Ecoserv Group Limited - Limited company accounts 20.1
Ecoserv Group Limited - Limited company accounts 20.1
| REGISTERED NUMBER: 05418796 (England and Wales) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements for the Year Ended 31 December 2021 |
| for |
| Ecoserv Group Limited |
| Ecoserv Group Limited (Registered number: 05418796) |
| Contents of the Consolidated Financial Statements |
| for the Year Ended 31 December 2021 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 7 |
| Report of the Independent Auditors | 9 |
| Consolidated Income Statement | 13 |
| Consolidated Other Comprehensive Income | 14 |
| Consolidated Balance Sheet | 15 |
| Company Balance Sheet | 16 |
| Consolidated Statement of Changes in Equity | 17 |
| Company Statement of Changes in Equity | 18 |
| Consolidated Cash Flow Statement | 19 |
| Notes to the Consolidated Cash Flow Statement | 20 |
| Notes to the Consolidated Financial Statements | 22 |
| Ecoserv Group Limited |
| Company Information |
| for the Year Ended 31 December 2021 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and Business Advisors |
| Statutory Auditor |
| Regency House |
| 33 Wood Street |
| Barnet |
| Hertfordshire |
| EN5 4BE |
| BANKERS: | HSBC Bank Plc |
| 26 Broad Street |
| Reading |
| Berkshire |
| RG1 2BU |
| Ecoserv Group Limited (Registered number: 05418796) |
| Group Strategic Report |
| for the Year Ended 31 December 2021 |
| The directors present their strategic report of the company and the group for the year ended 31 December 2021. |
| REVIEW OF THE BUSINESS |
| The principal activities of the Group is a national facility management contractor to manage contracts of any size for private and public sector customers in education, medical & healthcare, offices & commercial buildings, car dealerships, fitness & leisure, industrial, retail, and film & tv production. |
| The Groups main trading subsidiaries are Ecoserv Cleaning Limited, and Ecoserv Technical Limited. Wood View Holdings Limited and Ecocleen Services (Regency) Limited no longer trade. |
| The group saw growth in 2021, with total income of £26m (2020: £16.2m) up 60%. This is due to a combination of organic growth and the strategic acquisitions of JPM Contract Cleaners Limited (now called Ecoserv Cleaning Limited) and Cooltech Environmental Engineering Limited (now called Ecoserv Technical Services Limited) during the year. |
| The Directors are confident that our reputation for excellent service, sustainable values and strong family ethos will ensure continued growth in the coming financial year. The acquisition of Cooltech Environmental Engineering Ltd transformed the group from predominantly commercial cleaning activities, to an integrated facilities service provider delivering hard and soft services across the UK. |
| The group has invested in innovative IT systems and operational infrastructure to provide a platform for continued growth and allow seamless integration of any future acquisitions. The business has appointed experienced high level senior hires to manage and grow the business in line with its 5 year strategic goals. In addition to this, Ecoserv has set up an outsourced back of office support operation in South Africa to provide operational and financial support for growth, which commenced operations in 2022. |
| Rebrand |
| The group recognises the need to continually evolve in ways that are customer centric whilst remaining true to its heritage and therefore took the decision to rebrand to Ecoserv. Strategically, the group wanted to redefine itself in the market and change from a predominately commercial cleaning business to an integrated sustainable service provider delivery both hard and soft facility services. |
| This rebrand forms part of the groups plans for growth including diversifying to offer customers more integrated services. Our ecological heritage is central to our purpose, hence 'Eco' along with its brand icon, the leaf. 'Serv' demonstrates its ability to offer a wider variety of services along with the focus on excellent service that we deliver to our customers. |
| Ecoserv Group Limited (Registered number: 05418796) |
| Group Strategic Report |
| for the Year Ended 31 December 2021 |
| KEY PERFORMANCE INDICATORS |
| Performance of the group is monitored internally using a variety of statutory and alternative performance measures (APMs) and key performance indicators (KPls). APMs are used where management considers they are more representative of underlying trading or in monitoring performance against the group's objectives. |
| Total income is an important metric as it reflects the core underlying activities of the group by adding together turnover from commercial cleaning services and franchisor services with the income earned by the group for the sales of commercial cleaning businesses and other operating income generated. |
| Operating profit is an important metric as it is an indirect measure of efficiency. The higher the operating profit, the |
| more profitable the group's core business is. |
| Earnings before interest, tax, depreciation and amortisation ("EBITDA") is considered, by management, to be |
| informative as it reflects operating profit adjusted for non-cash charges. |
| The figures for these 3 KPI's are stated below: |
| 2021 | 2020 |
| Sales | £25,462,853 | £15,964,678 |
| Other operating income | £520,892 | £189,666 |
| Total income | £25,983,745 | £16,154,344 |
| Operating profit | £645,105 | £921,530 |
| EBITDA | £1,397,596 | £1,221,995 |
| Exceptional item - inter-group management fee (eliminated on parent company consolidation) |
£233,138 |
£- |
| Adjusted/underlying EBITDA | £1,630,734 | £1,221,995 |
| The directors are pleased to report that 2 out of the 3 KPI's improved in the year. |
| Other KPI's that are monitored throughout the year: |
| Financial |
| - Gross profit |
| - Debtor days |
| - Cash at bank |
| - Credits issued |
| Operational |
| - Net promoter score |
| - Customer retention |
| - Client Monthly Audits |
| - Staff digital time and attendance clocking |
| - Staff retention |
