Registration number:
Powerday PLC
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Brebners
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Powerday PLC
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Statement of Comprehensive Income |
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Consolidated Statement of Financial Position |
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Company Statement of Financial Position |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Powerday PLC
Company Information
Directors |
M R Crossan E Crossan |
Company secretary |
M R Crossan |
Registered office |
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Auditor |
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Powerday PLC
Strategic Report for the period from 2 August 2023 to 31 July 2024
The directors present their strategic report for the period from 2 August 2023 to 31 July 2024.
Principal activity
The principal activity of the group 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 group in what continues to be a challenging economic environment given the global impact of the ongoing war in Ukraine, concerns around the Middle East, the unknown impact of the change in both the UK and US governments, inflation challenges, all of which are contributing to increasing labour and material prices.
Focusing on our core operations, providing exceptional customer service, establishing positive relationships with customers and suppliers together with introducing robust cost-efficiency measures, has enabled the business to continue to flourish in a negative trading climate.
A new government was elected in July 2024 which caused uncertainty in the markets. Despite the uncertainty, the Directors see positive improvements for the next financial year, with predicted growth of 2.9% in the prominent industry we work in, Construction and Housebuilding.
Interest rates stabilising and the new government manifesto to build more houses, will offer improved affordability to homeowners, increasing confidence of the housebuilders to build/release additional housing providing Powerday more opportunities to tender for contracts.
Financial KPIs
The group's key financial performance indicators during the period were as follows:
Unit |
2024 |
2023 |
|
Turnover |
£ |
72,719,260 |
65,026,922 |
Increase/(decrease) in turnover |
% |
12 |
23 |
|
|
|
|
Gross Margin |
% |
34 |
37 |
PBT Margin |
% |
25 |
16 |
|
|||
Net Assets |
87,965,930 |
73,500,362 |
The current period figures are prepared for the 365 day period ending 31 July 2024. The comparative figures above are shown for the year ending 31 July 2023.
Non-financial KPIs
The group 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 group 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 from 2 August 2023 to 31 July 2024
Principal risks and uncertainties
The directors consider the following risks and uncertainties to be key in managing and maintaining the future success of the group.
Economic Outlook:
The economic environment continues to be challenging with continuing pressure on margins. The position is further disrupted by the recent changes in both UK and US Governments, ongoing global concerns with the unrest in The Middle East and continuing war in Ukraine. In 2024 there were high profile administrations in the construction/housebuilding sector with ISG, with the negative fallout felt by many companies within the sector.
The risk for the next financial year likely to be reduced due to forecast growth in the Construction/housebuilding sector of 2.9%.
Trading profits continue to be pressurised in the integrated waste management sector, with increasing cost of labour and material remaining a challenge.
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 group 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 group 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. Potential introduction of the Emissions Trading Scheme is under constant review by the business so at the earliest opportunity we will know the impact and steps we need to take to mitigate any process or cost impact.
Expansion:
In the last few years we have expanded our operations with the successful integration of the IOD site [Canning Town Jun-2021, Croydon site [Dec-23] and purchase of Economic Skips business [Bermondsey Sep-23].
The directors remain vigilant in identifying opportunities for further expansion, over the coming years the business will be further expanding its operations at Croydon and Canning Town.
Future developments
The directors are confident the group's performance can be maintained or improved, despite the challenging economic environment.
Results YTD in the current financial year [24-25] are encouraging and in line with budgeted profitability, giving the directors confidence in our business plan.
Whilst uncertainties remain the Board believes that there are opportunities for development and potential acquisitions, with a strong balance sheet the business is geared towards taking advantage, as and when opportunities arise.
The Board is fully committed to a 5-year planning strategy incorporating 6 key cornerstone strategic objectives. These are reviewed and progressed regularly.
Year on year the business has invested in plant and equipment to ensure we are using the most efficient and safe technology, we are focused on developing internal processes and better use of software. In our current financial year [2024-25] we have set up a digital steering group tasked with delivering process improvements and embracing automation and AI throughout Powerday.
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 consists 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 from 2 August 2023 to 31 July 2024
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 Group. The following paragraphs summarise how the Directors fulfil their duties.
The Board is committed to ensuring that the group maintains a strong reputation across all of its stakeholders and this will remain a long term focus of the group 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 group. We will continue to review our existing processes and adapt and develop them as necessary.
