Registration number:
Elmhurst Energy Systems Limited
for the Year Ended 31 December 2024
Elmhurst Energy Systems Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Elmhurst Energy Systems Limited
Company Information
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Directors |
S. A. Fairlie M. I. Andrews L. J. Rhodes |
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Registered office |
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Auditors |
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Elmhurst Energy Systems Limited
Strategic Report for the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the company is energy efficiency surveyors and suppliers of software.
Fair review of the business
The company has enjoyed a year of strong growth as the business continues to expand sales through the existing sales network and from the introduction of new income streams which were transferred from a fellow subsidiary company in the prior year.
Turnover has increased by 30% during the year and the business broadly maintained its profit margins.
The business continued to be cash generative and without the existence of any long term debt within the company. The net assets increased by £1.485m to £4.194m at the year end after the payment of dividends to the parent company of £9.056m (2023 - £4.8m).
The board are pleased with the year under review and look forward to reporting continued profitability in the foreseeable future.
The company's key financial indicators during the year were as follows:
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Financial KPIs |
Unit |
2024 |
2023 |
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Turnover |
£'000 |
18,572 |
14,289 |
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Gross profit margin |
% |
69 |
70 |
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Net assets |
£'000 |
4,194 |
2,709 |
Principal risks and uncertainties
The directors consider the key risk facing the business as being the general macro-economic market and its potential impact on its customers. Trading conditions continue to be challenging. Competition, alternative product availability and inflation are all areas requiring the close attention of the senior management team. The directors continue to closely monitor and control all aspects of the trading operations.
Elmhurst Energy Systems Limited
Strategic Report for the Year Ended 31 December 2024
Economic impact of global events
UK businesses are currently facing uncertainties such as environmental sustainability, economic downturn and geopolitical events such as recent, high profile conflicts which have an impact on the global economy. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, high interest rates, labour shortages, disrupted supply chains and new ways of working.
The directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures and have concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The directors have taken account of these potential impacts in their going concern assessment.
The company continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may present themselves to the business.
Approved and authorised by the
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Elmhurst Energy Systems 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.
Directors of the company
The directors who held office during the year were as follows:
The following directors were appointed after the year end:
Information included in the Strategic Report
As permitted by paragraph 1A of schedule 7 to large and medium-sized companies and groups (accounts and reports) regulations 2008 certain matters which are required to be disclosed in the directors' report have been omitted as they are included in the strategic report.
Future developments
The company plans to continue as energy efficiency surveyors and suppliers of software for the foreseeable future. The company is constantly developing its software to ensure that it remains market leading.
Going concern
Having carefully reviewed its forecasts, the directors consider the company has adequate resources to continue in operational existence for the foreseeable future. As a result, the directors continue to prepare the financial statements on the going concern basis.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Elmhurst Energy Systems Limited
Directors' Report for the Year Ended 31 December 2024
Approved and authorised by the
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Elmhurst Energy Systems Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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assess the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and |
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use the going concern basis of accounting unless they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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.
Elmhurst Energy Systems Limited
Independent Auditor's Report to the Members of Elmhurst Energy Systems Limited
Opinion
We have audited the financial statements of Elmhurst Energy Systems Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity and related notes, including the accounting policies in note 2.
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland ; 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 are described below. We have fulfilled our ethical responsibilities under, and are independent of the company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.
Going concern
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the company or to cease its operations, and as they have concluded that the company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).
In our evaluation of the directors’ conclusions, we considered the inherent risks to the company’s business model and analysed how those risks might affect the company’s financial resources or ability to continue operations over the going concern period.
Our conclusions based on this work:
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we consider that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate; |
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we have not identified, and concur with the directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for the going concern period. |
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the company will continue in operation.
Elmhurst Energy Systems Limited
Independent Auditor's Report to the Members of Elmhurst Energy Systems Limited
Fraud and breaches of laws and regulations - ability to detect
Identifying and responding to risks of material misstatement due to fraud
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
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Enquiring of directors as to the company’s high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud. |
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Reading Board minutes. |
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Using analytical procedures to identify any unusual or unexpected relationships. |
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We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit. |
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As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because it consists entirely of routine, non-complex transactions that are subject to systematic processing and pricing.
