Registration number:
Agility Eco Services Ltd
for the Year Ended 30 September 2022
Agility Eco Services Ltd
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
Agility Eco Services Ltd
Company Information
Directors |
Ms S L Johnson Mr A J Dear |
Registered office |
|
Auditors |
|
Agility Eco Services Ltd
Strategic Report for the Year Ended 30 September 2022
The directors present their strategic report for Agility Eco Services Limited for the year ended 30 September 2022.
Principal activity
The principal activities of the company are the support of energy companies in meeting their environmental and social obligations, the provision of community-based programmes to provide advice and support to vulnerable and fuel poor households, and the provision of funded retrofit energy efficiency interventions to qualifying households. In delivering these services we work hand in hand with energy companies, our network of installation partners, local authorities, housing providers, charities, and other delivery and funding partners.
The Company’s mission is to play a major role in eliminating fuel poverty, to deliver tangible and permanent improvements for low income and vulnerable households and to prepare Britain’s homes for Net Zero.
Review of the business & future developments
The directors are pleased with the performance of the Company in the period set against the backdrop of legislative transition for two of the funding streams from which the Group earns much of its revenue – the Energy Company Obligation [ECO] and the Warm Homes Discount [WHD].
Given the cyclicality of the legislative cycle the company anticipated a lower level of financial performance during the year ending 30 September 2022 than it saw in the year ending 30 September 2021. The company delivered revenue of £43.0m [2021 - £65.5m] and Operating profit of £4.4m [2022 - £9.6m]. The company retained relationships with all of its energy supplier clients; the decline in revenues and operating profit was broadly in line with the profile of ECO delivery in the market at large.
ECO3, the third phase of ECO, closed on 31 March 2022 and the ECO4 Order came into force in July 2022. ECO4 will run until March 2026, and the size of the funded obligation has increased to £4bn.
The Warm Homes Discount scheme was also extended through legislation to March 2026 and pleasingly the Industry Initiatives element of funding is likely to increase from the starting budget of £40m to up to £65m by 2025/6.
Alongside the confirmation of increasing ECO and WHD funding to March 2026, the government continues to commit funding to retrofit energy efficiency programmes targeting those in fuel poverty through vehicles such as the Home Upgrade Grant [HUG] and through its Heat and Buildings Strategy has signalled its intentions to promote the electrification of heat.
To achieve its twin targets of net zero by 2050, and eliminating fuel poverty by 2030, the government has indicated that it will need to continue to commit funding which gives the company confidence in its growth prospects over the medium to long term.
In April 2022 the company acquired a significant minority stake in Alto Energy Ltd, a designer and installer of air source heat pump [ASHP] systems, with an option to increase its equity stake in future. We believe this will fast-track the company’s heat pump capabilities bringing further funding opportunities, and enabling us to support our network of supply chain partners in transitioning to low carbon heating technologies. The government has set a target of 600,000 heat pump installations a year by 2026 and the company is well placed to contribute to this.
Agility Eco Services Ltd
Strategic Report for the Year Ended 30 September 2022
Monitoring performance
Financial performance
The financial Key Performance Indicators (“KPI”) that the directors use to monitor the performance of the Company are Revenue, Gross Margin, and Operating Profit.
KPI |
Measure |
Context |
Revenue |
£43.0m (2021 - £65.4m) |
Measure of the growth of the business and success in winning new contracts, and diversifying into adjacent markets. |
Gross Margin |
£8.5m / 19.8% (2021 - £12.4m / 18.9%) |
Reflects the ability to win and sustain contracts at an appropriate margin, and to mitigate price risk. |
Operating Profit |
£4.4m (2021 - £9.6m) |
Overall measure of profitability for the business. |
Non-financial performance
As a mission-led business focused on alleviating fuel poverty and supporting the transition to Net Zero, the Group of which the Company is a part also measures its performance in terms of social and environmental impact, rather than in solely financial terms. The following operational metrics are used to help us measure this impact (and relate to the Group as a whole):
Key operational Metrics (from our Impact Report for 2021/22)
Number of vulnerable households served |
45,557 (2020/1 - 44,643) |
Number of energy efficiency measures provided |
98,757 (2020/1 - 105,307) |
Total lifetime bill savings from energy saving measures |
£168.6m (2020/1 - £200.1m) |
Average Lifetime Savings per household |
£5,613 (2020/1 - £6,556) |
Jobs supported in local companies and social enterprises |
788 (2020/1 – 757) |
Funding unlocked for clients and partners |
£60.9m (2020/1 - £57m) |
Tonnes of Lifetime CO2 emissions abated |
513,710 (2020/1 - 545,753) |
The Group's Impact Report is available from the Agility Eco website.