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 group'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 group provides regular updates to all teams. We publish an internal magazine called the Powerday Post which keeps employees updated on group plans and activities. In 2025 this will be supplemented with our new employee portal which will give our employees easy access to key personal and group information. 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 group 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 group we align with the Government's strategies including the diversion of waste from landfill and continue to move 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 2024, a target the group aims to build upon in the future.
Approved by the
.........................................
Company secretary and director
Powerday PLC
Directors' Report for the Period from 2 August 2023 to 31 July 2024
The directors present their report and the consolidated financial statements for the period from 2 August 2023 to 31 July 2024.
Directors of the group
The directors who held office during the period were as follows:
Disclosure of information in the Strategic Report
The group 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.
Dividends
Interim dividends of £551,100 (Period to 1 August 2023: £Nil) were paid during the period.
Financial instruments
Objectives and policies
The group's principal financial instruments comprise bank balances, bank overdrafts, trade and other creditors, trade debtors, loans and hire purchase agreements. The main purpose of these instruments is to raise funds for and finance the group's operations.
Price risk, credit risk, liquidity risk and cash flow risk
Due to the nature of the financial instruments used by the group there is no exposure to price risk. The group'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 group has loan facilities which are continually monitored, with 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 group 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 year the group made the following contributions:
2024
|
2023
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|
Charitable |
55,194 |
21,959 |
No political donations were made during the year.
The current period figures are prepared for the 365 day period ending 31 July 2024. The comparative figures above are shown for the year ending 31 July 2023.
Powerday PLC
Directors' Report for the Period from 2 August 2023 to 31 July 2024
Employment of disabled persons
The group'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 group.
Engagement with employees
The Group's policy is to consult and discuss with employees, through meetings, on matters 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 Group.
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 group 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.
Foreign exchange currency exposure
The group is exposed to currency exchange risk due to a significant proportion of its plant and 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.
Policy on the payment of creditors
The group does not follow any specific code or standard on payment practice. However, it is the group's policy to 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 group for the period was 51 days (2023: 83 days).
The current period figures are prepared for the 365 day period ending 31 July 2024. The comparative figures above are shown for the year ending 31 July 2023.
Streamlined energy and carbon reporting
The UK Government’s Streamlined Energy and Carbon Reporting (SECR) policy was implemented on 1 April 2019, and Powerday PLC continues to adapt and publish disclosures on energy and carbon. The table below represents Powerday’s energy use and associated greenhouse gas (GHG) emissions from electricity and fuel in the UK for the period ended 31 July 2024. The data covers all eight of our sites across London.
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 PLC maintains scopes one (1), two (2) & three (3) emissions, which includes electricity and oils (HVO, white diesel and LPG).
Powerday PLC previously devised a strategy to reduce our overall 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 PLC have a long standing commitment to tackling climate change. Our calculated carbon footprint for the current fiscal year is 4,485.87 tCO2e (2023: 4,120 tCO2e), whilst energy consumption was 24,837,807.92 kWh (24,837.81 MWh) (2023: 23,140.5 MWh).
Powerday PLC
Directors' Report for the Period from 2 August 2023 to 31 July 2024
Methodology
Powerday PLC 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 2024.
The reporting period is the financial year 2023 / 2024, 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.
2024 Emissions |
|
Tonnes CO2 equivalent (tCO2e) |
|
Scope 1 (white diesel, LPG and HVO) |
4,364 |
Scope 2 (electricity) |
2 |
Scope 3 (electricity T&D) |
120 |
Total |
4,486 |
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 |
Comparison with prior year figures
The current period figures are prepared for the 365 day period ending 31 July 2024. The comparative figures above are shown for the year ending 31 July 2023.
The UK Government’s SECR policy requires Powerday PLC to disclose the energy use and resultant GHG emissions for the current financial year as well as the prior year. Emissions have increased by 8.86% since our previous reporting period due to an increase in white diesel usage linked to business expansion.
The majority of our estate procures electricity from REGO (renewable energy of guaranteed origin) sources, meaning this can be accounted for at zero emissions.
Intensity Metric
Scope one (1), two (2) and three (3), carbon intensity: 0.06 tCO2e/m2
The intensity metric is based on square meterage of our premises (74,144 m2).
