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Registration number: 01509382

Powerday PLC

Audited Financial Statements

for the period ended 1 August 2023

Brebners
Chartered Accountants & Statutory Auditor
130 Shaftesbury Avenue
London
W1D 5AR

 

Powerday PLC

Contents

Company Information

1

Strategic Report

2 to 6

Directors' Report

7 to 11

Statement of Directors' Responsibilities

12

Independent Auditor's Report

13 to 16

Statement of Income and Retained Earnings

17

Statement of Comprehensive Income

18

Statement of Financial Position

19

Statement of Changes in Equity

20

Statement of Cash Flows

21

Notes to the Financial Statements

22 to 37

 

Powerday PLC

Company Information

Directors

M R Crossan

E Crossan

Company secretary

M R Crossan

Registered office

130 Shaftesbury Avenue
2nd Floor
London
W1D 5EU

Auditor

Brebners
Chartered Accountants & Statutory Auditor
130 Shaftesbury Avenue
W1D 5AR

 

Powerday PLC

Strategic Report for the period ended 1 August 2023

The directors present their strategic report for the period ended 1 August 2023.

Principal activity

The principal activity of the company is the provision of integrated waste management, construction and recycling services to a broad range of customers spanning construction, development, utility and municipal sectors.

Fair review of the business

The directors are pleased with the levels of turnover and profitability generated by the company in what
continues to be a challenging economic environment as the global and domestic economy emerges from the
COVID-19 pandemic, Brexit and into an inflationary driven cost of living crisis.

The business, as with all other businesses was significantly impacted by the COVID-19 pandemic, and the UK
Government's response to this but has recovered sharply - having benefited from a refocussing on core business
goals and cost-efficiency measures introduced throughout that period.

Bearing in mind the ongoing impact of inflationary driven economic headwinds the directors are pleased with the
increased levels of turnover and profitability generated by the company, and in particular the robustness shown
by the business. The Directors see some improvement with the downturn in inflation hopefully coupled with a
drop in interest rates later in 2024 which will provide a stimulus to the construction industry. Whilst the economic
uncertainty may continue to impact profitability the directors remain confident that the company will continue to
generate significant profitability in the future. Further investment continues to be made demonstrating the
directors' positive outlook for this business.

The company's key financial and other performance indicators during the period were as follows:

Financial KPIs

Unit

2023

2023

Turnover

£

346,618

65,026,922

Gross margin

%

62

37

The current period figures are prepared for the period ending 1 August 2023. The comparative figures are prepared for the year ending 31 July 2023.

Non-financial KPI's

The company seeks to ensure that responsible business practice is fully integrated into the management of all of its operations and into the culture of all parts of its business. The directors believe that the consistent adoption of responsible business practice is essential for operational excellence, which in turn ensures the delivery of its objectives of sustained real growth in profitability.

In a company this size the directors consider there are collectively numerous non-financial performance indicators but none individually are key.

 

Powerday PLC

Strategic Report for the period ended 1 August 2023

Principal risks and uncertainties

The directors consider the following risks and uncertainties to be key in managing and maintaining the future success of the company.

Economic Outlook:

The economic environment continues to be challenging with continuing pressure on margins. The position is
further clouded by the ongoing economic impact of both the inflationary cost of living crisis and the UK's decision
to leave the European Union. Trading profits continue to be pressurised in the integrated waste management
sector, and increasing revenues in a post COVID-19 society with inflation currently outstripping restrained wages
growth in the wider economy remains challenging.

Brexit:

The directors remain vigilant to the ongoing uncertainties and risk associated with Brexit and the UK leaving the
EU on 31st December 2020 - particularly the potential negative impact upon the level of migrant workforce across
the industry and any ongoing complications and logistical implications for exported material. Logistically the
company has adapted to operational changes enforced by the implementation of the Brexit trade agreement and
whilst this has impacted negatively on margins in certain areas of the business, the company continues to trade
profitably.

Regulation:

Ongoing compliance with regulatory requirements remains critical to the group's future prospects. The directors
prioritise regulatory compliance across the business as a whole and regularly review and retrain our competent
professionals.

Expansion:

The successful integration and business development at the enhanced waste management site opened during
Autumn 2015 remains central to expansion plans within the company's business. The directors remain vigilant in
identifying opportunities for further expansion, as evidenced by the recent acquisitions in South East London and
Croydon to strengthen geographical coverage of London and the South East. The board has committed
significant resource to ensuring the successful integration of the site, which is generating significant revenue
streams for the group.

Post year end the company purchased the entire share capital of Economic Skips Limited for an initial
consideration of £4,750,000.