The directors are delighted that the group has been able to continue to have such a positive social impact and particularly that it has increased the number of vulnerable households helped.
As an impactful business the welfare of our employees is important to us. In the year we expanded our People Strategy to incorporate initiatives on Equality Diversity and Inclusion, employee wellbeing and learning and development.
Agility Eco Services Ltd
Strategic Report for the Year Ended 30 September 2022
Principal risks and uncertainties
The directors are ultimately responsible for the management of risk. Risk is managed from the perspective of the Group in which the Company resides. A risk framework exists for the Group and is regularly reviewed by the directors and management team. Day-to-day responsibility for managing this overall risk framework is devolved to the Chief Financial Officer whilst Managers are responsible for monitoring, managing, and reporting risks in their respective business areas.
The following are the principal risks applicable to the business activity of the group:
Principal Risks |
Nature and Impact |
Mitigation |
Strategic risk |
Government regulation changes to the effect that a different funding model is developed for tackling fuel poverty and energy efficiency that does not play to the Group’s strengths, or funding is ceased or withdrawn in key areas. |
Continuous communication with government and relevant stakeholders including BEIS and Ofgem, as well as diversification of funding partners and operations. |
Key-person dependency in senior management and other critical areas of the business. |
Active succession planning, resource planning, investment in training and development. |
|
Commercial risk |
Key customer goes out of business or ceases to work with the Group. |
Diversification of customer base, diversification of operations, strong relationship management, robust contractual terms. |
Supplier market price movements result in margin pressure. |
Back-to-back contracting, monitoring market intelligence, ensuring contracts are appropriate length. |
|
Operational risk |
Data breach or mishandling of customer data. |
Clear data handling policy established and regularly reviewed, and compliance monitored. |
IT security or systems failure. |
Staff training, investment in IT support, penetration testing, external reviews. |
Future developments
Looking ahead the directors are optimistic about the prospects for further growth. Environmental and social challenges in our society are growing and as such we are uniquely placed to offer services to a wide range of stakeholders. Energy suppliers, local authorities and social landlords have traditionally been our core business partners and we continue to maintain and develop strong strategic relationships across our partner base.
Our supply chain are critical to our success and we are pleased to have maintained strong relationships with key partners as well as founding relationships with new partners.
Agility Eco Services Ltd
Strategic Report for the Year Ended 30 September 2022
In the coming year the Company expects to continue to leverage strong relationships with its clients and supply chain partners to deliver across all its core business areas. Whilst the transition from ECO3 to ECO4 is likely to result in some continued volatility in the market in the short term as the new scheme beds in, in the longer term the increased funding available under ECO and under WHD will enable us to continue to deliver profitable growth. With a proven model for deployment of large scale retrofit funding in conjunction with Local Authority and other funding partners we are also positive about our prospects of expanding our footprint here.
Continued government commitment for ECO and WHD funding out to 2030 as a key mechanism in alleviating fuel poverty and achieving Net Zero will allow the Company to continue to support its partners in delivering tangible benefits to UK households.
Approved by the
......................................... |
Agility Eco Services Ltd
Directors' Report for the Year Ended 30 September 2022
The directors present their report and the financial statements for the year ended 30 September 2022.
Information disclosed in the Strategic Report
The directors have included within the Strategic Report a review of the business and its likely future developments, and disclosure on Post Balance Sheet Events.
Results and Dividends
The profit for the year after taxation amounted to £3,534,273 (2021 - profit of £8,200,406).
