1.
General Information
Carbonxgen Limited
is a private company, limited by shares, incorporated in England & Wales, registered number
08345925
. The registered office is 4 Lakeside Business Park , Swan Lane, Sandhurst, Berkshire, GU47 9DN.
2.
Accounting Policies
2.1.
Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and 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 are prepared in sterling, which is the functional currency of the entity.
2.2.
Significant judgements and estimations
Accrued Income – Commission on Energy Contracts
The company recognises accrued income in respect of commissions earned from procuring energy contracts on behalf of customers. Under the terms of these contracts, commission income is receivable over the duration of the energy contract period and is linked to the level of energy consumption by the customer.
Management is required to exercise judgement in determining the amount of accrued income to recognise at the reporting date. The key sources of estimation uncertainty are as follows:
- Estimation of future energy consumption: The expected level of energy consumption across the life of the contract is estimated using historic consumption data and known contract terms. Actual future consumption may differ from these estimates, which could affect the timing and amount of commission income recognised.
- Receipts profile: Cash receipts are received over the term of the contract and the carrying amount of accrued income represents management’s best estimate of the income earned but not yet invoiced at the reporting date.
Management considers that the most significant judgement relates to forecasting future customer consumption patterns. Whilst estimates are based on historic data and reasonable assumptions, actual consumption may vary due to factors such as changes in customer demand, energy efficiency measures, or broader economic and environmental conditions.
2.3.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
2.4.
Tangible Fixed Assets and Depreciation
Depreciation is provided at the following annual rates in order to write off each asset over its
estimated useful life.
| Freehold |
|
| Leasehold |
|
| Plant & Machinery |
|
2.5.
Investment Properties
All investment properties are carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided for. Changes in fair value are recognised in the profit and loss account.
Carbonxgen Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
2.6.
Financial Instruments
Basic Financial Instruments
The company holds a range of basic financial instruments that arise from its operations. These are measured in accordance with FRS 102, Sections 11 and 12.
The principal financial instruments comprise:
- Trade and other debtors, including accrued income in respect of commission receivable under energy procurement contracts (see Key judgements and estimation uncertainty note for further detail)
- Cash at bank and in hand, representing readily available balances.
- Trade and other creditors, including accruals for commission costs.
Measurement
- Trade and other debtors are recognised initially at transaction price and subsequently measured at amortised cost, less provision for impairment where necessary.
- Cash is held at face value.
- Trade and other creditors are recognised at transaction price and carried at amortised cost.
Risk Management
The company’s exposure to financial instrument risks is limited:
- Credit risk arises from trade debtors and accrued income balances. The most significant area of estimation uncertainty relates to accrued income on energy contracts, which depends on management’s forecast of future consumption (see Key judgements and estimation uncertainty note).
- Liquidity risk is managed through regular cash flow forecasting to ensure sufficient funds are available to meet liabilities as they fall due.
- Interest rate risk is minimal as the company does not hold significant interest-bearing financial assets or liabilities.
The directors consider that the carrying amount of financial assets and liabilities approximates to their fair value due to the short-term nature of these instruments.
2.7.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
Carbonxgen Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
3.
Turnover
Analysis of turnover by class of business is as follows:
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Services Rendered | 9,332,542 | 7,839,111 | |
4.
Other Operating Income
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Rental income |
|
|
|
| 66,869 | 58,090 | ||
5.
Operating Profit
The operating profit is stated after charging:
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Bad debts | - | 1,361 | |
| Depreciation of tangible fixed assets |
|
|
|
| (Profit)/loss on disposal of tangible fixed assets |
( |
|
|
6.
Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Audit Services | |||
| Audit of the company's financial statements |
|
|
|
7.
Staff Costs
Staff costs, including directors' remuneration, were as follows:
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Wages and salaries |
|
|
|
| Social security costs |
|
|
|
| Other pension costs |
|
|
|
|
|
|
||
Carbonxgen Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
8.
Average Number of Employees
Average number of employees, including directors, during the year was as follows:
| 2024 | 2023 | ||
|---|---|---|---|
| Office and administration |
|
|
|
| Sales, marketing and distribution |
|
|
|
|
|
|
||
9.
Directors' remuneration
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Emoluments |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows:
| 2024 | 2023 as restated |
||
|---|---|---|---|
| Money purchase pension schemes |
|
|
|
Information regarding the highest paid director was as follows:
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Emoluments |
|
|
|
| Company contributions to defined benefit pension schemes |
|
|
|
|
|
|
||
10.
Interest Receivable and Similar Income
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Bank interest receivable |
|
|
|
11.
Interest Payable and Similar Charges
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Bank loans and overdrafts |
|
|
|
Carbonxgen Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
12.
Tax on Profit
|
The tax charge on the profit for the year was as follows:
|
|||
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Current tax | |||
| UK Corporation Tax |
|
|
|
| Total tax charge for the period |
|
|
|
|
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
|
|||
| 2024 | 2023 | ||
| £ | £ | ||
| Profit before tax | 1,763,884 | 1,577,007 | |
| Tax on profit at 25% (UK standard rate) |
|
|
|
| Goodwill/depreciation not allowed for tax |
|
|
|
| Expenses not deductible for tax purposes |
|
|
|
| Capital allowances |
( |
( |
|
| Total tax charge for the period | 462,655 | 406,849 | |
|
The applicable tax rate for the year ended 31 December 2023 was a blended rate of 23.5%, reflecting the increase in the main UK corporation tax rate from 19% to 25% with effect from 1 April 2023. For the year ended 31 December 2024, the applicable tax rate is 25%.
|
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13.