 

Powerday PLC

Strategic Report for the period ended 1 August 2023

Future developments

The directors remain hopeful that the company's performance can be maintained or bettered, despite the
challenging economic environment and the cost of living crisis. In particular results in the current year to date
have been encouraging with significant profitability in the first half of the year upon which the directors are
confident the company can build. Whilst uncertainties remain the Board believe that there are opportunities for
development and potential expansion in the current volatile economic climate.

The Board have committed to a 5 year planning strategy incorporating 6 key cornerstone strategic objectives.
These are reviewed and progressed regularly.

We welcome four new associate directors recently promoted within various disciplines of the business. These
associate directors have been employed with us for a number of years and over the past 3 years and have been
developed as experts within their roles by following strict internal and external training trajectories.

Here at Powerday we embody sustainability and publish our sustainability manifesto annually highlighting our
successes with our chosen pillars and setting objectives for the coming year. Our sustainability team consisting of
both environmental and social sustainability professionals who work within the business and with our client on all
social and sustainability initiatives.

 

Powerday PLC

Strategic Report for the period ended 1 August 2023

Section 172(1) statement

The Companies (Miscellaneous Reporting) Regulations 2018 require Directors to explain how they considered
the interests of key stakeholders as set out in section 172(1) of the Companies Act 2006 when performing their
duty to promote the success of the Company. The following paragraphs summarise how the Directors fulfil their
duties.

The Board is committed to ensuring that the Company maintains a strong reputation across all of its stakeholders
and this will remain a long term focus of the Company as we continue to grow and expand.

The Board has identified the stakeholder groups below with whom engagement is fundamental to the ongoing
success of the Company. We will continue to review our existing processes and adapt and develop them as
necessary. In April 2022 the company published its second Sustainability and Wellness Manifesto which directs
our company strategy in this area across the following key areas; employees, community, clients, carbon and
procurement. We have engaged external companies who measure our effectiveness in particular areas. We
appointed Social Value to give us an independent adjudication/audit on the social value we create in the
geographical areas we work in. We work with the Carbon Trust to help us reduce our creation of carbon and are
pleased that we have become carbon neutral on both our scope 1 and scope 2 emissions. The full manifesto is
available to download from the company's website - and focusses in particular on equality, diversity and
inclusion, net-zero carbon and the health and wellbeing of young Londoners.

We engage frequently with our employees and aim to keep them informed of any relevant changes that will
impact them directly or indirectly. The Company provides regular updates to all teams and this year has seen a
particular focus on the ongoing impact upon society of both COVID-19 and the inflationary cost of living crisis. We
publish an internal magazine called the Powerday Post which keeps employees updated on company plans and
activities. We value all of our employees and ensure that health, safety and wellbeing is promoted and
maintained at all times without compromise. We have trained a number of mental health first aiders who are
available to all employees as required.

With our clients we are determined to continue to deliver a best in class service to every one of our clients. Our
sustainable offering is consistent and reliable and continues to assist construction businesses reduce their
carbon footprint by diverting 100% of their waste from landfill.

The Company is focused on executing its strategy to ensure our Shareholders benefit from strong underlying
returns whilst also maintaining an ethical and moral ethos across all decisions made.

Our suppliers are essential for our business to flourish and we are always committed to purchasing goods and
services from local sustainable businesses where possible including sourcing from Social Enterprises companies
where available. As a company we align with the Government's strategies including the diversion of waste from
landfill and continuing moving towards a circular economy. We are continuing to replace aging office equipment
with energy-efficient products and are replacing old inefficient lamps with low-energy LED’s. In addition we have
introduced an electric company car scheme which includes the installation of electric charging points at our Head
Office.

Powerday maintains an ethos of ‘giving back’. The business consistently supports the local communities in which
it operates through the Powerday Foundation and the Powerday Academy. We are delighted to have been able
to deliver £12.5m. of social value in the year ended 31 July 2023, a target the company aims to build upon in the
future.

 

Powerday PLC

Strategic Report for the period ended 1 August 2023

There have been no material changes to the above Strategic Report shown in the financial statements for the year ended 31 July 2023.
 

Approved by the Board on 26 April 2024 and signed on its behalf by:

.........................................
M R Crossan
Company secretary and director

 

Powerday PLC

Directors' Report for the period ended 1 August 2023

The directors present their report and the financial statements for the period from 1 August 2023 to 2 August 2023.

Directors of the company

The directors who held office during the period were as follows:

M R Crossan - Company secretary and director

E Crossan

Dividends

Interim dividends of £Nil (year to 31 July 2023: £513,525) were paid during the period. No final dividend is proposed.