| - Driver behaviour |
| - Labour % to turnover |
| Sustainability |
| - Environmental targets |
| - Social impact targets |
| - Maintaining governance in accordance to our accreditation |
| Ecoserv Group Limited (Registered number: 05418796) |
| Group Strategic Report |
| for the Year Ended 31 December 2021 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| Brexit |
| The UK officially left the European Union on 31 January 2020 with a transition period ending 31 December 2020. The rules around immigration and non-UK nationals working in the uk has had an impact on the supply of labour with resource challenges towards the end of 2021 resulting in increased vacancies for cleaning operatives. We are starting to see positive signs in 2022 with the number of vacancies dropping from a high of 110 to 60 as at the end of Q1 2022. |
| Covid-19 |
| Covid-19 has had an impact on businesses and economic activity across the country. Ecoserv has been able to meet these challenges. With the government restrictions around Covid-19 being removed the company is seeing clients go back to pre-covid levels. That said, there still remain challenges around employee availability and supplies. |
| Liquidity Risk |
| The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet its foreseeable needs and by investing cash safely. To manage liquidity, risk the group continually monitors forecasts and actual cashflows to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom to provide cover for unexpected events. |
| At balance sheet date the group had total cash balances of £1.7m (2020: £0.4m), current assets excluding cash of £9.3m (2020: £5.0m), total assets of £19.0m (2020: £7.4m) and total liabilities of £18.3m (2020: £6.4m). |
| Credit Risk |
| Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss. |
| The principal credit risk for the company arises from trade receivables in its commercial cleaning business. In order to manage credit risk the directors have incorporated a range of credit control procedures to monitor receivables across the company to ensure that amounts are collected on a timely basis. Credit searches are performed on clients to minimise the risk in this area. |
| Financial risk |
| The company does not enter into any hedging instruments, or any financial instruments for speculative purposes. |
| Appropriate trade terms are negotiated with suppliers and customers. Management review these terms and the relationships with suppliers and customers and manages any exposure on normal trading terms. The company prepares regular forecasts of cashflow and liquidity and any requirement for additional funding is managed as part of the overall group financing arrangements. |
| ENGAGEMENT WITH EMPLOYEES |
| The company recognises the need to invest in its people, especially as it is a people business. During 2021 and into 2022 the business has invested in employee welfare staff schemes covering mental health to physical and financial wellbeing. Ecoserv is committed and proud to be a partner of the Living Wage Foundation, where we ensure fair pay for our cleaning colleagues. This will result in improvements in staff retention and engagement. |
| The percentage of women in each pay quarter |
| In this organization, women occupy 65.9% of the highest paid jobs and 67.6% of the lowest paid jobs. |
| Women | Men |
| Upper hourly pay quarter (highest paid) | 65.9% | 34.1% |
| Upper middle hourly paid quarter | 88.1% | 11.9% |
| Lower middle hourly pay quarter | 80.1% | 19.9% |
| Lower hourly pay quarter (lowest paid) | 67.6% | 32.4% |
| Ecoserv Group Limited (Registered number: 05418796) |
| Group Strategic Report |
| for the Year Ended 31 December 2021 |
| SUSTAINABILITY AND SOCIAL VALUE |
| Ecoserv has committed to be carbon neutral without the need to invest in carbon removal projects by 2030 and becoming an industry leader in sustainability. The business has created a dedicated sustainability team and through our partnership with environmental consultancy RSK Group we have been able to determine our exact carbon footprint and establish science based reduction targets, allowing us to set out an achievable pathway to net zero by 2025. |
| The business has been recognised at the Green Apple Awards, which celebrates the greenest individuals, companies, councils and communities within the UK. |
| Ecoserv sustainability commitment can be found online at this address ttps://ecoserv.group/about-us/sustainability |
| Ecoserv's 2021 emissions by source |
| - Flights 9.4% |
| - Fugitive 0.8% |
| - Hotels 0.2% |
| - Commuting 9.4% |
| - Water 0.1% |
| - Waste 0.1% |
| - Electricity 14.2% |
| - Heating 2.5% |
| - Transport 63.3% |
| In addition to the emissions sources shown above, we have estimated the emissions from cleaning staff commuting to be roughly 900tCO2e, based on a survey of approx.. 15% of our cleaning staff. We have not reported this in our formal reporting data as this remains a high-level estimate, which we intend to refine for next year's carbon footprint. |
| Ecoserv's 2021 GHG emissions |
| Premises operation |
| - Electricity 54.6 |
| - Refrigerants 3.0 |
| - Natural gas 9.8 |
| - Water 0.37 |
| - Waste 0.09 |
| Business travel and commuting |
| - Flights 36.2 |
| - Hotel stays 0.6 |
| - Rail 0 |
| - Road travel 243.6 |
| - Commuting 36.8 |
| We gave committed to the following goals, in order to help us reach net zero by 2030: |
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| SCOPE 1 & 2 |
| CO2 emissions reduction - office energy usage and switch to 100% renewable |
baseline |
10% |
10% |
10% |
10% |
net zero |
| Waste to landfill | 15% | 10% | 0% | 0% | 0% | 0% |
| Paperless office | 90% | 95% | 100% | 100% | 100% | 100% |
| EV fleet % | 10% | 15% | 20% | 40% | 65% | 75% |
| Ecoserv Group Limited (Registered number: 05418796) |
| Group Strategic Report |
| for the Year Ended 31 December 2021 |
| Business flight travel emissions | 10% | 10% | 10% | 10% | 10% | 10% |
| Executive team EV | 50% | 100% | 100% | 100% | 100% | 100% |
| SCOPE 3 |
| Single use plastic in supply chain |