Efficiency Measures Taken (2023 / 2024)
1) Ongoing replacement of office lighting with energy efficient equivalents,
2) Solar panel installation at OOS,
3) Bermondsey site moved to renewable energy tariff,
4) Update of static plant in building 2 at OOS,
5) Updated lighting in waste reception buildings to new LEDs.
Powerday PLC
Directors' Report for the Period from 2 August 2023 to 31 July 2024
Objectives for 2024 / 2025
1) Installation of batteries for solar energy storage at OOS.
2) Investigation into the viability of solar power at Enfield.
3) Solar lights installed at Holloway lane.
4) Reduce energy consumption by 2%.
5) Continued review of energy efficiency and procurement policies.
Powerday PLC will report on progress within our next set of financial accounts.
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
.........................................
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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and 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; 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 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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
Opinion
We have audited the financial statements of Powerday PLC (the 'parent company') and its subsidiaries (the 'group') for the period from 2 August 2023 to 31 July 2024, which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated 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 group's and the company's affairs as at 31 July 2024 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's 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.
Opinion on other matter 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.
Powerday PLC
Independent Auditor's Report to the Members of
Powerday PLC
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 9], 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 Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the Group 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 and 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 Group 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, and the further removed non-compliance with laws and regulations is from the events reflected within the financial statements, the less likely the auditors 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 and forgery.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Powerday PLC
Independent Auditor's Report to the Members of
Powerday PLC
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.
......................................
For and on behalf of
130 Shaftesbury Avenue
London
W1D 5AR
Powerday PLC
Consolidated Statement of Comprehensive Income for the Period from 2 August 2023 to 31 July 2024
Note |
Period to 31 July |
Period to 01 August |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Fair value movements |
- |
- |
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
- |
|
1,829,567 |
4,541 |
||
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial period |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
Powerday PLC
Consolidated Statement of Financial Position as at 31 July 2024
Note |
31 July |
01 August |
|
Fixed assets |
|||
Intangible assets - Goodwill |
|
- |
|
|
|||
Tangible assets |
|
|
|
Investment property |
|
|
|
Other financial assets |
10,000 |
- |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Equity attributable to owners of the company |
|
|
|
Total equity |
|
|
Approved and authorised by the
.........................................
Company secretary and director
Company registration number: 01509382
Powerday PLC
Company Statement of Financial Position as at 31 July 2024
Note |
31 July |
01 August |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investment property |
|
|
|
Investments |
|
- |
|
Other financial assets |
10,000 |
- |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Company registration number: 01509382
Approved and authorised by the
......................................... |
Powerday PLC
Consolidated Statement of Changes in Equity for the Period from 2 August 2023 to 31 July 2024
Equity attributable to the parent company
Share capital |
Retained earnings |
Total |
Total equity |
|
At 31 July 2023 |
|
|
|
|
Profit for the period |
- |
|
|
|
At 1 August 2023 |
50,100 |
73,560,216 |
73,610,316 |
73,610,316 |
Share capital |
Retained earnings |
Total |
Total equity |
|
At 2 August 2023 |
|
|
|
|
Profit for the period |
- |
|
|
|
Dividends |
- |
( |
( |
( |
At 31 July 2024 |
|
|
|
|
Powerday PLC
Statement of Changes in Equity for the Period from 2 August 2023 to 31 July 2024
Share capital |
Retained earnings |
Total |
|
At 31 July 2023 |
|
|
|
Profit for the period |
- |
|
|
At 1 August 2023 |
50,100 |
73,560,216 |
73,610,316 |
Share capital |
Retained earnings |
Total |
|
At 2 August 2023 |
|
|
|
Profit for the period |
- |
|
|
Dividends |
- |
( |
( |
At 31 July 2024 |
|
|
|
Powerday PLC
Consolidated Statement of Cash Flows for the Period from 2 August 2023 to 31 July 2024
Note |
Period to 31 July |
Period to 01 August |
|
Cash flows from operating activities |
|||
Profit for the period |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss on disposal of tangible assets |
|
- |
|
Finance income |
( |
( |
|
Finance costs |
|
- |
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
- |
|
(Increase)/decrease in debtors |
( |
|
|
Decrease in creditors |
( |
( |
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
- |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
- |
|
Purchase of subsidiary (net of cash acquired) |
( |
- |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
- |
|
Payments to hire purchase creditors |
( |
( |
|
Dividends paid |
( |
- |
|
Net cash flows from financing activities |
( |
( |
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 2 August 2023 |
40,638,212 |
40,681,612 |
|
Cash and cash equivalents at 31 July 2024 |
35,762,917 |
40,638,212 |
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The principal activity of the company and group is the the provision of integrated waste management, construction and recycling services to a broad range of customers spanning construction, development, utility and municipal sectors.
