Environtec Group Limited - Limited company accounts 23.2

REGISTERED NUMBER: 11437508 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 July 2023

for

Environtec Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

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 2023.

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.

Reported turnover has decreased by 4.9%, and our underlying turnover which excludes subcontractors has decreased by 2.2%.

In 2023 our profit on ordinary activities before taxation has decreased to £393,548 (3.2% of turnover) from £826,222 (6.4% of turnover). After taxation, £303,115 has been added to reserves. Dividends of £351,750 have been paid.

We continue to add to our core business of asbestos consultancy with the complimentary services of Water, Fire, Lead contamination and Health and Safety consultancy services. Three key areas will allow us to build these new services.

Employees

We continue to invest in our colleagues by enhancing remuneration packages and providing training to continue their development. This is also enabling us to attract new team members to fulfil our order book. Additionally, by adding to the services provided to our clients we can provide a richer work experience with opportunities of progression within the business.

Clients

We place significant importance on understanding the needs and priorities of our clients. Our goal is to assist our clients in achieving their compliance requirements while strictly adhering to all relevant regulations.

Quality emphasis

We pride ourselves on our commitment to provide a high quality offering to the market. Our management system is UKAS accredited to ISO 17020 and ISO 17025 and in addition our health, safety and environmental systems are certified to ISO 14001 and ISO 45001. We invest heavily in our in-house quality assurance team to ensure compliance within our operational procedures.

PRINCIPAL RISKS AND UNCERTAINTIES

Health and safety risk

At Environtec, the safety of our colleagues is of paramount importance given the nature of our work. There is a potential risk to our clients and the general public if our services are not executed with utmost proficiency. To mitigate these risks, we prioritise ongoing training for our staff, and complete internal audit to ensure strict adherence to our comprehensive health and safety policies.

Staff Utilisation risk

We monitor our expected performance to actual performance for each member of our site staff to ensure our working days are maximised on a weekly basis. We also continually review new orders to ensure future works can be facilitated and maximised to ensure that we maintain our strong levels of profitability and cash flow.

Financial Price risk

A large proportion of our works are secured through competitive tenders. Using the information gathered from this process we are able to ensure that we maximise our pricing both for these frameworks and all other individually priced projects. We ensure orders and credit checks are carried out prior to the commencement of works to ensure payment is guaranteed to follow.

Human Resources risk

The largest challenge facing the business remains in Human Resources with high pressure on recruitment and retention. We continue to combat this by closely monitoring the comparison between our own and our competitors' remuneration packages and ensuring that we are among the best in our industry.

As for many businesses of our size, the business environment in which we operate continues to be challenging. The asbestos market in the UK is highly competitive and margins continue to be tight in certain sectors.

With these 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, but the directors are continually monitoring the situation in the best interest of the company to ensure its trading future.

KEY PERFORMANCE INDICATORS

The directors regularly review financial and non-financial KPI's at both board and operational levels. Monthly detailed reviews are carried out, focusing on operational and support functions, for all aspects for each business unit and their key performance indicators.

The directors consider the following to be the financial key performance indicators of the business:

" Turnover reduction - £633k (4.9%)

" Gross margin - 36.7% (2022 - 38.6%)

" Operating profit margin 3.2% (2022 - 6.4%)

" Cash Balances - £121k (2022 - £13k)

The non-financial KPI's are:

" Health and safety - accident statistics are reviewed monthly to ensure that future issues are minimised and any learning opportunities are implemented.

" Quality control checks - the results of both internal and external technical reviews are continually reviewed to ensure our colleagues provide an exceptional level of service to our clients.

ON BEHALF OF THE BOARD:

M Dennis - Director

20 December 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 July 2023.

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 2023 will be £ 351,750 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 August 2022 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 December 2023

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 2023 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 2023 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.

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 four, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have reviewed the industry in which the company operates in and have compared the key competitors to our client. We have gained an understanding of the appropriate legal and regulatory framework. We considered the risk of any acts by the company that were contrary of these laws, including fraud. We have performed our audit procedures appropriately, discussing with the company and obtaining sufficient evidence to form our opinion. The risk of not detecting a material misstatement is higher than the risk of not detecting one due to error. This is due to the fraud that may occur may involve collusion, forgery or intentional misrepresentations.

We focused on any laws and regulations which could give rise to a material misstatement in the financial statements, to include, but not limited to UK tax legislation and the Companies Act. Our audit procedures included enquiries of management and obtaining underlying supporting documentation to agree the disclosures within the financial statements.

We did not detect any irregularities such as fraud during the course of the audit. In accordance with our standard practice we also addressed the risk of management override of internal controls using our audit procedures and also by evaluating the risk of material misstatement due to fraud from bias from directors.

