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Registered number: 04010379
EFFICIO LIMITED
AUDITED
DIRECTORS' REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2015
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EFFICIO LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditors
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EFFICIO LIMITED
CONTENTS
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Independent auditors' report
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Notes to the financial statements
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EFFICIO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2015
WHO WE ARE AND WHAT WE DO
We are procurement specialists and we help our clients to achieve measurable results in their procurement and supply chain functions. We bring our expertise to clients across twelve core sectors spanning manufacturing, healthcare and financial services.
HOW WE DO IT
We achieve measurable and sustainable results for our clients by driving strategic sourcing and supply chain improvement programmes. We improve client’s long term capabilities through technology, organisation, people and operating model changes.
HOW WE CREATE VALUE
We achieve measurable financial outcomes for our clients with our fees often tied to performance. We increasingly provide longer term solutions to our clients, be they multi-phase procurement transformations, the provision of an ongoing managed procurement service or by implementing Procurement Backbone, a suite of procurement technology tools.
BUSINESS REVIEW
2015 was a year of solid growth and strong performance for the company. Operating profit increased by 191% to £2,912,462 (2014 - £1,000,720). This increase was driven by a 16% increase in fee income to £18,321,868 (2014 - £15,802,907) combined with higher management charges from other group companies. Net profit for the year on ordinary activities after deducting taxation amounted to £2,299,330 (2014 - £703,898).
The results of the company are set out in the financial statements and the profit and loss accounts for the year can be found on page 7.
PRINCIPAL RISKS AND UNCERTAINTIES
In the course of our day to day operations, we face a number of risks and uncertainties. The board of directors has overall responsibility for ensuring that an appropriate risk management system is in place to identify and manage all significant risk exposures throughout the company. The board considers the matters described below to be the principal risks that face the company as it currently stands and that could affect the business, results of operations, turnover, profit, cash flow, assets and the delivery of our growth strategy.
PROFESSIONAL RISK
Our dependence on recruitment and retention of highly qualified employees:
- Our ability to meet the demands of the market and compete effectively with other consultancy and services firms is, to a large extent, dependent on having the right amount of skilled, experienced and high performing employees. The loss of key personnel or significant numbers of employees, or the failure to attract a sufficient number of suitably qualified and experienced personnel, could have a serious impact on our ability to service client contracts.
- Our most important asset is our people. To ensure that we recruit and retain the right people we have strong recruitment procedures and performance appraisal processes. We also have an extensive training and development programme.
Page 1
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EFFICIO LIMITED
STRATEGIC REPORT (continued)
FOR THE YEAR ENDED 30 JUNE 2015
MARKET RISK
Economic uncertainty in our major markets could have an adverse impact on client demand:
- A reduction in client demand would lead to a loss of significant revenue streams, pressure on our billing rates, or the collapse of a key client, exposing the group to potential financial loss.
- We have in place an account management review programme that focuses attention on all of our accounts to ensure stability, account growth and customer satisfaction are all achieved. Our commercial approach ensures that we position our offerings in a way that is commensurate with market conditions, yet at the same time reflects the value provided to our clients.
FINANCIAL RISK
The use of a results based fee model:
- Our fees are often tied to performance and there is some financial risk around the use of this fee model.
- Prior to agreeing such a fee arrangement there is a detailed assessment and approval process. There is detailed ongoing monitoring of the performance of all such assignments with corrective action taken quickly if required. As this fee model represents a decreasing proportion of overall group turnover, so the risk to the group reduces.
FUTURE DEVELOPMENTS
We enter 2016 with an impressive pipeline of new business with both new and existing clients. We continue to focus on growing our technology and managed service offerings to clients, creating opportunities for longer term commitments with clients and resulting revenue stability.
This report was approved by the board on 16 December 2015 and signed on its behalf.
Mr J M V Pedersen
Director
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Page 2
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EFFICIO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2015
The directors present their report and the financial statements for the year ended 30 June 2015.
DIRECTORS' RESPONSIBILITIES STATEMENT
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The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
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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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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·select suitable accounting policies and then apply them consistently;
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·make judgments and accounting estimates that are reasonable and prudent;
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·prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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The principal activity of the company during the year under review continued to be the design and implementation of procurement solutions.
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The profit for the year, after taxation, amounted to £2,299,330 (2014 - £703,898).
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The directors have recommended not paying a dividend this year.
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The directors who served during the year were:
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DISCLOSURE OF INFORMATION TO AUDITORS
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Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
·so far as that director is aware, there is no relevant audit information of which the company's auditors are unaware, and
·that director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.
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Page 3
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EFFICIO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2015
This report was approved by the board on 16 December 2015 and signed on its behalf.
Mr J M V Pedersen
Director
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Page 4
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EFFICIO LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EFFICIO LIMITED
We have audited the financial statements of Efficio Limited for the year ended 30 June 2015, set out on pages 7 to 16. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company's shareholders, 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 shareholders those matters we are required to state to them in an auditors' report 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 shareholders as a body, for our audit work, for this report, or for the opinions we have formed.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the strategic report and the directors' report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
OPINION ON FINANCIAL STATEMENTS
In our opinion the financial statements:
·give a true and fair view of the state of the company's affairs as at 30 June 2015 and of its 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.
OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Page 5
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EFFICIO LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EFFICIO LIMITED
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
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, or returns adequate for our audit have not been received from branches not visited by us; or
·the 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.
