East of England Broadband Network is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1 Saltmore Farm, New Inn Road, Hinxworth, Hertfordshire, SG7 5EZ.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Group Accounts
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The average monthly number of persons (including directors) employed by the company during the year was:
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
The Directors of East of England Broadband Network are all officers of local authorities. These local authorities have subsequently agreed to financially support East of England Broadband Network. The Directors have therefore, in their role as officers of the local authority member, agreed the budget amounts allocated to East of England Broadband Network. Therefore, this income represents related party transactions.
The Directors and the respective Councils who they represent are listed below, together with the income net of VAT invoiced to them in the year for provision of services. These amounts include charges invoiced via Agents: -
Bedford Borough - £7,499 (2022: £185,612)
Cambridgeshire - John Chapman - £12,136 (2022: £68,291)
Central Bedfordshire - £Nil (2022: £Nil)
Luton - £6,072 (2022: £6,072)
Milton Keynes - Marie Denny - £7,816 (2022: £7,816)
Southend On Sea - Aaron Townsend - £97,286 (2022: £96,378)
Thurrock - £24,345 (2022: £67,858)
The staff of East of England Broadband Network are paid by various Council's. The Council calculates and pays their salaries and then re-invoices the total wages costs back to East of England Broadband Network on a monthly basis. The amounts recharged for the year and included in Wages & salaries by the councils who are also Guarantors is as follows;
Hertfordshire County Council £59,635 (2022: £122,521)
Thurrock BC £286,761 (2022: £297,319)
At the balance sheet date the amount due from E2BN Protex Ltd was £Nil (2022: £Nil)
Included within turnover is an amount of £142,850 (2022: £272,576) charged to E2BN Protex Ltd for services supplied to the subsidiary during the period. Included within project costs is an amount of £2,688 (2022: £30,948) recharged from E2BN Protex Ltd for Protex charges billed via East Of England Broadband Network.
During the year an amount of £20,818 (2022: £19,585) was invoiced to Data Protection Education Limited in respect of training and administration support.