 10797006 c:OrdinaryShareClass1 2023-04-01 2024-03-31 10797006 c:OrdinaryShareClass1 2024-03-31 10797006 c:OrdinaryShareClass1 2023-03-31 10797006 c:OrdinaryShareClass2 2023-04-01 2024-03-31 10797006 c:OrdinaryShareClass2 2024-03-31 10797006 c:OrdinaryShareClass2 2023-03-31 10797006 c:FRS102 2023-04-01 2024-03-31 10797006 c:Audited 2023-04-01 2024-03-31 10797006 c:FullAccounts 2023-04-01 2024-03-31 10797006 c:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 10797006 d:WithinOneYear 2024-03-31 10797006 d:WithinOneYear 2023-03-31 10797006 d:BetweenOneFiveYears 2024-03-31 10797006 d:BetweenOneFiveYears 2023-03-31 10797006 2 2023-04-01 2024-03-31 10797006 e:PoundSterling 2023-04-01 2024-03-31 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 10797006







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024


POZITIVE WATER LIMITED






































img447d.png                        

 


POZITIVE WATER LIMITED
 


 
COMPANY INFORMATION


Directors
N R Bhatia 
K F Campbell 
S J Harrison 
P V Patel 
K E Thompson (appointed 31 December 2024)




Registered number
10797006



Registered office
One Canada Square Canary Wharf
Floor 10 (North West)

London

England

E14 5AB




Independent auditor
Menzies LLP
Chartered Accountants & Statutory Auditor

Lynton House

7-12 Tavistock Square

London

WC1H 9LT





 


POZITIVE WATER LIMITED
 



CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditor's Report
5 - 8
Statement of Comprehensive Income
9
Statement of Financial Position
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 22


 


POZITIVE WATER LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The directors present their strategic report and the audited financial statements for the 12 months period ended 31 March 2024.  Following the year end the Company changed its name from First Business Water Limited to Pozitive Water Limited.

Business review
 
The company delivered a strong set of financial results in 23/24, achieving a 23.2% increase in revenue compared to the previous financial year. While the gross profit margin remained steady at 8.4% (versus 9.0% in 22/23), gross profit increased by £427k. EBITDA for 23/24 remained consistent at £1.9m, as the gross profit growth was offset by higher administrative costs.

Principal risks and uncertainties
 
The performance of the business is subject to a number of principal risks and uncertainties, and the company monitors these continuously, taking appropriate action where necessary. The principal operating risks of the company include, but are not limited to, the following areas:

1.Regulatory risk: The company operates in a market governed by strict regulation and is required to adhere to licence obligations and market codes, as well as wider regulations governing businesses. The company manages this risk through robust compliance training, policies, processes and controls and through active engagement with stakeholders such as OFWAT and MOSL. The company also engages with third parties to supplement internal experience where it is deemed appropriate.
 
2.Liquidity Risk: The company’s liquidity is dependent on managing the cash from customers to wholesalers. The company has a number of policies and processes of ensuring sufficient reserves are in place to enable continued liquidity and timely payment in line with market credit terms. 
To maintain liquidity ensuring that sufficient funds are available for ongoing operations and future developments, and in particular to pay all wholesaler liabilities when due, the company uses various different methods: The company’s bank balance is constantly monitored, and a daily cash flow forecast is used to predict the bank balance to ensure the business has enough cash to settle its liabilities. The company’s principal financial assets are bank balances, trade, and other receivables.
 
 
3.Credit risk: The company’s credit and cash flow risk is primarily attributable to the risk of customers failing to pay their bills. This is managed by thorough vetting of new customers, monitoring the ageing of outstanding balances, robust collection processes and implementing policies to manage credit risk relating to trade debtors. The company has no significant concentration of credit risk with exposure spread over a number of customers.
 
