The directors present the ir strategic report for the year ended 31 December 2021.
The directors consider the Group's trading result and financial position to be satisfactory. The consolidated profit for the year before taxation amounted to £1.1m (2020: £2.3m). The Group continues to operate a high-quality service to its customers. The board have filtered through control systems and an ethos across the Group to work towards our mission of delivering an outstanding service each and every time.
The Group carefully considers its principal risks and manages these risks by continual monitoring and assessment, policy setting, and compliance with all legal, statutory, and fiduciary obligations. The Group's operations expose it to various risks, including financial risk, operational risk, strategic risk, compliance risk and technology risk. Policies and safeguards are set to limit such risks to negligible levels. The main principal risks can be identified as follows:
Operational Risk
Our customers include large corporations and government agencies who depend upon our operational efficiency, non interruption of service, and accuracy and security of information. We devote significant resources to our systems and data, and to prevent, detect and respond to data security incidents, in each case that we believe are reasonable and appropriate.
Strategic Risk
In order to maintain risk at a low level, we conduct regular competitor analysis, set clear goals and key performance indicators (KPIs) and set tolerance levels before action is taken to identify potential risks in advance.
Compliance Risk
Our Group is governed by legislation and regulations. In order to minimalise the risk we are ensuring that we have specific rules in place to manage and enforce business compliance. We provide staff training and create a culture of compliance within our business. We regularly review our processes put in place to monitor compliance.
Technology Risk
We operate in dynamic industries that are characterised by rapid technological change, frequent product and service innovation and evolving industry standards. Our future success will depend on our ability to adapt and innovate to keep up with technological developments. As a result, we need to invest significant resources in research and development.
Financial Risk
Policies are set to limit such risks to negligible levels, which include: financial planning and projection; robust reporting and analytics to monitor success, putting credit control processes in place, and credit checking prospective clients.
The Group has continued its expansion within the European market. During the year, the Group has increased its customer base and further strengthened its position.
The investment in new enforcement processes in countries not previously entered by the Group has continued. The investment in the Group’s multilingual and multicurrency IT platform has also continued. The system, combined with the overall experience of the Group’s personnel, provide a cost-efficient service for the cross-border collection of traffic related contraventions irrespective of which country the issuing authority is based in and irrespective of the country to which the notification is made.
The directors have identified those principal risks and uncertainties faced by the company and have taken steps to minimise their impact on its ongoing operational and financial affairs. As part of this process, the directors monitor the company's ongoing financial performance against the various key performance indicators such as the number of issued notifications, which, which has decreased by 26% during the 2021 financial year compared to the 2020 financial year. This decline has been caused by the delayed Covid-19 pandemic effect on the sector and is expected to recover in 2022 and change in customer mix.
Euro Parking Collection Plc and its subsidiaries, are part of Verra Mobility Corporation, which is a leading provider of smart mobility technology solutions and services throughout the United States, Canada and Europe.
The G roup has continued to focus on winning new projects appropriate to the group's risks and rewards, delivering services to clients’ expectations, and continuing to develop software to improve the services provided. The group has considerable financial resources, with substantial working capital cash balances to ensure the development of the long term plans and projects in the course of seeking and delivering innovative solutions for clients.
The directors recognise that employees are fundamental to the Group’s success and are committed to the involvement and development of employees at all levels. We will continue to invest in and develop our employees. Our aim is to be an employer of their choice, to provide our employees with challenges that define and continue their careers.
We constantly are trying to develop long term relationships with our suppliers without whom the group would not be where it is today.
Our commitment to delivering an outstanding service to our clients has resulted in long–standing client relationships. Those long-standing relationships and "know our clients' needs" helps us to improve our technologies and solutions in order to deliver exceptional service. The quality, reliability, efficacy of solution, pricing strategy, the depth of products and services offered, the customer experience, the technical expertise and security of our services makes our group an important competitor in this sector.
We understand the impact we have on our environment. We are trying hard to be a responsible business and to control our environment footprint, investing in responsibly sourced materials, consistently making efforts to recycle and reuse.
We serve as a value-added partner to local government agencies and private companies.
We are subject to various local laws and regulations, administrative practices regulating matters such as data privacy, photo enforcement, consumer protection, procurement, licensing requirements, equal employment, the national minimum wage and the environment, amongst others.
