Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
COMPANY INFORMATION
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
CONTENTS
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The Directors present their strategic report on the Company for the year ended 31 December 2023.
Principal activities During the financial year the principal continuing activities of the Company consisted of: • The continued production of long life, modular, fast (below 23kW) electric vehicle charge points • Expansion of the UK EV public charging network alongside our local council and commercial partners • Management of the fastest growing fast charging public network in the UK
During the year, Connected Kerb generated revenues of £10,450,896 (2022: £7,918,733), representing an increase of £2,532,163 or 32% from the prior year. The Company continues to be focused on expanding its public EV charging infrastructure network across the UK.
EV charging revenues grew from £256,473 in 2022 to £733,526 in 2023, representing growth of £477,053 or 186%, driven primarily from expansion of the UK charging network. The growth of the business (with average full-time employees increasing from 77 in 2022 to 120 in 2023, as disclosed in note 8) has led to an increase in the Company's administrative expenses, which have increased from £11,789,366 (as restated - see note 9) to £16,555,741. This increase, of 40%, is above the growth in revenue as the Company scales to deliver its pipeline of work. Funding In September 2022, the Company announced it had secured an initial £110.0m from Aviva Investments, to support the Company's roll out of co-funded EV infrastructure. An initial tranche of £12.4m was received from Aviva during 2022, with additional tranches received during 2023 amounting to £23.0m. In addition to these the Company’s investors have provided loans amounting to £3.3m in 2023 and a further £9.5m in 2024, ensuring its ability to meet its ongoing commitments. In January 2025, the Company concluded a further round of funding, securing an addition £55m from the National Wealth Fund with £20m being received in the first tranche. At the same time the existing preference shares and loans plus interest were converted into equity shares (see note 30). EV charging The Company continued to accelerate the deployment of EV charging points across the UK's public space, ending 2023 with a total of 5,514 sockets installed (2022: 3,314) in the UK, a growth of 66% year on year. The energy vended grew from 1,100 MWh in 2022 to 3,850 MWh in 2023, an increase of 250% year on year.
The main risks faced by the Company are the impact of central government policies on the speed of adoption of electric vehicles by the public, the delivery of a successful LEVI program to support local councils in their roll out of a public charging network and impact of global events on the supply chain of both electric vehicles and components for the production of electric vehicle chargers.
The Company is well placed - due to the modular design of its charging points - to weather supply chain shocks as it has the ability to substitute key components in its production process. The business is actively engaged with the UK government departments responsible for setting EV adoption targets and has developed its internal forecasts and targets in line with the growth trajectory set out within the UK Government Zero Emission Vehicles (ZEV) Mandate. The LEVI program, having been announced in March 2022, is only now in late 2024/early 2025 starting to see the volume of tenders issued reaching the levels that were initially anticipated in late 2022. The Company is well placed to secure a portion of these LEVI tenders (on top of existing secured contracts) to meet its growth objectives.
Page 1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2024 and beyond will see the Company continuing to invest in its public EV charging infrastructure across the UK, with significant growth in the number of both its on-street and car park fast charging sites. The Company will continue to develop its co-funding model for EV charging infrastructure deployment and ensuring that it is using clean, renewable energy to power its UK public charging network.
This report was approved by the board and signed on its behalf.
Page 2
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB 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.
The Directors who served during the year were:
The loss for the year, after taxation, amounted to £19,126,542 (2022 restated (see note 9) - loss £10,945,786).
No dividends have been declared during the year ended 31 December 2023 (2022: £nil).
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Certain matters that would otherwise be disclosed in the Directors' Report are disclosed in the Strategic Report.
Page 3
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
For information on post balance sheet events see note 30 to the financial statements.
The auditor, James Cowper Kreston Audit, will 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.
Page 4
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CONNECTED KERB LIMITED
We have audited the financial statements of Connected Kerb Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Directors are responsible for the other information contained within the Annual Report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Page 5
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CONNECTED KERB LIMITED (CONTINUED)
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.
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.
Page 6
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CONNECTED KERB LIMITED (CONTINUED)
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.
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. 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:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims;
∙Reviewing minutes of meetings of those charged with governance;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
∙Performing audit work over the risk of 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 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 Auditor's Report.