4.Technology risk: Effective IT systems and infrastructure and timely access to accurate data are essential to the operations of the company. The company constantly seeks to improve its technology and IT capability. Frequent training is held across the company ensuring data security and compliance is as up to date as possible. Supported by a dedicated IT function, all systems and related processes are thoroughly monitored to manage any data or security breaches. Further, the company holds particular admin levels for business-critical systems ensuring both business continuity and due diligence.
 
5.Operational risk: The company employees are the most valuable resource. To promote the interests of employees, personnel matters are discussed at Board level to make sure that the issues of our employees are represented at the highest level of decision making. The company continually examines ways to continue to develop employee engagement as well as supporting any training requests and requirements.
 

Page 1

 


POZITIVE WATER LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Financial key performance indicators
 
Several risks are ever present with business finance. As such, the business continually reviews internal KPI's including Gross Profit Margin, Operating Profit Margin and EBITDA. The margins reflect the competitive pricing pressures of renewing existing customers and acquiring new ones, the overall impact has been carefully managed to sustain EBITDA levels. The company expanded its customer base by approximately 2,300 new supply point identifiers, leveraging a sales strategy focused on portfolio customers and high-volume consumers. This approach has strengthened our market presence and provided a solid foundation for growth in customer loyalty and consumption. Looking ahead, we remain committed to optimising profitability while fostering long-term relationships with our customers to create a sustainable and resilient business.

2024
2023
Gross profit margin

8.4%

9.0%
 
Operating profit margin

4.8%

6.0%
 
EBITDA

£1.90m

£1.92m
 


 


This report was approved by the board and signed on its behalf.



P V Patel
Director

Date: 16 January 2025

Page 2

 


POZITIVE WATER LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

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

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

First Business Water (the company) is a licensed retailer founded in 2017. The principal activity of the company in the year under review was that of the supply of water and sewerage services to non-household customers in England.

Results and dividends

The profit for the year, after taxation, amounted to £1,412,792 (2023 - £1,567,987).

No dividend was proposed or paid in the year (2023 -nil).

Directors

The Directors who served during the year were:

N R Bhatia 
K F Campbell 
S J Harrison 
P V Patel 

Future developments

The company is actively pursuing strategies to enhance market reach by collaborating with new third-party intermediaries and actively participating in fresh public sector tenders. These endeavours hold promising potential for driving increased sales volume and opportunities. Further, we are working with customers with the roll-out of automated meter reading technology, smart meters, coupled with a frequency increase in meter reading across our customer base. This strategic initiative aims to steadily decrease our reliance on estimated billing, thereby shortening reconciliation times and ultimately leading to improved management of our working capital.

Page 3

 


POZITIVE WATER LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Matters covered in the Strategic Report

The Company has chosen in accordance with Section 414C(II) of the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 to set out within the Company’s Strategic Report, the information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the Directors' Report, such as the business review and details of the principal risks and uncertainties.

Disclosure of information to auditor

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

The Company has chosen in accordance with Section 414C(II) of the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 to set out within the Company’s Strategic Report, the information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the Directors' Report and details of the principal risks and uncertainties.

Auditor

The auditor, Menzies LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





P V Patel
Director

Date: 16 January 2025

Page 4

 


POZITIVE WATER LIMITED
 

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POZITIVE WATER LIMITED

Opinion


We have audited the financial statements of Pozitive Water Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


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 ReportOur 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.


Page 5

 


POZITIVE WATER LIMITED


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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POZITIVE WATER LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 


POZITIVE WATER LIMITED


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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POZITIVE WATER LIMITED (CONTINUED)

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:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:

Companies Act 2006;
Financial Reporting Standard 102;
Criminal Finances Act;
OFWAT.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of relevant documentation.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. No issues were identified in this area. We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

Posting of unusual journals and complex transactions; or
The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interests.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


Page 7

 


POZITIVE WATER LIMITED


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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POZITIVE WATER LIMITED (CONTINUED)

Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.





