REGISTERED NUMBER: 11039542 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

Everflow Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

J Gill

A E Straker

J D Cleave

C L Dallison

L Armstrong

J R Garrett

A Sheldon

REGISTERED OFFICE:

Traynor Hub (T2)

Traynor Way

Whitehouse Business Park

Peterlee

SR8 2RU

REGISTERED NUMBER:

11039542 (England and Wales)

SENIOR STATUTORY AUDITOR:

Kevin Shotton BA BFP FCA

AUDITORS:

Clive Owen LLP

Chartered Accountants

& Statutory Auditors

140 Coniscliffe Road

Darlington

County Durham

DL3 7RT

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The directors are pleased with the performance of the business over the year to 31 December 2024. Turnover grew by 20.5% from £157.3m to £189.6m year on year as a result of the business' continued success in winning customers. Headcount continues to grow as the business has further invested in staff, with average headcount growing from 174 to 198, with further recruitment taking place in 2025. EBITDA also increased from £705,366 to £4,763,832 as the business delivered operational efficiencies through increased use of technology throughout the organisation, increasing the ability to serve customers more effectively.

The business also completed work on the head office as well as investing across leadership development to prepare for future growth.

Overall, 2024 represents another successful year for the business, with a number of foundations being laid to support future plans, and the directors look forward to delivering further growth and performance in the coming years.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors maintain a risk register to identify and manage the key risks for the business, which is reviewed on a regular basis to highlight changes that have occurred during the period, as well as to identify any new risks which affect the business' operations. The principal risks and uncertainties are as follows:

Regulatory risk - The business operates in a regulated environment, and is required to adhere to licence obligations and market codes, as well as wider regulations governing all businesses such as GDPR, competition and employment law. In order to manage this risk, the business has appointed experienced personnel with detailed knowledge of the requirements to comply with legislation. Detailed processes and policies ensure compliance with regulations is embedded within the business. The business also engages with third parties to supplement internal experience where it is deemed appropriate.

Trading risk - Key to the business' offering is maintaining high quality levels of service to retain customers and maintain strong relationships with other stakeholders. In order to manage this risk, the business monitors customer service performance on a regular basis, and has invested in additional resources and systems during the year to enhance the customer proposition.

Liquidity risk - The business' liquidity is dependent on managing the cash inflows from customers and cash outflows to wholesalers. The business has a prudent policy of ensuring sufficient reserves are in place to enable continued liquidity and timely payment in line with market credit terms. The cost of living crisis has created liquidity challenges for the business' end customers, which has had a knock-on effect on cash inflows to the business. Additional processes and controls have been implemented to provide further visibility of cash in and outflows to effectively manage the business' liquidity. The business also engages regularly with lenders and investors to ensure that further liquidity is accessible if required.

Credit risk - The risk of customers failing to pay bills impacts on liquidity and profitability. All new customers are credit-checked, and the debt position is reviewed on a daily basis to identify concerns and escalate collection activities where appropriate.

Technology risk - The group's operations are wholly dependent on operational and billing systems to facilitate the delivery of service to customers. In order to reduce the risk of system issues impacting on customers, the business uses cloud-based technologies, as well as recruiting individuals into the group with significant expertise in developing and maintaining systems to reduce the risk to an acceptable level. The business also undertakes training with all staff on information security, and undertakes regular reviews and testing to monitor and maintain appropriate controls around cyber security.

.

SECTION 172(1) STATEMENT

Section 172 of the Companies Act 2006 requires the directors of a company to act in a way they consider to be in good faith and would be most likely to promote the success of the company for the benefit of all of its members as a whole both in the current period and in the long term.

In discharging their duties above, the directors carefully consider, amongst other matters, the impact of their decisions on various stakeholder groups. The groups we consider in this regard are our employees, our customers, our suppliers and our shareholders as well as the wider community in which we operate. The directors recognise that building strong relationships with our stakeholders will help us to deliver our long-term strategy in line with our core values and operate the business in a sustainable way. We are committed to conducting business responsibly.

Employees

Directors receive information on various staff metrics. The directors are committed to promoting a healthy workforce comprising both physical and mental wellbeing. The directors keep staff informed of key issues through structured communication channels, ensure equal opportunities in the workplace and also provide training and development opportunities where they are considered of benefit to the Group and employees. Using the Group's recruitment and development strategies, the directors seek to attract and retain talented staff.

