Registration number:
Powerday PLC
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Brebners
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Powerday PLC
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Statement of Comprehensive Income |
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Consolidated Statement of Financial Position |
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Company Statement of Financial Position |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Powerday PLC
Company Information
Directors |
M R Crossan E Crossan |
Registered office |
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Auditor |
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Powerday PLC
Strategic Report for the Year Ended 31 July 2020
The directors present their strategic report for the year ended 31 July 2020.
Principal activity
The principal activity of the company is the provision of integrated waste management, construction and recycling services to a broad range of customers spanning construction, development, utility and municipal sectors. In addition the group has a controlling interest in a professional rugby club (non-core activity).
Fair review of the business
The directors are satisfied with the levels of turnover and profitability generated by the group's core activities, in what continues to be a hugely challenging economic environment further disrupted by COVID-19.
The business (together with society and the economy as a whole) was significantly impacted by the COVID-19 pandemic, and the UK Government's response to this - in particular during the initial UK wide lockdown from mid March to early June. Whilst the country and economy were locked down activity and turnover levels fell understandably steeply, but with the lifting of these measures the business responded swiftly. The company and group have made use of available Governmental support (including the job retention scheme) throughout the pandemic.
Bearing in mind the impact of COVID-19 the directors are pleased with the levels of turnover and profitability generated by the group's core activities, and in particular the robustness shown by the business. Although there can be no certainty of when the pandemic and related impacts upon the economy will end, the directors have considered the proposed roadmap out of lockdown and related uncertainties, and their current view is that the impact will be manageable. Whilst the uncertainty may continue to impact profitability the directors remain confident that the company's core activities will continue to generate significant profitability in the future. Further investment continues to be made in the group's core business demonstrating the directors' positive outlook for this business.
The directors are aware of the performance of its non-core acquisition which has been significantly impacted by COVID-19, and remain committed to re-establishing London Irish Rugby Club as a financially sound, self-sustaining entity. The Rugby Club remains 6th in the Premiership table and is guaranteed to remain within the Premiership for the 2021/22 season. A combination of the lifting of restrictions on spectator attendance, a move to a new home at the Brentford Community Stadium and improved playing performances is hoped will significantly boost match day attendance and commercial income. Investment has continued to be made both on and off the pitch.
On 29th March 2019 Premier Rugby Limited ("PRL") completed a new partnership with a leading private equity and investment advisory firm to invest in a minority shareholding in the league. This investment was a major sign of confidence in rugby generally and its appeal, and resulted in an increase of fair value in the prior year of £7,382,066. Additional investments in other rugby competitions made by the private equity and investment firm have underlined the commitment and interest in growing the games commercial appeal.
Financial KPIs
The company's key financial performance indicators during the year were as follows:
Unit |
2020 |
2019 |
|
Principal Core Activities: |
|
|
|
|
|
||
Turnover |
£ |
40,914,220 |
52,884,130 |
Increase/(decrease) in turnover |
% |
(23) |
6 |
|
|
|
|
Gross margin |
% |
23 |
30 |
|
|
|
|
Non-Core Activities: |
|
||
Operating profit/(loss) |
£ |
(4,328,678) |
4,007,440 |
Turnover |
£ |
8,881,826 |
7,585,052 |
Powerday PLC
Strategic Report for the Year Ended 31 July 2020
Non-financial KPIs
The group seeks to ensure that responsible business practice is fully integrated into the management of all of its operations and into the culture of all parts of its business. The directors believe that the consistent adoption of responsible business practice is essential for operational excellence, which in turn ensures the delivery of its core objectives of sustained real growth in profitability. Ongoing regulatory compliance forms an important part of this approach.
In a company of this size the directors consider there are collectively numerous non-financial performance indicators but none individually are key.
Principal risks and uncertainties
The directors consider the following risks and uncertainties to be key in managing and maintaining the future success of the group.
Ongoing impact of COVID-19:
The ongoing impact of the COVID-19 pandemic and the related Governmental measures to combat the virus remain significant. The directors have considered the ongoing potential effect of the current COVID-19 pandemic and that the roadmap out of lockdown is still dependent on a number of factors, and therefore remains uncertain. The directors’ current view is that although profitability and levels of activity continue to be impacted, this impact will be manageable. With the resource that the group has, together with the current actions being taken the group is better positioned than most to continue operations throughout the crisis.
Economic Outlook:
The economic environment continues to be challenging with continuing pressure on margins in both the core and non-core activities of the group. The position is further clouded by the ongoing economic impact of both the COVID-19 pandemic and the UK's decision to leave the European Union. Trading profits continue to be pressurised in the integrated waste management sector, and re-establishing match day revenues at London Irish Rugby Club remains challenging in a post COVID-19 society with muted wages growth in the wider economy. Furthermore, adverse performance on the pitch could place further pressure on match day incomes. Although the club's position in the premiership is confirmed for the 2021/22 season, relegation to the Championship in future periods remains a risk.
Brexit:
The directors remain vigilant to the ongoing uncertainties and risk associated with Brexit and the UK leaving the EU on 31st December 2020 - particularly the potential negative impact upon the level of migrant workforce across the industry and any implications on exported material.