70% |
65% |
40% |
30% |
20% |
0% |
| % of product deliveries below £35 |
30% |
30% |
20% |
15% |
10% |
5% |
| Closed loop on cleaning products |
0% |
2% |
5% |
15% |
20% |
40% |
| Wearing recycled uniform | 0% | 30% | 85% | 90% | 90% | 100% |
| Sustainable marketing purchasing system with offsetting |
0% |
10% |
75% |
100% |
100% |
100% |
| Over the next few years, we will commit to: |
| - A proportionate reduction of our carbon footprint year on year as our business grows |
| - Increasing diversity in our recruitment through strategic partnerships and ongoing training in unconscious bias and |
| diversity and inclusion |
| - Establishing dedicated committees to set and monitor targets for diversity and inclsion and equality in the staff body |
| - Championing and educating our community and stakeholders about sustainable business and its impact on the |
| planet |
| - Widening the scope of our CHG measurements to include all Scope 3 emissions, and a consequent process for |
| engaging with our supply chain to improve those results |
| - Continuing to lobby our customers to commit to providing the real living wage for all non-Ecoserv employees. |
| FUTURE DEVELOPMENTS |
| The directors expect underlying trade to increase in comparison to the current year. This is due to the group having a full 12 months revenue from its 2021 acquisitions, the investment in a larger new business team, diversification of our revenue streams and the synergies of clients crossing over the multidisciplinary services we provide to our clients and as we are the leaders in sustainability for Facilities Management companies in the UK our pipeline of work is growing rapidly. |
| ON BEHALF OF THE BOARD: |
| Ecoserv Group Limited (Registered number: 05418796) |
| Report of the Directors |
| for the Year Ended 31 December 2021 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 December 2021. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of a national facility management contractor to manage contracts of any size for private and public sector customers in education, medical & healthcare, offices & commercial buildings, car dealerships, fitness & leisure, industrial, retail, and film & tv production. |
| DIVIDENDS |
| During the year interim dividends totalling £300,000 (2020: £300,056) were paid on the Ordinary shares. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report. |
| Other changes in directors holding office are as follows: |
| 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. |
| Ecoserv Group Limited (Registered number: 05418796) |
| Report of the Directors |
| for the Year Ended 31 December 2021 |
| AUDITORS |
| The auditors, Cartwrights, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Ecoserv Group Limited |
| Opinion |
| We have audited the financial statements of Ecoserv Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 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 December 2021 and of the group's profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| Ecoserv Group Limited |
| 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 seven, 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. |
| Report of the Independent Auditors to the Members of |
| Ecoserv Group Limited |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, and that they remained alert to instances of non-compliance throughout the audit. |
| Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
| - based on our understanding of the company and industry, and through discussions with directors and key management, we identified any specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; and |
| - we assessed the extent of compliance with these laws and regulations through making enquiries of management and inspecting legal correspondence. |
| We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
| - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
| - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
| To address the risk of fraud through management bias and override of controls, we: |
| - performed analytical procedures to identify any unusual or unexpected relationships; |
| - tested journal entries, particularly focused around the year-end, to identify unusual transactions; |
| - assessed whether judgements and assumptions made in determining the accounting estimates in the notes to the financial statements were indicative of potential bias; and |
| - investigated the rationale behind significant or unusual transactions. |
| In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
| - agreeing financial statement disclosures to underlying supporting documentation; |
| - reading the minutes of meetings of those charged with governance; |
| - enquiring of management as to actual and potential litigation and claims; and |
| - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. |
| There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
| 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. |
| Report of the Independent Auditors to the Members of |
| Ecoserv Group Limited |
| Other matters |
| The prior year figures in these financial statements in relation to the newly acquired subsidiaries in 2021 of Ecoserv Technical Limited and Wood View Holdings Limited are unaudited. |
| 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. |
| for and on behalf of |
| Chartered Accountants and Business Advisors |
| Statutory Auditor |
| Regency House |
| 33 Wood Street |
| Barnet |
| Hertfordshire |
| EN5 4BE |
| Ecoserv Group Limited (Registered number: 05418796) |
| Consolidated Income Statement |
| for the Year Ended 31 December 2021 |
| 31/12/21 | 31/12/20 |
| Notes | £ | £ |
| TURNOVER | 4 | 25,462,853 | 15,964,678 |
| Cost of sales | (22,293,878 | ) | (13,501,788 | ) |
| GROSS PROFIT | 3,168,975 | 2,462,890 |
| Administrative expenses | (3,044,762 | ) | (1,731,026 | ) |
| 124,213 | 731,864 |
| Other operating income | 5 | 520,892 | 189,666 |
| OPERATING PROFIT | 7 | 645,105 | 921,530 |
| Interest receivable and similar income | 10 | - |
| 645,115 | 921,530 |
