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Registered Number:04785670





NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)








ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023


 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

COMPANY INFORMATION


Directors
M M Holterman 
A Ruijtenberg 
I M Stentiford 
T J Cunliffe (resigned 27 October 2023)




Company secretary
C D Chafer



Registered number
04785670



Registered office
Nanjerrick Court
Allet

Truro

Cornwall

TR4 9DJ




Independent auditors
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

The White Building

4 Cumberland Place

Southampton

SO15 2NP




Bankers
HSBC
Market Street

Falmouth

TR11 3AA





 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24


 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The year ended 31 December 2023 marked a significant period of growth and operational development for the Company. We continued to build on our strong foundation by winning key contracts and expanding our market share within both the industrial and municipal water treatment markets. We enable our customers to realise the value of their water and wastewater which we deliver through our Customer for Life strategy, engaging at the early stages of a project, designing the optimum solution utilising our best in class technology, operating, maintaining and servicing our assets and engaging our customers in our continuous improvement programmes to ensure we continue to add maximum value through our expertise. Our ability to enable our customers to close their water loop has driven financial performance and long-term customer relationships, further solidifying our position within the industry.

Business review
 
Principal risks and uncertainties
 
The principal risks and uncertainties facing the Company stem primarily from the health and safety risks
associated with handling hazardous chemicals and working in industrial environments. We have rigorous safety
protocols, and no incidents were reported during the year. Additionally, we face financial risks related to
long-term contract management, particularly in revenue recognition and WIP on projects. However, these risks
are carefully managed, with robust internal controls and oversight from our parent company, Nijhuis
Saur Industries.
Furthermore, while the Company relies on a handful of key customers, we have successfully diversified our client
base to mitigate dependency on any single source of revenue. Ongoing regulatory compliance, particularly in
environmental standards, also remains a focus.

Financial key performance indicators
 
The key performance indicators (KPIs) for the year reflect the Company’s strong financial health:                           
• Revenue growth: 2023 revenue increased to £51 million, up from £25 million in 2022.
• Gross margin: The gross margin remained broadly stable, demonstrating efficiency in project delivery.
• EBITDA: Strong EBITDA performance, reflecting the Company’s focus on profitability and cost management.
• Cash flow: The Company maintained a healthy cash position, supported by the group’s cash
pooling arrangements, ensuring continued financial stability.                                                                              
                                                                                                                                                                           These indicators reflect the success of our operational strategy and our ability to deliver sustained growth.


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



I M Stentiford
Director

Date: 24 February 2025

Page 1

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The directors who served during the year were:

M M Holterman 
A Ruijtenberg 
I M Stentiford 
T J Cunliffe (resigned 27 October 2023)

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;

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

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

The principal activity of the company during the year was that of supplying waste water treatment and waste to
value for the industrial and municipal sectors and providing consultancy, design, construction and maintenance
services for water, waste and environmental engineering projects throughout the UK.

Results and dividends

The profit for the year, after taxation, amounted to £2,545,619 (2022 - £785,318).

Page 2

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Post balance sheet events

On 9 January 2024 there was a transfer of 173,504 shares from Nijhuis Industries Holdings B.V to Nijhuis Saur Industries UK & Ireland Limited as part of a group restructure to implement Nijhuis Saur Industries UK & Ireland Limited as the UK holding Company.

Auditors

The auditorsJames Cowper Kreston Auditwill 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.
 





I M Stentiford
Director

Date: 24 February 2025

Page 3

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

Opinion


We have audited the financial statements of NSI Water and Wastewater Solutions Ltd (formerly Nijhuis H20K Limited) (the 'Company') for the year ended 31 December 2023, 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 December 2023 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 Auditors' 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 4

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K 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 2, 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 5

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED) (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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.

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.

The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:

Enquiry of management and those charged with governance around actual and potential litigation and claims;
Enquiry of management and those charged with governance to identify any material instances of noncompliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias. 


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 Auditors' report.


Page 6

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K 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 Auditors' 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.





Michael Bath BSc FCA DChA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
The White Building
4 Cumberland Place
Southampton
SO15 2NP

24 February 2025
Page 7

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

Turnover
 4 
51,219,148
24,505,806

Cost of sales
  
(45,659,940)
(21,832,655)

Gross profit
  
5,559,208
2,673,151

Administrative expenses
  
(2,153,785)
(1,763,595)

Operating profit
 5 
3,405,423
909,556

Interest payable and similar expenses
  
(7,726)
(4,900)

Profit before tax
  
3,397,697
904,656

Tax on profit
 9 
(852,078)
(119,338)

Profit for the financial year
  
2,545,619
785,318

Total comprehensive income for the year
  
2,545,619
785,318

The notes on pages 11 to 24 form part of these financial statements.