Information included in the Strategic Report

The company has chosen in accordance with s.414C(11) of the Companies Act 2006 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 Director's Report. It has done so with respect to future developments.

Financial instruments

Objectives and policies

The company's principal financial instruments comprise bank balances, bank overdrafts, trade and other creditors, trade debtors, loan and hire purchase agreements. The main purpose of these instruments is to raise funds for and finance the company's operations.

Price risk, credit risk, liquidity risk and cash flow risk

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of the bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. The company has loan facilities which are continually monitored, with the compliance with all relevant covenants prioritised.

In respect of other loans these are from financial institutions. The interest rates are tied to LIBOR and the company manages the liquidity risk by ensuring there are sufficient funds to meet the payments.

The liquidity risk in respect of hire purchase agreements is managed in the same way as loans.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts falling due.

Donations

During the period the company made charitable contributions of £Nil (year to 31 July 2023: £21,959).

No political donations were made during the year.

 

Powerday PLC

Directors' Report for the period ended 1 August 2023

Employment of disabled persons

The company's policy to offer equal opportunities to all persons, including disabled persons, applying for vacancies having regard to their aptitudes and abilities in relation to their jobs for which they apply. The opportunity also exists for continuing employment and appropriate training for such employees including those who become disabled during their employment with the company.

Engagement with employees

The company's policy is to consult and discuss with employees, through meetings, on matter likely to affect employees' interests, or matters of concern to them.

Information on matters of concern to employees is communicated internally to achieve a common awareness of the financial and economic factors affecting the performance of the company.

Engagement with suppliers, customers and other relationships

We strive together with our customers and are determined to continue to deliver a best in class service to each and every one of our clients. Our sustainable offering is consistent and reliable and continues to assist construction businesses reduce their carbon footprint by diverting 100% of their waste from landfill.

The Company is focused on executing its strategy to ensure our Shareholders benefit from strong underlying returns whilst also maintaining an ethical and moral ethos across all decisions made.

Our suppliers are essential for our business to flourish and we are always committed to purchasing goods and services from local businesses where possible.

Policy on the payment of creditors

The company does not follow any specific code or standard on payment practice. However, it is the company's policy negotiate terms with its suppliers and to ensure that they are aware of the terms of payment when business is agreed. Every effort is made to adhere to these terms and payment is made when it can be confirmed that goods and services have been provided in accordance with the relevant contract conditions.

The creditor payment period of the company for the period was 71 days (grossed up to represent creditor payment period for an entire year) (year ended 31 July 2023: 83 days).

Foreign exchange currency exposure

The company is exposed to currency exchange risk due to a significant proportion of its plant & machinery and operating expenses being denominated in non-Sterling currencies. The net exposure of each currency is monitored by reviewing forward exchange rates and taking account of anticipated movements when negotiating key transactions and contracts.


Streamlined energy and carbon reporting

The UK Government’s Streamlined Energy and Carbon Reporting (SECR) policy was implemented on 1 April
2019, and the Company continues to adapt and publish disclosures on energy and carbon. Powerday’s energy
use and associated greenhouse gas (GHG) emissions from electricity and fuel in the UK for the year ended 31
July 2023 is detailed below. The data covers all seven of our sites across London.

 

Powerday PLC

Directors' Report for the period ended 1 August 2023


Greenhouse Gas (GHG) Emissions

In line with the Greenhouse Gas Protocol (GHG) Corporate Accounting and Reporting Standard, Powerday plc
continues to be engaged in a process aimed at reducing our energy and greenhouse gas emissions.

Powerday maintains both scopes one (1) & two (2) emissions, which are generated from our processes, offices,
and premises, respectively.

Powerday previously devised a strategy to reduce our carbon footprint significantly including:

- Encouraging employees to purchase renewable technology cars i.e., hybrid vehicles,
- Purchasing energy efficient equipment where appropriate in our offices,
- Replacing HVAC systems with energy-efficient equipment where possible,
- Adopting behavioural change measures where possible.

Powerday have a long standing commitment to tackling climate change. Our calculated carbon footprint for our
current financial year is 4,120 tCO2e (2022: 4,108 tCO2e), whilst energy consumption was 23,140,501.64 kWh
(23,140.5 MWh) (2022: 20,455 MWh).


Methodology

Powerday have reported all of emission sources under the Companies Act 2006 (Strategic Report and Director’s
Reports) Regulations 2013 as required. We have calculated and reported our emissions in line with the GHG
Protocol Corporate Accounting and Reporting Standard (revised edition) and emission factors from the UK
Government's GHG Conversion Factors for Company Reporting 2023.