Regulation:
Ongoing compliance with regulatory requirements, particularly within the core waste management business remains critical to the group's future prospects. The directors prioritise regulatory compliance across the business as a whole.
Expansion:
The successful integration and business development at the enhanced waste management site opened during Autumn 2015 remains central to expansion plans within the group's core business. The directors remain vigilant in identifying opportunities for further expansion, although the current environment remains challenging in this regard.
Powerday PLC
Strategic Report for the Year Ended 31 July 2020
London Irish Rugby Club:
The group has stated its intention to support London Irish Rugby Club however playing performance on the field is a fundamental ingredient to the financial success of the club. In particular the financial importance of maintaining its place in The Premiership has been prioritised by the directors. Whilst this has been confirmed for the 2021/22 season, this remains a key goal for all future periods.
Maintaining sponsorship partners and match day revenues at London Irish Rugby Club will remain challenging in the post COVID-19 economic environment and continued success in this area is closely linked to the club's on-field performance. Further investment made in the playing and coaching squad ahead of the 2020/21 season reaffirmed the club's intent to prioritise success on the pitch and gives the club every chance of avoiding relegation from The Premiership in the future, thereby maximising such revenue opportunities when COVID-19 restrictions have been removed.
Player and coaching staff retention is key to the future success of the club, though the group is confident in the club's ability to recruit and develop players as it continues to develop its reputation as a family club with a welcoming atmosphere and state of the art training facility. The benefits of this have been seen in the quality of players and coaching staff joining the club and solid player retention and in the short term with relegation being removed for the 2020/21 season, the club is guaranteed its place in the Premiership for the 2021/22 season.
Future developments
The directors remain hopeful that the Group's core activity performance can be maintained or bettered, despite the challenging economic environment, Brexit uncertainty and the longer term impacts of COVID-19. In particular results in the current year to date have been encouraging with significant profitability in the first half of the year upon which the directors are confident the company can build. Whilst uncertainties remain the Board believe that there are opportunities for development and potential expansion in the current volatile economic climate.
Non-core activity performance is being closely monitored and much will depend on when lockdown restrictions will be lifted on stadium attendance, and levels of related income generated throughout the 2021/22 season.
The club is delighted to have negotiated a license agreement to play its home games at the Brentford Community stadium from the start of the 2020/21 season - with the first home match being staged in November 2020.
Powerday PLC
Strategic Report for the Year Ended 31 July 2020
Section 172(1) statement
The Companies (Miscellaneous Reporting) Regulations 2018 require Directors to explain how they considered the interests of key stakeholders as set out in section 172(1) of the Companies Act 2006 when performing their duty to promote the success of the Company. The following paragraphs summarise how the Directors fulfil their duties.
The Board is committed to ensuring that the Company maintains a strong reputation across all of its stakeholders and this will remain a long term focus of the Company as we continue to grow and expand.
The Board has identified the stakeholder groups below with whom engagement is fundamental to the ongoing success of the Company.
We engage frequently with our employees and aim to keep them informed of any relevant changes that will impact them directly or indirectly. The Company provides regular updates to all teams and this year has seen a particular focus on the changes due to Covid-19. We value all of our employees and ensure that health, safety and wellbeing is promoted and maintained at all times without compromise.
We strive together with our customers and are determined to continue to deliver a best in class service to each and every one of our clients. Our sustainable offering is consistent and reliable and continues to assist construction businesses reduce their carbon footprint by diverting 100% of their waste from landfill.
The Company is focused on executing its strategy to ensure our Shareholders benefit from strong underlying returns whilst also maintaining an ethical and moral ethos across all decisions made.
Our suppliers are essential for our business to flourish and we are always committed to purchasing goods and services from local businesses where possible.
As a business, our strategy and business decisions consider the Government’s strategy to reduce the waste that goes to landfill and moving toward a circular economy.
Powerday maintains an ethos of ‘giving back’. The business consistently supports the local communities in which it operates through the Powerday Foundation and the Powerday Academy. We are delighted to have been able to deliver £9.2 million of social value in the year ended 31 July 2020.
Approved by the
.........................................
Director
Powerday PLC
Directors' Report for the Year Ended 31 July 2020
The directors present their report and the for the year ended 31 July 2020.
Directors of the group
The directors who held office during the year were as follows:
Disclosure of information in the Strategic Report
The group has chosen in accordance with s.414C(11) of the Companies Act 2006 to set out in the group's Strategic Report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the Director's Report. It has done so with respect to future developments.
Dividends
Particulars of recommended dividends are detailed in note 26 to the financial statements.
Financial instruments
Objectives and policies
The group's principal financial instruments comprise bank balances, bank overdrafts, trade and other creditors, trade debtors, loans and hire purchase agreements. The main purpose of these instruments is to raise funds for and finance the group's operations.
Price risk, credit risk, liquidity risk and cash flow risk
Due to the nature of the financial instruments used by the group there is no exposure to price risk. The group's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. The group makes use of money market facilities where funds are available. The group have loan facilities which are continually monitored, with the compliance with all relevant covenants prioritised.
In respect of other loans these are from financial institutions. The interest rates are tied to LIBOR and market rates and the group manages the liquidity risk by ensuring there are sufficient funds to meet the payments.
The group has entered into a significant number of hire purchase agreements. This liquidity risk in respect of these is managed in the same way as loans.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts falling due.