The address of its registered office is:
The principal place of business is:
Old Oak Sidings
Off Scrubs Lane
London
NW10 6RJ
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' and the Companies Act 2006.
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.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 July 2024. No profit and loss account has been prepared for the company as permitted by Section 408 of the Companies Act 2006.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill. 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.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein.
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Minority (non-controlling) interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority's share of changes in equity since the date of the combination.
Increases in controlling interest since the combination are accounted for as a transaction between equity holders. Accordingly the carrying amount of minority interest is adjusted to reflect the change in the parent's interest in the subsidiary's net assets.
The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the minority interests are determined on the basis of existing ownership interests and do not reflect the possible or conversion of options or convertible instruments.
Disclosure of long or short period
Associate Undertakings
Entities other than the subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence are treated as associates. In the group financial statements, associates are accounted for using the equity method.
Going concern
At 31st July 2024, the group had substantial net assets of £87,965,930 including cash at bank of £35,762,917.
The company, and the group of which it is a member, meets its day to day working capital requirements through a combination of existing resources, normal trading terms 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 group's latest unaudited management accounts show continued profitability and the directors believe that the group is well placed to manage its business risks successfully.
After making enquiries the directors have a reasonable expectation that the group 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 and key sources of estimation uncertainty
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:
The group establishes a reliable estimate of the useful life of goodwill, negative goodwill and intangible assets arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business and the expected useful life of the cash-generating units to which the goodwill is attributed. The group tests annually whether goodwill has suffered any impairment where the carrying value exceeds the recoverable amount.
Tangible and intangible fixed assets are depreciated to their estimated residual values over their estimated useful lives. The group 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.
Other financial assets are held at fair value as estimated by the group, following regular detailed reviews for indicators of impairment.
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 from 2 August 2023 to 31 July 2024
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 group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The group 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 group's activities.
Revenue is recognised in the period in which the group'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.
Revenue on rental income is recognised evenly over the period of the leases.
Foreign currency transactions and balances
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 and deferred 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 group 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.
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.
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
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 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.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10% straight line |
Investments / Other financial assets
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.
Other investments held as fixed assets are measured at fair value. Changes in fair value are recognised in profit and loss.
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 is determined using the first-in, first-out (FIFO) method.
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.
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
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 group 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 Company 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 agreements are capitalised and disclosed under tangible fixed assets at cost. The asset is then depreciated over its useful life. Future payments are apportioned between finance costs in the income statement and reduction of the liability so as to achieve a constant periodic rate of interest on the remaining balance of the liability using the effective interest method.
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 group’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 group 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.
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Financial instruments
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.
Turnover |
The analysis of the group's revenue for the period from continuing operations is as follows:
Period to 31 July |
Period to 01 August |
|
Waste recycling |
|
|
Rental income from investment property |
|
- |
|
|
The whole of turnover was generated in the United Kingdom.