| Interest payable and similar expenses | 8 | (289,190 | ) | (133,904 | ) |
| PROFIT BEFORE TAXATION | 355,925 | 787,626 |
| Tax on profit | 9 | (208,434 | ) | (201,579 | ) |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 147,491 | 586,047 |
| Ecoserv Group Limited (Registered number: 05418796) |
| Consolidated Other Comprehensive Income |
| for the Year Ended 31 December 2021 |
| 31/12/21 | 31/12/20 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 147,491 | 586,047 |
| OTHER COMPREHENSIVE INCOME |
| Capital redemption reserve | 5 | - |
| Income tax relating to other comprehensive income |
- |
- |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
5 |
- |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
147,496 |
586,047 |
| Total comprehensive income attributable to: |
| Owners of the parent | 147,496 | 586,047 |
| Ecoserv Group Limited (Registered number: 05418796) |
| Consolidated Balance Sheet |
| 31 December 2021 |
| 31/12/21 | 31/12/20 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 12 | 7,943,170 | 1,819,809 |
| Tangible assets | 13 | 214,357 | 206,525 |
| Investments | 14 | - | - |
| 8,157,527 | 2,026,334 |
| CURRENT ASSETS |
| Stocks | 15 | 214,670 | - |
| Debtors | 16 | 9,143,883 | 5,016,238 |
| Cash at bank and in hand | 1,652,474 | 399,003 |
| 11,011,027 | 5,415,241 |
| CREDITORS |
| Amounts falling due within one year | 17 | 9,759,535 | 5,319,920 |
| NET CURRENT ASSETS | 1,251,492 | 95,321 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
9,409,019 |
2,121,655 |
| CREDITORS |
| Amounts falling due after more than one year | 18 | (8,545,590 | ) | (1,126,426 | ) |
| PROVISIONS FOR LIABILITIES | 23 | (55,965 | ) | (35,266 | ) |
| NET ASSETS | 807,464 | 959,963 |
| CAPITAL AND RESERVES |
| Called up share capital | 24 | 117 | 112 |
| Share premium | 25 | 9,980 | 9,980 |
| Capital redemption reserve | 25 | 5 | - |
| Retained earnings | 25 | 797,362 | 949,871 |
| SHAREHOLDERS' FUNDS | 807,464 | 959,963 |
| The financial statements were approved by the Board of Directors and authorised for issue on 7 October 2022 and were signed on its behalf by: |
| J H G Beukes - Director |
| Ecoserv Group Limited (Registered number: 05418796) |
| Company Balance Sheet |
| 31 December 2021 |
| 31/12/21 | 31/12/20 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 12 |
| Tangible assets | 13 |
| Investments | 14 |
| CURRENT ASSETS |
| Debtors | 16 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 17 |
| NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year | 18 | ( |
) | ( |
) |
| PROVISIONS FOR LIABILITIES | 23 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 24 |
| Share premium | 25 |
| Capital redemption reserve | 25 |
| Retained earnings | 25 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 268,043 | 789,097 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Ecoserv Group Limited (Registered number: 05418796) |
| Consolidated Statement of Changes in Equity |
| for the Year Ended 31 December 2021 |
| Called up | Capital |
| share | Retained | Share | redemption | Total |
| capital | earnings | premium | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 January 2020 | 112 | 663,880 | 9,980 | - | 673,972 |
| Changes in equity |
| Dividends | - | (300,056 | ) | - | - | (300,056 | ) |
| Total comprehensive income | - | 586,047 | - | - | 586,047 |
| Balance at 31 December 2020 | 112 | 949,871 | 9,980 | - | 959,963 |
| Changes in equity |
| Issue of share capital | 5 | - | - | - | 5 |
| Dividends | - | (300,000 | ) | - | - | (300,000 | ) |
| Total comprehensive income | - | 147,491 | - | 5 | 147,496 |
| Balance at 31 December 2021 | 117 | 797,362 | 9,980 | 5 | 807,464 |
| Ecoserv Group Limited (Registered number: 05418796) |
| Company Statement of Changes in Equity |
| for the Year Ended 31 December 2021 |
| Called up | Capital |
| share | Retained | Share | redemption | Total |
| capital | earnings | premium | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 January 2020 |
| Changes in equity |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - | - |
| Balance at 31 December 2020 |
| Changes in equity |
| Issue of share capital | - | - |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - | - |
| Balance at 31 December 2021 |
| Ecoserv Group Limited (Registered number: 05418796) |
| Consolidated Cash Flow Statement |
| for the Year Ended 31 December 2021 |
| 31/12/21 | 31/12/20 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 1,238,713 | 1,325,298 |
| Interest paid | (289,175 | ) | (133,623 | ) |
| Interest element of hire purchase payments paid |
(15 |
) |
(281 |
) |
| Government grants | 480,660 | 189,666 |
| Tax paid | 165,928 | (129,125 | ) |
| Net cash from operating activities | 1,596,111 | 1,251,935 |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | (5,928,867 | ) | (311,579 | ) |
| Purchase of tangible fixed assets | (36,616 | ) | (168,212 | ) |
| Sale of tangible fixed assets | 6,520 | 4,082 |
| Acquired intangible fixed assets | (462,000 | ) | - |
| Acquired tangible fixed assets | (95,884 | ) | - |
| Interest received | 10 | - |
| Net cash from investing activities | (6,516,837 | ) | (475,709 | ) |
| Cash flows from financing activities |
| New loans in year | 8,000,000 | - |
| Loan repayments in year | (1,468,012 | ) | (234,076 | ) |
| Capital repayments in year | (57,796 | ) | 42,709 |
| Share issue | 10 | - |
| Share buyback | (5 | ) | - |
| Equity dividends paid | (300,000 | ) | (300,056 | ) |
| Net cash from financing activities | 6,174,197 | (491,423 | ) |
| Increase in cash and cash equivalents | 1,253,471 | 284,803 |
| Cash and cash equivalents at beginning of year |
2 |
399,003 |
114,200 |
| Cash and cash equivalents at end of year | 2 | 1,652,474 | 399,003 |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Cash Flow Statement |
| for the Year Ended 31 December 2021 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Profit before taxation | 355,925 | 787,626 |
| Depreciation charges | 752,481 | 300,462 |
| Profit on disposal of fixed assets | - | (4,082 | ) |
| Government grants | (480,660 | ) | (189,666 | ) |
