Registration number:
Greenzone Facilities Management Limited
for the Year Ended 31 March 2021
Greenzone Facilities Management Limited
Contents
Company Information |
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Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Greenzone Facilities Management Limited
Company Information
Directors |
Mr P A McConnell Mr D Miller Mrs L H Taggart |
Registered office |
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Auditors |
|
Greenzone Facilities Management Limited
Strategic Report for the Year Ended 31 March 2021
The directors present their strategic report for the year ended 31 March 2021.
Principal activity
The principal activity of the company continues to be the provision of waste/resource management services as a registered broker.
Results
The profit before tax of £704,807 is an increase of £95,446 (15.66%) on last year’s profit before tax of £609,361.
Turnover of £13,072,810 is 23.81% lower than last year’s turnover of £17,158,554, as the Company permitted customers affected by the COVID-19 pandemic to suspend services. Cost of sales have correspondingly decreased by £3.175m (25.82%).
In line with the reduced level of activity, the Company took steps to manage its expenses and to protect the employment of its skilled workforce by utilising the Government’s Coronavirus Job Retention Scheme.
Fair review of the business
For this financial year, the Company has operated through a global COVID-19 pandemic. This has resulted, amongst other things, in Government restrictions forcing businesses to close, frequent amendment of the laws affecting businesses and employers, and a wholesale requirement to work from home if you can.
Undoubtedly COVID-19 has had a disruptive impact on the business. However, the Directors are proud of how the business has risen to the challenge of the year and appreciates the efforts of its employees during such difficult times. Listening, learning and adapting and, as the sector received key worker status during the pandemic, the Company was able to stay operational to support its wide range of customers across a variety of industries. The Company responded quickly to carry out a risk assessment and implement a high standard of COVID-safety measures in the offices, including dismantling the Board Room to make space for more desks, temperature monitoring and screening. This enabled safe office working to resume in July 2020 ensuring maintenance of exceptional service levels for customers. Having a wide portfolio of customers operating in different sectors has provided some balance to the overall financial impact, for example, revenue from customers involved in the hospitality and retail sectors reduced, while revenue from public sector and Government agencies was maintained or increased.
The Company did participate in the Government’s Coronavirus Job Retention Scheme necessarily to reduce employee costs during the sales downturn. The primary aim was to continue operations safely, so homeworking was adopted until the offices opened again in July 2020 when employees were invited to work safely at the offices.
Greenzone Facilities Management Limited
Strategic Report for the Year Ended 31 March 2021
Principal risks and uncertainties
Regulation
Waste and resource management is highly regulated. Changing regulation and standards may have an impact, however the Company manages this risk by monitoring the regulatory landscape and reacting and adapting accordingly. As a broker, the Company is better placed to adapt services to regulatory changes by changing supplier.
COVID-19
The business faces risks from the COVID-19 pandemic. The Company is keeping up to date with Government guidance and shall continue to mitigate the risks of transmission in the workplace, for example by making physical modifications, discouraging non-essential travel and encouraging social distancing, while continuing with an enhanced cleaning regime. Further, it acknowledges the need to respond to employee sickness and will continue to invest time and resources into employees’ mental health.
Customer Risk
Diversity in its customer portfolio means the business is not materially exposed to any customer sector.
Supply Chain
The business is dependent upon strong supplier relationships. The Company employs a supply chain management team to ensure that it works with like-minded suppliers, i.e. who aim to deliver exceptional levels of compliant services while continually improving to deliver solutions which appear higher up the waste hierarchy.
Brexit
As the Company operates in the UK the direct impact of Brexit is not expected to be significant.
Competition
The waste industry is very competitive, however as a broker the Company believes it is well placed to compete with a flexible service offering. Further, the Company maintains its accreditations (including ISO:14001 and ISO:9001) and will invest in securing further accreditations to assure and reassure customers of its credibility as it prioritises quality in its service delivery.
Employees
The business is dependent upon trained, motivated employees. Average headcount for the year was 76. Employee turnover was below the UK average at 14.47%. The Company regularly reviews employment practices and continually seeks to retain and develop its people.
Hybrid Working
Through its investments in technology and the commitment of its people, the company was able to continue its operations and maintain service levels throughout the lockdown periods. The company recognises the importance of balance and flexibility for employees. However, we also recognise the importance of in-person connection to create a strong culture and to build teams that drive innovation and deliver exceptional customer service. Therefore, we do not see significant and long-term remote working as being compatible with the long-term success of the business. The world of work is continuing to evolve post-COVID and balancing these factors will be challenging. The company will continue to communicate with its employees to ensure that it delivers on its business strategy whilst remaining a great place to work.
Greenzone Facilities Management Limited
Strategic Report for the Year Ended 31 March 2021
Future Developments
On 5 March 2021 the Company completed a shareholder buy-back and is now under new management and has implemented a re-set in sales and marketing.