Page 7
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CONNECTED KERB LIMITED (CONTINUED)
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
Chartered Accountants and Statutory Auditor
201 Cumnor Hill
Oxfordshire
OX2 9PJ
Page 8
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 9
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
REGISTERED NUMBER: 11062616
BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 38 form part of these financial statements.
Page 10
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
Page 11
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 12
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 13
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 14
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Connected Kerb Limited is a private limited company, incorporated and domiciled in England and Wales. The registered office of the Company is C/O James Cowper Kreston, 2 Communications Road, Greenham Business Park, Newbury, United Kingdom, RG19 6AB. The trading address of the Company is 51-52 Frith Street, London, England, W1D 4SH.
The principal activity of the Company is the development, installation and operation of electric vehicle charging points.
2.Accounting policies
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 financial statements are rounded to the nearest pound Sterling.
The following principal accounting policies have been applied:
The Company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries are required to be excluded from consolidation by section 402 of the Companies Act 2006.
The Company holds a 100% shareholding in its dormant subsidiary, Connected Kerb, Inc., registered in Delaware, USA.
Page 15
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Company is continuing to expand its network of providing electric vehicle charging points across the United Kingdom. During the year ended 31 December 2023, the Company issued Convertible Preference Shares of £23,000,000 and generated additional loan funding of £3,250,000 to support its development.
During the year ended 31 December 2023, the Company incurred a net loss before tax of £19,045,991 (2022 as restated: £11,424,719) and as at 31 December 2023, the Company had cash and cash equivalents of £2,844,847 (2022: £1,277,268). Subsequent to the period end, the Company received further loans from an existing investor of £9,500,000. On 24 January 2025, the Company successfully completed a fundraise, generating £20,000,000 in cash from the issue of 32,473 Ordinary A shares, with a further £35,000,000 receivable in two further tranches up to January 2028 subject to certain growth targets being met by set dates. The Directors have prepared forecasts covering a period of at least 12 months from the approval of these financial statements. These forecasts include key assumptions in relation to existing and new contracts and the ongoing growth anticipated in relation to the electric vehicle market. The Directors are confident of achieving the targets set in the subscription agreement relating to the above fundraise by the pre-determined dates. However, the Directors have considered an alternative scenario whereby these targets are not met within 12 months from approval of the financial statements, this assumption continuing to support the Company being a going concern. Based on the above, the Directors consider it appropriate that the financial statements are prepared on the going concern basis.
Functional and presentation currency
Transactions and balances
Page 16
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Company recognises revenue from construction and installation of electric vehicle charge points and power revenue from the use of the electric vehicle charge points. The Company unbundles its contractual obligations into a construction recognition period (rendering of services) and power generation period. The following criteria must also be met before revenue is recognised: The Company considers the cost of its warranty obligation in relation to electric vehicle charge points is immaterial to the financial statements.
Page 17
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Company has certain contracts with customers whereby the Company provides electric vehicle charging points and associated services to public sector bodies. The Company recognises such contracts as service concession arrangements as the public sector body (the grantor) controls and regulates what the Company provides and the grantor controls, through ownership, the beneficial entitlement of assets.
The Company recognises service concession arrangements applying the bifurcated model. Revenue for construction and installation of electric vehicle charging points is recognised using the stage of completion basis from which a financial asset is recognised to the extent to which the Company has an unconditional contractual right to receive cash from, or at the direction of, the grantor for the construction services. The Company recognises an intangible asset at fair value for the consideration receivable to the extent that the Company receives a right to charge users of the public service. The Company derecognises the financial asset at the point which contractual cash flows are received throughout the life of the contract. The intangible asset is amortised from the point at which the Company generates cash inflows from its right to charge electricity to the public. The intangible asset is amortised over the life of the contract which ranges from 5-20 years. Some contracts contain revenue share agreements which comprise of an agreement with the customer by which the customer receives a share of the power revenue generated by the Company. The Company collects the payment from the end user and remits the payment to the customer. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Page 18
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
Page 19
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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.
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:
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.
Page 20
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.
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
Page 21
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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.
The proceeds received on issue of the Company's Convertible Preference Shares are allocated into their liability and equity components. The amount initially attributed to the liability component equals the present value of the future contractual cash flows discounted using a market rate of interest that would be payable on a similar instrument. The equity element is calculated as any residual value. Subsequently, the liability component is accounted for as a financial liability measured at amortised cost until conversion of the Convertible Preference Shares.
