Company registration number 04007349 (England and Wales)
ESL FUELS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
ESL FUELS LIMITED
COMPANY INFORMATION
Directors
Mrs J A Whittaker
Mr S D Whittaker
Secretary
Mrs J A Whittaker
Company number
04007349
Registered office
Dock Yard Road
Ellesmere Port
CH65 4EF
Auditor
Xeinadin Audit Limited
46 Hamilton Square
Birkenhead
Wirral
Merseyside
CH41 5AR
ESL FUELS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
ESL FUELS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present their strategic report for the year ended 30 June 2024.

Principal activity

The principal activity of the Company is design, production and supply of differentiated and customised liquid fuels.

Fair review of the business

The Company continued to grow in its existing markets whilst also developing new technology and products. In particular, our innovations in environmentally sustainable liquid fuels have enabled us well to supply and support their growing demand.

 

The Company consider that the key financial performance indicator for the profitability of the Company is the earnings before interest, taxes, depreciation and amortisation, EBITDA, and for the year was £14,221,864 (2023 - £11,169,666).

 

The results tor the year end and financial position of the Company are shown in the annexed financial statements.

Principal risks and uncertainties

The principal risks and uncertainties arise from fluctuations in the price of fuels and in rates of exchange.

 

The Company's operations and earnings are subject to competitive, economic, political, legal, regulatory, social, industry, business and financial risks, as discussed below. These could have a material adverse effect separately, or in combination, on our operational performance, earnings or financial condition.

 

Our operating results and financial condition are exposed to fluctuating fuel prices which are affected by supply and demand, both globally and regionally. Factors that influence supply and demand include operational issues, natural disasters, weather, political instability, conflicts, economic conditions and actions by major fuel exporting countries. Price fluctuations have a material effect on our earnings and our financial condition.

Other considerations

Our approach is always to consider our employees, the environment and carbon emissions, human rights and all social and community issues. We are an equal opportunities employer ensuring no discrimination on the grounds of race, ethnicity, religion, sexual orientation or gender.

Promoting the success of the Company

The Company’s four core values remain at the heart of promoting the Company’s success for the benefit of its stakeholders:

 

Innovate: Employees are encouraged to think creatively and strive for continuous improvement. From the early days of pioneering biodiesel, to creating market-changing heating and marine gas oils, to more recent times producing a range of renewable liquid fuels, the Company has always been at the forefront of innovation. We continually invest in research and development and have a highly technical team who work closely with industry to develop sustainable liquid fuels to meet customer’s needs.

 

Nurture relationships: The Company seeks to build mutually beneficial partnerships across the business. The Company's employees engage regularly with customers, suppliers, and other external stakeholders to foster existing and create new business relationships. This identifies opportunities and helps gather information to develop a mutual understanding of our businesses to cultivate long term shared growth and partnering. We place a strong emphasis on customer satisfaction and ensure high-quality standards in our products and service delivery. Furthermore, internal relationship building through employee engagement and involvement is key to ensure goal congruence and efficiency.

 

Be the best: The Company nurtures a strong team and work ethic in a positive environment to deliver competitively superior quality, value and service to its customer and other stakeholders. The Company continues to invest in research and development, talent acquisition and training, optimising systems and operations, along with other value adding measures.

ESL FUELS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

Act with integrity: Employees are required to demonstrate uncompromising ethics in everything they do. The Company ensures its reputation for high standards of business conduct by engaging with government and industry bodies, and undertaking numerous audits throughout the year. The Directors recognise the importance of their responsibilities in relation to Health, Safety and the Environment and ensure employees and the Company adhere to Company policy, laws, and regulations.

 

The Board is confident that the measures taken over the past year have laid a solid foundation for continued success. We remain committed to driving innovation, sustainability and growth, ensuring long-term value for all our stakeholders.

On behalf of the board

Mrs J A Whittaker
Director
27 March 2025
ESL FUELS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £1,500,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs J A Whittaker
Mr S D Whittaker
Financial instruments
Price risk, credit risk, liquidty risk and cash flow risk

The Company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in sterling, with the only foreign currency transactions being covered by suitable currency contracts to minimise exposure to exchange rate volatility.

Research and development

The Company continues to undertake significant research and development to improve existing fuels and create new technology and products.

Future developments

The directors are pleased with the financial position of the Company and consider it well placed to meet any upturn in demand.

Energy and carbon report

The Companies Act 2006 (Strategic Report and Directors’ Report) Regulation 2018 requires the Company to disclose annual UK energy consumption and Greenhouse Gas (‘GHG’) emissions from SECR regulated sources. Energy and GHG emissions have been independently calculated by Envantage Ltd for the for the year ended 30 June 2024.