The Company has taken the opportunity to strengthen its leadership team by making a number of senior appointments including in HR, Finance, Commercial and Marketing and is continually seeking new talent to achieve its growth plans.
The Company has a clear strategy for growth:
Market share - grow market share by prioritising sales, marketing, account management and it has implemented new CRM software
Customer Service - continue to focus on exceptional levels of customer service including by differentiating between customer sectors and upskilling customer service advisors
Services - adapt services to meet and exceed customers’ changing expectations while supporting customers’ environmental (e.g. CSR, ESG) aspirations
Compliance - continue to be a safe pair of hands - responding to and, where possible, anticipating changes in the regulatory environment and attitudes to waste
People
• develop and train its people via a structured training and appraisal programme (including technical and compliance training and management and leadership training)
• have a genuine and strong company culture based on shared values which are communicated
• promote diversity and inclusion - waste is traditionally a male dominated industry but the workforce (as at September 2021) comprises 73% females and 27% males with 77% working full time and 23% working part time
Supply Chain - maintain a wide portfolio of suppliers to provide competitive and flexible services, ranging from national suppliers to regional and niche suppliers
Innovation - embrace innovative techniques and thinking in service delivery
Technology - continue to invest in its industry leading in-house bespoke software to improve efficiencies in performance and service delivery, and continue to develop and deliver new innovative advancements in its software to further improve communication, customer service levels and to produce real-time, relevant and timely management information
CSR - appoint a CSR and Creative Specialist and Marketing Manager to maintain and improve its CSR practices and achieve its philanthropic aims - the Company is proud to participate in TreeNation to offset carbon for itself and its customers and to join the Slave Free Alliance to manage the threat of modern slavery within its operations and supply chain
ESG - implement ESG policies particularly relating to: [Environmental] GHG, energy efficiency, green services, carbon footprint and water use; [Social] data privacy, pay equity, health and safety, diversity and inclusion; and [Governance] role of Chairman and CEO is separate, diversity and independence of the Board and shareholder communication.
Since the buy-back, the Company has re-structured to a functional structure which will provide employee focus and strengthen the sales and operations of the business. Within sales and operations there is a recognition of the customer sectors and an understanding of varying needs and expectations which will be better serviced within the new structure.
The Company will continue to support regional suppliers where possible. As at September 2021, 64% of services delivered on the Company’s behalf was by regional suppliers. All suppliers are on-boarded via a comprehensive due diligence process and service levels, pricing and compliance will be monitored via the newly developed Supplierzone. The Company aims to develop stronger relationships with all suppliers to continually improve services.
Greenzone Facilities Management Limited
Strategic Report for the Year Ended 31 March 2021
Approved by the Board on
.........................................
Mr P A McConnell
Chairman
Greenzone Facilities Management Limited
Directors' Report for the Year Ended 31 March 2021
The directors present their report and the financial statements for the year ended 31 March 2021.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The directors have implemented procedures to minimise risks wherever possible.
Price risk, credit risk, liquidity risk and cash flow risk
The directors feel that the exposure to price risk is minimal due to regular price reviews being conducted and prices already being agreed with major customers.
Exposure to credit risk is minimised through either credit checks and ongoing credit monitoring or the use of advance payment arrangements.
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.
Reappointment of auditors
The auditors Page Kirk LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.
The address of its registered office is:
Approved by the Board on
.........................................
Mr P A McConnell
Chairman
Greenzone Facilities Management Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.
Greenzone Facilities Management Limited
Independent Auditor's Report to the Members of Greenzone Facilities Management Limited
Opinion
We have audited the financial statements of Greenzone Facilities Management Limited (the 'company') for the year ended 31 March 2021, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• |
give a true and fair view of the state of the company's affairs as at 31 March 2021 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’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 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.
Greenzone Facilities Management Limited
Independent Auditor's Report to the Members of Greenzone Facilities Management Limited
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.
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. |
Greenzone Facilities Management Limited
Independent Auditor's Report to the Members of Greenzone Facilities Management Limited
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 7], 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’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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:
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Taxation legislation, COVID - furlough income and Money Laundering.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included:
• |
Enquiries of management about their own identification and assessment of the risks of irregularities. |
• |
Sample testing on the posting of journals. |
• |
Reviewing meeting minutes, regulatory correspondence and professional fees. |
• |
Detailed substantive testing on the completeness of income. |
Greenzone Facilities Management Limited
Independent Auditor's Report to the Members of Greenzone Facilities Management Limited
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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
Sherwood House
7 Gregory Boulevard
NG7 6LB
Greenzone Facilities Management Limited
Profit and Loss Account for the Year Ended 31 March 2021
Note |
2021 |
2020 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
(888) |
(5,001) |
||
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
Greenzone Facilities Management Limited
(Registration number: 06334847)
Balance Sheet as at 31 March 2021
Note |
2021 |
2020 |
|||
£ |
£ |
£ |
£ |
||
Fixed assets |
|||||
Intangible assets |
|
|
|||
Tangible assets |
|
|
|||
Investments |
|
|
|||
|
|
||||
Current assets |
|||||
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 |
|
|
|||
Capital redemption reserve |
|
|
|||
Profit and loss account |
|
|
|||
Total equity |
|
|
Approved and authorised by the
.........................................