Powerday PLC
Directors' Report for the Year Ended 31 July 2020
Donations
During the year the group made the following contributions:
2020
|
2019
|
|
Charitable |
2,150 |
6,347 |
Employment of disabled persons
The Group's policy to offer equal opportunities to all persons, including disabled persons, applying for vacancies having regard to their aptitudes and abilities in relation to their jobs for which they apply. The opportunity also exists for continuing employment and appropriate training for such employees including those who become disabled during their employment with the company.
Engagement with employees
The Group's policy is to consult and discuss with employees, through meetings, on matters likely to affect employees' interests, or matters of concern to them.
Information on matters of concern to employees is communicated internally to achieve a common awareness of the financial and economic factors affecting the performance of the Group.
Engagement with suppliers, customers and other relationships
We strive together with our customers and are determined to continue to deliver a best in class service to each and every one of our clients. Our sustainable offering is consistent and reliable and continues to assist construction businesses reduce their carbon footprint by diverting 100% of their waste from landfill.
The Company is focused on executing its strategy to ensure our Shareholders benefit from strong underlying returns whilst also maintaining an ethical and moral ethos across all decisions made.
Our suppliers are essential for our business to flourish and we are always committed to purchasing goods and services from local businesses where possible.
Foreign exchange currency exposure
The group is exposed to currency exchange risk due to a significant proportion of its plant and machinery and operating expenses being denominated in non-Sterling currencies. The net exposure of each currency is monitored by reviewing forward exchange rates and taking account of anticipated movements when negotiating key transactions and contracts.
Policy on the payment of creditors
The group does not follow any specific code or standard on payment practice. However, it is the group's policy to negotiate terms with its suppliers and to ensure that they are aware of the terms of payment when business is agreed. Every effort is made to adhere to these terms and payment is made when it can be confirmed that goods and services have been provided in accordance with the relevant contract conditions.
The creditor payment period of the group for the year was 35 days (2019: 34 days).
Streamlined energy and carbon reporting
The UK Government’s Streamlined Energy and Carbon Reporting (SECR) policy was implemented on 1 April 2019, this is the Company’s first time adoption of disclosures on energy and carbon. The table below represents Powerday’s energy use and associated greenhouse gas (GHG) emissions from electricity and fuel in the UK for the year ended 31 July 2020. The data covers all five of our sites across London.
Powerday PLC
Directors' Report for the Year Ended 31 July 2020
Total Energy Consumption (kWh) |
22,309,818 |
Made up of: |
|
Natural gas |
- |
Electricity |
5,935,081 |
White diesel |
7,992,947 |
Red diesel |
8,378,024 |
LPH |
3,767 |
Scope 1 - Direct CHG emissions in metric tonnes CO2e |
3,969 |
Natural gas |
- |
White diesel |
1,939 |
Red diesel |
2,029 |
LPH |
1 |
Scope 2 - Energy Indirect emissions in metric tonnes CO2e |
1,446 |
Purchase vehicles on company business |
1,446 |
Scope 3 - Other indirect emissions in metric tonnes CO2e |
5,415 |
Intensity ratio tonnes CO2e per metres squared |
0.11 |
The SECR submission has been compiled using the 2019 HM Government Environmental Reporting Guidelines.
Emissions have been grouped according to the GHG Protocol Corporate Standard.
We have used the following data sources for the report for the:
• Energy and Fuel Data - Energy supplier billing data
• Transport Data - litres of fuel consumed
• Intensity Ratio - based on floor area of our five premises in metres2
CO2 emissions have been calculated using the 2020 UK Government Conversion Factors for Company Reporting.
In order to reduce our carbon footprint our Company strategy has meant that we have replaced ageing office equipment with energy efficient products, review our company energy and car policies frequently, expanded video conferencing and online meetings as opposed to face to face meetings and replaced old inefficient lamps with low energy LEDs.
Comparison with prior year figures
As this is the first year of SECR, Powerday PLC is not required to compare consumption and emissions with previous years.
The 2019/20 SECR reporting period will be used as a baseline for future comparisons.
The baseline year will be reviewed and re-designated if there is a significant organisational change.
Powerday PLC
Directors' Report for the Year Ended 31 July 2020
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
.........................................
Director
Powerday PLC
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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 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 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.
Powerday PLC
Independent Auditor's Report to the Members of
Powerday PLC
Opinion
We have audited the financial statements of Powerday PLC (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2020, which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and 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 the parent company's affairs as at 31 July 2020 and of the group's loss 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
• |
the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
• |
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or the parent company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Powerday PLC
Independent Auditor's Report to the Members of
Powerday PLC
Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 Strategic Report and the Directors' Report.
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 10], 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 is 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.