 

Reported energy and GHG emissions data is compliant with SECR requirements and has been calculated in accordance with the GHG Protocol and SECR guidelines. Energy and GHG emissions are reported from buildings and transport where operational control is held – this includes electricity consumption and business travel in employee-owned vehicles (‘grey fleet’). The table below details SECR-regulated energy and GHG emission sources for the current and previous reporting periods.

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Electricity purchased
163,082
122,751
- Fuel consumed for transport
6,703
4,976
169,785
127,727
ESL FUELS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
2024
2023
Emissions of CO2 equivalent ('CO2e')
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
-
- Fuel consumed for owned transport
-
0.20
-
0.20
Scope 2 - indirect emissions
- Electricity purchased
33.80
25.40
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the Company
1.60
1.00
Total gross emissions
35.40
26.60
Intensity ratio
Tonnes CO2e location based ('LB') per £m turnover
0.149
0.143
Quantification and reporting methodology

Activity data has been converted into energy and GHG emissions using emissions factors published by the UK Government (DESNZ, BEIS) in 2024. Electricity disclosures have been calculated using metered kWh consumption taken from supplier invoices. GHG emissions associated with Scope 2 purchased electricity have been reported using the LB and market-based ('MB') methodologies. Transport disclosures have been calculated based on business mileage expense claim records.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e LB per million £ of turnover, the recommended ratio for the sector.

Measures taken to improve energy efficiency

The Company is committed to reducing its environmental impact and contribution to climate change through continuous improvement procedures. In April 2024, the Company switched to a renewable electricity tariff, which will enable a significant reduction in Scope 2 MB emissions in the financial year ended 30 June 2025. Emissions increased in the financial year ended 30 June 2024 compared to the financial year ended 30 June 2023 due to an increase in the emissions intensity of British Gas’ 2023/2024 conventional fuel mix.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the Company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the Company’s auditor is aware of that information.

On behalf of the board
Mrs J A Whittaker
Director
27 March 2025
ESL FUELS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

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

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

ESL FUELS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESL FUELS LIMITED
- 6 -
Opinion

We have audited the financial statements of ESL Fuels Limited (the 'Company') for the year ended 30 June 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including 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:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual 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.

Opinions on other matters prescribed by the Companies Act 2006

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

ESL FUELS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESL FUELS LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including

fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

ESL FUELS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESL FUELS LIMITED (CONTINUED)
- 8 -

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Helen Furlong FCCA (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Limited, Statutory Auditor
Chartered Accountants
46 Hamilton Square
Birkenhead
Wirral
Merseyside
CH41 5AR
28 March 2025
ESL FUELS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
237,176,088
185,400,798
Cost of sales
(215,292,183)
(167,208,084)
Gross profit
21,883,905
18,192,714
Distribution costs
(5,309,811)
(4,827,453)
Administrative expenses
(2,640,036)
(2,408,272)
Operating profit
4
13,934,058
10,956,989
Interest payable and similar expenses
8
(742,524)
(387,511)
Profit before taxation
13,191,534
10,569,478
Tax on profit
9
(3,368,475)
(2,159,708)
Profit for the financial year
9,823,059
8,409,770
Retained earnings brought forward
10,361,721
5,701,951
Dividends
10
(1,500,000)
(3,750,000)
Retained earnings carried forward
18,684,780
10,361,721

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ESL FUELS LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
127,884
114,475
Tangible assets
12
2,661,364
2,244,757
2,789,248
2,359,232
Current assets
Stocks
14
25,753,755
12,153,894
Debtors
15
22,519,522
10,925,278
Cash at bank and in hand
432,004
268,100
48,705,281
23,347,272
Creditors: amounts falling due within one year
16
(32,281,067)
(14,948,188)
Net current assets
16,424,214
8,399,084
Total assets less current liabilities
19,213,462
10,758,316
Provisions for liabilities
Deferred tax liability
18
428,682
296,595
(428,682)
(296,595)
Net assets
18,784,780
10,461,721
Capital and reserves
Called up share capital
20
100,000
100,000
Profit and loss reserves
18,684,780
10,361,721
Total equity
18,784,780
10,461,721
The financial statements were approved by the board of directors and authorised for issue on 27 March 2025 and are signed on its behalf by:
Mrs J A Whittaker
Director
Company registration number 04007349 (England and Wales)
ESL FUELS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
6,507,183
9,082,905
Income taxes paid
(2,300,000)
(1,300,000)
Net cash inflow from operating activities
4,207,183
7,782,905
Investing activities
Purchase of intangible assets
(50,010)
(49,130)
Purchase of tangible fixed assets
(691,345)
(864,238)
Net cash used in investing activities
(741,355)
(913,368)
Financing activities
Proceeds from new bank loans
2,400,000
1,067,508
Repayment of bank loans
(3,504,604)
(8,003,948)
Interest paid
(742,524)
(387,511)
Dividends paid
(1,500,000)
(3,750,000)
Amounts introduced by directors
45,204
449,167
Net cash used in financing activities
(3,301,924)
(10,624,784)
Net increase/(decrease) in cash and cash equivalents
163,904
(3,755,247)
Cash and cash equivalents at beginning of year
268,100
4,023,347
Cash and cash equivalents at end of year
432,004
268,100
ESL FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information