During the year the company declared dividends of £4,894,206 (2021 - £5,905,283).
Directors of the company
The directors who held office during the year were as follows:
The following directors were appointed after the year end:
Third party indemnity insurance was provided for all Directors of the Group during the financial year and this continues at the date of approval of the financial statements, under policies held by the Group.
Financial Instruments
Objectives and Policies
The Directors are responsible for risk management within the Group. The Group has exposure to the following risks through its financial instruments.
Price risk
The Group could be exposed to price risk if the cost of component parts or labour moved sufficiently to cause inflation in install partner costs to such a degree that they exceeded the funding available from funding partners for the delivery of ECO measures. The Group mitigates this through diversifying across a range of install partners, through ensuring that funding commitments do not cover too long a period that any pricing risk would be heightened, and through working to align supplier costs to funding agreements for measures.
Credit risk
The Group’s primary credit risk results from its receivables, should a customer or counterparty fail to meet its financial obligations. Credit risk is closely monitored and mitigated through strong relationships and regular contact with customers, alongside robust contractual terms.
Cash and financial instruments are all deposited with mainstream banking institutions with strong credit ratings.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group forecasts its cashflow under both normal trading and stress-tested conditions, to monitor liquidity closely, and expects to meet its liabilities through operating cash flows.
Agility Eco Services Ltd
Directors' Report for the Year Ended 30 September 2022
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;
• 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. 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.
Disclosure of information to the auditors
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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
......................................... |
Agility Eco Services Ltd
Independent Auditor's Report to the Members of Agility Eco Services Ltd
Opinion
We have audited the financial statements of Agility Eco Services Ltd (the 'company') for the year ended 30 September 2022, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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 company's affairs as at 30 September 2022 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. |
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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information 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.
Agility Eco Services Ltd
Independent Auditor's Report to the Members of Agility Eco Services Ltd
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 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, 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. |
Responsibilities of directors
As explained more fully in the set out on page 8, 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to: |
|
• |
discussing with the directors and management their policies and procedures regarding compliance with laws and regulations; |
• |
communicating identified laws and regulations throughout our engagement team and remaining alert to any indication of non-compliance throughout the audit; and |
Agility Eco Services Ltd
Independent Auditor's Report to the Members of Agility Eco Services Ltd
• |
considering the risk of acts by the company which were contrary to applicable laws and regulations including fraud. |
Our audit procedures in relation to fraud included but were not limited to: |
|
• |
making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud; |
• |
gaining an understanding on the internal controls established to mitigate risks related to fraud; |
• |
discussing with the engagement team the risk of fraud; and |
• |
addressing the risks of fraud through management override of controls by performing journal entry testing. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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
The Mill
Pury Hill Business Park
Alderton Road
NN12 7LS
Agility Eco Services Ltd
Profit and Loss Account for the Year Ended 30 September 2022
Note |
2022 |
2021 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
4,368,016 |
9,597,684 |
|
Income from shares in group undertakings |
- |
|
|
Other interest receivable and similar income |
|
- |
|
Interest payable and similar expenses |
( |
( |
|
(23,886) |
420,255 |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
There was no other comprehensive income for the year (2021: £nil).
The above results were derived from continuing operations.
Agility Eco Services Ltd
(Registration number: 08304360)
Balance Sheet as at 30 September 2022
Note |
2022 |
2021 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
Other financial assets |
1,192,421 |
- |
|
|
|
||
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 |
14 |
14 |
|
Share premium reserve |
49,996 |
49,996 |
|
Share based payment reserve |
61,607 |
8,702 |
|
Profit and loss account |
3,657,432 |
5,021,808 |
|
Shareholders' funds |
3,769,049 |
5,080,520 |
Approved and authorised by the
......................................... |
Agility Eco Services Ltd
Statement of Changes in Equity for the Year Ended 30 September 2022
Share capital |
Share premium |
Share based payment reserve |
Profit and loss account |
Total |
|
At 1 October 2021 |
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
Share based payment |
- |
- |
|
- |
|
Total comprehensive income |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
At 30 September 2022 |
|
|
|
|
|
Share capital |
Share premium |
Share based payment reserve |
Profit and loss account |
Total |
|
At 1 October 2020 |
|
|
- |
|
|
Profit for the year |
- |
- |
- |
|
|
Other comprehensive income |
- |
- |
|
- |
|
Total comprehensive income |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
At 30 September 2021 |
|
|
|
|
|
Agility Eco Services Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
The principal place of business is:
AgilityEco
Suite 5, Mid Day Court,
20-24 Brighton Road
Sutton
Surrey
SM2 5BN
These financial statements were authorised for issue by the
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 United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in Sterling (£)
Summary of disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland':
the requiements of Section 7 Statement of Cash Flows.