Auditor’s 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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
• |
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
Powerday PLC
Independent Auditor's Report to the Members of
Powerday PLC
• |
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control. |
• |
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
• |
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. |
• |
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
• |
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 an auditor’s 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
130 Shaftesbury Avenue
London
W1D 5AR
Powerday PLC
Consolidated Statement of Comprehensive Income for the Year Ended 31 July 2020
Note |
2020 |
2019 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Fair value movements |
- |
7,382,066 |
|
Other operating income |
|
|
|
Operating (loss)/profit |
( |
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
(82,653) |
(152,936) |
||
(Loss)/profit before tax |
( |
|
|
Taxation |
|
( |
|
(Loss)/profit for the financial year |
( |
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
|
Minority interests |
( |
|
|
( |
|
Powerday PLC
Consolidated Statement of Financial Position as at 31 July 2020
Note |
2020 |
2019 |
|
Fixed assets |
|||
Negative goodwill |
( |
( |
|
|
|||
Intangible assets not including goodwill |
|
|
|
Tangible assets |
|
|
|
Investments |
( |
( |
|
Other financial assets |
15,998,154 |
15,998,154 |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Equity attributable to owners of the company |
|
|
|
Minority interests |
( |
|
|
Total equity |
|
|
Approved and authorised by the
.........................................
Director
Company registration number: 01509382
Powerday PLC
Company Statement of Financial Position as at 31 July 2020
Note |
2020 |
2019 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
- |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Company registration number: 01509382
Approved and authorised by the
.........................................
Director
Powerday PLC
Consolidated Statement of Changes in Equity for the Year Ended 31 July 2020
Equity attributable to the parent company
Share capital |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 August 2018 |
|
|
|
( |
|
Profit for the year |
- |
|
|
|
|
Other comprehensive income |
- |
( |
( |
|
- |
Total comprehensive income |
- |
|
|
|
|
Dividends |
- |
( |
( |
- |
( |
At 31 July 2019 |
|
|
|
|
|
Share capital |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 August 2019 |
|
|
|
|
|
Profit/(loss) for the year |
- |
|
|
( |
( |
Total comprehensive income |
- |
|
|
( |
( |
Dividends |
- |
( |
( |
- |
( |
At 31 July 2020 |
|
|
|
( |
|
Powerday PLC
Statement of Changes in Equity for the Year Ended 31 July 2020
Share capital |
Profit and loss account |
Total |
|
At 1 August 2018 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
At 31 July 2019 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 August 2019 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
At 31 July 2020 |
|
|
|
Powerday PLC
Consolidated Statement of Cash Flows for the Year Ended 31 July 2020
Note |
2020 |
2019 |
|
Cash flows from operating activities |
|||
(Loss)/profit for the year |
( |
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Change in fair value of investments |
- |
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
( |
|
|
|
|
||
Working capital adjustments |
|||
(Increase)/decrease in stocks |
( |
|
|
Decrease in debtors |
|
|
|
Increase in creditors |
|
|
|
Decrease in provisions |
( |
( |
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of intangible assets |
( |
( |
|
Acquisition of other financial assets |
- |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Payments to hire purchase creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 August 2019 |
28,778,762 |
13,366,492 |
|
Cash and cash equivalents at 31 July 2020 |
25,797,876 |
28,778,762 |
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The principal activity of the company and group is the the provision of integrated waste management, construction and recycling services to a broad range of customers spanning construction, development, utility and municipal sectors. In addition the group has a controlling interest in a professional rugby club (non-core activity).
The address of its registered office is:
The address of its principal places of business are:
Core activities:
Crossan House
Old Oak Sidings
Off Scrubs Lane
London
NW10 6RJ
Non core activities:
Hazelwood, Hazelwood Drive
Sunbury-on-Thames
Middlesex
TW16 6QU
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were 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.
Basis of preparation
These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 July 2020. No profit and loss account has been prepared for the company as permitted by Section 408 of the Companies Act 2006.
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein.
Minority (non-controlling) interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority's share of changes in equity since the date of the combination.
Increases in controlling interest since the combination are accounted for as a transaction between equity holders. Accordingly the carrying amount of minority interest is adjusted to reflect the change in the parent's interest in the subsidiary's net assets.
The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the minority interests are determined on the basis of existing ownership interests and do not reflect the possible or conversion of options or convertible instruments.
Associate Undertakings
Entities other than the subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence are treated as associates. In the group financial statements, associates are accounted for using the equity method.
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Going concern
At 31st July 2020, the group had substantial net assets including cash at bank of £25,797,876.
The company, and the group of which it is a member, meets its day to day working capital requirements through a combination of existing resources, normal trading terms, hire purchase finance and bank facilities. Ongoing regulatory compliance is critical to the company and operational procedures and controls are closely monitored to ensure the company remains compliant in this regard.
The parent company's latest unaudited management accounts show significant and continued profitability in its core waste management business. As a consequence the directors believe that the group is well placed to manage its business risks successfully with the parent company continuing to support its subsidiaries as necessary.
The directors have considered the ongoing potential effect of the current Covid-19 pandemic and that the roadmap out of lockdown is still dependant on a number of factors and uncertainties. The directors' current view is that, although profitability continues to be impacted, the impact will be manageable. With the resources that the group has, together with the current actions being taken, the group is better positioned than most to continue operations through this crisis.
After making enquiries the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectation of future events, that are believed to be reasonable under the circumstances.
Other than those involving estimations there are no judgements that management has made in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the financial statements.
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next year are as follows:
The group establishes a reliable estimate of the useful life of goodwill, negative goodwill and intangible assets arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business and the expected useful life of the cash-generating units to which the goodwill is attributed. The group tests annually whether goodwill has suffered any impairment where the carrying value exceeds the recoverable amount.
