REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
HUDDLE UTILITIES LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
HUDDLE UTILITIES LTD |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
HUDDLE UTILITIES LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditors |
Russell House |
140 High Street |
Edgware |
HA8 7LW |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their strategic report for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
During the financial year, Huddle Utilities Ltd experienced a modest 1% increase in revenue. However, profit before tax decreased, primarily due to an increase in overheads, most notably staff costs. Note this decrease is prior to the restatements that were made in relation to invoices from prior years and the inclusion of a trade debtor provision, the adjustments are set out in detail in the notes to the accounts.This rise in expenditure reflects a strategic decision made by the business towards the end of the year, as Huddle secured a new revenue stream set to launch in the following financial year. The preparation for this opportunity required a significant investment of time and resource from internal staff, with the expectation of future returns. |
Despite the increased costs, Huddle maintains a robust financial position. The company's commitment to effective cash flow management ensures continued liquidity and operational stability, positioning the business well for sustainable long-term growth. |
FINANCIAL RISKS AND UNCERTAINTIES |
The bills-splitting market faces several notable challenges in 2024 and beyond. The market has become increasingly competitive, with new entrants emerging and established players expanding their offerings, particularly through the integration of rental agreements within utility bundles. This trend introduces a risk to sales volume, as consumer expectations shift and the industry continues to evolve. |
Another key risk is in credit control. As Huddle operates in a sector where customers are billed in advance and sometimes in arrears, there is inherent exposure to non-payment and late payment, which can have direct implications on cash flow. To mitigate this, we have continued to strengthen our internal processes and invested in the development of advanced credit control procedures, which have already led to a reduction in the average debt per customer. |
Additional risks include: |
- | Regulatory changes affecting utility pricing and consumer rights. |
- | Macroeconomic uncertainty, particularly relating to the cost of living, which may affect customer affordability and demand. |
DEVELOPMENT AND PERFORMANCE |
Over the past year, Huddle has made significant advancements in its technology and internal operations. A key focus has been the continued development of our proprietary Phoenix platform, which has evolved beyond internal use. Enhancements to the system have enabled external companies to trade on the platform, resulting in the creation of two new revenue streams. |
Operationally, we have invested in our staff development and refined our in-house systems, driving company-wide efficiency. The introduction of new KPIs across all departments has enabled better performance monitoring, improved accountability, and enhanced decision-making throughout the business. |
KEY PERFORMANCE INDICATORS (KPIS) |
Huddle consistently monitors key performance indicators to ensure effective delivery of its growth strategy. Notable metrics from the period include: |
- | 10% Increase in customer count, reflecting positive market traction and brand trust. |
- |
21% increase in gross margin, driven by better supplier negotiation and cost management. Note this includes the restatement, without the restatement the increase is 33%. |
- | 40% product growth, indicating both increased customer uptake and successful diversification of offerings. |
These metrics are regularly reviewed to assess progress and adjust strategy as needed, ensuring continued focus on profitable, sustainable growth. |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
FUTURE OUTLOOK |
Looking ahead, Huddle is well-positioned to capitalise on the continued evolution of its software platform. The Phoenix system is now fully operational for external use, and four new partner companies have begun trading through our infrastructure since the start of the new financial year. |
Our strategic focus remains on deepening our operational efficiency, leveraging increasingly data-driven KPIs, and using insights to improve customer experience and internal performance. This focus on technology, efficiency, and scalable infrastructure places Huddle in a strong position to adapt to market developments and maintain competitive advantage in a dynamic sector. |
ON BEHALF OF THE BOARD: |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their report with the financial statements of the company for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of supplier of household utilities. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2024. |
RESEARCH AND DEVELOPMENT |
The company continues to develop its internal CRM system. |
FUTURE DEVELOPMENTS |
Details concerning the company’s future developments can be found in the Strategic Report on page 2. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
During the year the company made donations to UK charities of £400 (2023: £2,078) |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and 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 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. |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HUDDLE UTILITIES LTD |
Opinion |
We have audited the financial statements of Huddle Utilities Ltd (the 'company') for the year ended 30 June 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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. |
Emphasis of matter |