Group accounts not prepared
The financial statements therefore present information about the company as an individual entity and not about its group
Agility Eco Services Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
Going concern
The company and the group within which it sits were both profitable during the year, and at year end both had net current assets. The directors note the general risk factors and uncertainties of the current economic environment, but notwithstanding those factors neither the company nor the group are considered to face a threat to their ability to continue in operational existence for the a period of at least twelve months from the date of this report. Accordingly, the financial statements have been prepared on a going concern basis.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. The company recognises revenue when the specific criteria has been met for each of the company's activities; it is probable that the economic benefits will flow to the entity; and the amount of revenue can be reliably measured.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the 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
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
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 |
Furniture fittings & equipment |
25% - 33% straight line |
Agility Eco Services Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
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.
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.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. The company subsequently considers the recoverable value of the trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
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. 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.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Agility Eco Services Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
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 profit and loss account 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 company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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 company 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.
Share based payments
The company operates an equity-settled compensation plan, under which the entity received services from employess as consideration for shares in the ultimate parent company under a Share Incentive Plan (SIP). The fair value of the employees services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the equity instrument is calculated with reference to the most recent sale of shares in the ultimate parent company, discounted to reflect the constraints on sales associated with shares allocated within the SIP.
Share-based payments are recognised as Administrative expenses within the Profit and loss account, and as credit to the Share-based payment reserve within the Balance sheet.
Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
2022 |
2021 |
|
Rendering of services |
|
|
Agility Eco Services Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
2022 |
2021 |
|
Gain on disposal of Tangible assets |
- |
|
Operating profit |
Arrived at after charging/(crediting)
2022 |
2021 |
|
Depreciation expense |
|
|
Foreign exchange losses |
|
|
Profit on disposal of property, plant and equipment |
- |
( |
Other interest receivable and similar income |
2022 |
2021 |
|
Other finance income |
|
- |
Interest payable and similar expenses |
2022 |
2021 |
|
Interest expense on other finance liabilities |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2022 |
2021 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Share-based payment expenses |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
Agility Eco Services Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
2022 |
2021 |
|
Administration and support |
|
|
Operations |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2022 |
2021 |
|
Remuneration |
|
|
Agility Eco Services Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
Taxation |
Tax charged/(credited) in the profit and loss account
2022 |
2021 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
- |
814,300 |
1,805,596 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
- |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2021 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2022 |
2021 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax expense relating to changes in tax rates or laws |
- |
|
Deferred tax credit from unrecognised temporary difference from a prior period |
( |
- |
Tax decrease from effect of capital allowances and depreciation |
( |
( |
Tax decrease arising from group relief |
- |
( |
Tax decrease from effect of dividends from UK companies |
- |
( |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
|
Total tax charge |
|
|
.
Agility Eco Services Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
Tangible assets |
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
||
At 1 October 2021 |
|
|
Additions |
|
|
At 30 September 2022 |
|
|
Depreciation |
||
At 1 October 2021 |
|
|
Charge for the year |
|
|
At 30 September 2022 |
|
|
Carrying amount |
||
At 30 September 2022 |
|
|
At 30 September 2021 |
|
|
Investments |
2022 |
2021 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 October 2021 |
|
Provision |
|
Carrying amount |
|
At 30 September 2022 |
|
At 30 September 2021 |
|
Agility Eco Services Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company 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 held |
||||
2022 |
2021 |
||||||
Subsidiary undertakings |
|||||||
|
168 Church Road
|
|
|
|
|||
|
168 Church Road
|
|
|
|
|||
|
168 Church Road
|
|
|
|
Bierce Surveying Ltd is held indirectly as a subsidiary of Agility Survey Ltd.