Where the group's interest in the net amount of the identifiable assets, liabilities and provisions for contingent liabilities exceeds the cost of the business combination, the resulting excess is disclosed on the face of the statement of financial position. Subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit and loss in the periods in which the non-monetary assets are recovered. Any excess exceeding the fair value of non-monetary assets acquired is recognised in profit and loss in the periods expected to be benefited.
Tangible fixed assets are depreciated to their estimated residual values over their estimated useful lives. The group estimates these useful lives and residual values.
Deferred tax assets and liabilities require management judgement in determining the amounts to be recognised. In particular, when assessing the extent to which deferred tax assets should be recognised with consideration given to the timing, nature and level of future taxable income. The recognition of deferred tax assets relating to tax losses carried forward relies on profit projections and taxable profit forecasts prepared by management, where a number of assumptions are required based on the levels of growth in profits and the reversal of deferred tax balances.
Unlisted investments are held at fair value as estimated by the group.
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The group recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the group's activities.
Core:
Revenue is recognised in the period in which the group's obligation to its customers to treat/dispose of waste received at its facilities has been met.
Revenue on property sales is recognised upon the legal exchange of contracts.
Non-core:
Gate receipts and other match day revenue are recognised within the period in which the respective match takes place.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and the amount of revenue can be reliably measured.
Sponsorship and similar commercial income is recognised on an accurate basis in accordance with the substance of the relevant agreement. Income received in advance is carried forward as deferred income.
Season tickets and seasonal hospitality revenues are recognised on an accruals basis in line with the timing of home matches played. Income received in advance is carried forward as deferred income and released to revenue on a systematic basis over the season.
Premier Rugby Limited ("PRL") income is recognised on an accruals basis. Income received in advance is carried forward as deferred income and released to revenue on a systematic basis over the season.
Government grants
Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment.
Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.
Foreign currency transactions and balances
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Core:
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. It is the company's policy to capitalise interest arising on loans directly relating to assets under construction.
Non-core:
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
8-25% straight line |
Land and buildings |
Over lease period where leased / 2% straight line (land not depreciated) |
Commercial vehicles |
25% straight line |
Motor vehicles |
25% straight line |
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Investment property
Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis
Negative goodwill
Negative goodwill is amortised in the period in which the non-monetary assets to which it relates are realised.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
Intangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date.
In particular development costs are capitalised as an intangible asset only when all of the following criteria are met:
• It is technically feasible to complete the intangible asset so that it will be available for use or sale;
• There is the intention to complete the intangible asset and use or sell it;
• There is the ability to use or sell the intangible asset;
• The use of sale of the intangible asset will generate probable future economic benefits;
• There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and
• The expenditure attributable to the intangible asset during its development can be measured reliably.
Expenditure that does not meet the above criteria is expensed as incurred.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Asset class |
Amortisation method and rate |
Development Costs |
33% straight line |
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Other investments held as fixed assets are measured at fair value. Changes in fair value are recognised in profit and loss.
An entity is treated as an associate undertaking where the group has a participating interest and exercises significant influence over its operating and financial policy decisions.
In the group accounts, interests in associated undertakings are accounted for using the equity method of accounting. The consolidated profit and loss account includes the group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings based on audited financial statements. In the consolidated balance sheet, the interests in associated undertakings are shown as the group's share of the identifiable net assets, including any unamortised premium paid on acquisition. Losses in excess of the carrying amount of an investment in associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
Any premium on acquisition is dealt with under the goodwill policy.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Inventories
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. On the recognition of a property sale the related work in progress is released to the profit and loss account. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss. Stage of completion of contracts in progress is determined by independent certification.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Income Statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Provisions
Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Company Statement of Financial Position as a finance lease obligation.
Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Hire Purchase
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at cost. The asset is then depreciated over its useful life. Future payments are apportioned between finance costs in the income statement and reduction of the liability so as to achieve a constant periodic rate of interest on the remaining balance of the liability using the effective interest method.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Financial instruments
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
Revenue |
The analysis of the group's revenue for the year from continuing operations is as follows:
2020 |
2019 |
|
Waste recycling |
|
|
Rugby |
|
|
|
|
The whole of turnover was generated in the United Kingdom.