We draw your attention to the fact that the comparative figures in the accounts are unaudited. There have been material adjustments identified that have been corrected as part of our opening balance work, full details of this restatement have been set out in note 13 to the accounts. After making the necessary restatements we have obtained sufficient appropriate audit evidence that the corrected opening balances do not contain misstatements that materially affect the current period’s financial statements. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HUDDLE UTILITIES LTD |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HUDDLE UTILITIES LTD |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
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: |
As part of our planning of the audit work required, we obtained an understanding of the legal and regulatory frameworks that are applicable to the entity via enquiries of the company's management, carrying out analytical procedures, holding discussions amongst the engagement team and using our knowledge of the sector. We determined that the most significant laws and regulations were relating to: |
- Ofgem regulations; |
- Employment law; and |
- UK Tax legislation. |
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as FRS102 and the Companies Act 2006. |
Based on the results of our risk assessment we designed our audit procedures to identify instances of non-compliance with the laws and regulations and the fraud risks identified. This included enquiries of management to understand their policies and procedures for compliance with those regulations and we completed the following tests: |
- Obtained an understanding of relevant controls; |
- Reviewed the company's risks assessments, procedures, health and safety policies and communications with employees; |
- Checked a sample of documentation; |
- Reviewed records for evidence of complaints or litigation; and |
- Reviewed correspondence with HMRC. |
We also assessed the risk of material misstatement in relation to fraud in respect of the following: |
- Revenue fraud; |
- Unauthorised expenditure and/or payments; |
- Management override of controls; and |
- Related party fraud. |
Based on the results of our risk assessment we designed audit procedures to identify and address material misstatements in relation to fraud. This included the risk of management bias and the risk of making inappropriate accounting entries. |
No significant issues were identified during our testing. |
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities, including fraud, rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusions, forgery, intentional omissions, misrepresentations or the override of internal controls. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HUDDLE UTILITIES LTD |
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 Report of the Auditors. |
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 a Report of the Auditors 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 Auditors |
Russell House |
140 High Street |
Edgware |
HA8 7LW |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
50,120 | (10,618 | ) |
Other operating income | 5 |
OPERATING PROFIT/(LOSS) | 7 | ( |
) |
Interest receivable and similar income | 9 |
50,120 | (8,090 | ) |
Interest payable and similar expenses | 10 | ( |
) | ( |
) |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 11 | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR | ( |
) |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2024 |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
Note |
Prior year adjustment | 13 | ( |
) |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
(252,276 |
) |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
BALANCE SHEET |
30 JUNE 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 14 |
Tangible assets | 15 |
CURRENT ASSETS |
Debtors | 16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 1,336,237 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 30 June 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2023 |
Prior year adjustment | - | ( |
) | ( |
) |
As restated |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - |
Balance at 30 June 2024 |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | 239 | - |
Amount withdrawn by directors | - | (3,034 | ) |
Share issue |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,087,786 |
Cash and cash equivalents at end of year | 2 | 405,114 |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Profit/(loss) before taxation | ( |
) |
Depreciation charges |
Finance costs | 198 | 820 |
Finance income | - | (28 | ) |
276,645 | 183,368 |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 286,296 | 405,114 |
Bank overdrafts | ( |
) |
286,278 | 405,114 |
Period ended 30 June 2023 |
30.6.23 | 30.6.22 |
£ | £ |
Cash and cash equivalents | 405,114 | 1,087,786 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 405,114 | (118,818 | ) | 286,296 |
Bank overdrafts | - | (18 | ) | (18 | ) |
405,114 | ( |
) | 286,278 |
Total | 405,114 | (118,836 | ) | 286,278 |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | STATUTORY INFORMATION |
Huddle Utilities Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
At the time of approving, 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. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Intangible assets |
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity. |
Development costs - 3 year straight line |
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: |
Plant and Machinery - 20% straight line |
Fixtures and Fittings - 20% straight line |
Computer equipment - 25% straight line |
Motor Vehicles - 25% reducing balance |
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. |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Research and development costs are incurred in the development and enhancement of the company's CRM software. The software has an ongoing benefit to the company's business and these costs are amortised over 3 years to reflect this. The costs captalised represent only the development costs incurred. Costs that represent purely the research element have been reflected in the income statement in the periods they have been incurred. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Cash and cash equivalents |
