Registered number: 09794174
FOR THE YEAR ENDED 31 DECEMBER 2024
BUILDING ENERGY SERVICES GROUP LIMITED
COMPANY INFORMATION
BUILDING ENERGY SERVICES GROUP LIMITED
CONTENTS
BUILDING ENERGY SERVICES GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report for Building Energy Services Group Limited ("the group"), for the year ended 31 December 2024.
Principal activity
The principal activity of the group is that of installation, service and maintenance of building management systems equipment and related energy management solutions.
Principal activity
The principal activity of the group is that of installation, service and maintenance of building management systems equipment and related energy management solutions.
The key financial performance indicators of the business are as follows:
Business trading saw year-on-year growth in revenue and forward order books powered by the investment in sales and management resource committed to in the early part of the year. Overall, first half year delays on a number of key public sector projects were more than off-set by project wins in our key private market sectors albeit these came later in the year having an impact on overall in-year profitability. We continue to see increased
demand for remote energy monitoring and building performance smart services with the outlook for overall market demand continuing to look very strong.
Through regular review, we continued to react quickly and positively to the changing challenges and demand drivers in the wider business market whilst strong management, robust process and a quality service delivery ensured we met our cash management targets.
A key non-financial performance measure continues to be that of the health, safety and well-being of our staff. Our employee Risk and Wellbeing committee is embedded within the business and continues to influence our people agenda for the coming year. There were no reportable incidents in the year ended 31 December 2024.
Business trading saw year-on-year growth in revenue and forward order books powered by the investment in sales and management resource committed to in the early part of the year. Overall, first half year delays on a number of key public sector projects were more than off-set by project wins in our key private market sectors albeit these came later in the year having an impact on overall in-year profitability. We continue to see increased
demand for remote energy monitoring and building performance smart services with the outlook for overall market demand continuing to look very strong.
Through regular review, we continued to react quickly and positively to the changing challenges and demand drivers in the wider business market whilst strong management, robust process and a quality service delivery ensured we met our cash management targets.
A key non-financial performance measure continues to be that of the health, safety and well-being of our staff. Our employee Risk and Wellbeing committee is embedded within the business and continues to influence our people agenda for the coming year. There were no reportable incidents in the year ended 31 December 2024.
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BUILDING ENERGY SERVICES GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The board of directors is responsible for assessing and monitoring business risk. These risks are being mitigated by regular review of the group’s performance, potential risks and areas of uncertainty and discussions with management.
On-going economic and political uncertainty
The board and senior management team continues to monitor and manage impacts on a timely basis. We remain focused on offering more services to our existing customers to assist them to drive efficiency in their own use of energy within buildings whilst also working with new customers in key target areas.
Other potential risks include:
Operational risk management
The key operational business risks and uncertainties affecting the group are considered to be changing market conditions, changes in legislation affecting energy management, loss or poor performance of key contracts and problems or delays in the supply of major components.
The business has a proactive approach to managing exposure to price and risk; wherever possible, fixed prices are negotiated with the Supply Chain for the length of long term contracts and, where relevant, projects are costed to include for an allowance for future predicted price increases.
Financial and cashflow risk management
The group has no external debt; therefore external finance risk is limited. The key financial risk facing the business is bad debt risk. This risk is mitigated by having a diverse customer base, robust debt management processes and maintenance of credit insurance.
On-going economic and political uncertainty
The board and senior management team continues to monitor and manage impacts on a timely basis. We remain focused on offering more services to our existing customers to assist them to drive efficiency in their own use of energy within buildings whilst also working with new customers in key target areas.
Other potential risks include:
Operational risk management
The key operational business risks and uncertainties affecting the group are considered to be changing market conditions, changes in legislation affecting energy management, loss or poor performance of key contracts and problems or delays in the supply of major components.
The business has a proactive approach to managing exposure to price and risk; wherever possible, fixed prices are negotiated with the Supply Chain for the length of long term contracts and, where relevant, projects are costed to include for an allowance for future predicted price increases.
Financial and cashflow risk management
The group has no external debt; therefore external finance risk is limited. The key financial risk facing the business is bad debt risk. This risk is mitigated by having a diverse customer base, robust debt management processes and maintenance of credit insurance.
The group invested in strengthening our management team at various levels during 2024 and in deepening our relationships with key product suppliers as we plan to return all areas of our business to growth in 2025 and beyond.
This report was approved by the board and signed on its behalf.
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BUILDING ENERGY SERVICES GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the group strategic report, the directors' report and the consolidated 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 Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,662,101 (2023: £1,528,096).
Dividends of £488,737 were distributed for the year ended 31 December 2024 (2023: £1,153,642).
The directors who served during the year were:
During the year the group made charitable donations of £2,908 (2023: £3,274). No political donations were made in the year.
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BUILDING ENERGY SERVICES GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The group has chosen in accordance with section 414C(11) of the Companies Act 2006 (strategic report and directors' report) Regulations 2013 to set out in the group's strategic report information required by the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 Schedule 7 to be contained in the directors' report.
There have been no significant events affecting the group since the year end.
The auditors, Cooper Parry Group Limited, 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.