An analysis of the group's operating performance for the year from continuing operations is as follows:
2020 |
2019 |
|||||
Waste Recycling |
Rugby |
Total |
Waste Recycling |
Rugby |
Total |
|
£ |
£ |
£ |
£ |
£ |
£ |
|
Turnover |
40,914,220 |
8,881,826 |
49,796,046 |
52,884,130 |
7,585,052 |
60,469,182 |
Profit/(loss) before tax |
3,510,213 |
(4,565,826) |
(1,055,613) |
8,297,106 |
3,093,954 |
11,391,060 |
Profit/(loss) after tax |
4,337,262 |
(4,818,476) |
(481,214) |
6,525,623 |
1,951,969 |
8,477,592 |
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2020 |
2019 |
|
Government grants |
|
- |
Rental income |
- |
|
Donations |
2,500 |
73,499 |
|
|
Operating (loss)/profit |
Arrived at after charging/(crediting)
2020 |
2019 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Foreign exchange losses |
|
|
Profit on disposal of tangible assets |
( |
( |
Other interest receivable and similar income |
2020 |
2019 |
|
Interest income on bank deposits |
|
|
Other finance income |
|
|
|
|
Interest payable and similar expenses |
2020 |
2019 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under hire purchase contracts |
|
|
Other finance costs |
|
|
143,722 |
228,548 |
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2020 |
2019 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2020 |
2019 |
|
Administration and support |
|
|
Operative |
|
|
Other departments |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2020 |
2019 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
315,834 |
370,044 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2020 |
2019 |
|
Accruing benefits under money purchase pension scheme |
|
|
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
In respect of the highest paid director:
2020 |
2019 |
|
Remuneration |
|
|
Auditor's remuneration |
2020 |
2019 |
|
Audit of the financial statements |
88,000 |
95,000 |
Fees payable to the company's auditor across the group, for other services:
2020 |
2019 |
|
£ |
£ |
|
Taxation compliance services |
25,000 |
20,000 |
Other non-audit services |
46,450 |
36,450 |
71,450 |
56,450 |
Taxation |
Tax charged/(credited) in the income statement
2020 |
2019 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
|
|
122,603 |
1,306,005 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax (receipt)/expense in the income statement |
( |
|
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2019 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2020 |
2019 |
|
(Loss)/profit before tax |
( |
|
Corporation tax at standard rate |
( |
|
Effect of revenues exempt from taxation |
- |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax debit/(credit) |
( |
|
Tax increase from effect of capital allowances and depreciation |
|
|
Tax increase from effect of tax losses |
|
|
Underprovision in prior years |
|
|
Total tax (credit)/charge |
( |
|
Deferred tax
Group
Deferred tax assets and liabilities
2020 |
Asset |
Liability |
Depreciation in excess of capital allowances |
|
- |
Accelerated capital allowances |
- |
- |
Revaluation of tangible assets |
- |
- |
Fair value adjustment of financial assets |
- |
|
Unused tax losses |
|
- |
Capital gains rolled over |
- |
|
|
|
2019 |
Asset |
Liability |
Depreciation in excess of capital allowances |
- |
- |
Accelerated capital allowances |
- |
|
Revaluation of tangible assets |
- |
|
Fair value adjustment of financial assets |
- |
|
Unused tax losses |
|
- |
Capital gains rolled over |
- |
|
|
|
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Company
Deferred tax assets and liabilities
2020 |
Asset |
Depreciation in excess of capital allowances |
( |
Accelerated capital allowances |
- |
Revaluation of tangible assets |
- |
Capital gains rolled over |
|
( |
2019 |
Liability |
Depreciation in excess of capital allowances |
- |
Accelerated capital allowances |
|
Revaluation of tangible assets |
|
Capital gains rolled over |
- |
|
Profit for the year for the parent company |
The profit for the financial year for the parent company was £4,337,265 (2019: £6,929,723).
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Intangible assets |
Group
Development costs |
|
Cost or valuation |
|
At 1 August 2019 |
|
Additions |
|
At 31 July 2020 |
|
Amortisation |
|
At 1 August 2019 |
|
Amortisation charge |
|
At 31 July 2020 |
|
Carrying amount |
|
At 31 July 2020 |
|
At 31 July 2019 |
|
Negative goodwill |
2020 |
At 1 August 2019 |
( |
At 31 July 2020 |
( |
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Tangible assets |
Group
Land and buildings |
Commercial vehicles |
Motor vehicles |
Plant and equipment |
Total |
|
Cost or valuation |
|||||
At 1 August 2019 |
|
|
|
|
|
Additions |
|
|
- |
|
|
Disposals |
( |
( |
- |
( |
( |
At 31 July 2020 |
|
|
|
|
|
Depreciation |
|||||
At 1 August 2019 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
( |
At 31 July 2020 |
|
|
|
|
|
Carrying amount |
|||||
At 31 July 2020 |
|
|
- |
|
|
At 31 July 2019 |
|
|
|
|
|
Included within the net book value of land and buildings above is £12,221,159 (2019 - £13,148,584) in respect of freehold land and buildings and £11,047,923 (2019 - £11,475,611) in respect of short leasehold land and buildings.
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Company
Land and buildings |
Commercial vehicles |
Motor vehicles |
Plant and equipment |
Total |
|
Cost or valuation |
|||||
At 1 August 2019 |
|
|
|
|
|
Additions |
|
|
- |
|
|
Disposals |
( |
( |
- |
( |
( |
At 31 July 2020 |
|
|
|
|
|
Depreciation |
|||||
At 1 August 2019 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
( |
At 31 July 2020 |
|
|
|
|
|
Carrying amount |
|||||
At 31 July 2020 |
|
|
- |
|
|
At 31 July 2019 |
|
|
|
|
|
Included within the net book value of land and buildings above is £825,594 (2019 - £825,594) in respect of freehold land and buildings and £11,047,923 (2019 - £11,475,611)
in respect of long leasehold land and buildings.
