Environtec Group Limited - Limited company accounts 20.1

REGISTERED NUMBER: 11437508 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 July 2020

for

Environtec Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Income Statement

6

Consolidated Other Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

M Dennis

P R Shaw

R Price

D McGuire

REGISTERED OFFICE:

Environtec House

The Street

Hatfield Peverel

Chelmsford

Essex

CM3 2EJ

REGISTERED NUMBER:

11437508 (England and Wales)

AUDITORS:

NSO Associates LLP

Statutory Auditors

75 Springfield Road

Chelmsford

Essex

CM2 6JB

The directors present their strategic report of the company and the group for the year ended 31 July 2020.

We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the period end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

REVIEW OF BUSINESS

Environtec Group Limited owns 100% of the share capital of Environtec Limited and performs the role of a holding company only.

As a leading asbestos consultancy we provide the full suite of asbestos services including surveying, laboratory analysis, air monitoring, training and consultancy. The company's activities are delivered through our network of regional offices.

PRINCIPAL RISKS AND UNCERTAINTIES

The largest challenge facing the business remains in Human Resources. We have continued to make changes to improve employee retention by introducing additional incentive schemes.

With the risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control. At this particular time this includes the current uncertainty of the full impact which COVID-19 will have on the company, but the directors are continually monitoring the situation in the best interest of the company to ensure its trading future.

ON BEHALF OF THE BOARD:

M Dennis - Director

20 April 2021

The directors present their report with the financial statements of the company and the group for the year ended 31 July 2020.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of environmental consultancy.

DIVIDENDS

The total distribution of dividends for the year ended 31 July 2020 will be £ 215,500 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 August 2019 to the date of this report.

M Dennis

P R Shaw

R Price

D McGuire

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;

-	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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

M Dennis - Director

20 April 2021

Opinion

We have audited the financial statements of Environtec Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2020 which comprise the Consolidated Income Statement, Consolidated Other 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 July 2020 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 three, 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.

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.

Ian George Neale FCCA (Senior Statutory Auditor)

for and on behalf of NSO Associates LLP

Statutory Auditors

75 Springfield Road

Chelmsford

Essex

CM2 6JB

27 April 2021

12,371,443

TURNOVER

3

10,549,986

7,287,268

Cost of sales

6,841,767

5,084,175

GROSS PROFIT

3,708,219

4,704,418

Administrative expenses

4,531,932

379,757

(823,713

)

-

Other operating income

4

1,174,030

379,757

OPERATING PROFIT

6

350,317

461

Interest receivable and similar income

-

380,218

350,317

38,148

Interest payable and similar expenses

7

33,384

342,070

PROFIT BEFORE TAXATION

316,933

100,910

Tax on profit

8

61,293

241,160

PROFIT FOR THE FINANCIAL YEAR

255,640

Profit attributable to:

241,160

Owners of the parent

255,640

241,160

PROFIT FOR THE YEAR

255,640

-

OTHER COMPREHENSIVE INCOME

-

241,160

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

255,640

Total comprehensive income attributable to:

241,160

Owners of the parent

255,640

FIXED ASSETS

1,823,312

Intangible assets

11

1,622,580

273,466

Tangible assets

12

193,775

-

Investments

13

-

2,096,778

1,816,355

CURRENT ASSETS

3,460,456

Debtors

14

2,201,054

24,126

Cash at bank and in hand

424,266

3,484,582

2,625,320

CREDITORS

2,957,434

Amounts falling due within one year

15

1,939,132

527,148

NET CURRENT ASSETS

686,188

2,623,926

TOTAL ASSETS LESS CURRENT LIABILITIES

2,502,543

CREDITORS

(1,310,763

)

Amounts falling due after more than one year

16

(1,159,299

)

(43,003

)

PROVISIONS FOR LIABILITIES

20

(32,944

)

1,270,160

NET ASSETS

1,310,300

CAPITAL AND RESERVES

10,000

Called up share capital

21

10,000

1,220,000

Share premium

22

1,220,000

40,160

Retained earnings

22

80,300

1,270,160

SHAREHOLDERS' FUNDS

1,310,300

The financial statements were approved by the Board of Directors and authorised for issue on 20 April 2021 and were signed on its behalf by:

R Price - Director

FIXED ASSETS

-

Intangible assets

11

-

-

Tangible assets

12

-

4,000,000

Investments

13

4,000,000

4,000,000

4,000,000

CURRENT ASSETS

-

Debtors

14

550

CREDITORS

1,825,629

Amounts falling due within one year

15

1,961,844

(1,825,629

)

NET CURRENT LIABILITIES

(1,961,294

)