| Finance costs | 289,190 | 133,904 |
| Finance income | (10 | ) | - |
| 916,926 | 1,028,244 |
| Increase in stocks | (214,670 | ) | - |
| Increase in trade and other debtors | (4,153,919 | ) | (1,059,263 | ) |
| Increase in trade and other creditors | 4,690,376 | 1,356,317 |
| Cash generated from operations | 1,238,713 | 1,325,298 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 December 2021 |
| 31/12/21 | 1/1/21 |
| £ | £ |
| Cash and cash equivalents | 1,652,474 | 399,003 |
| Year ended 31 December 2020 |
| 31/12/20 | 1/1/20 |
| £ | £ |
| Cash and cash equivalents | 399,003 | 114,200 |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Cash Flow Statement |
| for the Year Ended 31 December 2021 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1/1/21 | Cash flow | At 31/12/21 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 399,003 | 1,253,471 | 1,652,474 |
| 399,003 | 1,253,471 | 1,652,474 |
| Debt |
| Finance leases | (78,473 | ) | 57,796 | (20,677 | ) |
| Debts falling due within 1 year | (399,764 | ) | (198,077 | ) | (597,841 | ) |
| Debts falling due after 1 year | (1,070,013 | ) | (6,645,577 | ) | (7,715,590 | ) |
| (1,548,250 | ) | (6,785,858 | ) | (8,334,108 | ) |
| Total | (1,149,247 | ) | (5,532,387 | ) | (6,681,634 | ) |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements |
| for the Year Ended 31 December 2021 |
| 1. | STATUTORY INFORMATION |
| Ecoserv Group Limited is a |
| 2. | STATEMENT OF COMPLIANCE |
| 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. |
| 3. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Going concern |
| Wood View Holdings Limited and Ecocleen Services (Regency) Limited ceased trading as at the balance sheet date and therefore directors do not consider it appropriate to prepare the individual financial statements of these 2 companies on a going concern basis.The directors believe that the realisable values of the assets and liabilities at the balance sheet date of these 2 companies are the same as the book values, and therefore no adjustment is required in their financial statements. In the opinion of the directors, this has had no impact on the group financial statements being prepared on a going concern basis. |
| Basis of consolidation |
| The consolidated profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 31 December 2021. The results of subsidiaries sold or acquired are included in the profit and loss account up to, or from the date control passes. Intra-group sales and profits are eliminated fully on consolidation. Intra-group balances on the balance sheet are eliminated fully on consolidation other than for those Ecoserv Holdings group entities sitting outside of the Ecoserv Group sub-group. |
| Related party exemption |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 3. | ACCOUNTING POLICIES - continued |
| Significant judgements and estimates |
| The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgments have had the most significant effect on amounts recognised in the financial statements: |
| Tangible fixed assets |
| Tangible fixed assets are depreciated over their useful lives taking into accounts residual value, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values. |
| Intangible fixed assets |
| Intangible fixed assets are amortised over their useful lives taking into accounts residual value, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values. |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 3. | ACCOUNTING POLICIES - continued |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The group has assessed its turnover arrangements and has concluded that the group is acting as a principal in all its turnover arrangements. |
| The following specific recognition criteria apply for turnover generated by the group: |
| - | Commercial cleaning services revenue - the group provides cleaning services to its customers who include schools, medical facilities and business facilities. Contracts for cleaning services are agreed to incorporate a specified cleaning requirement, specified number of operational cleaning staff and a time period over which the cleaning services are to be provided. Turnover is recognised as the group earns the right to consideration for the service provided and this is time apportioned and earned as time elapses |
| - | Management services fee - under the terms of various franchise agreements with franchisees the group charges a service fee. The fee is calculated as a proportion of franchisee cleaning revenue and revenue is recognised in line with the recognition of the relevant cleaning revenue |
| - | Franchise fee - the group and franchisee enter into a franchise agreement for an agreed initial term and an upfront fee is charged for a licence to operate. The franchise fee is time apportioned equally over the length of the initial term of the franchise agreement |
| - | Consumables - the group sells consumables products to customers such as cleaning products, substances and materials. Turnover is recognised when control of the consumable is transferred to the customer |
| - | Projects - recognised on sale to the customer, which is considered to be the point of provision of the service. There are no long-term contracts undertaken with customers |
| - | Contracts - the provision of 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. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable |
| Goodwill |
| Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirers interest in the fair value of the group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. |
| Subsequent to initial recognition, goodwill is stated at cost less accumulated amortisation and impairment losses. |
| Goodwill is amortised on a straight-line basis over its estimated useful economic life on a straight line basis. The directors annually reappraise the useful economic life of goodwill on the balance sheet and believe that a total useful economic life of 10 years remains appropriate for the group. |
| Intangible assets other than goodwill |