ESL Fuels Limited is a private company limited by shares incorporated in England and Wales. The registered office is Dock Yard Road, Ellesmere Port, CH65 4EF.

1.1
Accounting convention

These financial statements have been prepared in accordance with “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, except as disclosed in the accounting policies where certain items are included at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

Software
20% on cost
ESL FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings
4% on cost
Plant and equipment
7 - 10% on cost
Fixtures and fittings
7 - 10% on cost
Computer equipment
33% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.8
Stocks

Stocks are valued at fair value less costs to sell after making due allowances for obsolete and slow moving items.

 

The Company supplies renewable fuels covered by the Renewable Transport Fuel Obligation (RTFO) Order and claims Renewable Transport Fuel Certificates (RTFC's) for every litre of sustainable fuel that crosses its duty point. These certificated can be traded on the open market and are valued consistent with other stocks.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

ESL FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

Derivatives are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss, unless hedge accounting is applied and the hedge is a cash flow hedge.

1.11
Hedge accounting

The Company designates certain hedging instruments, including derivatives, as either fair value hedges or cash flow hedges.

 

At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item along with risk management objectives and strategy for undertaking various hedge transactions. At the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

ESL FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Fuel
221,493,883
178,967,835
Renewable Transport Fuel Certificates
15,682,205
6,432,963
237,176,088
185,400,798
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(138,055)
418,057
Depreciation of owned tangible fixed assets
251,205
185,110
Loss on disposal of tangible fixed assets
23,533
-
Amortisation of intangible assets
36,601
27,567
5
Auditor's remuneration
2024
2023
Fees payable to the Company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the Company
12,000
10,000
For other services
All other non-audit services
3,000
-
0
ESL FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
6
Employees

The average number of persons employed by the Company during the year was:

2024
2023
Number
Number
Directors
2
2
Production
8
6
Administration and support
15
12
Total
25
20

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,550,332
1,123,970
Social security costs
127,807
125,631
Pension costs
18,442
93,889
1,696,581
1,343,490
7
Directors' remuneration
2024
2023
£
£
Remuneration
24,000
24,000
Company pension contributions to defined contribution schemes
229
79,424
24,229
103,424

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities:
Interest on bank overdrafts and loans
741,422
381,920
Other finance costs:
Other interest
1,102
5,591
742,524
387,511
ESL FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits in the year
3,236,388
2,036,847
Deferred tax
Origination and reversal of timing differences
132,087
122,861
Total tax charge
3,368,475
2,159,708

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
13,191,534
10,569,478
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
3,297,884
2,642,370
Tax effect of expenses that are not deductible in determining taxable profit
10,047
3,579
Tax effect of utilisation of tax losses not previously recognised
(17,434)
-
0
Effect of change in corporation tax rate
-
0
(475,637)
Capital allowances in excess of depreciation
(54,109)
(133,465)
Deferred tax expense
132,087
122,861
Taxation charge for the year
3,368,475
2,159,708
10
Dividends
2024
2023
£
£
Interim paid
1,500,000
3,750,000
ESL FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
11
Intangible fixed assets
Software
£
Cost
At 1 July 2023
164,985
Additions
50,010
At 30 June 2024
214,995
Amortisation
At 1 July 2023
50,510
Amortisation charged for the year
36,601
At 30 June 2024
87,111
Carrying amount
At 30 June 2024
127,884
At 30 June 2023
114,475
12
Tangible fixed assets
Land and buildings
Plant and equipment
Fixtures and fittings
Computer equipment
Total
£
£
£
£
£
Cost
At 1 July 2023
832,642
1,812,525
50,975
18,719
2,714,861
Additions
190,931
470,199
13,567
16,648
691,345
Disposals
-
0
(23,533)
-
0
-
0
(23,533)
At 30 June 2024
1,023,573
2,259,191
64,542
35,367
3,382,673
Depreciation
At 1 July 2023
56,396
399,543
5,289
8,876
470,104
Depreciation charged in the year
38,423
201,062
3,887
7,833
251,205
At 30 June 2024
94,819
600,605
9,176
16,709
721,309
Carrying amount
At 30 June 2024
928,754
1,658,586
55,366
18,658
2,661,364
At 30 June 2023
776,246
1,412,982
45,686
9,843
2,244,757
ESL FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
13
Financial instruments
Hedging arrangements

The Company’s operations expose it to various financial risks, most notably commodity price risk, which arises from fluctuations in the market price of fuels. The Company manages this exposure through the use of derivative financial instruments, specifically commodity forwards and swaps.

