Registered number: 14773269
31 DECEMBER 2024
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
COMPANY INFORMATION
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
CONTENTS
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their strategic review on the Company and its subsidiaries (together referred to as the “Group”) for the year ended 31 December 2024.
The principal activities of the Group are:
Supplying and installing renewable and low-energy products to residential and commercial buildings, including solar PV panels, solar batteries, air and ground source heat pumps, mechanical ventilation and heat recovery systems (MVHR), triple glazed windows and insulation.
The Group currently operates from over ten offices located across the UK. The Group continues to invest in the development of the office structure to give a true national coverage with a nationwide engineering base that is within a reasonable travel time of most customers.
The Group has invested, during the year, in an integrated operations system to monitor and control work performed by its growing, national engineering base.
On 29 February 2024, the Group acquired 100% of the ordinary share capital of J L Phillips Renewable Energy Limited, a company offering the supply and installation of solar PV panels, batteries, ground source and air source heat pumps, underfloor heating and biomass boiler Installations.
On 12 July 2024, the Group acquired 100% of the ordinary share capital of H2ECO Limited, a company offering the supply and installation of solar PV panels, batteries and heat pumps to both the residential and commercial markets.
Sale of Qoda Consulting Limited
On 31 January 2025, following a strategic review of the Group’s priorities, it sold its enterprise consultancy business Qoda Consulting Limited in order to sharpen its focus on its sustainable energy businesses.
Environmental, Social and Governance
The Group remains committed to its ESG (Environmental, Social, Governance) responsibilities. The Group has developed a comprehensive Carbon Reporting Methodology and successfully prepared carbon footprint data and an ESG report for 2024.
Energy and carbon audits have been conducted, with action plans in place to enhance energy efficiency and explore renewable energy opportunities.
The Group currently operates from over ten offices located across the UK. The Group continues to invest in the development of the office structure to give a true national coverage with a nationwide engineering base that is within a reasonable travel time of most customers.
The Group has invested, during the year, in an integrated operations system to monitor and control work performed by its growing, national engineering base.
On 29 February 2024, the Group acquired 100% of the ordinary share capital of J L Phillips Renewable Energy Limited, a company offering the supply and installation of solar PV panels, batteries, ground source and air source heat pumps, underfloor heating and biomass boiler Installations.
On 12 July 2024, the Group acquired 100% of the ordinary share capital of H2ECO Limited, a company offering the supply and installation of solar PV panels, batteries and heat pumps to both the residential and commercial markets.
Sale of Qoda Consulting Limited
On 31 January 2025, following a strategic review of the Group’s priorities, it sold its enterprise consultancy business Qoda Consulting Limited in order to sharpen its focus on its sustainable energy businesses.
Environmental, Social and Governance
The Group remains committed to its ESG (Environmental, Social, Governance) responsibilities. The Group has developed a comprehensive Carbon Reporting Methodology and successfully prepared carbon footprint data and an ESG report for 2024.
Energy and carbon audits have been conducted, with action plans in place to enhance energy efficiency and explore renewable energy opportunities.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors manage the risks and uncertainties at a Group level, rather than an individual company level. The principal risks and uncertainties are:
•Failure of product or systems could result in reputational damage, litigation and potential loss of customers. The Group has strong risk management policies, procedures and systems throughout the organization which are compliant with regulatory requirements.
•Ability to attract, retain and develop a sufficiently skilled and experienced workforce. The Group has invested in staff training programmes, has competitive compensation packages and management incentive schemes.
•The Group’s IT systems could fail due to a severe IT fault or cyber crime. The outsourced IT team, and employed group IT manager, maintains tight access controls over data and IT systems and continually monitors performance. EBS has disaster recovery and business continuity plans which will be implemented should an IT disaster occur.
•Downturn in market and general economic conditions. The board believes that a general downturn should not adversely affect the Group as its business is across a number of sectors and the economics of solar PV panels and heat pump installations are very compelling. There is also a strong ecological movement which should help shelter the markets EBS operates in.
•Failure to successfully integrate acquisitions into the Group and maintain revenue and profit growth. The Group has progressively improved its integration model and conducts extensive due diligence prior to acquisition which helps mitigate issues surrounding integration.
•Poor performance by third parties and retained subcontractors. The majority of work is undertaken by the Group’s own employees. When third parties or sub contractors are used they are processed through EBS’s thorough vetting procedure to ensure that only capable and suitable companies are used.
The Group has continued to make good progress, through a combination of both organic growth and through its acquisitive “buy and build” strategy. During 2024 the business made two acquisitions which widened its national coverage, and enabled expansion into adjacent market sectors. Throughout 2024 the Group has successfully built its central resources with a number of key roles recruited, which deepens the technical and operational capabilities of the Group whilst also delivering capability and capacity to manage and integrate the acquired companies.
The renewables market slowed in 2024 due mainly to reductions in the electricity cap, increased interest rates and the “cost of living” crisis. This, along with an increase in thetime taken for Consultancy projects to start on site, adversely impacted revenue, gross margin and profitability.