Assets held under hire purchase contracts
The net carrying amount of tangible assets (group and company) includes the following amounts in respect of assets held under hire purchase contracts:
2020 |
2019 |
|
Plant & Machinery |
2,565,013 |
2,841,435 |
Commercial vehicles |
2,002,354 |
1,888,166 |
4,567,367 |
4,729,601 |
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Investments |
Group
Principal subsidiary undertakings
The principal subsidiary undertakings of Powerday PLC are listed below. At 31st July 2020 the company held a direct beneficial interest in 86% of the ordinary share capital of London Irish Consortium (2013) Limited, a company registered in England and Wales. At 31st July 2020 London Irish Consortium (2013) Limited held a direct beneficial interest in 92% of the ordinary share capital of London Irish Holdings Limited, a professional rugby club registered in England and Wales. This gave Powerday an indirect beneficial interest in 79% of the ordinary share capital of London Irish Holdings Limited and other principal companies listed below.
The London Irish Holdings Limited group is included within the consolidated accounts on the basis of information prepared to 30th June 2020 as disclosed in its consolidated financial statements at that date. July 2020 was a non-playing month for professional rugby clubs and the cumulative effect of the transactions occurring in July 2020 is immaterial.
On 9th August 2018 50,000,000 new ordinary 5p shares were issued to Powerday plc by London Irish Consortium (2013) Limited as part of a fully subscribed rights issue. Powerday increased its shareholding from 70% to 86% as a result of the Rights Issue. This increased the indirect beneficial interest of Powerday plc in London Irish Holdings Limited and the other principal companies from 64% to 79%.
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Subsidiaries, associates and other investments
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares |
|
2020 |
2019 |
Subsidiary undertakings |
||||
|
Hazelwood, Hazelwood Drive, Sunbury on Thames, Middlesex, TW16 6QU |
Ordinary |
|
|
|
Hazelwood, Hazelwood Drive, Sunbury on Thames, Middlesex, TW16 6QU |
Ordinary |
|
|
|
Hazelwood, Hazelwood Drive, Sunbury on Thames, Middlesex, TW16 6QU |
Ordinary |
|
|
|
Hazelwood, Hazelwood Drive, Sunbury on Thames, Middlesex, TW16 6QU |
Ordinary |
|
|
In addition London Irish Consortium (2013) Ltd holds a 84% holding of deferred ordinary shares in London Irish Holdings Limited. These shares are non-voting and only participate in an exit event in excess of £100m. |
||||
|
Hazelwood, Hazelwood Drive, Sunbury on Thames, Middlesex, TW16 6QU |
Ordinary |
|
|
* Shares held by London Irish Consortium (2013) Limited
** Shares held by London Irish Holdings Limited
2020 |
2020 |
|
£ |
£ |
|
Carrying amount |
(22,329) |
(22,329) |
The principal activity of Hazelwood Centre LLP was facilities management. On 1st June 2017 the LLP ceased trading activities.
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Company
INVESTMENT IN SUBSIDIARIES
2020 |
2019 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 August 2019 |
|
Carrying amount |
|
At 31 July 2020 |
|
At 31 July 2019 |
|
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Other financial assets |
Group
Financial assets at fair value through profit and loss |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 August 2019 |
15,998,154 |
15,998,154 |
At 31 July 2020 |
15,998,154 |
15,998,154 |
Carrying amount |
||
At 31 July 2020 |
|
15,998,154 |
The unlisted investment represent an investment in 'Income Shares' (Invested Units) entitling the holder to future income streams from the Premier Rugby League ("PRL").
Subsequent to the CVC transaction on the 29 March 2019, the P shares formerly held were replaced by Invested Units. The Invested Units entitle the holder to future income streams from PRL. The principal activity of PRL is to promote and foster the interests of member clubs. It is incorporated in the UK.
The company has valued its investment in PRL based upon the income stream provided by the investment, and in line with other shareholding clubs. The valuation is based upon the projected future income stream into perpetuity discounted at a rate of 8% per annum, and this methodology has been approved by the PRL Board and is reviewed on an annual basis.
This gives a valuation which is unchanged from that included in the prior year. The directors consider this to represent a fair value. The impact of Covid-19 is considered to be exceptional and short-term and therefore does not impact the valuation of the investment, which is based on a medium to long term plan.
The company has also co-invested along with CVC Funds, in an additional minority shareholding in PRL. This investment is currently valued upon the same methodology.
Stocks |
Group |
Company |
|||
2020 |
2019 |
2020 |
2019 |
|
Work in progress |
|
|
|
|
Other inventories |
|
|
- |
- |
|
|
|
|
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Debtors |
Group |
Company |
||||
Note |
2020 |
2019 |
2020 |
2019 |
|
Trade debtors |
|
|
|
|
|
Amounts owed by group undertakings |
- |
- |
|
|
|
Other debtors |
|
|
|
|
|
Prepayments and accrued income |
|
|
|
|
|
Corporation tax asset |
|
- |
|
- |
|
Directors loan account |
116,451 |
91,961 |
116,451 |
91,961 |
|
Deferred tax assets |
1,760,083 |
1,058,648 |
437,071 |
- |
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2020 |
2019 |
2020 |
2019 |
|
Cash at bank |
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
2020 |
2019 |
2020 |
2019 |
|
Due within one year |
|||||
Trade creditors |
|
|
|
|
|
Social security and other taxes |
|
|
|
|
|
Outstanding defined contribution pension costs |
|
- |
|
- |
|
Other payables |
|
|
|
|
|
Accruals and deferred income |
|
|
|
|
|
Corporation tax liability |
- |
291,278 |
- |
291,278 |
|
Obligations under hire purchase contracts |
1,443,885 |
1,580,771 |
1,443,885 |
1,580,771 |
|
|
|
|
|
||
Due after one year |
|||||
Accruals and deferred income |
|
|
- |
- |
|
Obligations under hire purchase contracts |
904,033 |
916,588 |
904,033 |
916,588 |
|
6,619,047 |
9,738,708 |
904,033 |
916,588 |
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Commitments under hire purchase agreements are shown under note
25
.