| Intangible assets other than goodwill are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| 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. |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 3. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Freehold property | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| Uniform depreciation rates have not been used in these consolidated financial statements, however the impact is not significant due to the low carrying values of the relevant tangible fixed assets. |
| Government grants |
| The company receives government grants in respect of the Coronavirus Job Retention Scheme. These grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model. |
| Investments in subsidiaries |
| Investments in subsidiary undertakings are recognised at cost. |
| Stocks |
| Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 3. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| 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. |
| 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. |
| The group only enters into basic financial instrument transactions. |
| Basic financial assets |
| Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised. |
| Financial assets are derecognised when: |
| - the contractual right to cash flows from the asset are settled or expire, |
| - substantially all the risk and rewards of the ownership of the asset are transferred to another party or |
| - despite retaining some significant risks and rewards, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset without additional restrictions. |
| Classification of 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 company after deducting all of its liabilities. |
| Basic financial liabilities |
| Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
| Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
| 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 if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
| Financial liabilities are derecognised when the liability is discharged, cancelled or expires. |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 3. | ACCOUNTING POLICIES - continued |
| 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. |
| 4. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the group. |
| 5. | OTHER OPERATING INCOME |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Sundry income | 25,955 | - |
| Termination of franchises | 14,277 | - |
| Government grants | 480,660 | 189,666 |
| 520,892 | 189,666 |
| 6. | EMPLOYEES AND DIRECTORS |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Wages and salaries | 12,162,275 | 3,403,598 |
| Social security costs | 588,135 | - |
| Other pension costs | 156,314 | 58,591 |
| 12,906,724 | 3,462,189 |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 6. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the year was as follows: |
| 31/12/21 | 31/12/20 |
| Directors | 4 | 2 |
| Other employees | 1,494 | 396 |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Directors' remuneration | 122,734 | 16,848 |
| 7. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Hire of plant and machinery | 31,212 | - |
| Other operating leases | 183,477 | 68,258 |
| Depreciation - owned assets | 118,148 | 69,986 |
| Profit on disposal of fixed assets | - | (4,082 | ) |
| Goodwill amortisation | 700,667 | 229,255 |
| Auditors' remuneration | 33,307 | 30,274 |
| 8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Bank interest | - | 1,989 |
| Bank loan interest | 156,480 | - |
| Other loan interest | 75,661 | 65,820 |
| Other interest | 57,034 | 65,814 |
| Hire purchase interest | 15 | 281 |
| 289,190 | 133,904 |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 9. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Current tax: |
| UK corporation tax | 230,544 | 169,051 |
| Corporation tax prior year | (13,927 | ) | - |
| Total current tax | 216,617 | 169,051 |
| Deferred tax | (8,183 | ) | 32,528 |
| Tax on profit | 208,434 | 201,579 |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Profit before tax | 355,925 | 787,626 |
| Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2020 - 19 %) |
67,626 |
149,649 |
| Effects of: |
| Expenses not deductible for tax purposes | 11,475 | 5,004 |
| Depreciation in excess of capital allowances | 139,480 | 26,678 |
| Utilisation of tax losses | (4,475 | ) | (12,280 | ) |
| Adjustments to tax charge in respect of previous periods | (13,927 | ) | - |
| Deferred tax | (1,555 | ) | 32,528 |
| Other adjustments | 9,810 | - |
| Total tax charge | 208,434 | 201,579 |
| Tax effects relating to effects of other comprehensive income |
| 31/12/21 |
| Gross | Tax | Net |
| £ | £ | £ |
| Capital redemption reserve | 5 | - | 5 |
| 10. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 11. | DIVIDENDS |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Ordinary shares of £0.0001 each |
| Interim | 300,000 | 300,056 |
| 12. | INTANGIBLE FIXED ASSETS |
| Group |
| Patents |
| and | Development |
| Goodwill | licences | costs | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 January 2021 | 2,228,363 | - | 34,779 | 2,263,142 |
| Additions | 5,826,367 | 102,500 | - | 5,928,867 |
| Reclassification/transfer | 2,148,055 | - | - | 2,148,055 |
| At 31 December 2021 | 10,202,785 | 102,500 | 34,779 | 10,340,064 |
| AMORTISATION |
| At 1 January 2021 | 408,554 | - | 34,779 | 443,333 |
| Amortisation for year | 700,667 | - | - | 700,667 |
| Reclassification/transfer | 1,252,894 | - | - | 1,252,894 |
| At 31 December 2021 | 2,362,115 | - | 34,779 | 2,396,894 |
| NET BOOK VALUE |
| At 31 December 2021 | 7,840,670 | 102,500 | - | 7,943,170 |
| At 31 December 2020 | 1,819,809 | - | - | 1,819,809 |
| Group reclassifications/transfers in 2021 relate to the acquisition of subsidiary undertakings. |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 12. | INTANGIBLE FIXED ASSETS - continued |
| Company |
| Patents |
| and | Development |
| Goodwill | licences | costs | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 January 2021 |
| Additions |
| At 31 December 2021 |