Prior Period Adjustment
During the year ended 31 December 2024, the directors identified and corrected certain prior period errors relating to the financial statements for the year ended 31 December 2023. These errors have been corrected in accordance with the requirements of FRS 102, Section 10 – Accounting Policies, Estimates and Errors.
The errors and their corrections are summarised below:
-
Reclassification of investment properties
Investment properties with a carrying value of £2,537,975 were incorrectly presented within freehold property in the 2023 financial statements. The fair value adjustment was corrected in the prior period to 31/12/2022, thereby restating the opening retained earnings position by £318,055. They have now been correctly reclassified as investment properties.
-
Grossing up of accrued commission income
Commission accrued income of £1,586,247 was previously netted against accruals. This has now been grossed up, with adjustments to accrued income, accruals, revenue and cost of sales.
-
Split of accrued income between current and non-current assets
Accrued income of £896,915 relating to periods greater than one year was incorrectly classified within current debtors. This has now been reclassified to non-current debtors.
-
Split of accrued commission costs between current and non-currentliabilities
Accrued commission costs of £426,311 relating to periods greater than one year were previously included within current accruals. This has now been reclassified to non-current liabilities.
Impact of the Prior Period Adjustments:
The balance sheet has been restated to reflect the revised presentation between asset and liability categories. Comparative figures in the 2024 accounts have been restated accordingly.
Carbonxgen Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
14.
Tangible Assets
| Land & Property | |||
|---|---|---|---|
| Freehold | Plant & Machinery | Total | |
| £ | £ | £ | |
| Cost or Valuation | |||
| As at 1 January 2024 |
|
|
|
| Additions |
|
|
|
| Disposals |
|
( |
( |
| As at 31 December 2024 |
|
|
|
| Depreciation | |||
| As at 1 January 2024 |
|
|
|
| Provided during the period |
|
|
|
| Disposals |
|
( |
( |
| As at 31 December 2024 |
|
|
|
| Net Book Value | |||
| As at 31 December 2024 |
|
|
|
| As at 1 January 2024 |
|
|
|
15.
Investment Property
| 2024 | |
|---|---|
| £ | |
| Fair Value | |
| As at 1 January 2024 |
|
| Additions |
|
| Disposals |
( |
| Revaluations | (53,555) |
| As at 31 December 2024 |
|
If investment property had been accounted for under historical cost accounting rules, the amounts would be:
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Cost | 2,696,046 | 2,536,348 | |
| Accumulated depreciation and impairment | 371,610 | 316,373 | |
| Carrying amount | 2,324,436 | 2,219,975 | |
The valuation of the property was carried out by Philip Martin Chartered Surveyors, who are qualified independent valuers with recent experience in the location and category of the property.
Carbonxgen Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
Operating Leases – Lessor
The company acts as a lessor in respect of certain investment properties held for rental income. Lease income from rolling monthly rental contracts is not included in the maturity analysis below, as such leases are cancellable by either party on short notice.
The company’s future minimum lease income under non-cancellable operating leases is as follows:
|
2024
|
|
|
£
|
|
|
Less than one year
|
24,000
|
|
Between one year and five years
|
96,000
|
|
After five years
|
80,000
|
![image](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 2" preserveAspectRatio="none">
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|
|
|
200,000
![image](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 5" preserveAspectRatio="none">
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</svg>){kind=small}
|
The above relates solely to the Farm lease, which runs for a fixed contractual period.
16.
Debtors
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Due within one year | |||
| Trade debtors |
|
|
|
| Other debtors | 2,948,635 | 2,627,744 | |
|
|
|
||
| Due after more than one year | |||
| Amounts recoverable on contracts |
|
|
|
|
|
|
||
17.
Creditors: Amounts Falling Due Within One Year
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Net obligations under finance lease and hire purchase contracts |
|
|
|
| Trade creditors |
|
|
|
| Other loans |
|
|
|
| Other creditors | 70,727 | 151,565 | |
| Corporation tax |
|
|
|
| Taxation and social security | 631,546 | 509,607 | |
| Accruals and deferred income | 1,981,384 | 984,812 | |
|
|
|
||
18.
Creditors: Amounts Falling Due After More Than One Year
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Bank loans | - |
|
|
| Accruals and deferred income | 340,826 | 601,435 | |
|
|
|
||
Carbonxgen Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
19.
Loans
An analysis of the maturity of loans is given below:
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Amounts falling due within one year or on demand: | |||
| Other loans |
|
|
|
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| Amounts falling due between one and five years: | |||
| Bank loans | - |
|
|
20.
Obligations Under Finance Leases and Hire Purchase
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| The future minimum finance lease payments are as follows: | |||
| Not later than one year |
|
|
|
Operating Leases
The company leases certain office equipment and interior fittings under cancellable operating lease arrangements. Lease rentals payable under these leases are charged to the profit and loss account on a straight-line basis over the lease term.
During the year, the company incurred operating lease costs of £12,064 (2023: £22,772), relating primarily to photocopiers, printers, and office furniture hire.
(Commitments are based on known contracted amounts; amounts exclude recoverable VAT.)
Finance Leases / Hire Purchase
The company previously financed a motor vehicle under a hire purchase agreement. The agreement was settled in February 2023 on disposal of the asset, and the remaining finance charges of £1,861 were recognised as hire purchase interest
At 31 December 2024, the company had no finance leases or hire purchase agreements outstanding.
22.
Pension Commitments
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
23.
Dividends
| 2024 | 2023 as restated |
||
|---|---|---|---|
| £ | £ | ||
| On equity shares: | |||
| Interim dividend paid |
|
|
|
Carbonxgen Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2024
24.
Controlling Parties
The company's ultimate controlling party is
Mr Andrew Bowden
by virtue of their interest in the share capital of the company.