The reporting period is the fiscal year 2022 / 2023, the same as that covered by the Annual Report and Financial
Statements. The boundaries of the GHG inventory are defined using the operational control approach. In general,
the emissions reported are the same as those which would be reported based on a financial control boundary.
Emissions for previous years are retrospectively adjusted as and when more accurate data is available.

2023 Emissions

Tonnes CO2 equivalent (tCO2e)

Scope 1 (oil and diesel)

4,001

Scope 2 (electricity)

5

Scope 3 (electricity T&D)

115

Total

4,121

2022 Emissions

Tonnes CO2 equivalent (tCO2e)

Scope 1 (oil and diesel)

3,842

Scope 2 (electricity)

165

Scope 3 (electricity T&D)

101

Total

4,108

 

Powerday PLC

Directors' Report for the period ended 1 August 2023


Comparison with prior year figures

The UK Government’s SECR policy requires Powerday to disclose the energy use and resultant GHG emissions
for the current financial year as well as the prior year. The figures representing Powerday’s energy use and
associated emissions for the year ending 31 July 2023 have been presented above alongside the figures for 31
July 2022.

Emissions have increased by 0.31% (12.64 tCO2e), which has resulted from the expansion of the business as
evidenced by the significant increase in turnover and gross profit.

The 2020/21 SECR reporting period will be used as a baseline for future comparisons.

The baseline year will be reviewed and re-designated if there is a significant organisational change.


Intensity Metric

Scope one (1), two (2) and three (3), carbon intensity: 0.06984 tCO2e/m2

The intensity metric is based on square meterage of our premises (58,998 m2).


Efficiency Measures Taken (2022 / 2023)

1) Continue to replace aging office equipment with energy-efficient products,
2) Continual review of company energy and car policies,
3) Expanded video conferencing and online meetings (as opposed to F2F meetings).
4) Replacing old inefficient lamps with low-energy LED’s.
5) Installing electric vehicle charging points at its various premises.


Objectives for 2023 / 2024

1) Reduce our baseline electricity consumption by 2%.
2) Lighting: Continue to evolve and install low energy lighting across our building stock.
3) Continual review of existing processes.
4) Reviewing supply contracts to determine feasibility of renewable energy,
5) Finalise our Energy Savings Opportunity Scheme (ESOS) phase 3 compliance process.

Powerday will report on progress within our next set of financial accounts.

Carbon reporting for the 1 day period ended 1 August 2023 is considered consistent with the data reported for the year ended 31 July 2023 as detailed above.

 

Powerday PLC

Directors' Report for the period ended 1 August 2023

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the director on 26 April 2024 and signed by:



 

.........................................
M R Crossan
Company secretary and director

 

Powerday PLC

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Powerday PLC

Independent Auditor's Report to the Members of Powerday PLC
for the period ended 1 August 2023

Opinion

We have audited the financial statements of Powerday PLC (the 'company') for the period ended 1 August 2023, which comprise the Statement of Income and Retained Earnings, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, 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 company's affairs as at 1 August 2023 and of its profit for the period 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Powerday PLC

Independent Auditor's Report to the Members of Powerday PLC
for the period ended 1 August 2023

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 Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 and the Directors' Report.

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, 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 Statement of Directors' Responsibilities (set out on page 12), the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

 

Powerday PLC

Independent Auditor's Report to the Members of Powerday PLC
for the period ended 1 August 2023

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:

Based on our understanding of the company and the industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations are related to the reporting framework (FRS 102 and the Companies Act 2006) and UK corporate taxation laws, health and safety legislation, environmental regulatory compliance as monitored by the Environment Agency. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit. The audit partner ensured that the audit team had appropriate skills and experience to identify non compliance with laws and regulations.

We understood how the company is complying with relevant legislation by making enquiries of management. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.

We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; identifying and assessing the effectiveness of controls in place to prevent and detect fraud, reviewing estimates and judgements for management bias and agreeing the financial statements to supporting documentation.

Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.
 

The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.

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, collusion, omission, misrepresentation or forgery.