Page 8

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
REGISTERED NUMBER: 04785670

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 10 
270,047
300,213

Tangible assets
 11 
1,088,821
901,358

  
1,358,868
1,201,571

Current assets
  

Stocks
 12 
114,338
114,338

Debtors: amounts falling due within one year
 13 
22,363,008
13,423,778

Cash at bank and in hand
 14 
8,845,552
2,015,187

  
31,322,898
15,553,303

Creditors: amounts falling due within one year
 15 
(27,373,220)
(14,093,929)

Net current assets
  
 
 
3,949,678
 
 
1,459,374

Total assets less current liabilities
  
5,308,546
2,660,945

Provisions for liabilities
  

Deferred tax
 16 
(221,678)
(119,696)

  
 
 
(221,678)
 
 
(119,696)

Net assets
  
5,086,868
2,541,249


Capital and reserves
  

Called up share capital 
 17 
1,735
1,735

Share premium account
  
102,933
102,933

Capital redemption reserve
  
1,671
1,671

Profit and loss account
  
4,980,529
2,434,910

  
5,086,868
2,541,249


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 February 2025.




I M Stentiford
Director

The notes on pages 11 to 24 form part of these financial statements.

Page 9

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


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

£
£
£
£
£

At 1 January 2023
1,735
102,933
1,671
2,434,910
2,541,249



Profit for the year
-
-
-
2,545,619
2,545,619


At 31 December 2023
1,735
102,933
1,671
4,980,529
5,086,868


The notes on pages 11 to 24 form part of these financial statements.


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


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

£
£
£
£
£

At 1 January 2022
1,735
102,933
1,671
1,649,592
1,755,931



Profit for the year
-
-
-
785,318
785,318


At 31 December 2022
1,735
102,933
1,671
2,434,910
2,541,249


The notes on pages 11 to 24 form part of these financial statements.

Page 10

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

NSI Water and Wastewater Solutions Limited is a private company limited by shares and incorporated in England and Wales under the Companies Act 2006. The address of the registered office is Nanjerrick Court, Allet, Truro, Cornwall, TR4 9DJ.

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 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Holding D'Infrastructures des Metiers de L'Environnement as at 31 December 2023 and these financial statements may be obtained from 11 Cemin de Bretagne, 92130 Issy-Les-Moulineaux, France.

 
2.3

Going concern

The Directors anticipate that the Company will continue to operate as usual and that it can tolerate a reasonable level of unforeseen circumstances for a period of at least 12 months from the date of the financial statements. Based on this, the financial statements have been prepared on a going concern basis.

Page 11

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

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 as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 12

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.6

Long-term contracts

Profit on long term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses.
Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.

 
2.7

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.

 
2.8

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.

 
2.9

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.

Page 13

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

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.


 
2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 14

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

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.

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:

Short-term leasehold property
-
10%
straight-line
Plant and machinery
-
20%
straight-line
Motor vehicles
-
25%
straight-line
Fixtures and fittings
-
20%
straight-line
Other fixed assets
-
20%
straight-line

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.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is 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.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 15

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

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.

 
2.18

Financial instruments

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Page 16

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and the assumptions that affect the amounts report for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of the estimation means that actual outcomes could differ from those estimates. The following judgments (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue and profits on contracts are recognised by reference to the proportion of work carried out and the contract value which involves management judgement. Consideration is also given to whether any costs incurred are not recoverable. 


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Long-term contracts
47,568,147
19,740,044

Revenue from services and goods
3,651,001
4,765,762

51,219,148
24,505,806


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
51,219,148
24,505,806

51,219,148
24,505,806



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation
357,234
212,071

Exchange differences
(334,103)
240,891

Amortisation
33,106
33,105

Page 17

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
40,235
39,634


7.


Employees

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


2023
2022
£
£

Wages and salaries
3,773,307
2,865,317

Social security costs
546,825
385,975

Cost of defined contribution scheme
113,422
89,894

4,433,554
3,341,186


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


        2023
        2022
            No.
            No.







Employees
73
61


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
305,648
366,252

Company contributions to defined contribution pension schemes
8,932
9,864

314,580
376,116


During the year retirement benefits were accruing to 1 director (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £260,974 (2022 - £224,286).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £8,615 (2022 - £8,250).