| AMORTISATION |
| At 1 January 2021 |
| Amortisation for year |
| At 31 December 2021 |
| NET BOOK VALUE |
| At 31 December 2021 |
| At 31 December 2020 |
| 13. | TANGIBLE FIXED ASSETS |
| Group |
| Fixtures |
| Freehold | Plant and | and |
| property | machinery | fittings |
| £ | £ | £ |
| COST |
| At 1 January 2021 | - | 213,808 | 50,532 |
| Additions | - | 19,854 | 494 |
| Disposals | (19,580 | ) | - | - |
| Reclassification/transfer | 19,580 | 271,052 | 117,340 |
| At 31 December 2021 | - | 504,714 | 168,366 |
| DEPRECIATION |
| At 1 January 2021 | - | 124,196 | 32,250 |
| Charge for year | - | 60,547 | 13,592 |
| Eliminated on disposal | (19,580 | ) | - | - |
| Reclassification/transfer | 19,580 | 213,811 | 113,774 |
| At 31 December 2021 | - | 398,554 | 159,616 |
| NET BOOK VALUE |
| At 31 December 2021 | - | 106,160 | 8,750 |
| At 31 December 2020 | - | 89,612 | 18,282 |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 13. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Motor | Computer |
| vehicles | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1 January 2021 | 239,912 | 44,003 | 548,255 |
| Additions | 2,646 | 13,622 | 36,616 |
| Disposals | (120,085 | ) | 112,923 | (26,742 | ) |
| Reclassification/transfer | 135,960 | 1,651 | 545,583 |
| At 31 December 2021 | 258,433 | 172,199 | 1,103,712 |
| DEPRECIATION |
| At 1 January 2021 | 162,241 | 23,043 | 341,730 |
| Charge for year | 32,584 | 11,425 | 118,148 |
| Eliminated on disposal | (112,581 | ) | 111,939 | (20,222 | ) |
| Reclassification/transfer | 101,023 | 1,511 | 449,699 |
| At 31 December 2021 | 183,267 | 147,918 | 889,355 |
| NET BOOK VALUE |
| At 31 December 2021 | 75,166 | 24,281 | 214,357 |
| At 31 December 2020 | 77,671 | 20,960 | 206,525 |
| Group reclassifications/transfers in 2021 relate to the acquisition of subsidiary undertakings. |
| Company |
| Fixtures |
| Plant and | and | Motor | Computer |
| machinery | fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 January 2021 |
| Additions |
| At 31 December 2021 |
| DEPRECIATION |
| At 1 January 2021 |
| Charge for year |
| At 31 December 2021 |
| NET BOOK VALUE |
| At 31 December 2021 |
| At 31 December 2020 |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 14. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 January 2021 |
| Additions |
| At 31 December 2021 |
| NET BOOK VALUE |
| At 31 December 2021 |
| At 31 December 2020 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| Registered office: Stables, 3 Howberry Park, Benson Lane, Wallingford, Oxfordshire, OX10 8BA |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Aggregate capital and reserves |
| Loss for the year | ( |
) | ( |
) |
| Registered office: Stables, 3 Howberry Park, Benson Lane, Wallingford, Oxfordshire, OX10 8BA |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Aggregate capital and reserves |
| (Loss)/profit for the year | ( |
) |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 14. | FIXED ASSET INVESTMENTS - continued |
| Registered office: Stables, 3 Howberry Park, Benson Lane, Wallingford, Oxfordshire, OX10 8BA |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| Registered office: Stables, 3 Howberry Park, Benson Lane, Wallingford, Oxfordshire, OX10 8BA |
| Nature of business: |
| % |
| Class of shares: | holding |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| 15. | STOCKS |
| Group |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Raw materials | 3,440 | - |
| Work-in-progress | 211,230 | - |
| 214,670 | - |
| 16. | DEBTORS |
| Group | Company |
| 31/12/21 | 31/12/20 | 31/12/21 | 31/12/20 |
| £ | £ | £ | £ |
| Amounts falling due within one year: |
| Trade debtors | 5,424,182 | 1,991,357 |
| Amounts owed by group undertakings | 2,597,689 | 1,872,430 |
| Amounts owed by joint ventures | - | 34,343 |
| Other debtors | 395,076 | 475,467 |
| Prepayments and accrued income | 726,936 | 137,641 |
| 9,143,883 | 4,511,238 |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 16. | DEBTORS - continued |
| Group | Company |
| 31/12/21 | 31/12/20 | 31/12/21 | 31/12/20 |
| £ | £ | £ | £ |
| Amounts falling due after more than one year: |
| Other debtors | - | 505,000 |
| Aggregate amounts | 9,143,883 | 5,016,238 |
| 17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31/12/21 | 31/12/20 | 31/12/21 | 31/12/20 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 19) | 442,008 | 399,764 |
| Other loans (see note 19) | 155,833 | - |
| Hire purchase contracts (see note 20) | 20,677 | 22,060 |
| Trade creditors | 620,973 | 133,534 |
| Amounts owed to group undertakings | 468,649 | - |
| Tax | 555,235 | 172,690 |
| Social security and other taxes | 422,175 | 80,613 |
| VAT | 1,790,978 | 744,120 | 64,768 | 114,305 |
| Other creditors | 2,446,454 | 2,288,821 |
| Invoice financing | 1,608,017 | 1,441,570 | 1,608,017 | 1,441,570 |
| Accruals and deferred income | 1,228,536 | 36,748 |
| 9,759,535 | 5,319,920 |
| 18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 31/12/21 | 31/12/20 | 31/12/21 | 31/12/20 |
| £ | £ | £ | £ |
| Bank loans (see note 19) | 7,715,590 | 1,070,013 |
| Hire purchase contracts (see note 20) | - | 56,413 |
| Amounts owed to group undertakings | - | - | - | 700,000 |
| Other creditors | 830,000 | - |
| 8,545,590 | 1,126,426 |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 19. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 31/12/21 | 31/12/20 | 31/12/21 | 31/12/20 |
| £ | £ | £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank loans | 442,008 | 399,764 |
| Other loans | 155,833 | - |
| 597,841 | 399,764 |
| Amounts falling due between one and two | years: |
| Bank loans - 1-2 years | 1,879,797 | 708,703 |
| Amounts falling due between two and five | years: |
| Bank loans - 2-5 years | 5,835,793 | 352,537 |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans more than 5 years | - | 8,773 | - | - |
| 20. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 20,677 | 22,060 |
| Between one and five years | - | 56,413 |
| 20,677 | 78,473 |
| Company |