Operating profit |
Arrived at after charging/(crediting)
Period to 31 July |
Period to 01 August |
|
Depreciation expense |
|
|
Amortisation expense |
|
- |
Loss on disposal of tangible assets |
|
- |
Other interest receivable and similar income |
Period to 31 July |
Period to 01 August |
|
Interest income on bank deposits |
|
|
Other finance income |
|
- |
|
|
Interest payable and similar expenses |
Period to 31 July |
Period to 01 August |
|
Interest on obligations under hire purchase contracts |
|
- |
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
Period to 31 July |
Period to 01 August |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other post-employment benefit costs |
|
- |
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the period, analysed by category was as follows:
Period to 31 July |
Period to 01 August |
|
Administration and support |
|
|
Operative |
|
|
Other departments |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
Period to 31 July |
Period to 01 August |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
244,032 |
391 |
During the period the number of directors who were receiving benefits and share incentives was as follows:
Period to 31 July |
Period to 01 August |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
Period to 31 July |
Period to 01 August |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Auditor's remuneration |
Period to 31 July |
Period to 01 August |
|
Audit of the financial statements |
68,225 |
5,000 |
Fees payable to the company's auditor across the group, for other services:
2024 |
2023 |
|
£ |
£ |
|
Taxation compliance services |
10,000 |
- |
Other non-audit services |
24,275 |
2,500 |
34,275 |
2,500 |
Taxation |
Tax charged/(credited) in the income statement
Period to 31 July |
Period to 01 August |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
- |
2,424,828 |
36,651 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
- |
Tax expense in the income statement |
|
|
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
The tax on profit before tax for the period is lower than the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
Period to 31 July |
Period to 01 August |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
- |
Deferred tax expense from unrecognised tax loss or credit |
|
- |
Tax decrease from effect of capital allowances and depreciation |
( |
- |
Over/(Under) provision in prior years |
( |
- |
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
31 July 2024 |
Asset |
Liability |
Depreciation in excess of capital allowances |
- |
|
Provisions |
- |
( |
Rolled over gains |
- |
|
- |
|
1 August 2023 |
Asset |
Liability |
Depreciation in excess of capital allowances |
- |
|
Provisions |
- |
( |
- |
|
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Company
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Depreciation in excess of capital allowances |
- |
|
Provisions |
- |
( |
Rolled over gains |
- |
|
- |
2,748,470 |
2023 |
Asset |
Liability |
Depreciation in excess of capital allowances |
- |
|
Provisions |
- |
( |
- |
|
Profit for the year for the parent company |
The profit for the financial year of the parent company was £13,816,044 (2023 : £109,954).
Intangible assets - goodwill |
Group
Total |
|
Cost or valuation |
|
Additions |
|
At 31 July 2024 |
|
Amortisation |
|
Amortisation charge |
|
At 31 July 2024 |
|
Carrying amount |
|
At 31 July 2024 |
|
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Tangible assets |
Group
Land and buildings |
Commercial vehicles |
Motor vehicles |
Properties under construction |
Plant and equipment |
Total |
|
Cost or valuation |
||||||
At 2 August 2023 |
|
|
|
- |
|
|
Additions |
|
|
- |
|
|
|
Acquired through business combinations |
|
|
- |
- |
|
|
Disposals |
- |
( |
- |
- |
( |
( |
Transfers |
|
- |
- |
( |
|
- |
At 31 July 2024 |
|
|
|
|
|
|
Depreciation |
||||||
At 2 August 2023 |
|
|
|
- |
|
|
Charge for the period |
|
|
|
- |
|
|
Acquired through business combinations |
- |
|
- |
- |
|
|
Eliminated on disposal |
- |
( |
- |
- |
( |
( |
At 31 July 2024 |
|
|
|
- |
|
|
Carrying amount |
||||||
At 31 July 2024 |
|
|
|
|
|
|
At 1 August 2023 |
|
|
|
- |
|
|
Included within the net book value of land and buildings above is £10,857,511 (2023 - £5,239,520) in respect of freehold land and buildings and £14,540,026 (2023 - £10,811,805) in respect of long leasehold land and buildings.
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Company
Land and buildings |
Commercial vehicles |
Motor vehicles |
Properties under construction |
Plant and equipment |
Total |
|
Cost or valuation |
||||||
At 2 August 2023 |
|
|
|
- |
|
|
Additions |
|
|
- |
|
|
|
Acquired through business combinations |
|
|
- |
- |
|
|
Disposals |
- |
( |
- |
- |
( |
( |
Transfers |
|
- |
- |
( |
|
- |
At 31 July 2024 |
|
|
|
|
|
|
Depreciation |
||||||
At 2 August 2023 |
|
|
|
- |
|
|
Charge for the period |
|
|
|
- |
|
|
Eliminated on disposal |
- |
( |
- |
- |
( |
( |
Impairment |
- |
|
- |
- |
|
|
At 31 July 2024 |
|
|
|
- |
|
|
Carrying amount |
||||||
At 31 July 2024 |
|
|
|
|
|
|
At 1 August 2023 |
|
|
|
- |
|
|
Included within the net book value of land and buildings above is £10,857,511 (2023 - £5,239,520) in respect of freehold land and buildings and £14,540,026 (2023 - £10,811,805) in respect of long leasehold land and buildings.