Customers

The directors and senior management commit considerable time, effort and resources into understanding and responding to the needs of our customers with a view to fostering long term mutually beneficial partnerships. We act to service our customers' needs to the highest standards and ensure appropriate processes are in place to mitigate and manage any disputes that may arise from time to time.

Suppliers

The directors have established Group procedures to ensure that external suppliers are individually verified to ensure they meet with the health and safety, regulatory and financial security standards required by the Group. The Group seeks to pay all suppliers any undisputed amounts due and that conform with the Group's billing requirements within agreed terms. The Group has established procedures for dispute resolution in a timely and fair manner.

Community and the environment

The Group takes its role within the sector very seriously and promotes and encourages community and charitable contribution. The Group also recognises the importance of its environmental responsibilities, its impact on the local environment and its compliance with any regulatory environmental standards. The Group seeks to implement policies aimed at reducing any potential detrimental environmental impact of its activities.

Shareholders

The directors endeavour to create value for our ultimate shareholders by ensuring the Group's performance remains strong as well as sustainable. The directors adhere to the Group's long term strategic plan when making operational decisions.

ON BEHALF OF THE BOARD:

J D Cleave - Director

26 September 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of the supply of water and sewerage services, waste management services, the development and delivery of software solutions and wire telecommunications activities.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 was £nil.

FUTURE DEVELOPMENTS

Going forward, the business is focussed on building out its multi-utility offering through continuing to win new customers within the water retail market, as well as targeting growth in the waste and connectivity markets, as well as exploring other utility markets as it scales up operations. Investment continues in solutions to automate more of the customer journey and deliver service improvements to customers. The directors anticipate an increase in performance in 2025 and beyond as the business matures and moves into further markets.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

J Gill

A E Straker

J D Cleave

C L Dallison

J R Garrett

A Sheldon

Other changes in directors holding office are as follows:

L Armstrong - appointed 10 January 2024

GOING CONCERN

The directors have reviewed the Group's forecasts and projections in detail on a monthly basis to ensure adequate resources are available to continue in operational existence for the foreseeable future. The directors are confident that the business will have sufficient resources to continue to trade. The company therefore continues to adopt the going concern basis in preparing its financial statements.

STREAMLINED ENERGY AND CARBON REPORTING

The Group's greenhouse gas emissions and energy consumption are as follows:

Energy consumption used to calculate emissions (KWh)

2024 (tonnes CO2e

)

2023 (tonnes CO2e

)

Emissions resulting from activities for which the Group is responsible involving the combustion of fuel for the purposes of transport (in tonnes of CO2 equivalent)

6.48

14.56

Emissions resulting from the purchase of the electricity by the Group for its own use, including the purposes of transport (in tonnes of CO2 equivalent)

84.66

51.37

Energy consumed from activities for which the Group is responsible involving the combustion of gas, or the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the Group for its own use, including for the purposes of transport (in tonnes of CO2 equivalent)

0.54

1.63

We have followed the HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol - Corporate Standard and have used the UK Government's Conversion Factors for Group Reporting.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per sqm of warehouse floor space.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Clive Owen LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

J D Cleave - Director

26 September 2025

Opinion

We have audited the financial statements of Everflow Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2024 and of the group's 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 group 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 group's and 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group 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.

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 Group 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 Group 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 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 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 five, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, to detect material misstatements in respect of irregularities, including fraud. Our audit must be alert to the risk of manipulation of the financial statements and seek to understand the incentives and opportunities for management to achieve this.

We undertake the following procedures to identify and respond to these risks of non-compliance:

- Understanding the key legal and regulatory frameworks that are applicable to the Group. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. We determined the most significant of these to be around Ofwat regulations, health and safety, employment law, GDPR, company law and taxation law.

- Enquiry of directors and management as to policies and procedures to ensure compliance and any known instances of non-compliance

- Review of board minutes and correspondence with regulators

- Enquiry of directors and management as to areas of the financial statements susceptible to fraud and how these risks are managed

- Challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. These key areas of uncertainty are disclosed in the accounting policies

- Identifying and testing unusual journal entries, with a particular focus on manual journal entries.

Through these procedures, we did not become aware of actual or suspected non-compliance.