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We did not identify any additional fraud risks. |
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We performed procedures including: |
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Identifying journal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted to revenue or cash or EBITDA (defined as Earnings Before Interest, Taxation, Depreciation and Amortisation) with an unexpected corresponding entry, and all material post-closing entries. |
Identifying and responding to risks of material misstatement related to compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the directors (as required by auditing standards), and discussed with the directors the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Elmhurst Energy Systems Limited
Independent Auditor's Report to the Members of Elmhurst Energy Systems Limited
Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, data protection laws, anti-bribery, employment law, regulatory capital and liquidity recognising the nature of the company’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
Other information
The directors are responsible for the other information, which comprises the strategic report and the directors’ report. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:
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we have not identified material misstatements in the other information; |
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in our opinion the information given in the strategic report and the directors’ report for the financial year is consistent with the financial statements; and |
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in our opinion those reports have been prepared in accordance with the Companies Act 2006. |
Elmhurst Energy Systems Limited
Independent Auditor's Report to the Members of Elmhurst Energy Systems Limited
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required 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. |
We have nothing to report in these respects.
Directors' responsibilities
As explained more fully in their statement set out on page 5, the directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities
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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities.
Elmhurst Energy Systems Limited
Independent Auditor's Report to the Members of Elmhurst Energy Systems Limited
The purpose of our audit work and to whom we owe our responsibilities
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.
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For and on behalf of
Chartered Accountants
Tollhouse Hill
Nottingham
Nottinghamshire
NG1 5FS
Elmhurst Energy Systems Limited
Profit and Loss Account for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating profit |
9,766,356 |
7,531,491 |
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Other interest receivable and similar income |
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Profit before tax |
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Tax on profit |
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( |
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Profit for the financial year |
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The above results were derived from continuing operations.
Elmhurst Energy Systems Limited
(Registration number: 02805846)
Balance Sheet as at 31 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
100 |
100 |
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Capital redemption reserve |
1,900 |
1,900 |
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Non-distributable reserve |
3,951 |
3,662 |
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Retained earnings |
4,187,873 |
2,703,164 |
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Shareholders' funds |
4,193,824 |
2,708,826 |
Approved and authorised by the
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Elmhurst Energy Systems Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
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Share capital |
Capital redemption reserve |
Non- distributable reserve |
Retained earnings |
Total |
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At 1 January 2024 |
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Profit for the year |
- |
- |
- |
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Other comprehensive income |
- |
- |
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- |
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Total comprehensive income |
- |
- |
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Dividends |
- |
- |
- |
( |
( |
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At 31 December 2024 |
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Share capital |
Capital redemption reserve |
Non- |
Retained earnings |
Total |
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At 1 January 2023 |
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Profit for the year |
- |
- |
- |
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Other comprehensive income |
- |
- |
( |
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- |
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Total comprehensive income |
- |
- |
( |
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Dividends |
- |
- |
- |
( |
( |
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At 31 December 2023 |
100 |
1,900 |
3,662 |
2,703,164 |
2,708,826 |
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The company registration number is 02805846.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The presentation currency of these financial statements is sterling. All amounts in the financial statements have been presented in sterling.
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Summary of disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
- the requirements of Section 7 Statement of Cash Flows;
- the requirements of Section 33 Related Party Disclosures paragraph 33.7.
Name of parent of group
These financial statements are consolidated in the financial statements of TIC Holdco Limited.
The financial statements of TIC Holdco Limited may be obtained from Companies House, Crown Way, Maindy, Cardiff.
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Going concern
Elmhurst Energy Systems Limited ("the Company") is part of, and integrated into, the TIC Holdco Limited group ("the Group") and, in making their going concern assessment, the directors have considered the financial performance and position of the company and the group as a whole.
The directors have prepared cash flow forecasts in order to assess going concern which indicates that, taking account of reasonably possible downsides, the company will have sufficient funds, to meet its liabilities as they fall due during the going concern assessment period and no group support is required in either base case or downside scenarios. The directors also considered the group performance in assessing the going concern. The group meets its day-to-day working capital requirements through its banking facilities and has prepared detailed forecasts which indicate that it has sufficient resources available in order to settle its debts as they fall due for a period of at least twelve months from the date of approval of these financial statements. The forecast shows that there is sufficient cash headroom to absorb a reasonable assessment of potential downsides against the forecast, should they occur.
Having reviewed the forecast information and current trading levels, the directors are confident that the group and the company can pay its debts as they fall due over the next twelve months. Accordingly, the directors have concluded that no material uncertainty in relation to going concern exists and have prepared the financial statements on a going concern basis.
Key sources of estimation uncertainty
The annual depreciation charge for intangible and tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The carrying amount is £831,366 (2023 - £604,820).
Turnover recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
Turnover from the sale of goods is recognised when the risks and rewards of ownership of the goods have passed to the buyer (upon delivery of the goods), 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.