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Assets held under hire purchase contracts
The net carrying amount of tangible assets (group and company) includes the following amounts in respect of assets held under hire purchase contracts:
31 July |
01 August |
|
Plant & Machinery |
- |
164,077 |
Commercial vehicles |
- |
416,759 |
- |
580,836 |
Investment properties |
Group
31 July |
|
At 2 August 2023 |
|
At 31 July 2024 |
|
There has been no valuation of investment property by an independent valuer and therefore it is included at Directors' valuation.
Company
31 July |
|
At 2 August 2023 |
|
At 31 July 2024 |
|
There has been no valuation of investment property by an independent valuer and therefore it is included at Directors' valuation.
Investments |
Group
Principal subsidiary undertakings
The principal subsidiary undertakings of Powerday PLC are listed below. At 31st July 2024 the company held a direct beneficial interest in 100% of the ordinary share capital of Economic Skips Limited, a company registered in England and Wales.
At 31st July 2024 the company held a direct beneficial interest in 100% of the ordinary share capital of Howard House Management Company Limited, a company registered in England and Wales. Howard House Management Company Limited is a dormant company.
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Subsidiaries, associates and other investments
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares |
|
2024 |
2023 |
Subsidiary undertakings |
||||
|
130 Shaftesbury Avenue, 2nd Floor, London, United Kingdom, W1D 5EU |
Ordinary |
|
|
|
130 Shaftesbury Avenue, 2nd Floor, London, United Kingdom, W1D 5EU |
Ordinary |
|
|
Company
INVESTMENT IN SUBSIDIARIES
31 July |
01 August |
|
Investments in subsidiaries |
|
- |
Subsidiaries |
£ |
Cost or valuation |
|
Additions |
|
Carrying amount |
|
At 31 July 2024 |
|
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Business combinations |
On 15 September Powerday PLC, acquired 100% of the issued share capital of Economic Skips Limited, a waste management company, thereby granting Powerday PLC a 100% direct holding and control of the company. The business combination was accounted for as an acquisition.
The amounts recognised in respect of identifiable assets acquired and liabilities assumed are as set out in the table below:
Book value |
Fair value |
|
Assets and liabilities acquired |
||
Property, plant and equipment |
4,739,064 |
3,748,289 |
Stocks |
6,484 |
6,484 |
Trade and other debtors |
816,101 |
786,570 |
Trade and other creditors |
(544,675) |
(544,675) |
Cash and cash equivalents |
668,015 |
668,015 |
Provisions |
(681,340) |
(681,340) |
Total identifiable net assets |
5,003,649 |
3,983,343 |
Goodwill |
- |
983,808 |
Total consideration settled in cash |
5,003,649 |
4,967,151 |
The major fair value adjustment was in respect of property, plant and equipment.
The revenue from Economic Skips Limited included in the consolidated income statement for the period ending 31 July 2024 was £486,553. Economic Skips Limited also contributed a profit of £156,886 over the same period.
The useful life of goodwill of 10 years has been assessed by directors.
During the period, the company also acquired 100% of the share capital of a dormant subsidiary, Howard House Management Limited, for a consideration of £10. As the subsidiary is dormant and does not have any significant assets or liabilities, the acquisition has no material impact on the consolidated financial statements.
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Other financial assets |
Group
Financial assets at cost less impairment |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
Additions |
10,000 |
10,000 |
At 31 July 2024 |
10,000 |
10,000 |
Carrying amount |
||
At 31 July 2024 |
|
10,000 |
Company
Financial assets at cost less impairment |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
Additions |
10,000 |
10,000 |
At 31 July 2024 |
10,000 |
10,000 |
Impairment |
||
Carrying amount |
||
At 31 July 2024 |
|
10,000 |
The following investments were held by the group at 31 July 2024:
• 11% of voting rights and shares held in The Green Compass Scheme Limited. The principal activity of this company is to act as an accreditation scheme for waste management organisations.