Turnover was broadly flat in the year in the year excluding Qoda.
During the year, the Board decided to split the business into two separate operating entities:
The renewables market slowed in 2024 due mainly to reductions in the electricity cap, increased interest rates and the “cost of living” crisis. This, along with an increase in thetime taken for Consultancy projects to start on site, adversely impacted revenue, gross margin and profitability.
Turnover was broadly flat in the year in the year excluding Qoda.
During the year, the Board decided to split the business into two separate operating entities:
•An installation business focused on installing low-energy products in residential and commercial buildings, including solar PV panels, solar batteries, air and ground source heat pumps, mechanical ventilation and heat recovery systems (MVHR), triple-glazed windows, and insulation.
•A consultancy business providing design, consultancy, and advice on making new and existing buildings more energy efficient. At the year end, this consultancy business was held for sale, which completed shortly after the year end.
In 2024, the installation business had revenues of £28.14 million.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors are confident that in the financial year ending 31 December 2025 the business will, through further development and growth of the existing businesses and recent acquisitions, along with our market consolidator position, see further significant progress. The planned increase in electricity prices, drive to be more environmentally friendly and agreed changes to building regulations should result in substantial market growth which will support our revenue and profit growth targets.
The business tracks financial performance at an operational level, including the impact of inflation on financial results, and negotiates with suppliers and customers to ensure that appropriate mitigating actions are taken so that the current cost of living pressures do not materially affect the Group’s results.
The business tracks financial performance at an operational level, including the impact of inflation on financial results, and negotiates with suppliers and customers to ensure that appropriate mitigating actions are taken so that the current cost of living pressures do not materially affect the Group’s results.
Under s172 of the Companies Act 2006 directors of UK companies have a duty to promote the success of their Company for the benefit of the members as a whole and, in doing so, have regard to:
∙a. the likely consequences of any decision in the long term;
∙b. the interests of the Company's employees;
∙c. the need to foster the Company's business relationships with suppliers, customers and others;
∙d. the impact of the Company's operations on the community and the environment;
∙e. the desirability of the Company maintaining a reputation for high standards of business conduct; and
∙f. the need to act fairly between members of the company.
The directors of Efficient Building Solutions Group Limited consider the following areas to be of key importance in its fulfilment of this duty:
∙carrying out detailed planning and forecasting to ensure the ongoing financial safety of the business;
∙seeking opportunities, by finding new locations to buy land and build new homes, to grow the business for the benefit of current and future employees, customers and suppliers as well as the wider UK economy;
∙maintaining the highest standards of integrity and honesty in the Company's dealings with employees, suppliers, the general public and local and national government;
∙prioritising the maintenance of the highest standards of health and safety and environmental protection through investment in training, equipment, monitoring and external support;
∙working to constantly maintain and improve the quality of the homes that we build, and providing the best possible aftersales support to our customers; and
∙listening to feedback from customers in order to identify scope for improvement and to drive to achieve the highest possible reputation for the quality of our designs, standards of construction and customer care.
The results of the measures that we have taken in these areas can be seen in: our positive financial results, the increased strength of our Balance Sheet and land bank, our excellent health and safety and environmental records, and our improving quality ratings as measured by independent surveys.
This report was approved by the board and signed on its behalf.
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EFFICIENT BUILDING SOLUTIONS 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 judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK 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 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 loss for the year, after taxation, amounted to £8,684,428 (2023 - loss £3,907,799).
No dividends were declared or paid in the year (2023: £Nil). There are no proposed dividends.
The directors who served during the year were:
A review of the Group’s operations and future developments is covered in the strategic report.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
•Liquidity is managed by regular monitoring of working capital (debtors, payables and inventory) and costs by the Directors. Cash flow is monitored on a weekly basis for the Group.
•The Group monitors credit risk closely and considers that its current policies meet its objectives of managing exposure to the risk. The Group has no significant concentration of credit risk.
•The Group operates within the UK. All customers and most suppliers are also based in the UK, therefore there is little risk from fluctuations in exchange rates.
The Group's policy is to keep employees informed on matters relevant to them as employees through regular meetings. All employees have access to some form of pension scheme.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Overview
Efficient Building Solutions Group Limited (EBS-G) is the holding company of a group that supply and install low energy products in the UK. Business activities which lead to the consumption of fuel are primarily the vehicles, and office space which requires the consumption of fuel to heat and provide power to the premises.
Efficient Building Solutions Group Limited (EBS-G) is the holding company of a group that supply and install low energy products in the UK. Business activities which lead to the consumption of fuel are primarily the vehicles, and office space which requires the consumption of fuel to heat and provide power to the premises.
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol - Corporate Standard and have used the 2024 UK Government's Conversion Factors for Company Reporting.
Measurements taken to improve energy efficiency
EBS-G continue to strive for energy and carbon reduction arising from their activities. However, no energy efficiency actions were recorded during this reporting period.