| Hire purchase contracts |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 20. | LEASING AGREEMENTS - continued |
| Group |
| Non-cancellable operating | leases |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Within one year | 149,076 | 122,404 |
| Between one and five years | 49,525 | 170,998 |
| 198,601 | 293,402 |
| Company |
| Non-cancellable operating | leases |
| 31/12/21 | 31/12/20 |
| £ | £ |
| Within one year |
| Between one and five years |
| 21. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group | Company |
| 31/12/21 | 31/12/20 | 31/12/21 | 31/12/20 |
| £ | £ | £ | £ |
| Bank loans | 8,157,598 | 1,469,777 |
| Hire purchase contracts | 20,677 | 78,473 | 20,677 | 76,899 |
| Invoice financing | 1,623,557 | 1,441,570 | - | 1,441,570 |
| Other loans | 155,833 | - | - | - |
| 9,957,665 | 2,989,820 |
| The obligations under hire purchase are secured on the underlying assets. |
| Monies owed to the invoice financing company are secured on the book debts of the group. |
| Bank and other loans are secured by way of a charge and cross-guarantee over the group's assets. |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 22. | FINANCIAL INSTRUMENTS |
| Group |
| 2021 | 2020 |
| £ | £ |
| Financial assets that are debt instruments measured at amortised cost | 8,416,947 | 7,145,651 |
| Financial assets that are equity instruments measured at cost less impairment | - | - |
| 8,416,947 | 7,145,651 |
| Financial liabilities measured at amortised cost | 17,076,589 | 6,409,598 |
| Company |
| 2021 | 2020 |
| £ | £ |
| Financial assets that are debt instruments measured at amortised cost | 7,860,091 | 5,036,621 |
| Financial assets that are equity instruments measured at cost less impairment | 11,,686,420 | 2,721,319 |
| 19,546,511 | 7,757,940 |
| Financial liabilities measured at amortised cost | 19,,693,908 | 5,375,658 |
| Financial assets measured at amortised cost comprise trade debtors, other debtors and amounts owed by group undertakings (company only). |
| Financial assets that are equity instruments measured at cost less impairment comprise of shares in group undertakings. |
| Financial liabilities measured at amortised cost comprise of trade creditors, tax, social security and other taxes, VAT, invoice discounting creditors, other creditors, bank and other loans, hire purchase and amounts owed to group undertakings. |
| 23. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 31/12/21 | 31/12/20 | 31/12/21 | 31/12/20 |
| £ | £ | £ | £ |
| Deferred tax |
| Accelerated capital allowances | 30,334 | 35,266 |
| Other provisions | 25,631 | - | - | - |
| Aggregate amounts | 55,965 | 35,266 | 26,566 | 35,266 |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 23. | PROVISIONS FOR LIABILITIES - continued |
| Group |
| Deferred | Other |
| tax | provisions |
| £ | £ |
| Balance at 1 January 2021 | 35,266 | - |
| Provided during year | - | 25,631 |
| Credit to Income Statement during year | (4,932 | ) | - |
| Balance at 31 December 2021 | 30,334 | 25,631 |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1 January 2021 |
| Credit to Statement of Comprehensive Income during year | ( |
) |
| Balance at 31 December 2021 |
| Other provisions relate to dilapidation provisions on rented premises. |
| 24. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31/12/21 | 31/12/20 |
| value: | £ | £ |
| Ordinary | £0.0001 | 100 | 100 |
| Ordinary A | £1 | 12 | 12 |
| Ordinary Vn shares | £0.0001 | 5 | - |
| 117 | 112 |
| 50,000 Ordinary Vn shares shares of £0.0001 each were allotted and fully paid for |
| On 31 January 2021 50,000 £0.0001 Vn shares were issued. |
| On 1 February 2021 50,000 £0.0001 Vn shares were issued. |
| On 14 October 2021 the £0.0001 Vn shares were designated as "deferred shares" as part of an employee share ownership scheme. |
| On 19 November 2021 50,000 £0.0001 Vn shares were repurchased by the company. These were then cancelled on 22 November 2021. |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 25. | RESERVES |
| Group |
| Capital |
| Retained | Share | redemption |
| earnings | premium | reserve | Totals |
| £ | £ | £ | £ |
| At 1 January 2021 | 949,871 | 9,980 | - | 959,851 |
| Profit for the year | 147,491 | 147,491 |
| Dividends | (300,000 | ) | (300,000 | ) |
| Purchase of own shares | - | - | 5 | 5 |
| At 31 December 2021 | 797,362 | 9,980 | 5 | 807,347 |
| Company |
| Capital |
| Retained | Share | redemption |
| earnings | premium | reserve | Totals |
| £ | £ | £ | £ |
| At 1 January 2021 | 1,309,667 |
| Profit for the year |
| Dividends | ( |
) | ( |
) |
| Purchase of own shares | - | - | 5 | 5 |
| At 31 December 2021 | 1,277,715 |
| 26. | PENSION COMMITMENTS |
| The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £156,314 (2020: £58,591). Contributions totalling £68,299 (2020: £28,156) were payable to the fund at the balance sheet date and are included in other creditors. |
| 27. | ULTIMATE PARENT COMPANY |
| Ecoserv Holdings Limited is regarded by the directors as being the company's ultimate parent company. |
| 28. | CONTINGENT LIABILITIES |
| Cross-guarantee |
| A cross-guarantee exists across all group companies in relation to the bank loan held in the parent undertaking name on behalf of the trading group. |
| Ecoserv Group Limited (Registered number: 05418796) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2021 |
| 29. | RELATED PARTY DISCLOSURES |
| At the balance sheet date the group was owed/(owed) the following amounts to fellow group undertakings of the ultimate parent company, Ecoserv Holdings Limited, which fell outside the wholly owned subsidiary undertakings within the sub-group: |
| 2021 | 2020 |
| £ | £ |
| ESL (BBSW) Limited | 87,511 | - |
| Ecocleen Services (Operations) Limited | (25,567 | ) | 219,863 |
| Ecoserv Holdings Limited | 2,067,195 | 1,652,567 |
| As at 31 December 2020 the group was owed £34,343 by ESL (BBSW) Limited, a joint venture with the Ecoserv Holdings Limited group. This company became a 100% subsidiary of the Ecoserv Holdings group in 2021. |
| 30. | ULTIMATE CONTROLLING PARTY |
| There is no ultimate controlling party. |