 

Powerday PLC

Independent Auditor's Report to the Members of Powerday PLC
for the period ended 1 August 2023

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
John Chamberlain (Senior Statutory Auditor)
For and on behalf of

Brebners, Statutory Auditor
130 Shaftesbury Avenue
W1D 5AR

29 April 2024

 

Powerday PLC

Statement of Income and Retained Earnings for the period ended 1 August 2023

Note

Period Ended
01 August
2023
£

Year ended
31 July
2023
£

Turnover

3

346,618

65,026,922

Cost of sales

 

(130,696)

(41,153,717)

Gross profit

 

215,922

23,873,205

Administrative expenses

 

(73,858)

(14,967,319)

Fair value movements

 

-

588,088

Operating profit

4

142,064

9,493,974

Other interest receivable and similar income

5

4,541

913,753

Interest payable and similar charges

6

-

(5,929)

 

4,541

907,824

Profit before tax

 

146,605

10,401,798

Taxation

10

(36,651)

(3,606,638)

Profit for the financial period

 

109,954

6,795,160

Retained earnings brought forward

 

73,450,262

67,168,627

Dividends paid

 

-

(513,525)

Retained earnings carried forward

 

73,560,216

73,450,262

 

Powerday PLC

Statement of Comprehensive Income for the period ended 1 August 2023

Period Ended
01 August
2023
£

Year ended
31 July
2023
£

Profit for the period

109,954

6,795,160

Total comprehensive income for the period

109,954

6,795,160

 

Powerday PLC

Statement of Financial Position as at 1 August 2023

Note

Period ended
01 August
2023
£

Year ended
31 July
2023
£

Fixed assets

 

Tangible assets

11

28,778,672

28,655,050

Investment property

12

2,615,000

2,615,000

 

31,393,672

31,270,050

Current assets

 

Stocks

13

345,064

345,064

Debtors

14

15,223,202

15,799,382

Cash at bank and in hand

 

40,638,212

40,681,612

 

56,206,478

56,826,058

Creditors: Amounts falling due within one year

16

(12,690,109)

(13,296,021)

Net current assets

 

43,516,369

43,530,037

Total assets less current liabilities

 

74,910,041

74,800,087

Provisions for liabilities

17

(1,299,725)

(1,299,725)

Net assets

 

73,610,316

73,500,362

Capital and reserves

 

Called up share capital

50,100

50,100

Retained earnings

20

73,560,216

73,450,262

Shareholders' funds

 

73,610,316

73,500,362

Approved and authorised by the Board on 26 April 2024 and signed on its behalf by:

 

......................................................................

M R Crossan

Company secretary and director

Company registration number: 01509382

 

Powerday PLC

Statement of Changes in Equity for the period ended 1 August 2023

Share capital
£

Retained earnings
£

Total
£

At 1 August 2022

50,100

67,168,627

67,218,727

Profit for the period

-

6,795,160

6,795,160

Dividends

-

(513,525)

(513,525)

At 31 July 2023

50,100

73,450,262

73,500,362

Share capital
£

Retained earnings
£

Total
£

At 1 August 2023

50,100

73,450,262

73,500,362

Profit for the period

-

109,954

109,954

At 1 August 2023

50,100

73,560,216

73,610,316

 

Powerday PLC

Statement of Cash Flows for the period ended 1 August 2023

Note

Period Ended
01 August
2023
£

Year ended
31 July
2023
£

Cash flows from operating activities

Profit for the period

 

109,954

6,795,160

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

14,360

5,044,489

Profit on disposal of tangible assets

-

(76,623)

Changes in fair value of investment property

-

(588,088)

Impairment on amounts due from former group undertakings

-

5,634,317

Finance income

5

(4,541)

(913,753)

Finance costs

6

-

5,929

Income tax expense

10

36,651

3,606,638

 

156,424

19,508,069

Working capital adjustments

 

Decrease in stocks

13

-

630,244

Decrease/(increase) in trade debtors

14

539,529

(5,700,365)

(Decrease)/increase in trade creditors

16

(605,887)

2,239,254

Cash generated from operations

 

90,066

16,677,202

Income taxes paid

10

-

(1,465,000)

Net cash flow from operating activities

 

90,066

15,212,202

Cash flows from investing activities

 

Interest received

5

4,541

913,753

Acquisitions of tangible assets

(137,981)

(6,665,800)

Proceeds from sale of tangible assets

 

-

210,000

Net cash flows from investing activities

 

(133,440)

(5,542,047)

Cash flows from financing activities

 

Interest paid

6

-

(5,929)

Payments to hire purchase creditors

 

(26)

(579,111)

Dividends paid

23

-

(513,525)

Net cash flows from financing activities

 

(26)

(1,098,565)

Net (decrease)/increase in cash and cash equivalents

 

(43,400)

8,571,590

Cash and cash equivalents at 31 July

 

40,681,612

32,110,022

Cash and cash equivalents at 1 August

 

40,638,212

40,681,612

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
130 Shaftesbury Avenue
2nd Floor
London
W1D 5EU

The principal place of business is:
Old Oak Sidings
Off Scrubs Lane
London
NW10 6RJ

The principal activity of the company is the provision of integrated waste management, construction and recycling
services to a broad range of customers spanning construction, development, utility and municipal sectors.