Subsidiary undertakings |
Agility Solar Ltd The principal activity of Agility Solar Ltd is |
Agility Survey Ltd The principal activity of Agility Survey Ltd is |
Bierce Surveying Ltd The principal activity of Bierce Surveying Ltd is |
Agility Eco Services Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
Other financial assets (current and non-current) |
Financial assets at cost less impairment |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
Additions |
1,192,421 |
1,192,421 |
At 30 September 2022 |
1,192,421 |
1,192,421 |
Impairment |
||
Carrying amount |
||
At 30 September 2022 |
|
1,192,421 |
The Company purchased a 15% share undertaking in Alto Energy Limited on 6 April 2022.
Stocks |
2022 |
2021 |
|
Energy efficiency measures |
|
|
The value of stock written down during the year due to impairment was £nil (2021 - £nil).
Debtors |
Current |
Note |
2022 |
2021 |
Trade debtors |
|
|
|
Amounts owed by related parties |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
Cash and cash equivalents |
2022 |
2021 |
|
Cash at bank |
|
|
Agility Eco Services Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
Creditors |
Note |
2022 |
2021 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts due to related parties |
- |
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other payables |
|
|
|
Accruals and deferred income |
|
|
|
Income tax liability |
187,055 |
1,008,555 |
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 October 2021 |
|
|
At 30 September 2022 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Agility Eco Services Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
|||
No. |
£ |
No. |
£ |
|
|
|
5 |
|
5 |
|
|
9 |
|
9 |
|
|
|
|
Reserves |
Share premium
This reserve records the consideration received for shares issued which is in excess of their nominal value, less transactions costs.
Profit and loss reserve
This reserve records the cumulative distributable reserves of the entity, net of dividends paid and other adjustments.
Share based payment reserve
This reserve records the cumulative value of allocations that the company has made to employees under the Share Incentive Plan.
Loans and borrowings |
2022 |
2021 |
|
Non-current loans and borrowings |
||
Other borrowings |
|
|
Other borrowings
Unsecured Loan Notes in the name of the company's parent Agility Impact Holdings Limited are denominated in Sterling (£) with a nominal interest rate of 3%, and the final instalment is due on 19 November 2025. The carrying amount at year end is £1,041,500 (2021 - £1,010,832).
Agility Eco Services Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2022 |
2021 |
|
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 £
Share-based payments |
Scheme details and movements
The group has valued the shares based on the valuation given by HMRC for the initial issuance and a third party valuation prepared for another share transacation for the second issuance. This was felt to the be most appropriate valuation in the absense of a quoted market price.
The entity is part of a group share-based payment scheme and it recognises and measures its share-based payment expense on the basis of a reasonable allocation of the expense recognised for the group. The allocation of the group expense is based on the number of employees in each entity.
The movements in the number of share options during the year were as follows:
2022 |
2021 |
|
Granted during the period |
- |
|
Outstanding, end of period |
|
|
|
Effect of share-based payments on profit or loss and financial position
The total expense recognised in profit or loss for the year was £52,905 (2021 - £8,702).
Agility Eco Services Ltd
Notes to the Financial Statements for the Year Ended 30 September 2022
Dividends |
Interim dividends paid
2022 |
2021 |
|||
Interim dividend of £ |
|
|
||
Interim dividend of £ |
|
|
||
|
|
Related party transactions |
Summary of transactions with all associates
During the period the company made sales of £21,930 to Alto Energy Limited, a company in which they hold a 15% investment. There was £9,438 outstanding at the year end. During the period Alto Energy Limited charged £131,056 for services to the company. There was £43,598 outstanding at the year end.
Parent and ultimate parent undertaking |
The company's immediate parent is
The most senior parent entity producing publicly available financial statements is