Rendering of services is recognisable at the date the service takes place, when the risks and rewards of ownership of the service 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.
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Foreign currency transactions and balances
Tax
Tax on the profit and loss account for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. The following timing differences are not provided for: differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met; and differences relating to investments in subsidiaries to the extent that it is not probable that they will reverse in the foreseeable future and the reporting entity is able to control the reversal of the timing difference. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.
Deferred tax is provided in respect of the additional tax that will be paid or avoided on differences between the amount at which an asset (other than goodwill) or liability is recognised in a business combination and the corresponding amount that can be deducted or assessed for tax. Goodwill is adjusted by the amount of such deferred tax.
Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date.
Deferred tax balances are not discounted.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Tangible assets
Tangible assets are stated in the balance sheet at cost or valuation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
The company assesses at each reporting date whether tangible fixed assets are impaired.
Depreciation
Depreciation is charged to the profit and loss account on a straight-line basis over the estimated useful lives of each part of an item of tangible fixed assets. The estimated useful lives are as follows:
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Asset class |
Depreciation method and rate |
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Leasehold improvements |
over the period of the lease |
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Fixtures, fittings and computer equipment |
20% and 50% on cost |
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Motor vehicles |
20% on cost |
Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the company expects to consume an asset’s future economic benefits.
Revaluation
Motor vehicles are stated at fair value less any subsequent accumulated depreciation and impairment losses.
Gains on revaluation are recognised in other comprehensive income and accumulated in the revaluation reserve. However, the increase is recognised in the profit and loss account to the extent that it reverses a revaluation decrease previously recognised in the profit and loss account.
Losses arising on revaluation are recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity, in respect of that asset. Any excess is recognised in the profit and loss account.
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Goodwill is allocated to cash-generating units or group of cash-generating units that are expected to benefit from the synergies of the business combination from which it arose.
Intangible assets
Intangible assets comprise software developments that are purchased and internally developed. Costs directly associated with the production of internally developed softwares, including direct and indirect labour, are capitalised; only where it is probable that the software will generate future economic benefits, is identifiable and the cost can be measured reliably.
Amortisation
Amortisation is charged to the profit and loss account on a straight-line basis over the estimated useful lives of intangible assets. Intangible assets are amortised from the date they are available for use. The estimated useful lives are as follows:
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Asset class |
Amortisation method and rate |
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Goodwill |
5 years |
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Software development |
5 years |
The Company reviews the amortisation period and method when events and circumstances indicate that the useful life may have changed since the last reporting date. Goodwill and other intangible assets are tested for impairment in accordance with Section 27 Impairment of assets when there is an indication that goodwill or an intangible asset may be impaired.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the first-in first-out/weighted average principle and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing location and condition. In the case of manufactured stocks and work in progress, cost includes an appropriate share of overheads based on normal operating capacity.
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Impairment excluding stocks, investment property measured at fair value, assets arising from employee benefits and deferred tax assets
Financial assets (including trade and other debtors), excluding investments in subsidiaries
A financial asset not carried at fair value through the profit and loss account is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. For financial instruments measured at cost less impairment an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount.
Impairment losses are recognised in the profit and loss account. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through the profit and loss account.
Non-financial assets and investments in subsidiaries
The carrying amounts of the company’s non-financial assets (other than investment property measured at fair value, assets arising from employee benefits, stocks and deferred tax assets) and investments in subsidiaries are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”). The goodwill acquired in a business combination, for the purpose of impairment testing is allocated to cash-generating units, or (“CGU”) that are expected to benefit from the synergies of the combination. For the purpose of goodwill impairment testing, if goodwill cannot be allocated to individual CGUs or groups of CGUs on a non-arbitrary basis, the impairment of goodwill is determined using the recoverable amount of the acquired entity in its entirety, or if it has been integrated then the entire entity into which it has been integrated.
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the profit and loss account. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.
An impairment loss recognised for goodwill is not reversed. Impairment losses recognised for other assets is reversed only if the reasons for the impairment have ceased to apply.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtor.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Provisions
A provision is recognised in the balance sheet when the company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.
Where the company enters into financial guarantee contracts to guarantee the indebtedness of other companies within its group, the company treats the guarantee contract as a contingent liability until such time as it becomes probable that the company will be required to make a payment under the guarantee.