2

Accounting policies

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Disclosure of long or short period

The financial statements were prepared for the period starting and ending on 1 August 2023. The comparative period is the for the year ending 31 July 2023.

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

Going concern

As at 1st August 2023, the company had substantial net assets of £73,610,316 including cash at bank of £40,638,212.

The company meets its day to day working capital requirements through a combination of existing resources,
normal trading terms, hire purchases finance and bank facilities. Ongoing regulatory compliance is critical to the
company and operational procedures and controls are closely monitored to ensure the company remains
compliant in this regard.

The company's latest management accounts show continued profitability, and the directors believe that the
company is well placed to manage its business risks successfully.

After making enquiries the directors have a reasonable expectation that the company has adequate resources to
continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going
concern basis in preparing the annual report and accounts.

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectation of future events, that are believed to be reasonable under the circumstances.

Other than those involving estimations there are no judgements that management has made in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the financial statements.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next year are as follows:

Tangible and intangible fixed assets are depreciated to their estimated residual values over their estimated useful lives. The company estimates these useful lives and residual values.

When there is an indication that an asset may be impaired consideration is given to the estimated recoverable amount, being the higher of its fair value less costs to sell and its value in use. Where the estimated recoverable amount is less than the carrying amount of the asset an impairment loss is recognised.

Deferred tax assets and liabilities require management judgement in determining the amounts to be recognised. In particular, when assessing the extent to which deferred tax assets should be recognised with consideration given to the timing, nature and level of future taxable amounts. The recognition of deferred tax assets relating to tax losses carried forward relies on projections of taxable profit amounts prepared by management, where a number of assumptions are required based on the levels of taxable profit amounts and the reversal of deferred tax balances.

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Revenue is recognised in the period in which the company's obligation to its customers to treat/dispose of waste received at its facilities has been met.

Revenue on property sales is recognised upon the legal exchange of contracts.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

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 taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being
estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is
impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an
individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset
belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and
generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date,
allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination,
irrespective of whether other assets or liabilities of the company are assigned to those units.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

8-25% straight line

Land and buildings

Over lease period where leased / 2% straight line on buildings where owned

Commercial vehicles

25% straight line

Motor vehicles

25% straight line

Investment property

Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure.

Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.

If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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 incurred in bringing the stock to its present location and condition.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.

Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Hire Purchase

Assets held under hire purchase contracts are capitalised at the lesser of fair value or present value of minimum lease payments in the statement of financial position. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease. A corresponding liability is recognised at the same value in the statement of financial position. The asset is then depreciated over its useful life.

The minimum lease payments are apportioned between the finance charge recognised in the income statement and the reduction of the outstanding liability using the effective interest method. The finance charge in each period is allocated so as to produce a constant periodic rate of interest on the remaining balance of the liability.

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments


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

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

 

3

Turnover

The analysis of the company's Turnover for the period from continuing operations is as follows:

Period Ended
01 August
2023
£

Year ended
31 July
2023
£

Rendering of services

346,618

65,026,922

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

4

Operating profit

Arrived at after charging/(crediting)

Period Ended
01 August
2023
£

Year ended
31 July
2023
£

Depreciation expense

14,360

5,044,489

Foreign exchange losses

-

3,383

Profit on disposal of property, plant and equipment

-

(76,623)

 

-

-

5

Other interest receivable and similar income

Period Ended
01 August
2023
£

Year ended
31 July
2023
£

Interest income on bank deposits

4,541

854,733

Other finance income

-

59,020

4,541

913,753

6

Interest payable and similar expenses

Period Ended
01 August
2023
£

Year ended
31 July
2023
£

Interest on obligations under finance leases and hire purchase contracts

-

5,929

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

Period Ended
01 August
2023
£

Year ended
31 July
2023
£

Wages and salaries

45,149

11,269,835

Social security costs

4,985

1,282,834

Pension costs, defined contribution scheme

898

270,795

Other post-employment benefit costs

-

19,525

Other employee expense

84

128,997

51,116

12,971,986

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:

Period Ended
01 August
2023
No.

Year ended
31 July
2023
No.

Operative

194

187

Administration and support

60

60

Other departments

1

1

255

248

8

Directors' remuneration

The directors' remuneration for the period was as follows:

Period ended
1 August 2023
 £

Year ended 31 July 2023
 £

Remuneration

379

100,000

Contributions paid to money purchase schemes

12

3,000

391

103,000

During the period the number of directors who were receiving benefits and share incentives was as follows:

Period ended
1 August 2023
 No.