Stocks |
Group |
Company |
|||
31 July |
01 August |
31 July |
01 August |
|
Work in progress |
|
|
|
|
Other inventories |
|
- |
|
- |
|
|
|
|
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Debtors |
Group |
Company |
|||
31 July |
01 August |
31 July |
01 August |
|
Trade debtors |
|
|
|
|
Amounts owed by former group undertakings |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments and accrued income |
|
|
|
|
Corporation tax asset |
|
|
|
|
Directors loan account |
1,149,352 |
1,461,154 |
1,149,352 |
1,461,154 |
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
31 July |
01 August |
31 July |
01 August |
|
Cash at bank |
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
31 July |
01 August |
31 July |
01 August |
|
Due within one year |
|||||
Trade creditors |
|
|
|
|
|
Amounts due to group undertakings |
- |
- |
|
- |
|
Social security and other taxes |
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
Other payables |
|
|
|
|
|
Accruals and deferred income |
|
|
|
|
|
Obligations under hire purchase contracts |
- |
9,400 |
- |
9,400 |
|
|
|
|
|
Commitments under hire purchase agreements are shown under note
27
.
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Deferred tax and other provisions |
Group
Deferred tax |
Total |
|
At 2 August 2023 |
|
|
Increase (decrease) in existing provisions |
|
|
Increase (decrease) through business combinations |
|
|
At 31 July 2024 |
|
|
|
Company
Deferred tax |
Total |
|
At 2 August 2023 |
|
|
Increase (decrease) in existing provisions |
|
|
Increase (decrease) through business combinations |
|
|
At 31 July 2024 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
31 July |
01 August |
|||
No. |
£ |
No. |
£ |
|
Ordinary "A" shares of £1 each |
25,050 |
25,050 |
25,050 |
25,050 |
Ordinary "B" shares of £1 each |
25,050 |
25,050 |
25,050 |
25,050 |
|
|
|
|
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.
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Reserves |
Group and company
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 (period to 1 August 2023: £588,088) is not distributable in accordance with the Companies Act 2006.
Loans and borrowings |
Group |
Company |
|||
31 July |
01 August |
31 July |
01 August |
|
Current loans and borrowings |
||||
Hire purchase contracts |
- |
|
- |
|
Obligations under leases and hire purchase contracts |
Group
Hire purchase
Hire purchase creditors fall due for payment as follows:
31 July |
01 August |
|
Not later than one year |
- |
|
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:
31 July |
01 August |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the period was £
Company
Hire purchase
Hire purchase creditors fall due for payment as follows:
31 July |
01 August |
|
Not later than one year |
- |
|
Net obligations under hire purchase agreements are secured on the specific assets financed.
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Operating leases
The total of future minimum lease payments is as follows:
31 July |
01 August |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the period was £
Analysis of changes in net debt |
Group
At 2 August 2023 |
Financing cash flows |
At 31 July 2024 |
|
Cash and cash equivalents |
|||
Cash |
40,638,212 |
(4,875,295) |
35,762,917 |
Borrowings |
|||
Short term borrowings |
9,400 |
(9,400) |
- |
|
|||
|
( |
|
Other financial commitments |
Group
At the year end the group had capital commitments of £644,250 (2023: £2,210,118).
Powerday PLC
Notes to the Financial Statements for the Period from 2 August 2023 to 31 July 2024
Related party transactions |
Group
Key management compensation
31 July |
01 August |
|
Salaries and other short term employee benefits |
|
|
Other transactions with directors |
Included within debtors is a balance of £1,149,353 (period to 1 August 2023: £1,461,155) due from the directors. During the year advances of £1,478,161 (period to 1 August 2023: £1,377) and repayments of £1,789,963 (period to 1 August 2023: £nil) were made.
Interest of £22,698 (period to 1 August 2023: £nil) 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
Company
Amounts due to and from group undertakings are aggregated as permitted by FRS 102 and shown separately in debtors and creditors.
Other transactions with directors |
Included within debtors is a balance of £1,149,353 (period to 1 August 2023: £1,461,155) due from the directors. During the year advances of £1,478,161 (period to 1 August 2023: £1,377) and repayments of £1,789,963 (period to 1 August 2023: £nil) were made.
Interest of £22,698 (period to 1 August 2023: £nil) was charged at a rate of 2.25% on cumulative net overdrawn balances. There are no set terms in place.
Summary of transactions with all subsidiaries
At 31 July 2024 an amount of £5,022,153 (2023: £Nil) was due to a subsidiary undertaking. There are no set terms in place.
Following acquisition on 1 November 2023, Economic Skips Limited transferred its trading operations to Powerday Plc including the transfer of fixed assets at book value.