KENDRA_ENERGY_SOLUTIONS_L - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 March 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.

Kendra Energy Solutions Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Ground Floor, Belmont Place, Belmont Road, MAIDENHEAD, SL6 6TB.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held with banks.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.

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 company after deducting all of its liabilities.

Basic financial liabilities, including creditors, are recognised at transaction price including transaction costs.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities as payment is due within one year or less.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The 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 net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 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 reporting end date.

Deferred tax liabilities are generally recognised for all timing differences.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The company has issued share options to certain employees under an Enterprise Management Incentive scheme. These financial statements have been prepared on the basis that equity-settled share based payment arrangements have not been recognised as an expense.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

The average monthly number of persons (including directors) employed by the company during the year was 76 (2018 - 59).

The weighted average share price at the date of exercise for share options exercised during the year was £4.50 (2018 - £4.50).

The options outstanding at 31 March 2019 had an exercise price of £4.50.

The option holder may exercise the option in full if there is a transaction as a result of which the holders of the ordinary shares in the company sell at least 75% of their shareholding in the company, or there is a transfer of the whole, or substantially the whole, of the business of the company. The option lapses on 5 October 2025.

During the year ended 31 March 2019, the company operated an Enterprise Management Incentive share option plan, under which total options over a maximum of 10% of the share capital of the company have been previously granted to two employees at an exercise price of £4.50 per share.

The estimated fair value of each share option granted has not been calculated and therefore no option pricing model has been adopted.

A Ordinary and B Ordinary shares have all rights attached, each share is entitled to one vote in any circumstances, is entitled pari passu to dividend payments or any other distribution and is entitled pari passu to participate in a distribution arising form a winding up of the company.

Mr G G Ford and Mr C W Mills, company directors, have provided personal guarantees up to £250,000 in support of the bank overdraft facility provided to the company and personal guarantees up to £350,000 in support of the invoice discounting facility provided to the company.

An all assets debenture is in place with Calverton Finance Limited relating to an invoice discounting arrangement. The balance of £29,437 (2018 - £237,453) is included in other creditors.

The company is committed to a property lease from which it undertakes its business and vehicle leases for employee use.

Included in debtors is £18,573 (2018 - £5,853) held as property rent deposits.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

Included in other debtors is the balance of £29,332 (2018 - £33,245) on the current account of Mr C W Mills, company director. There are no formal repayment terms. Interest is charged on the balance at 2.5%

Included in other debtors is the balance of £250,021 (2018 - £0) on the current account of Mr G G Ford, company director. There are no formal repayment terms. Interest is charged on the balance at 2.5%