Page 18

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
721,041
129,001

Adjustments in respect of previous periods
29,055
-


Total current tax
750,096
129,001

Deferred tax


Charged to profit or loss
101,982
(9,663)


Tax on profit
852,078
119,338

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
3,397,697
904,656


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
799,157
171,885

Effects of:


Non-tax deductible amortisation of goodwill and impairment
5,250
(22,633)

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
5,567
1,408

Group relief claimed
(60,169)
(5,555)

Adjustments to tax charge in respect of prior periods
29,055
(2,242)

Remeasurement of deferred tax for changes in tax rates
1,809
14,818

Movement in deferred tax not recognised
71,409
(38,347)

Adjustments to tax charge in respect of prior periods - deferred tax
-
4

Total tax charge for the year
852,078
119,338


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 19

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Intangible assets




Computer software
Goodwill
Total

£
£
£



Cost


At 1 January 2023
47,453
528,060
575,513


Additions
2,940
-
2,940



At 31 December 2023

50,393
528,060
578,453



Amortisation


At 1 January 2023
-
275,300
275,300


Charge for the year
-
33,106
33,106



At 31 December 2023

-
308,406
308,406



Net book value



At 31 December 2023
50,393
219,654
270,047



At 31 December 2022
47,453
252,760
300,213



Page 20

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Tangible fixed assets





Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Other fixed assets
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2023
32,484
322,408
9,598
348,633
634,441
1,347,564


Additions
-
-
-
21,705
523,082
544,787


Disposals
-
-
-
(987)
-
(987)



At 31 December 2023

32,484
322,408
9,598
369,351
1,157,523
1,891,364



Depreciation


At 1 January 2023
32,484
128,591
6,385
157,830
120,916
446,206


Charge for the year
-
64,011
2,410
53,133
237,680
357,234


Disposals
-
-
-
(897)
-
(897)



At 31 December 2023

32,484
192,602
8,795
210,066
358,596
802,543



Net book value



At 31 December 2023
-
129,806
803
159,285
798,927
1,088,821



At 31 December 2022
-
193,817
3,213
190,803
513,525
901,358

Page 21

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Stocks

2023
2022
£
£

Raw materials and consumables
114,338
114,338

114,338
114,338



13.


Debtors

2023
2022
£
£


Trade debtors
1,353,015
4,580,331

Amounts owed by group undertakings
6,024,199
741,669

Other debtors
41,604
20,700

Prepayments and accrued income
106,456
110,397

Amounts recoverable on long-term contracts
14,837,734
7,970,681

22,363,008
13,423,778


Amounts owed from group undertakings are repayable on demand.


14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
8,845,552
2,015,187

8,845,552
2,015,187



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
2,087,427
1,828,410

Amounts owed to group undertakings
18,451,396
4,556,814

Corporation tax
506,414
248,336

Other taxation and social security
499,549
134,696

Other creditors
44,174
25,900

Accruals and deferred income
5,784,260
7,299,773

27,373,220
14,093,929


Amounts owed to group undertakings are repayable on demand.

Page 22

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Deferred taxation




2023


£






At beginning of year
(119,696)


Charged to profit or loss
(101,982)



At end of year
(221,678)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(257,498)
(138,584)

Short term timing differences
35,820
18,888

(221,678)
(119,696)


17.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



173,504 (2022 - 173,504) Ordinary shares of £0.01 each
1,735
1,735



18.


Pension commitments

The Company opertes a defined contributions pension scheme. The assets of the scheme are held seperately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £125,535 (2022: £89,894). The amount owed to the fund at the year end amounted to £29,163 (2022: £25,893).


19.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
186,175
201,064

Later than 1 year and not later than 5 years
110,971
166,759

297,146
367,823

Page 23

 
NSI WATER AND WASTEWATER SOLUTIONS LTD (FORMERLY NIJHUIS H20K LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Related party transactions

NSI Water and Wastewater Solutions Ltd has taken the exemption in accordance with section 33 of FRS102 not to disclose transactions with other wholly owned group companies.
Key management are considered to be Directors plus the Chief Financial Officer. Total key management personnel compensation for the year is £482,282 (2022: £514,702).


21.


Post balance sheet events

On 9 January 2024 there was a transfer of 173,504 shares from Nijhuis Industries Holdings B.V to Nijhuis Saur Industries UK & Ireland Limited as part of a group restructure to implement Nijhuis Saur Industries UK & Ireland Limited as the UK holding Company.


22.


Controlling party

The immediate parent Company untill 8 January 2024 was Nijhuis Saur Industries B.V., a Company incorporated in the Netherlands.Following the group restructure on 9th January 2024, Nijhuis Saur Industries UK & Ireland Limited is now the immediate parent company. The ultimate parent Company is Saur SAS, a company registered in France.


Page 24