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short term liquid investments with original maturities of three months or less. |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Basic financial assets |
Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction and where material are subsequently measured at amortised cost using the effective interest method, less any impairment. |
Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and where material the changes in fair value are recognised in the Statement of Total Comprehensive Income, except that investments in equity instruments that are not publicly traded and whose fair value cannot be measured reliably are measured at cost less impairment |
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the life of the debt instrument to the net carrying amount on initial recognition |
Impairment of financial assets |
Financial assets, other than those held at fair value are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the Statement of Total Comprehensive Income |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity |
Basic financial liabilities |
Basic financial liabilities, including trade and other payables and loans from company undertakings that are classified as debt are initially measured 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 the market rate of interest . |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payables are classified as current liabilities if a payment is due within one year or less. If not, they are present as non current liabilities. Short term creditors are initially recognised at transaction price and where material are subsequently measured at amortised cost using the effective interest method |
Derecognition of financial liabilities |
Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled, or they expire. |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | CRITICAL ACCOUNTING 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. |
Critical judgements |
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
Revenue Recognition |
In the preparation of these financial statements, the Directors have exercised judgment in determining the appropriate recognition of revenue and cost of sales. The Company enters into transactions where it has assessed that it acts as the principal rather than as an agent for all services offered. |
In making this judgment, the Directors have considered for each service whether the Company is responsible for fulfilling the promise to the customers, bears the risks and rewards of the transactions, and has discretion in setting prices. Based on this assessment, the Company recognises revenue on a gross basis, with associated costs of sales recognised separately. |
The Directors believe that the principal recognition appropriately reflects the substance of the Company’s business model and its role in the underlying transactions. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Provision for trade debtors |
The company applies a 2.5% trade debtors provision. This is applied to the debtors balance at the year end after accounting for specific bad debts. The directors consider this to be an appropriate policy based on trade debtor recovery in prior periods. |
4. | TURNOVER |
The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company. |
5. | OTHER OPERATING INCOME |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Government grants |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
6. | EMPLOYEES AND DIRECTORS |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
Administrative |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Directors' remuneration |
7. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging: |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Development costs amortisation |
8. | AUDITORS' REMUNERATION |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
32,000 |
- |
Auditors' remuneration for non audit work |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
9. | INTEREST RECEIVABLE AND SIMILAR INCOME |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Bank account interest |
10. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Other interest |
11. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Current tax: |
UK corporation tax |
Tax credit | (77,711 | ) | - |
Total current tax | ( |
) |
Deferred tax |
Tax on profit/(loss) | ( |
) |
UK corporation tax has been charged at 25% (2023 - 20.50%). |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
11. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Deferred tax |
R&D tax credit adjustment for prior period | ( |
) |
Total tax (credit)/charge | (42,101 | ) | 18,494 |
2023 figures have been restated, please see note 13 for further details. |
12. | DIVIDENDS |
Period |
30.6.22 |
Year Ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Ordinary shares shares of 0.0001 each |
Interim |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | PRIOR YEAR ADJUSTMENT |
The following adjustments have been made to the 2023 comparative figures: |
It was identified that there were invoices from a related party for costs of sales relating to prior years that had not previously been included. The following adjustment has been made: |
Increase in Cost of Sales: £290,456 |
Increase in Trade Creditors (amounts due from a related party): £304,979 |
Decrease in VAT liability: £14,523 |
The overall net impact on the profit and loss is £290,456. |
The company has reviewed its policy for trade debtors and has introduced a policy to provide for specific debts as well as a 2.5% general provision on the remaining balance. This is based on trade debtor recovery in prior periods. The following adjustment has been made: |
Decrease in Trade debtors: £127,464 |
Increase in Bad debt expense: £127,464 |
The overall net impact on the profit and loss is £127,464. |