Robin Hopkins FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Lynton House
7-12 Tavistock Square
London
WC1H 9LT

16 January 2025
Page 8

 


POZITIVE WATER LIMITED
 


 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
38,937,585
31,615,662

Cost of sales
  
(35,659,996)
(28,765,251)

Gross profit
  
3,277,589
2,850,411

Administrative expenses
  
(1,391,596)
(941,810)

Operating profit
 5 
1,885,993
1,908,601

Interest receivable and similar income
 9 
33,076
27,436

Interest payable and similar expenses
 10 
(12,292)
(6,050)

Profit before tax
  
1,906,777
1,929,987

Tax on profit
 11 
(493,985)
(362,000)

Profit for the financial year
  
1,412,792
1,567,987

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 12 to 22 form part of these financial statements.

Page 9

 


POZITIVE WATER LIMITED
REGISTERED NUMBER:10797006



STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible fixed assets
 12 
26,100
82,079

  
26,100
82,079

Current assets
  

Debtors: amounts falling due within one year
 13 
10,076,383
5,921,781

Cash at bank and in hand
 14 
1,150,874
4,972,507

  
11,227,257
10,894,288

Creditors: amounts falling due within one year
 15 
(7,313,855)
(8,438,815)

Net current assets
  
 
 
3,913,402
 
 
2,455,473

Total assets less current liabilities
  
3,939,502
2,537,552

Provisions for liabilities
  

Deferred tax
 16 
(5,157)
(15,999)

  
 
 
(5,157)
 
 
(15,999)

Net assets
  
3,934,345
2,521,553


Capital and reserves
  

Called up share capital 
 17 
104
104

Share premium account
 18 
9,654
9,654

Profit and loss account
 18 
3,924,587
2,511,795

  
3,934,345
2,521,553


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




P V Patel
Director

Date: 16 January 2025

The notes on pages 12 to 22 form part of these financial statements.

Page 10

 


POZITIVE WATER LIMITED
 



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 April 2022
100
-
943,808
943,908



Profit for the year
-
-
1,567,987
1,567,987
Total comprehensive income for the year
-
-
1,567,987
1,567,987

Shares issued during the year
4
9,654
-
9,658


Total transactions with owners
4
9,654
-
9,658



At 1 April 2023
104
9,654
2,511,795
2,521,553



Profit for the year
-
-
1,412,792
1,412,792
Total comprehensive income for the year
-
-
1,412,792
1,412,792


At 31 March 2024
104
9,654
3,924,587
3,934,345


The notes on pages 12 to 22 form part of these financial statements.

Page 11

 


POZITIVE WATER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

The company is registered in England & Wales and is a private company limited by shares. Its registered number and registered office are located on the Company Information page.
The principal activity of the company in the year under review was that of the supply of water and sewerage services to non-household customers in England.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Pozitive Holdings Limited as at 31 March 2024 and these financial statements may be obtained from Companies House.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured on the basis of water supplied and wastage services during the period.

 
2.4

Operating leases: the Company as lessee

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

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 12

 


POZITIVE WATER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 13

 


POZITIVE WATER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.9
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
Over the lease term
Plant and machinery
-
20%
Office equipment
-
20%
Computer equipment
-
33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.11

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

Page 14

 


POZITIVE WATER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions. 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Accrued income
In making this judgement the company uses volume data provided by industry bodies which form the basis of the sales invoices raised. Any difference between the invoices raised and the industry data is recognised as accrued income.


4.


Turnover

The whole of the turnover is attributable to the principal activity specified in note 1 and arose solely within the United
Kingdom.

All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Other operating lease rentals
43,246
70,141


6.


Auditor's remuneration

2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
21,000
21,000

Page 15

 


POZITIVE WATER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

7.


Employees

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


2024
2023
£
£

Wages and salaries
557,021
477,501

Social security costs
48,803
40,956

Cost of defined contribution scheme
15,694
39,042

621,518
557,499


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


        2024
        2023
            No.
            No.







Employees
15
15


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
140,368
140,534

Company contributions to defined contribution pension schemes
6,785
32,660

147,153
173,194


During the year retirement benefits were accruing to 3 Directors (2023 - 3) in respect of defined contribution pension schemes.