The Covid-19 pandemic clearly has an impact on the business performance of EPC, like many other business in our market space. The Group is closely monitoring its impact on the business and realigning cost levels where possible without jeopardising the future growth opportunities of EPC. We have implemented a plan to continue to be able to provide an outstanding service and are still committed to continue to invest despite the difficult circumstances. For 2021 we have still been able to generate a healthy operating profit which confirms the strong position of EPC.
Events in Ukraine continue to contribute to market uncertainty. As a result, the group closely monitors their ongoing impact upon the business. While there are broader economic implications of events in Ukraine, such as increases in energy prices, rising pressure on the inflation rates, and currency fluctuations, there are no direct financial consequences for the business.
With regard to Brexit, the group has taken action to ensure appropriate arrangements have been made to achieve business continuity.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2021.
The results for the year are set out on page 11.
No ordinary dividends were paid. The directors recommend payment of a final dividend amounting to £6,214,093.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The Group’s capital is maintained on a high level. As such, the overall liquidity risk is seen as low. In addition, the Group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations.
Further information regarding the Group’s financial instruments, related policies, consideration of its liquidity and other financing risks is included in the notes to the financial statements.
The Group manages its cash in order to maximise interest income, whilst ensuring the Group has sufficient liquid resources to meet the operating needs of the business.
The Group does not have any loans therefore its interest rate risk is limited.
The Group’s principal foreign currency exposures arise from its normal activities. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling .
Investments of cash surpluses are made through banks which must fulfil credit rating criteria approved by the Board. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
The Group has invested £435,115 (2020: £ 626 , 211 ) in research and development activities on projects in the course of seeking and delivering innovative solutions for our clients
The Strategic Report contains details of our business relationships with our customers, employees and suppliers.
Since the post year end development and global spread of COVID-19 and events in Ukraine, the Group is closely monitoring the impact on the business and financial markets. The Group has considerable financial resources, with working capital cash balances net of overdrafts of £8.7m (2020: £9.3m) as at 31 December 2021. In addition the Group has long-term contracts and a diverse range of customers and suppliers across its business. After making appropriate enquiries the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operation for the foreseeable future and have therefore continued to adopt the going concern basis in preparing the annual financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies in the notes to the financial statements.
The Strategic Report contains details of likely future developments within the Group.
In accordance with the company's articles, a resolution proposing that PK Audit LLP be reappointed as auditor of the company will be put at a General Meeting.
As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
We have audited the financial statements of Euro Parking Collection Plc (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit :
the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements ; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report and the directors' r eport .
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.
As explained more fully in the directors' r esponsibilities s tatement, 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 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 company or to cease operations, or have no realistic alternative but to do so.
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 .
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal invoices ;
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
w e assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud ; and
we consider ed the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations .
Based on our understanding of the company and industry, and through discussion with the directors and other m anagement , we identified that the principal risks were in relation to:
m anagement bias in relation to the risk of management override of controls ;
r evenue recognition ;
t he risk of not identifying related party transactions and performance of transactions outside the normal course of business ;
management judgements applied to the recoverability of intercompany balances;
m anagement bias in the accounting estimates associated with share based payments accounting ; and
completeness and accuracy of component entity financial information consolidated into the group financial statements and the consolidated journals.
In response to the risk of irregularities , including fraud and non-compliance with laws and regulations, we designed procedures which included, but were not limited to :
performing analytical procedures to identify any unusual or unexpected relationships and transactions;
auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business ;
asses sing whether judgements and assumptions made in determining the accounting estimates set out in the accounts note (share payment transactions) were indicative of potential bias;
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management, those charged with governance and the in-house legal team around actual and potential litigation and claims ;
reviewing correspondence with HMRC, relevant regulators in respect of the R&D claim and the company’s legal invoices ;
f or an appropriate sample of transactions, identifying t he revenue recognition point for the provision of services, and te sting for completeness by ensuring the transaction was properly recorded in the sales nominal ledger account;
discussing the existence of related parties with management and obtaining confirmation of inter -company balances;
evaluat ing whether all component entities have been included within the group financial statements and ensuring completeness and accuracy of consolidation journals ; and
consider ing the accuracy of the R&D claim and compliance with tax legislation.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion .
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
As permitted by s408 Companies Act 2006, the Company has not presented its own profit and loss account and related notes. The Company’s profit for the year was £592,752 (2020 - £1,478,981).
Euro Parking Collection PLC (“the group”) is a public limited company domiciled and incorporated in England and Wales . The registered office and the trading address i s Unit 6 Shepperton House, 83-93 Shepperton Road, London, N1 3DF.