We planned and performed our audit in accordance with auditing standards but owing to the inherent limitations of procedures required in these areas, there is an unavoidable risk that we may not have detected a material misstatement in the accounts. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve concealment, collusion, forgery, misrepresentations, or override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Kevin Shotton BA BFP FCA (Senior Statutory Auditor)

for and on behalf of Clive Owen LLP

Chartered Accountants

& Statutory Auditors

140 Coniscliffe Road

Darlington

County Durham

DL3 7RT

26 September 2025

TURNOVER

3

189,683,306

157,344,664

Cost of sales

(169,788,391

)

(142,792,512

)

GROSS PROFIT

19,894,915

14,552,152

Administrative expenses

(20,540,741

)

(18,088,560

)

(645,826

)

(3,536,408

)

Other operating income

70,724

62,909

OPERATING LOSS

5

(575,102

)

(3,473,499

)

Interest receivable and similar income

816,728

572,266

241,626

(2,901,233

)

Interest payable and similar expenses

6

(982,531

)

(732,313

)

LOSS BEFORE TAXATION

(740,905

)

(3,633,546

)

Tax on loss

7

1,081,650

36,373

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

340,745

(3,597,173

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

340,745

(3,597,173

)

Profit/(loss) attributable to:

Owners of the parent

340,745

(3,597,173

)

Total comprehensive income attributable to:

Owners of the parent

340,745

(3,597,173

)

FIXED ASSETS

Intangible assets

9

11,927,640

11,062,690

Tangible assets

10

931,377

838,073

Investments

11

-

-

12,859,017

11,900,763

CURRENT ASSETS

Debtors

12

38,441,896

32,941,320

Cash at bank

6,804,960

1,997,118

45,246,856

34,938,438

CREDITORS

Amounts falling due within one year

13

(58,394,380

)

(47,572,722

)

NET CURRENT LIABILITIES

(13,147,524

)

(12,634,284

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(288,507

)

(733,521

)

CREDITORS

Amounts falling due after more than one year

14

(6,475,974

)

(6,415,661

)

NET LIABILITIES

(6,764,481

)

(7,149,182

)

CAPITAL AND RESERVES

Called up share capital

18

191

191

Share premium

19

3,756,586

3,712,630

Retained earnings

19

(10,521,258

)

(10,862,003

)

SHAREHOLDERS' FUNDS

(6,764,481

)

(7,149,182

)

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

J D Cleave - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

16,437,937

16,437,937

16,437,937

16,437,937

CURRENT ASSETS

Debtors

12

4,045,550

3,240,871

Cash at bank

703

1,576

4,046,253

3,242,447

CREDITORS

Amounts falling due within one year

13

(13,096,071

)

(11,964,897

)

NET CURRENT LIABILITIES

(9,049,818

)

(8,722,450

)

TOTAL ASSETS LESS CURRENT LIABILITIES

7,388,119

7,715,487

CREDITORS

Amounts falling due after more than one year

14

(6,475,974

)

(6,415,661

)

NET ASSETS

912,145

1,299,826

CAPITAL AND RESERVES

Called up share capital

18

191

191

Share premium

3,756,586

3,712,630

Retained earnings

(2,844,632

)

(2,412,995

)

SHAREHOLDERS' FUNDS

912,145

1,299,826

Company's loss for the financial year

(431,637

)

(819,920

)

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

J D Cleave - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

120

(7,264,830

)

3,712,630

(3,552,080

)

Changes in equity

Issue of share capital

71

-

-

71

Total comprehensive income

-

(3,597,173

)

-

(3,597,173

)

Balance at 31 December 2023

191

(10,862,003

)

3,712,630

(7,149,182

)

Changes in equity

Issue of share capital

-

-

43,956

43,956

Total comprehensive income

-

340,745

-

340,745

Balance at 31 December 2024

191

(10,521,258

)

3,756,586

(6,764,481

)

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

120

(1,593,075

)

3,712,630

2,119,675

Changes in equity

Issue of share capital

71

-

-

71

Total comprehensive income

-

(819,920

)

-

(819,920

)

Balance at 31 December 2023

191

(2,412,995

)

3,712,630

1,299,826

Changes in equity

Issue of share capital

-

-

43,956

43,956

Total comprehensive income

-

(431,637

)