Materiality
EBS-G are reporting upon all the required fuel sources as per SECR requirements. Due to missing electricity bills for several temporary electricity supplies in 2024, we have used the 2023 consumption figures for these sites as an estimate to ensure the reported data more accurately reflects actual usage. Any estimations used within this report are detailed within the evidence pack.
Preparation of the report
This report has been prepared for EBS-G by an independent, external energy consultant.
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol - Corporate Standard and have used the 2024 UK Government's Conversion Factors for Company Reporting.
Measurements taken to improve energy efficiency
EBS-G continue to strive for energy and carbon reduction arising from their activities. However, no energy efficiency actions were recorded during this reporting period.
Materiality
EBS-G are reporting upon all the required fuel sources as per SECR requirements. Due to missing electricity bills for several temporary electricity supplies in 2024, we have used the 2023 consumption figures for these sites as an estimate to ensure the reported data more accurately reflects actual usage. Any estimations used within this report are detailed within the evidence pack.
Preparation of the report
This report has been prepared for EBS-G by an independent, external energy consultant.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
On 31st January 2025, Qoda Consulting Limited was sold to Global Sustainable Buildings Consultancy Limited for a consideration of £4,021,000. This represents the sale of the consultancy arm of the group, as the group focuses on sustainable building technologies and low-energy solutions. The disposal does not affect the going concern status of the Group and has been treated as a non-adjusting post-balance sheet event in accordance with FRS 102 Section 32.
The auditor, Armstrong Watson Audit 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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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
We have audited the financial statements of Efficient Building Solutions Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EFFICIENT BUILDING SOLUTIONS GROUP LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EFFICIENT BUILDING SOLUTIONS 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 Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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 obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation and occupational health and employment legislation.
•We enquired of the directors, reviewed correspondence with HMRC and reviewed directors meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance.
•We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the accounting period.
•The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: revenue recognition and management override of controls.
•We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.
•We enquired of the directors and third-party advisors about actual and potential litigation and claims.
•We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
•In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgments made in making accounting estimates were indicative of a potential bias.
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 Auditor's Report.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EFFICIENT BUILDING SOLUTIONS GROUP LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants & Statutory Auditors
Leeds
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
REGISTERED NUMBER: 14773269
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 20 to 40 form part of these financial statements.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
REGISTERED NUMBER: 14773269
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 20 to 40 form part of these financial statements.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company is a private company limited by share capital, incorporated in England.
85 Great Portland Street,
London,
W1W 7LT
These financial statements were authorised for issue by the Board on
85 Great Portland Street,
London,
W1W 7LT
These financial statements were authorised for issue by the Board on
2.Accounting policies
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.
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The accounts are presented in £ sterling and are rounded to the nearest £1.
The following principal accounting policies have been applied:
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 Statement of Comprehensive Income 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 01 January 2021.
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 Statement of Comprehensive Income 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 01 January 2021.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis. The Group incurred a loss before taxation of £8.4m and had net current liabilities of £4.9m as at 31 December 2024.
The owner of the Group has provided a letter of support confirming their intention to support the Group for at least 12 months from the date of signing of the financial statements and enable the Group to meet its financial obligations as they fall due. As a result of this, the Directors believe the business has sufficient resources to continue operations and thus are confident the Group is a going concern.
The owner of the Group has provided a letter of support confirming their intention to support the Group for at least 12 months from the date of signing of the financial statements and enable the Group to meet its financial obligations as they fall due. As a result of this, the Directors believe the business has sufficient resources to continue operations and thus are confident the Group is a going concern.
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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EFFICIENT BUILDING SOLUTIONS 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, on a reducing balance basis.
Depreciation is provided on the following basis:
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 profit or loss.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period.
If the revision affects both the current and future periods, the revision will impact both the period of the revision and future periods.
The directors consider the material estimates and judgments are applied in assessing the carrying value of investments and intangible fixed assets. The directors assess the economic viability and expected future financial performance of the asset and where it is a components of a larger cash-generating unit, the viability and expected future performance of that unit.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Analysis of turnover by country of destination:
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.Taxation (continued)
There were no factors that may affect future tax charges.
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EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 31
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 32
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 33
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Subsidiary undertakings (continued)
Page 34
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 35
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Amounts due in relation to finance leases are secured against the assets that they relate to.
Page 36
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 37
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
In the year ended 31 December 2024, there were 28,824,755 Ordinary Class A shares issued and 2,705,313 Ordinary Class B shares issued and 850 Ordinary Class C shares for total consideration of £32,227,132. Also there were 160 Ordinary Class C shares cancelled in the year ended 31 December 2024.
Share premium account
Capital reserve
Merger Reserve
Profit and loss account
Page 38
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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The other additions to goodwill relate to the revaluation of deferred consideration payments
Page 39
EFFICIENT BUILDING SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The group operates a defined contribution pension scheme. The pension cost charge represents contributions payable by the group and amounted to £481,853 (2023 - £426,880 ) for the year.
The ultimate parent undertaking of the group is Ansor Fund I GP LLP as a result of its majority shareholding.
Page 40