Year ended 31 July 2023
 No.

Accruing benefits under money purchase pension scheme

2

2

In respect of the highest paid director:

Period Ended
01 August
2023
£

Year ended
31 July
2023
£

Benefits under long-term incentive schemes (excluding shares)

379

107,079

Company contributions to money purchase pension schemes

12

3,000

9

Auditor's remuneration

Period ended
1 August 2023
 £

Year ended 31 July 2023
 £

Audit of the financial statements

5,000

72,500


 

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

Fees payable to the company's auditor for other services:

Period ended
1 August 2023
£

Year ended 31 July 2023
 £

Tax compliance services

-

17,500

Other non-audit services

2,500

62,100

2,500

79,600

10

Taxation

Tax charged/(credited) in the income statement

Period Ended
01 August
2023
£

Year ended
31 July
2023
£

Current taxation

UK corporation tax

36,651

2,782,022

Deferred taxation

Arising from origination and reversal of timing differences

-

824,616

Tax expense in the income statement

36,651

3,606,638

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

The tax on profit before tax for the period is the same as the standard rate of corporation tax in the UK (year to 31 July 2023 - higher than the standard rate of corporation tax in the UK) of 25% (year to 31 July 2023 - 21%).

The differences are reconciled below:

Period Ended
01 August
2023
£

Year ended
31 July
2023
£

Profit before tax

146,605

10,401,798

Corporation tax at standard rate

36,651

2,184,378

Effect of revenues exempt from taxation

-

(16,095)

Effect of expense not deductible in determining taxable profit (tax loss)

-

1,244,915

Deferred tax expense from unrecognised tax loss or credit

-

824,616

Tax decrease from effect of capital allowances and depreciation

-

(731,176)

Tax increase arising from group relief

-

100,000

Total tax charge

36,651

3,606,638

In prior periods the company has benefited from tax credits amounting to £18,927,007 in respect of group relief.
HMRC have queried the applicability of this relief, but the directors believe that these claims were validly made.
 

Deferred tax

Deferred tax assets and liabilities

1 August 2023

Asset
£

Liability
£

Accelerated capital allowances

-

1,313,964

Provisions

-

(14,239)

-

1,299,725

Year ending 31 July 2023

Asset
£

Liability
£

Accelerated capital allowances

-

1,313,964

Provisions

-

(14,239)

-

1,299,725

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

11

Tangible assets

Land and buildings
£

Commercial Vehicles
£

Motor vehicles
 £

Plant and Equipment
£

Total
£

Cost or valuation

At 1 August 2023

20,611,243

12,133,326

20,493

36,164,017

68,929,079

Additions

-

-

-

137,981

137,981

At 1 August 2023

20,611,243

12,133,326

20,493

36,301,998

69,067,060

Depreciation

At 1 August 2023

4,558,570

7,368,614

20,044

28,326,800

40,274,028

Charge for the period

1,347

6,016

1

6,996

14,360

At 1 August 2023

4,559,917

7,374,630

20,045

28,333,796

40,288,388

Carrying amount

At 1 August 2023

16,051,326

4,758,696

448

7,968,202

28,778,672

At 31 July 2023

16,052,672

4,764,712

449

7,837,217

28,655,050

Included within the net book value of land and buildings above is £5,239,520 (2023 - £5,239,578) in respect of freehold land and buildings and £10,811,805 (2023 - £10,813,094) in respect of long leasehold land and buildings.
 

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

Period ended
01 August
2023
£

Year ended
31 July
2023
£

Plant & Machinery

927,275

927,911

Commercial Vehicles

1,318,843

1,319,747

 

2,246,118

2,247,658

12

Investment properties

Period ended
01 August
2023
£

At 1 August

2,615,000

There has been no valuation of investment property by an independent valuer and therefore it is included at Directors' valuation.

13

Stocks

Period ended
01 August
2023
£

Year ended
31 July
2023
£

Work in progress

345,064

345,064

14

Debtors

Note

Period ended
01 August
2023
£

Year ended
31 July
2023
£

Trade debtors

 

8,455,324

8,985,820

Amounts owed by former group undertakings

26

1,569,296

1,569,296

Other debtors

 

2,250,378

2,244,460

Prepayments

 

2,923,143

2,938,094

Corporation tax asset

10

25,061

61,712

 

15,223,202

15,799,382

15

Cash and cash equivalents

Period ended
01 August
2023
£

Year ended
31 July
2023
£

Cash on hand

40,638,212

40,681,612

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

16

Creditors

Period ended
01 August
2023
£

Year ended
31 July
2023
£

Due within one year

Trade creditors

5,483,544

6,057,357

Social security and other taxes

1,868,390

1,843,420

Outstanding defined contribution pension costs

39,395

39,893

Accruals and deferred income

4,644,490

4,736,367

Other payables

644,890

609,558

Obligations under hire purchase contracts

9,400

9,426

12,690,109

13,296,021

17

Deferred tax and other provisions

Deferred tax
£

Total
£

At 1 August 2023 and 31 July 2023

1,299,725

1,299,725

18

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £898 (year to 31 July 2023 - £270,795).