In light of the above two adjustments and their impact on the profit and loss, the tax charge for 2023 has been adjusted accordingly with the following adjustment: |
Decrease Tax liability: £73,621 |
Decrease in Tax expense: £73,621 |
The overall net impact on the profit and loss is £73,621. |
It was also identified that a sales invoice to a related party should have been included in trade creditors, rather than accrued income. The following adjustment has been made: |
Decrease in Trade Creditors: £444,000 |
Decrease in Accrued Income: £370,000 |
Increase in VAT liability: £74,000 |
There is no impact on the profit and loss. |
The following reallocations were also made to more appropriately align specific debtor and creditor balances. |
Accrued income of £4,931,690 had previously been included in Trade Debtors and has since been reclassified to Accrued income. |
Trade debtors included credit balances of £3,326,770. This amount has been reclassified to Other Creditors. |
Trade creditors included amounts relating to deferred income and accrued expenses of £612,150 and £1,210,681 respectively. The deferred income amount has been offset against accrued income as this is a net figure. The accrued expense amount has been reclassified to accruals. |
The above has no impact on the profit and loss. The current year figures have followed the same treatment so as to provide comparable balances |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
14. | INTANGIBLE FIXED ASSETS |
Development |
costs |
£ |
COST |
At 1 July 2023 |
Additions |
At 30 June 2024 |
AMORTISATION |
At 1 July 2023 |
Amortisation for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
15. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2023 |
Additions |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.24 | 30.6.23 |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | 2,833 | 2,925 |
Taxation |
Prepayments and accrued income |
2023 figures have been restated, please see note 13 for further details. |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.24 | 30.6.23 |
£ | £ |
Bank loans and overdrafts (see note 18) |
Trade creditors |
Taxation |
Social security and other taxes |
VAT | 254,054 | 139,929 |
Other creditors |
Accrued expenses |
2023 figures have been restated, please see note 13 for further details. |
18. | LOANS |
An analysis of the maturity of loans is given below: |
30.6.24 | 30.6.23 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
19. | PROVISIONS FOR LIABILITIES |
30.6.24 | 30.6.23 |
£ | £ |
Deferred tax | 5,096 | 5,096 |
Deferred |
tax |
£ |
Balance at 1 July 2023 |
Balance at 30 June 2024 |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
19. | PROVISIONS FOR LIABILITIES - continued |
The deferred taxation asset is made up of tax trading losses carried forward to be recovered against future taxable profits. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.24 | 30.6.23 |
value: | £ | £ |
Ordinary shares | 0.000 | 1 | 87 | 2 |
Ordinary C shares | 0.000 | 1 | 13 | - |
100 | 2 |
As of 30 June 2023 the company's issued share capital comprised 198 ordinary shares, each with a nominal value of £0.01. |
On 14 November 2023, the following changes occurred to the share capital: |
1. Allotment of new shares |
An allotment of 9,802 new ordinary shares was made, each with a nominal value of £0.01, bringing the total share capital to 10,000 ordinary shares, each with a nominal value of £0.01. |
2. Subdivision of shares |
The existing and newly allotted ordinary shares were subdivided, with each share being split into 100 shares of nominal value £0.0001. As a result, the total number of ordinary shares increased to 1,000,000, each with a nominal value of £0.0001. |
3. Designation of new share class |
A new class of shares 'Ordinary C' was introduced. A total of 130,000 ordinary shares, each with a nominal value of £0.0001 were reclassified as 'Ordinary C' shares. |
21. | PENSION COMMITMENTS |
The charge to the profit or loss in respect of defined contribution schemes was £35,365 (2023: £26,148). |
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. |
22. | OTHER FINANCIAL COMMITMENTS |
As at 30 June 2024 the company had total financial commitments in respect of operating leases and purchase agreements of £0 (2023 : £28,852). Note the comparative figure has been restated to remove commitments relating to service contracts whereby the customer is liable should the contracts be exited early. |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
A directors loan account became overdrawn during the year and at the year end the amount outstanding was £2,735 (2023: £2.925 overdrawn). |
HUDDLE UTILITIES LTD (REGISTERED NUMBER: 09380853) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
24. | RELATED PARTY DISCLOSURES |
During the year, the company entered into the following transactions with related parties: |
During the year expenses of £19,403,748 (2023: £17,922,671) was charged from an entity with the same directors as the company. Revenue of £5,136,589 (2023: £3,564,899) was charged to the same entity. Included in trade creditors is the balance with the entity of £2,242,467 (2023: 815,728) which is unsecured and interest free. Note the 2023 trade creditor balance has been restated due to invoices from prior years not having been included, see note 13 for full details. The above profit and loss figures do not include the restated amounts due to them relating to prior years. |
25. | SHARE-BASED PAYMENT TRANSACTIONS |
During the year the company granted options under an Enterprise Management Incentive (EMI) scheme. 125,000 options were granted at an exercise price of £0.765 per share. The vesting conditions are exit based and cover a 10 year period. At the year end there had been no options exercised. |
The options have been valued using the Black-Scholes model. There has been no expense recognised in the profit and loss during the year. |
26. | CONTROLLING PARTY |
There is no deemed controlling party of Huddle Utilities Limited. |