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
|
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods |
|
|
|
Rendering of services |
|
|
|
|
|
|
Operating profit |
Arrived at after charging:
|
2024 |
2023 |
|
|
Depreciation |
|
|
|
Amortisation |
|
|
|
Impairment loss |
|
- |
|
Loss on disposal of property, plant and equipment |
- |
|
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Interest income on bank deposits |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution schemes |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
812,196 |
455,402 |
During the year the directors accrued amounts totalling approximately £347,578 (2023: £280,840) on a long term incentive bonus scheme expected to be paid in 2025.
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2024 |
2023 |
|
|
Accruing benefits under money purchase pension schemes |
|
|
In respect of the highest paid director:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account:
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
- |
|
|
UK corporation tax adjustment to prior periods |
( |
- |
|
(774,535) |
1,712,322 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Arising from changes in tax rates and laws |
- |
( |
|
Total deferred taxation |
|
|
|
Tax (receipt)/expense in the income statement |
( |
|
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Decrease in tax from adjustment for prior periods |
( |
- |
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
|
Effect of expense not deductible in determining taxable profit |
|
|
|
Tax decrease arising from group relief |
( |
( |
|
Deferred tax expense from unrecognised temporary difference from a prior period |
|
|
|
Deferred tax credit relating to changes in tax rates or laws |
- |
( |
|
Further item of tax decrease |
- |
( |
|
Total tax (credit)/charge |
( |
|
Deferred tax
Deferred tax assets and liabilities
|
2024 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
- |
|
|
2023 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
- |
|
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Intangible assets |
|
Goodwill |
Software development |
Total |
|
|
Cost or valuation |
|||
|
At 1 January 2024 |
|
|
|
|
Additions |
- |
|
|
|
At 31 December 2024 |
|
|
|
|
Amortisation |
|||
|
At 1 January 2024 |
|
|
|
|
Amortisation charge |
- |
|
|
|
Impairments/other movements |
- |
( |
( |
|
At 31 December 2024 |
|
|
|
|
Carrying amount |
|||
|
At 31 December 2024 |
- |
|
|
|
At 31 December 2023 |
- |
|
|
Amortisation and impairment charge
The amortisation, impairment charge and impairment reversals are recognised in the administrative expenses in the profit and loss account.
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Tangible assets |
|
Leasehold improvements |
Fixtures, fittings and computer equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||
|
At 1 January 2024 |
|
|
|
|
|
Additions |
|
|
- |
|
|
At 31 December 2024 |
|
|
|
|
|
Depreciation |
||||
|
At 1 January 2024 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2024 |
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
Revaluation
The fair value of the company's motor vehicles was revalued on
|
Stocks |
|
2024 |
2023 |
|
|
Stocks |
|
|
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Debtors |
|
Current |
2024 |
2023 |
|
Trade debtors |
|
|
|
Amounts owed by group companies |
|
|
|
Other debtors |
|
- |
|
Prepayments |
|
|
|
Income tax asset |
|
- |
|
|
|
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash at bank |
|
|
|
Creditors |
|
2024 |
2023 |
|
|
Due within one year |
||
|
Trade creditors |
|
|
|
Amounts due to group companies |
|
|
|
Corporation tax |
- |
101,631 |
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Accruals |
|
|
|
Deferred income |
|
|
|
|
|
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Increase in existing provisions |
|
|
|
At 31 December 2024 |
|
|
|
|
||
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Pension and other schemes |
Defined contribution pension schemes
The company contributes to defined contribution pension schemes. The pension cost charge for the year represents contributions payable by the company to the schemes and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
100 |
|
100 |
Rights, preferences and restrictions
|
Ordinary have the following rights, preferences and restrictions: |
|
Reserves |
Capital redemption reserve
The capital redemption reserve represents the nominal value of previously issued shares that have been repurchased by the company.
Non-distributable reserve
The non-distributable reserve arose on the revaluation of certain fixed assets. The amounts representing the equivalent depreciation are transferred to the profit and loss account reserve each year.
Retained earnings
The retained earnings represents accumulated comprehensive income for the year and prior years, transfers from the non-distributable reserve relating to depreciation realised on revaluations less dividends paid.
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:
|
Revaluation reserve |
Total |
|
|
Surplus on property, plant and equipment revaluation |
|
|
|
|
||
The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:
|
Revaluation reserve |
Retained earnings |
|
|
Surplus on property, plant and equipment revaluation |
( |
|
|
|
||
|
Dividends |
|
2024 |
2023 |
|||
|
£ |
£ |
|||
|
Interim dividend of £ |
9,056,172 |
4,800,000 |
||
|
Related party transactions |
Summary of transactions with subsidiaries
Summary of transactions with other related parties
Elmhurst Energy Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
The most senior parent entity producing publicly available financial statements is