Contributions totalling £39,395 (year to 31 July 2023 - £39,893) were payable to the scheme at the end of the period and are included in creditors.

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

19

Share capital

Allotted, called up and fully paid shares

 

Period ended
01 August
2023

Year ended
31 July
2023

 

No.

£

No.

£

Ordinary "A" shares of £1 each of £1 each

25,050

25,050

25,050

25,050

Ordinary "B" shares of £1 each of £1 each

25,050

25,050

25,050

25,050

 

50,100

50,100

50,100

50,100

Rights, preferences and restrictions

The rights, restrictions and privileges attaching to the Ordinary "A" shares and Ordinary "B" shares are as follows:

(a) the Ordinary "A" shares shall entitle the holders thereof to all the trade, assets and liabilities of the company,
save that;

(b) the Ordinary "B" shares shall entitle the holders thereof to those trade, assets and liabilities used by the
company in the property development and construction division. These assets and liabilities comprise property
held as trading stock with the excess of trade debtors over trade creditors.

20

Reserves

The profit and loss account records current and prior year retained earnings and accumulated losses. Of the amount standing to the credit of the profit and loss account an amount of £588,088 (year to 31 July 2023: £588,088) is not distributable in accordance with the Companies Act 2006.

21

Loans and borrowings

Period ended
01 August
2023
£

Year ended
31 July
2023
£

Current loans and borrowings

Hire purchase contracts

9,400

9,426

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

22

Obligations under leases and hire purchase contracts

Hire purchase

Hire purchase creditors fall due for payment as follows:

Period ended
01 August
2023
£

Year ended
31 July
2023
£

Not later than one year

9,400

9,426

Net obligations under hire purchase agreements are secured on the specific assets financed.
 

Operating leases

The total of future minimum lease payments is as follows:

Period ended
01 August
2023
£

Year ended
31 July
2023
£

Not later than one year

2,306,207

2,306,207

Later than one year and not later than five years

8,572,365

8,572,365

Later than five years

58,437,482

58,443,800

69,316,054

69,322,372

The amount of non-cancellable operating lease payments recognised as an expense during the period was £6,318 .

23

Dividends

Interim dividends paid

   

Period ended
01 August
2023
£

 

Year ended
31 July
2023
£

Interim dividend of £Nil (year to 31 July 2023 - £20.50) per each Ordinary "A" share

 

-

 

513,525

         

24

Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £2,210,118 (year to 31 July 2023 - £2,210,118).

 

Powerday PLC

Notes to the Financial Statements for the period ended 1 August 2023

25

Analysis of changes in net debt

At 1 August 2023
£

Financing cash flows
£

Cash movements
£

At 1 August 2023
£

Cash and cash equivalents

Cash

40,681,612

(43,400)

-

40,638,212

Borrowings

Short term borrowings

9,426

-

(26)

9,400

 

40,691,038

(43,400)

(26)

40,647,612

26

Related party transactions

Dividends paid to directors

   

Period ended
1 August 2023
£
 

 

Year ended
31 July 2023
£
 

       

Interim dividend

 

-

 

513,525

         

Director's advances, credits and guarantees

Included within debtors is a balance of £1,461,155 (year to 31 July 2023: £1,459,778) due from the directors.

Interest of £nil (year to 31 July 2023: £22,573) was charged at a rate of 2.25% on cumulative net overdrawn balances. There are no set terms in place.

Summary of transactions with other related parties

Included within debtors is a balance of £1,569,296 (year to 31 July 2023: £1,569,296) due from London Irish Consortium (2013) Ltd which ceased to be a subsidiary in the previous year. During the period provisions of £Nil (year to 31 July 2023: £3,030,704) were recognised against the balance due from London Irish Consortium (2013) Ltd. Interest of £nil (year to 31 July 2023: £497,195) has been charged on these amounts, and no set repayment terms are in place.

27

Non adjusting events after the financial period

Post period end the company acquired the entire share capital of Economic Skips Limited, a waste management company, for initial consideration of £4,750,000.