9.


Interest receivable

2024
2023
£
£


Other interest receivable
33,076
27,436

33,076
27,436

Page 16

 


POZITIVE WATER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
12,292
6,050

12,292
6,050


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
491,883
347,508

Adjustments in respect of previous periods
12,944
-


504,827
347,508


Total current tax
504,827
347,508

Deferred tax


Origination and reversal of timing differences
(10,842)
14,492

Total deferred tax
(10,842)
14,492


Tax on profit
493,985
362,000
Page 17

 


POZITIVE WATER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,906,777
1,929,987


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
476,694
366,698

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
36
44

Capital allowances for year in excess of depreciation
4,311
(1,861)

Adjustments to tax charge in respect of prior periods
12,944
-

Other differences leading to an increase (decrease) in the tax charge
-
(2,881)

Total tax charge for the year
493,985
362,000


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 18

 


POZITIVE WATER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Office equipment
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 April 2023
62,782
21,884
5,463
2,642
92,771


Additions
-
600
796
11,951
13,347


Disposals
(62,782)
-
(6,054)
(1,885)
(70,721)



At 31 March 2024

-
22,484
205
12,708
35,397



Depreciation


At 1 April 2023
5,069
2,656
1,561
1,406
10,692


Charge for the year on owned assets
9,402
4,447
883
2,440
17,172


Disposals
(14,471)
-
(2,415)
(1,681)
(18,567)



At 31 March 2024

-
7,103
29
2,165
9,297



Net book value



At 31 March 2024
-
15,381
176
10,543
26,100



At 31 March 2023
57,713
19,228
3,902
1,236
82,079

Page 19

 


POZITIVE WATER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Debtors

2024
2023
£
£


Trade debtors
6,345,870
4,172,828

Amounts owed by group undertakings
538,424
538,424

Other debtors
2,335,166
950,742

Prepayments and accrued income
856,923
259,787

10,076,383
5,921,781



14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,150,874
4,972,507

1,150,874
4,972,507



15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Payments received on account
366,245
317,030

Trade creditors
501,482
395,777

Corporation tax
241,885
347,509

Other creditors
21,711
15,107

Accruals and deferred income
6,182,532
7,363,392

7,313,855
8,438,815


Included within other creditors is £6,491 (2023: £1,964) in relation to defined contribution pensions payable.


16.


Deferred taxation




2024


£






At beginning of year
(15,999)


Charged to profit or loss
10,842



At end of year
(5,157)

Page 20

 


POZITIVE WATER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
16.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(15,999)
(15,999)

Other timing differences
10,842
-

(5,157)
(15,999)


17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



5,000 (2023 - 5,000) A Ordinary shares of £0.01 each
50
50
5,400 (2023 - 5,400) B Ordinary shares of £0.01 each
54
54

104

104



18.


Reserves

Share premium account

The share premium account represents the premium paid on shares issued less any transaction costs in respect of
new shares issued.

Profit and loss account

This reserve records retained earnings and accumulated losses.


19.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
-
45,581

Later than 1 year and not later than 5 years
-
44,333

-
89,914

Page 21

 


POZITIVE WATER LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

20.


Related party transactions

During the year amounts of £45,260 (2023: £70,754) were paid to companies to which directors of this Company have (or had during the year) significant control over. At the year end, amounts owed to these companies amounted to £Nil (2023: £16,726).
Key management personnel are the directors.


21.


Controlling party

Until 6 October 2023, the Company's immediate parent company is Pozitive Energy Ltd.  From that date, this was Pozitive Holdings Ltd.  The ultimate parent company is Pozitive Holdings Ltd.  The smallest and largest group to which consolidated accounts include this company are prepared by Pozitive Holdings Ltd and are availabe from Companies House.  Both parent companies registered office are the same as this company.
There is not considered to be one controlling party.

 
Page 22