The group consists of Euro Parking Collection PLC and all of its subsidiaries: Contractum L imited and EPC Hungary Kft.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling , which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Euro Parking Collection Plc together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates .
All financial statements are made up to 31 December 2021 . Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Covid 19 and events in Ukraine continue to contribute to market uncertainty. As a result, the group closely monitors their ongoing impact upon the business. While there are broader economic implications of events in Ukraine, such as increases in energy prices, rising pressure on the inflation rates, and currency fluctuations, there are no direct financial consequences for the business.
The director s have carried out a detailed review of the group ’s financial position including a review of cash flows, forecasts taking into account the increasingly broad effects of COVID-19 and events in Ukraine as a result of its negative impact on the global economy and major financial markets.
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The company collects monies for road tolls and cross border traffic related charges on behalf of its client. Turnover represents the company's agreed share of such monies collected, and is stated net of value added tax. Revenue recognition takes place only when the monies are collected on behalf of the clients, and based on the terms agreed with those clients.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
Dividend income from investments is recognised when the shareholder's right to receive payment has been established.
Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated .
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 recognised in the profit and loss account .
Equity in vest ments are measured at fair value through profit or loss , except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably , which are recognised at cost less impairment until a reliable measure of fair value becomes available.
I n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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 m ethod 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 assets, other than those held at fair value through profit and loss , are assessed for indicators of impairment at each reporting end date.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group 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 paymen ts 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account , except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets .
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The company participates in a share-based payment arrangement granted to its employees by the parent company. Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the v aluation techniques using observable market data. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity as a capital contribution.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease d asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’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.
An analysis of the group's turnover is as follows:
The group has supplied markets that, in the opinion of the directors, did not differ significantly from each other therefore the disclosure is not required.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
There was no remuneration paid to the directors by the company (2020: £Nil) .
Investment income includes the following:
The charge for the year can be reconciled to the profit per the profit and loss account as follows:
The proposed final dividend for the year ended 31 December 2021 is:
The proposed final dividend for the year ended 31 December 2020, amounting to £5,500,034 was subsequently cancelled.
For the year ended 31 December 2021, the directors recommended payment of a final dividend, amounting to £6,214,093. The proposed final dividend is subject to approval by shareholders and has not been included as a liability in these financial statements
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
T he deferred tax liability set out above is expected to reverse within next financial years and relates to accelerated capital allowances that are expected to mature.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The group participates in a share-based payment arrangement granted to its employees and employees of its subsidiaries.
The share based payments outstanding at 31 December 2021 had an exercise price ranging from £7.90 to £9.95, and a remaining contractual life of 4 years.
The weighted average fair value of options granted in the year was determined using the valuation techniques using observable market data.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
As at 31 December 202 1 there are no contingent liabilities (20 20 : £NIL).
The company, Euro Parking Collection plc, has issued a statement of guarantee for the outstanding liabilities of Contractum Limited.
Details of the company's subsidiaries at 31 December 2021 are as follows:
Audit exemptions
In accordance with the Companies Act 2006 Section 479A, Contracturm Limited (company registration number 05755117) is exempted from an audit for the financial year ended 31 December 202 1 . The parent company, Euro Parking Collection plc, has issued a statement of guarantee for the outstanding liabilities of Contractum Limited.
In accordance with local regulations in Hungary, EPC Hungary Kft is exempt from audit for the financial year ending 31 December 202 1 .
As at 31 December 202 1 , the company owed £1, 735,730 (2020: £ 1,454,175 ) to Contractum Limited . As at 31 December 202 1 , an amount of £579 , 346 ( 2020: £ 425,035 ) was owed by EPC Hungary Kft , an amount of £2,996,879 (20 20 : £1,773,082) was owed by Verra Mobility BV, an amount of £648,910 (2020: £545,997) was owed by VM Consolidated Inc. , and an amount of £24,943 (2020: £12,117) was owed by Verra Mobility France. The loans are repayable on demand.
The parent company was VM Consolidated, Inc. , a company registered in the USA up to 30 November 2021. As a result of a restructuring, the parent company became Verra Mobility, B.V., a private company with limited liability, with a corporate seat in Amsterdam, the Netherlands, registered with the Trade Register under number 74026240 .
The ultimate controlling party is Verra Mobility Corporation, a company registered in the USA (Registration number: 81-3563824). Verra Mobility Corporation is listed on the NASDAQ under the ticker VRRM.
During the year the remuneration paid to key management personnel totalled £Nil (2020: £422,850).