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BUILDING ENERGY SERVICES GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BUILDING ENERGY SERVICES GROUP LIMITED
We have audited the financial statements of Building Energy Services Group Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the consolidated profit and loss account, the consolidated statement of comprehensive income, the group and company balance sheet, the group and the company statement of changes in equity , the consolidated statement of cash flows, the consolidated analysis of net fundss. 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 Group 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 Group's or the parent 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.
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BUILDING ENERGY SERVICES GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BUILDING ENERGY SERVICES GROUP LIMITED (CONTINUED)
The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the annual 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the group 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 group 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 Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the group strategic report or the directors' report.
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BUILDING ENERGY SERVICES GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BUILDING ENERGY SERVICES GROUP 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 auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates, and considered the risk of acts by the group that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.
During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.
Our procedures in relation to fraud, included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates and challenged the assumptions and judgements made by management in its significant accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests included agreeing the financial statement disclosures to underlying supporting documentation.
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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.
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BUILDING ENERGY SERVICES GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BUILDING ENERGY SERVICES GROUP LIMITED (CONTINUED)
This report is made solely to the group'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 group's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the group and the group's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
Davidson House
1st floor
The Forbury
RG1 3EU
Date:
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BUILDING ENERGY SERVICES GROUP LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUILDING ENERGY SERVICES GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUILDING ENERGY SERVICES GROUP LIMITED
REGISTERED NUMBER: 09794174
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 29 form part of these financial statements.
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BUILDING ENERGY SERVICES GROUP LIMITED
REGISTERED NUMBER: 09794174
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 29 form part of these financial statements.
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BUILDING ENERGY SERVICES GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUILDING ENERGY SERVICES GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUILDING ENERGY SERVICES GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUILDING ENERGY SERVICES GROUP LIMITED
CONSOLIDATED ANALYSIS OF NET FUNDS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUILDING ENERGY SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Building Energy Services Group Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the company Information page.
2.Accounting policies
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The financial statements have been 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 in sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements.
The consolidated financial statements present the results of the company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 24 September 2015.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 24 September 2015.
The financial statements have been prepared on a going concern basis. The directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments and the current resources available, the directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.
Preparation of the financial statements requires management to make significant judgements and estimates in determining the carrying amounts of certain assets and liabilities. Management makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The management's estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically. This disclosure excludes uncertainty over future events and judgement in respect of measuring financial instruments.
There is estimation uncertainty in calculating bad debt provisions. A full review of trade debtors is carried out by management regularly. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provision do not match the level of debts which ultimately prove to be uncollectable.
There is estimation uncertainty in calculating bad debt provisions. A full review of trade debtors is carried out by management regularly. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provision do not match the level of debts which ultimately prove to be uncollectable.
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BUILDING ENERGY SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
There is estimation uncertainty in recognising turnover and costs on long term projects. Judgement and estimates are used to conclude on final margins which are expected to be achieved based on management forecasts. Whilst every attempt is made to ensure that the expected margin is accurate, there remains a risk that unforeseen events may impact the final result.
Accrued turnover and contracts provisions also require management judgement and estimates. Specifically this is applied to certain contracts where the applied amount is in dispute, or not considered to be recoverable. Amounts will also be applied to variations to contracted work where considered necessary.
Accrued turnover and contracts provisions also require management judgement and estimates. Specifically this is applied to certain contracts where the applied amount is in dispute, or not considered to be recoverable. Amounts will also be applied to variations to contracted work where considered necessary.
Profit is recognised on long term contracts if the final outcome can be assessed with reasonable certainty by including the consolidated profit and loss account, turnover and related costs as contract activity progresses. Turnover is calculated by reference to the value of work performed to date as a proportion of the total contract value.
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BUILDING ENERGY SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
The estimated useful lives range as follows:
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 the consolidated profit and loss account.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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BUILDING ENERGY SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Financial assets and financial liabilities are recognised in the balance sheet when the group becomes a party to the contractual provisions of the instrument.
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the group will not be able to collect all amounts due.
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank which are an integral part of the group's cash management.
Financial liabilities and equity instruments issued by the group are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Equity instruments issued by the group are recorded at the proceeds received, net of direct issue costs.
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the group will not be able to collect all amounts due.
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank which are an integral part of the group's cash management.
Financial liabilities and equity instruments issued by the group are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Equity instruments issued by the group are recorded at the proceeds received, net of direct issue costs.
Analysis of turnover by country of destination:
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BUILDING ENERGY SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUILDING ENERGY SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUILDING ENERGY SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
9.Taxation (continued)
There were no factors that may affect future tax charges.
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BUILDING ENERGY SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUILDING ENERGY SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUILDING ENERGY SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUILDING ENERGY SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BUILDING ENERGY SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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 £604,982 (2023: £532,126). Contributions totaling £Nil (2023: £Nil) were payable to the fund at the balance sheet date and
are included within creditors..
are included within creditors..
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BUILDING ENERGY SERVICES GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The ultimate controlling party of the group is BMSI EOT Limited. The Employee Ownership Trust is governed by its trustees for the benefit of the employees of the group.
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