Deferred tax and other provisions |
Group
Deferred tax |
Other provisions |
Total |
|
At 1 August 2019 |
|
|
|
Increase (decrease) in existing provisions |
|
( |
( |
At 31 July 2020 |
|
- |
|
Company
Deferred tax |
Other provisions |
Total |
|
At 1 August 2019 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
( |
At 31 July 2020 |
- |
- |
- |
Other provisions represented the director's best estimate of probable obligations in respect of ongoing legal and contractual issues for which transfer of economic benefits are likely on the resolution of the matters concerned.
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to
£
Contributions totalling
£
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Share capital |
Allotted, called up and fully paid shares
2020 |
2019 |
|||
No. |
£ |
No. |
£ |
|
Ordinary "A" shares of £1 each |
25,050 |
25,050 |
25,050 |
25,050 |
Ordinary "B" shares of £1 each |
25,050 |
25,050 |
25,050 |
25,050 |
|
|
|
|
The rights, restrictions and privileges attaching to the Ordinary "A" shares and Ordinary "B" shares are as follows:
(a) the Ordinary "A" shares shall entitle the holders thereof to all the trade, assets and liabilities of the company, save that;
(b) the Ordinary "B" shares shall entitle the holders thereof to those trade, assets and liabilities used by the company in the property development and construction division. These assets and liabilities comprise property held as trading stock with the excess of trade debtors over trade creditors.
Reserves |
Group and company
The profit and loss account records current and prior year retained earnings and accumulated losses.
The company's reserves contain £216,810 which are not realised.
Obligations under leases and hire purchase contracts |
Group
Hire purchase
Hire purchase creditors fall due for payment as follows:
2020 |
2019 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Net obligations under hire purchase agreements are secured on the specific assets financed.
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Operating leases
The total of future minimum lease payments is as follows:
2020 |
2019 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Company
Hire purchase
Hire purchase creditors fall due for payment as follows:
2020 |
2019 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Net obligations under hire purchase agreements are secured on the specific assets financed.
Operating leases
The total of future minimum lease payments is as follows:
2020 |
2019 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Dividends |
Interim dividends paid
2020 |
2019 |
|||
Interim dividend of £
|
|
|
||
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Related party transactions |
Group
Key management personnel
Key management compensation
2020 |
2019 |
|
Salaries and other short term employee benefits |
|
|
Summary of transactions with key management
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the group.
Dividends paid to directors |
2020 |
2019 |
|||
Interim dividends |
212,505 |
679,997 |
||
Other transactions with directors |
Included within debtors is a balance of £116,451 (2019: £91,961) due from the directors. During the year advances of £274,222 (2019: £285,638) and repayments of £250,232 (2019: £316,917) were made.
Interest of £4,955 (2016: £8,302) was charged at an annual average rate of 2.50% on cumulative net overdrawn balances. There are no set terms in place.
Summary of transactions with entities with significant influence
Company
Amounts due to and from group undertakings are aggregated as permitted by FRS 102 and shown separately in debtors and creditors.
Dividends paid to directors |
2020 |
2019 |
|||
|
||||
Interim dividend |
212,505 |
679,997 |
||
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Summary of transactions with all subsidiaries
Financial instruments |
Group
Categorisation of financial instruments
2020 |
2019 |
|
Financial assets measured at fair value through profit or loss |
|
|
Financial assets measured at fair value through profit or loss comprise the group's investment in "Income shares" (Invested Units) in Premier Rugby Limited.
The company had no Financial assets measured at fair value through profit or loss.
Analysis of changes in net debt |
Group
At 1 August 2019 |
Financing cash flows |
New HP agreements |
Other non-cash changes |
At 31 July 2020 |
|
Cash and cash equivalents |
|||||
Cash |
28,778,762 |
(2,980,886) |
- |
- |
25,797,876 |
Borrowings |
|||||
Long term borrowings |
(916,788) |
- |
- |
12,755 |
(904,033) |
Short term borrowings |
(1,580,571) |
2,422,125 |
(2,272,684) |
(12,755) |
(1,443,885) |
(2,497,359) |
2,422,125 |
(2,272,684) |
- |
(2,347,918) |
|
|
( |
( |
- |
|
Other financial commitments |
Group
At the year end the group had a capital commitment of £250,000 (2019: £250,000) and other financial commitments of £Nil (2019: £491,000).
The group has also negotiated a license agreement for London Irish Rugby Club to play its home games from the start of the 2020/21 season which is dependant on completion of the facility.
Powerday PLC
Notes to the Financial Statements for the Year Ended 31 July 2020
Non adjusting events after the financial period |
|