2,174,371

TOTAL ASSETS LESS CURRENT LIABILITIES

2,038,706

CREDITORS

986,582

Amounts falling due after more than one year

16

872,246

1,187,789

NET ASSETS

1,166,460

CAPITAL AND RESERVES

10,000

Called up share capital

21

10,000

1,220,000

Share premium

22

1,220,000

(42,211

)

Retained earnings

22

(63,540

)

1,187,789

SHAREHOLDERS' FUNDS

1,166,460

158,789

Company's profit for the financial year

194,171

The financial statements were approved by the Board of Directors and authorised for issue on 20 April 2021 and were signed on its behalf by:

R Price - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Changes in equity

Issue of share capital

10,000

-

1,220,000

1,230,000

Dividends

-

(201,000

)

-

(201,000

)

Total comprehensive income

-

241,160

-

241,160

Balance at 31 July 2019

10,000

40,160

1,220,000

1,270,160

Changes in equity

Dividends

-

(215,500

)

-

(215,500

)

Total comprehensive income

-

255,640

-

255,640

Balance at 31 July 2020

10,000

80,300

1,220,000

1,310,300

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Changes in equity

Issue of share capital

10,000

-

1,220,000

1,230,000

Dividends

-

(201,000

)

-

(201,000

)

Total comprehensive income

-

158,789

-

158,789

Balance at 31 July 2019

10,000

(42,211

)

1,220,000

1,187,789

Changes in equity

Dividends

-

(215,500

)

-

(215,500

)

Total comprehensive income

-

194,171

-

194,171

Balance at 31 July 2020

10,000

(63,540

)

1,220,000

1,166,460

Cash flows from operating activities

2,458,643

Cash generated from operations

1

(314,667

)

(38,148

)

Interest paid

(33,384

)

(172,692

)

Tax paid

(77,630

)

2,247,803

Net cash from operating activities

(425,681

)

Cash flows from investing activities

(4,000,000

)

Purchase of fixed asset investments

-

(43,617

)

Purchase of tangible fixed assets

(19,646

)

9,920

Sale of tangible fixed assets

12,350

461

Interest received

-

(4,033,236

)

Net cash from investing activities

(7,296

)

Cash flows from financing activities

600,000

New loans in year

-

(128,997

)

Loan repayments in year

(97,395

)

329,049

Amount introduced by directors

244

-

Amount withdrawn by directors

(28,262

)

10,000

Share issue

-

1,220,000

Share premium

-

28,424

Cash introduced

-

-

Government grants

1,174,030

(248,917

)

Equity dividends paid

(215,500

)

1,809,559

Net cash from financing activities

833,117

24,126

Increase in cash and cash equivalents

400,140

-

Cash and cash equivalents at beginning of year

2

24,126

24,126

Cash and cash equivalents at end of year

2

424,266

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

Period

28.6.18

Year Ended

to

31.7.20

31.7.19

£

£

Profit before taxation

316,933

342,070

Depreciation charges

271,188

281,365

Loss on disposal of fixed assets

16,530

17,083

Government grants

(1,174,030

)

-

Finance costs

33,384

38,148

Finance income

-

(461

)

(535,995

)

678,205

Decrease/(increase) in trade and other debtors

1,259,158

(565,886

)

(Decrease)/increase in trade and other creditors

(1,037,830

)

2,346,324

Cash generated from operations

(314,667

)

2,458,643

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 July 2020

31.7.20

1.8.19

£

£

Cash and cash equivalents

424,266

24,126

Period ended 31 July 2019

31.7.19

28.6.18

£

£

Cash and cash equivalents

24,126

-

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.8.19

Cash flow

At 31.7.20

£

£

£

Net cash

Cash at bank and in hand

24,126

400,140

424,266

24,126

400,140

424,266

Debt

Debts falling due within 1 year

(146,822

)

60,267

(86,555

)

Debts falling due after 1 year

(324,181

)

37,128

(287,053

)

(471,003

)

97,395

(373,608

)

Total

(446,877

)

497,535

50,658

1.	STATUTORY INFORMATION

Environtec Group 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Turnover

Turnover includes revenue earned from the sale of goods and from the rendering of services.

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.

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.

Goodwill

Goodwill on consolidation, being the amount paid in connection with the acquisition of a business in 2018, is being amortised evenly over its estimated useful life of ten years.

Amortisation is charged so as to allocate the cost of intangibles less their residual values over their estimated useful lives, using the straight-line method.The amortisation period is calculated based upon the anticipated period over which it will generate probable future economic benefits. If there is an indication that there has been a significant change in amortisation rate or residual value of an asset, the amortisation of that asset is revised prospectively to reflect the new expectations.

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

10% on cost

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Government grants

Government grants are accounted for on an accruals basis.

Grants of a revenue nature are recognised in the statement of comprehensive income in the same period as the related expenditure.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the discounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit and loss.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in statement of financial position when there is an 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.