 

All derivative financial instruments are measured at fair value. The valuation is based on observable market data. The fair value of the hedging instruments at the balance sheet date is a liability of £633,755.

 

Hedge effectiveness has been assessed both prospectively and retrospectively and all designated fair value hedge relationships were deemed effective during the year.

 

All outstanding hedging instruments as at the balance sheet date mature within 12 months of the year end and relate to hedged items expected to unwind in the same period.

14
Stocks
2024
2023
£
£
Raw materials
280,125
102,700
Finished goods
12,383,765
9,200,784
Renewable Transport Fuel Certificates
13,089,865
2,850,410
25,753,755
12,153,894
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
14,116,547
10,420,849
Other debtors
4,574
-
0
Prepayments
8,398,401
504,429
22,519,522
10,925,278
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
2,894,767
3,999,371
Trade creditors
10,391,996
4,000,892
Corporation tax
2,108,553
1,172,165
Other taxation and social security
4,945,445
2,868,562
Directors' loan account
556,533
511,329
Other creditors
417
4,716
Accruals
11,383,356
2,391,153
32,281,067
14,948,188
ESL FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
17
Loans and overdrafts
2024
2023
£
£
Bank loans
2,894,767
3,999,371
Payable within one year
2,894,767
3,999,371

Bank loans and other loans, are secured by fixed and floating charges over the undertaking of the Company or all property and assets.

Bank loans are denominated in GBP with nominal interest rates of 7.42% and 7.12% per annum. Bank loans were repaid in full in July 2024.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the Company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
428,682
296,595
2024
Movements in the year:
£
Liability at 1 July 2023
296,595
Charge to profit or loss
132,087
Liability at 30 June 2024
428,682

The amount of the net reversal of deferred tax expected to occur next year is £69,348 relating to the reversal of existing timing differences on tangible fixed assets.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
18,442
93,889

The Company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

ESL FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100,000
100,000
100,000
100,000
21
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
33,084
-

Capital commitments were all committed in June 24 and were settled in the next financial year using existing cash reserves and operating cash flows.

22
Related party transactions
Transactions with related parties

During the year the Company entered into the following transactions with related parties:

ESL Fuels Limited has a rental agreement with Port Fuels Limited, a Company under common ownership. The Company provided rental premises to ESL Fuels Limited during the year.

 

The total rent charged for the year amounted to £83,854 (2023: £77,132), which was determined on an arm's length basis, consistent with market terms and conditions.

 

The directors confirm that this transaction was conducted in the ordinary course of business and that the terms were fair and reasonable.

 

At the reporting date, the amount outstanding to the related party in respect of this transaction was nil.

 

The directors of ESL Fuels Limited are also involved in the ownership and management of the related party.

23
Directors' transactions

The amount owing to the directors at 30 June 2024 was £556,533 (2023 - £511,329) and is secured by fixed and floating charges over the undertaking and all property and assets present and future, including uncalled capital, goodwill, book debt and patents.

 

During the year interest amounting to £1,102 (2023 - £5,591) was paid to the directors.

Dividends totalling £1,500,000 (2023 - £3,750,000) were paid in the year in respect of shares held by the Company's directors.

ESL FUELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
24
Cash generated from operations
2024
2023
£
£
Profit after taxation
9,823,059
8,409,770
Adjustments for:
Taxation charged
3,368,475
2,159,708
Finance costs
742,524
387,511
Loss on disposal of tangible fixed assets
23,533
-
Amortisation and impairment of intangible assets
36,601
27,567
Depreciation and impairment of tangible fixed assets
251,205
185,110
Movements in working capital:
(Increase)/decrease in stocks
(13,599,861)
280,078
(Increase)/decrease in debtors
(11,594,244)
1,757,287
Increase/(decrease) in creditors
17,455,891
(4,124,126)
Cash generated from operations
6,507,183
9,082,905
25
Analysis of changes in net debt
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
268,100
163,904
432,004
Borrowings excluding overdrafts
(3,999,371)
1,104,604
(2,894,767)
(3,731,271)
1,268,508
(2,462,763)
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