Robin John FCA CTA (senior statutory auditor)
for and on behalf of
Wellden Turnbull Ltd
Chartered Accountants
Statutory Auditors
180 Piccadilly
London
W1J 9HF
17 December 2015
Page 6
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EFFICIO LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2015
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Interest receivable and similar income
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Interest payable and similar charges
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PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
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Tax on profit on ordinary activities
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PROFIT FOR THE FINANCIAL YEAR
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All amounts relate to continuing operations.
There were no recognised gains and losses for 2015 or 2014 other than those included in the profit and loss account.
The notes on pages 9 to 16 form part of these financial statements.
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EFFICIO LIMITED
REGISTERED NUMBER: 04010379
BALANCE SHEET
AS AT 30 JUNE 2015
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CREDITORS: amounts falling due within one year
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TOTAL ASSETS LESS CURRENT LIABILITIES
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PROVISIONS FOR LIABILITIES
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 December 2015.
The notes on pages 9 to 16 form part of these financial statements.
Page 8
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EFFICIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
1.ACCOUNTING POLICIES
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards.
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The company, being a subsidiary undertaking where 90% or more of the voting rights are controlled within the group whose consolidated financial statements are publicly available, is exempt from the requirement to draw up a cash flow statement in accordance with FRS 1.
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Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.
In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.
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Tangible fixed assets and depreciation
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Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
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Computer equipment and software
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Rentals under operating leases are charged to the profit and loss account on a straight line basis over the lease term.
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Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.
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A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.
Deferred tax assets and liabilities are not discounted.
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Page 9
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EFFICIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
1.ACCOUNTING POLICIES (continued)
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Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.
Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.
Exchange gains and losses are recognised in the profit and loss account.
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The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
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2.TURNOVER
The whole of the turnover is attributable to the one principal activity of the company.
All turnover arose within the United Kingdom.
3.OTHER OPERATING INCOME
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Management charge receivable
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4.OPERATING PROFIT
The operating profit is stated after charging/(crediting):
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Depreciation of tangible fixed assets:
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Difference on foreign exchange
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Page 10
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EFFICIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
5.STAFF COSTS
Staff costs, including directors' remuneration, were as follows:
The average monthly number of employees, including the directors, during the year was as follows:
6.DIRECTORS' REMUNERATION
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Company pension contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 2 directors (2014 - 1) in respect of defined contribution pension schemes.
The highest paid director received remuneration of £98,434 (2014 - £98,460).
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £3,360 (2014 - £NIL).
 
7.INTEREST RECEIVABLE
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Other interest receivable
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Page 11
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EFFICIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
8.INTEREST PAYABLE
9.TAXATION
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Analysis of tax charge in the year
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Current tax (see note below)
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UK corporation tax charge on profit for the year
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Deferred tax (see note 13)
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Origination and reversal of timing differences
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Tax on profit on ordinary activities
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Factors affecting tax charge for the year
The tax assessed for the year is lower than (2014 - lower than) the standard rate of corporation tax in the UK of 20% (2014 - 21%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20% (2014 - 21%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Capital allowances for year in excess of depreciation
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Other timing differences leading to an increase (decrease) in taxation
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Change in standard rate of corporation tax during year
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Current tax charge for the year (see note above)
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Factors that may affect future tax charges
There were no factors that may affect future tax charges.
Page 12
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EFFICIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
10.TANGIBLE FIXED ASSETS
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Computer equipment and software
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11.DEBTORS
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Amounts owed by group undertakings
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Prepayments and accrued income
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Page 13
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EFFICIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
12.CREDITORS:
Amounts falling due within one year
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Invoice financing facility and overdrafts (secured)
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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The invoice financing facility is secured by a fixed and floating charge over all of the assets of the company.
13.DEFERRED TAXATION
The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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14.SHARE CAPITAL
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Allotted, called up and fully paid
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70,000 Ordinary shares of £0.01 each
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Page 14
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EFFICIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
15.RESERVES
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Profit for the financial year
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16.PRIOR YEAR ADJUSTMENT
The company has changed its accounting policy in respect of consultancy wages, which have been moved from administrative expenses to cost of sales as it was the directors' opinion that these expenses relate to sales rather than being an overhead. This change has been reflected in both the current and prior year.
These adjustments have resulted in a decreased gross profit, however they do not affect the overall net profit for the last period.
17.RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
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Opening shareholders' funds
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Profit for the financial year
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Closing shareholders' funds
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18.PENSION COMMITMENTS
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund amounted to £341,024 (2014 - £274,066). There were amounts of £53,900 (2014 - £50,723) outstanding at the year end.
19.OPERATING LEASE COMMITMENTS
At 30 June 2015 the company had annual commitments under non-cancellable operating leases as follows:
Page 15
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EFFICIO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
20.RELATED PARTY TRANSACTIONS
At the balance sheet date, the company owed Mr J Pedersen, a director £14,839 (2014 - £309,170) by way of director's loan. This balance is interest free and repayable on demand.
The directors have taken advantage of the exemption conferred by Financial Reporting Standard 8 not to disclose transactions and balances with other group companies as they are eliminated on consolidation and the consolidated accounts are publicly available.
The group accounts can be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
21.ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY
The company is controlled by Efficio Holdings Limited and the ultimate parent undertaking is Efficio Group Limited.
The ultimate controlling party is Lutea Trustees Limited, a company incorporated in Jersey.
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