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

22 December 2023

12,922,601

TURNOVER

3

12,289,694

7,939,047

Cost of sales

7,780,075

4,983,554

GROSS PROFIT

4,509,619

4,362,072

Administrative expenses

4,317,397

621,482

192,222

1,192

Other operating income

4

-

622,674

OPERATING PROFIT

6

192,222

536

Interest receivable and similar income

594

623,210

192,816

2,164

Interest payable and similar expenses

7

-

621,046

PROFIT BEFORE TAXATION

192,816

186,577

Tax on profit

8

90,433

434,469

PROFIT FOR THE FINANCIAL YEAR

102,383

Profit attributable to:

434,469

Owners of the parent

102,383

434,469

PROFIT FOR THE YEAR

102,383

-

OTHER COMPREHENSIVE INCOME

-

434,469

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

102,383

Total comprehensive income attributable to:

434,469

Owners of the parent

102,383

FIXED ASSETS

1,221,117

Intangible assets

11

1,020,385

318,439

Tangible assets

12

276,427

-

Investments

13

-

1,539,556

1,296,812

CURRENT ASSETS

2,681,739

Debtors

14

2,262,506

13,709

Cash at bank and in hand

121,395

2,695,448

2,383,901

CREDITORS

2,370,234

Amounts falling due within one year

15

2,075,140

325,214

NET CURRENT ASSETS

308,761

1,864,770

TOTAL ASSETS LESS CURRENT LIABILITIES

1,605,573

77,845

PROVISIONS FOR LIABILITIES

18

68,014

1,786,925

NET ASSETS

1,537,559

CAPITAL AND RESERVES

10,400

Called up share capital

19

10,400

1,220,000

Share premium

20

1,220,000

556,525

Retained earnings

20

307,159

1,786,925

SHAREHOLDERS' FUNDS

1,537,559

The financial statements were approved by the Board of Directors and authorised for issue on 20 December 2023 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

419

Cash at bank

365

CREDITORS

2,757,672

Amounts falling due within one year

15

2,757,618

(2,757,253

)

NET CURRENT LIABILITIES

(2,757,253

)

1,242,747

TOTAL ASSETS LESS CURRENT LIABILITIES

1,242,747

CAPITAL AND RESERVES

10,000

Called up share capital

19

10,000

1,220,000

Share premium

20

1,220,000

12,747

Retained earnings

20

12,747

1,242,747

SHAREHOLDERS' FUNDS

1,242,747

(4,445

)

Company's loss for the financial year

-

The financial statements were approved by the Board of Directors and authorised for issue on 20 December 2023 and were signed on its behalf by:

R Price - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 August 2021

10,000

463,139

1,220,000

1,693,139

Changes in equity

Issue of share capital

400

-

-

400

Dividends

-

(341,083

)

-

(341,083

)

Total comprehensive income

-

434,469

-

434,469

Balance at 31 July 2022

10,400

556,525

1,220,000

1,786,925

Changes in equity

Dividends

-

(351,750

)

-

(351,750

)

Total comprehensive income

-

102,383

-

102,383

Balance at 31 July 2023

10,400

307,158

1,220,000

1,537,558

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 August 2021

10,000

17,192

1,220,000

1,247,192

Changes in equity

Total comprehensive income

-

(4,445

)

-

(4,445

)

Balance at 31 July 2022

10,000

12,747

1,220,000

1,242,747

Changes in equity

Balance at 31 July 2023

10,000

12,747

1,220,000

1,242,747

Cash flows from operating activities

617,816

Cash generated from operations

1

643,958

(2,164

)

Interest paid

-

(194,934

)

Tax paid

(152,127

)

420,718

Net cash from operating activities

491,831

Cash flows from investing activities

(162,408

)

Purchase of tangible fixed assets

(52,848

)

1,240

Sale of tangible fixed assets

15,751

536

Interest received

594

(160,632

)

Net cash from investing activities

(36,503

)

Cash flows from financing activities

245

Amount introduced by directors

4,578

(32,158

)

Amount withdrawn by directors

(470

)

400

Share issue

-

1,192

Government grants

-

(341,083

)

Equity dividends paid

(351,750

)

(371,404

)

Net cash from financing activities

(347,642

)

(111,318

)

Increase/(decrease) in cash and cash equivalents

107,686

125,027

Cash and cash equivalents at beginning of year

2

13,709

13,709

Cash and cash equivalents at end of year

2

121,395

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

31.7.23

31.7.22

£

£

Profit before taxation

192,816

621,046

Depreciation charges

290,226

278,489

(Profit)/loss on disposal of fixed assets

(10,386

)

3,227

Government grants

-

(1,192

)

Finance costs

-

2,164

Finance income

(594

)

(536

)

472,062

903,198

Decrease/(increase) in trade and other debtors

414,827

(283,778

)

Decrease in trade and other creditors

(242,931

)

(1,604

)

Cash generated from operations

643,958

617,816

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 2023

31.7.23

1.8.22

£

£

Cash and cash equivalents

121,395

13,709

Year ended 31 July 2022

31.7.22

1.8.21

£

£

Cash and cash equivalents

13,709

125,027

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.8.22

Cash flow

At 31.7.23

£

£

£

Net cash

Cash at bank and in hand

13,709

107,686

121,395

13,709

107,686

121,395

Total

13,709

107,686

121,395

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.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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

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.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

All turnover arose within the United Kingdom.

4.	OTHER OPERATING INCOME

31.7.23

31.7.22

£

£

Government grants

-

1,192

5.	EMPLOYEES AND DIRECTORS

31.7.23

31.7.22

£

£

Wages and salaries

6,181,166

6,069,094

Social security costs

578,495

589,760

Other pension costs

169,634

160,830

6,929,295

6,819,684

The average number of employees during the year was as follows:

31.7.23

31.7.22

Directors

4

4

Management

19

21

Operations

143

145

Administration

46

50

212

220

31.7.23

31.7.22

£

£

Directors' remuneration

102,037

93,384

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.7.23

31.7.22

£

£

Hire of plant and machinery

362,974

403,743

Depreciation - owned assets

89,495

77,758

(Profit)/loss on disposal of fixed assets

(10,386

)

3,227

Goodwill on consolidation amortisation

200,732

200,731

Auditors' remuneration

11,250

13,150