The Company has recognised the cost of a long-term incentive plan to a Director. The charge is based on the fair value of the Company's shares and recognised in the Statement of Comprehensive Income at the point the conditions of the plan were satisfied.
Stage of completion The Company uses the percentage of completion method to determine the recognition of revenue on construction projects. The percentage of completion method depends on an accurate assessment of the costs to complete the contract. These assessments are made by personnel who have adequate and sufficient knowledge of the contracts as appropriate. The nature of the estimations means that actual outcomes may differ from those made in forecasts and budgets. If the outcome of a contract is that contract costs exceed total contract revenue, the estimated loss is recognised immediately. Service concession arrangements The Company has certain contracts with customers whereby the Company provides electric vehicle charging points and associated services to public sector bodies. The Company recognises such contracts as service concession arrangements as the public sector body (the grantor) controls and regulates what the Company provides and the grantor controls, through ownership, the beneficial entitlement of assets. The Company recognises service concession arrangements applying the bifurcated model. Revenue for construction and installation of electric vehicle charging points is recognised using the stage of completion basis from which a financial asset is recognised to the extent to which the Company has an unconditional contractual right to receive cash from, or at the direction of, the grantor for the construction services. The percentage of completion method depends on an accurate estimate of the costs to complete the contract.
Page 22
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
3.Judgements in applying accounting policies (continued)
Furthermore, the Company must estimate the fair value receivable in respect of construction services provided under service concession arrangements. The estimation of fair value requires the Directors to determine the best estimate of the profitability of the construction work undertaken. These estimates are made by personnel who have adequate and sufficient knowledge of the contracts. The nature of the estimations mean that actual outcomes may differ from those made in forecasts and budgets. Convertible Preference Shares During the year ended 31 December 2023, the Company allotted 2,300,000 Convertible Preference Shares for £23,000,000 which are non-redeemable and pay a fixed coupon. The Directors have considered the present value of the future contractual cash flows, applying a discount rate of SONIA + 5% which they consider represents the market rate of interest for a similar liability. Share-based payments The fair value of the share options at the date of grant is determined using the Black-Scholes model. This model uses key assumptions including the risk free rate, volatility and share price fair value. The fair value of the options at the date of grant is charged to the Statement of Comprehensive Income. The terms of the share options requires the Directors to determine the expected vesting period. Any revision in the vesting period would have a resulting impact on any charge recognised.
Analysis of turnover by country of destination:
Page 23
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 24
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 25
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 26
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 27
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
12.Taxation (continued)
Page 28
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 29
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 30
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 31
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 32
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 33
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 34
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
As per note 19 above, £795,924 Convertible Preference Shares have been accounted for as equity at 31 December 2023.
Ordinary shareholders are entitled to one vote per share and entitle the holder to participate in dividend distributions and capital distributions (including on winding up).
Share premium account
Profit and loss account
Page 35
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Company was not registered for the Construction Industry Scheme whilst undertaking certain construction related services up to 31 December 2023. The Directors recognise a possible but uncertain obligation exists for settlement of taxes and penalties up to £2,100,000 in relation to construction services performed to 31 December 2023. The Directors consider this represents the maximum possible liability.
Page 36
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately 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 £122,899 (2022: £70,153). Contributions totaling £nil (2022: £25,357) were payable to the fund at the balance sheet date and are included in creditors.
Page 37
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONNECTED KERB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Furthermore, on 24 January 2025 the Company successfully completed a fundraise that resulted in the following transactions taking place: a) Of loan notes payable of £1,000,000 as at 31 December 2023, £500,000 plus interest was converted into 800 Ordinary shares at £625 per Ordinary share and £500,000 plus interest was repaid to the loan provider; b) £2,300,000 of Convertible Preference Shares were converted into 39,493 Ordinary shares at £625 each; c) £2,257,507 of Convertible Preference Shares were converted into one Deferred share at £0.0001 per share; d) £11,750,000 of loans received from an investor, plus interest, were converted into 20,420 Ordinary shares at £625 per share; e) The Company allotted 1,600 Ordinary A shares of £0.0001 nominal value each to an existing investor for total consideration of £1,000,000; f) The Company allotted 32,473 Ordinary A shares of £0.0001 nominal value each to a new investor for total consideration of £20,000,000. g) On 3 February 2025, 224,350 Ordinary shares of £0.0001 nominal value each were redesignated as 224,350 Ordinary B shares.
Page 38
|