-

(431,637

)

Balance at 31 December 2024

191

(2,844,632

)

3,756,586

912,145

Cash flows from operating activities

Cash generated from operations

1

11,249,925

4,259,163

Interest paid

(982,531

)

(732,313

)

Tax received

544,479

800,554

Net cash from operating activities

10,811,873

4,327,404

Cash flows from investing activities

Purchase of intangible fixed assets

(6,302,888

)

(5,623,282

)

Purchase of tangible fixed assets

(271,193

)

(802,653

)

Sale of tangible fixed assets

133,592

36,395

Interest received

816,728

572,266

Net cash from investing activities

(5,623,761

)

(5,817,274

)

Cash flows from financing activities

New loans in year

-

6,500,000

Loan repayments in year

(125,388

)

(6,835,956

)

Amount introduced by directors

4,469

-

Amount withdrawn by directors

(303,307

)

(31,923

)

Share issue

43,956

71

Net cash from financing activities

(380,270

)

(367,808

)

Increase/(decrease) in cash and cash equivalents

4,807,842

(1,857,678

)

Cash and cash equivalents at beginning of year

2

1,997,118

3,854,796

Cash and cash equivalents at end of year

2

6,804,960

1,997,118

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Loss before taxation

(740,905

)

(3,633,546

)

Loss on disposal of fixed assets

143,301

78,272

Depreciation and amortisation charges

5,338,934

4,178,864

Finance costs

982,531

732,313

Finance income

(816,728

)

(572,266

)

4,907,133

783,637

Increase in trade and other debtors

(4,967,874

)

(5,035,821

)

Increase in trade and other creditors

11,310,666

8,511,347

Cash generated from operations

11,249,925

4,259,163

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 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

6,804,960

1,997,118

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,997,118

3,854,796

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

1,997,118

4,807,842

6,804,960

1,997,118

4,807,842

6,804,960

Debt

Debts falling due within 1 year

(228,991

)

185,701

(43,290

)

Debts falling due after 1 year

(6,415,661

)

(60,313

)

(6,475,974

)

(6,644,652

)

125,388

(6,519,264

)

Total

(4,647,534

)

4,933,230

285,696

1.	STATUTORY INFORMATION

Everflow Holdings 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 General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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.

There were no material departures from that standard.

The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.

Going concern

The directors have reviewed the group's forecasts and projections in detail on a monthly basis to ensure adequate resources are available to continue in operational existence for the foreseeable future. The directors are confident that the business will have sufficient resources to continue to trade. The group therefore continues to adopt the going concern basis in preparing its financial statements.

Basis of consolidation

The consolidated financial statements presents the results of the Group and its own subsidiaries "the Group" as they formed 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 initial recognised at their fair values at the acquisition date. The results of the acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control was obtained. They are deconsolidated on the date control ceases.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The basis of key estimates that management has considered in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Bad debt provision - Provisions are made against the group's trade and intercompany debtors based on historical experience of recoverability. The estimates made could differ to the amount subsequently recovered from these debtors, which impacts on operating results.

Intangible assets - The group tests the carrying value of intangible assets on an annual basis or more frequently where indicators of impairment exist. The group also reassesses the useful lives of the assets on a similar basis to ensure that these continue to reflect the period over which the economic benefits will flow to the group. Capitalised development costs are calculated based on the proportion of time spent directly developing the asset.

Customer acquisitions - Customer acquisition costs are capitalised as they are paid and are released to the profit and loss account in line with the contract length. On an annual basis the Directors review for any potential disposals due to customers leaving the contract early.

Impairment of fixed asset investments - The parent company has investments in a number of subsidiary companies. These investments are held at cost less any provision for impairment. The directors have assessed the carrying value of investments in light of current performance and have concluded based on anticipated future trading that there is no further impairment of any investments.

Group debtor recoverability - Given the losses for the year in Everflow Tech and Operations, there is uncertainty over whether or not the balances can be repaid. Where a debtor is not considered to be recoverable, it should be provided for.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Income recognition

For water, sewerage and waste services, income is recognised in the period the services are supplied to the customer.

Income relating to the licensing of software is recognised in the period the services are supplied to the customer.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Customer acquisitions are being amortised in line with the contract length to which they relate.

Computer software is being amortised on a straight line basis over 5 years.