Mr P A McConnell
Chairman
Greenzone Facilities Management Limited
Statement of Changes in Equity for the Year Ended 31 March 2021
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 April 2020 |
|
|
|
|
Profit for the year |
- |
- |
|
|
At 31 March 2021 |
|
|
|
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 April 2019 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
Purchase of own share capital |
(10) |
10 |
(222,500) |
(222,500) |
At 31 March 2020 |
|
|
|
|
Greenzone Facilities Management Limited
Statement of Cash Flows for the Year Ended 31 March 2021
Note |
2021 |
2020 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
(Profit)/loss on disposal of tangible assets |
( |
|
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in trade debtors |
( |
( |
|
Decrease in trade creditors |
( |
( |
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Net cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
- |
|
Acquisition of intangible assets |
( |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Payments for purchase of own shares |
- |
( |
|
Repayment of bank borrowing |
( |
( |
|
Repayment of other borrowing |
- |
( |
|
Dividends paid |
- |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 April |
|
|
|
Effect of exchange rate fluctuations on cash held |
|
|
|
Cash and cash equivalents at 31 March |
1,660,384 |
1,172,829 |
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
General information |
The company is a private company limited by share capital incorporated in United Kingdom.
The address of its registered office is:
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.
Consolidation
For the year ended 31 March 2021, the company has taken advantage of the exemption provided by Section 405 (2) of the Companies Act 2006 not to prepare group accounts.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
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 presented in Sterling (£) which is the functional currency of the company.
Key sources of estimation uncertainty
Preparation of the financial statements requires management to make significant judgements and estimates. Due to the nature of the business and some disruption caused by COVID therefore we have made reasonable estimates relating to services not invoiced by our suppliers.
Revenue recognition
The turnover shown in the profit and loss account represents amounts invoiced during the year and adjusted for accrued income not invoiced at the year end, exclusive of Value Added Tax.
Foreign currency transactions and balances
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Tax
The tax expense for the period comprises current and deferred 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 income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the statement of financial position 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 |
Long leasehold property |
Straight line over the period of the lease |
Office equipment |
25% straight line |
Furniture, fittings and equipment |
25% straight line |
Motor vehicles |
33% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the Group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Intangible assets
Intangible assets that are recognised by the company are stated at cost less accumulated amortisation and less accumulated impairment losses.
Software development costs are recognised as an intangible asset when the following criteria is met:
(a) The technical feasibility of completing the intangible asset so that it will be available for use or sale.
(b) Its intention to complete the intangible asset and use or sell it.
(c) Its ability to use or sell the intangible asset.
(d) How the intangible asset will generate probable future economic benefits. Among other things, the entity can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset.
(e) The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.
(f) Its ability to measure reliably the expenditure attributable to the intangible asset during its development.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Software development costs |
10% straight line |
Investments
Investments in equity shares, which are not publicly traded, are measured at cost less impairment unless fair value can be measured reliably.
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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
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.
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.
Leases
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
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
The company operates a defined contribution pension scheme. Contributions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
2021 |
2020 |
|
Sale of goods and services |
|
|
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
The analysis of the company's turnover for the year by market is as follows:
2021 |
2020 |
|
UK |
|
|
Operating profit |
Arrived at after charging/(crediting)
2021 |
2020 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
(Profit)/loss on disposal of property, plant and equipment |
( |
|
Other interest receivable and similar income |
2021 |
2020 |
|
Interest income on bank deposits |
|
- |
Other finance income |
|
|
|
|
Interest payable and similar expenses |
2021 |
2020 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest expense on other finance liabilities |
- |
|
Foreign exchange (gains) / losses |
( |
( |
|
|
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2021 |
2020 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2021 |
2020 |
|
Administration and support |
|
|
Other departments |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2021 |
2020 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
829,649 |
1,010,730 |
In respect of the highest paid director:
2021 |
2020 |
|
Remuneration |
|
|
Auditors' remuneration |
2021 |
2020 |
|
Audit of the financial statements |
|
|
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Taxation |
Tax charged/(credited) in the income statement
2021 |
2020 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
( |
109,358 |
109,073 |
|
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 the same as the standard rate of corporation tax in the UK (2020 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2021 |
2020 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of revenues exempt from taxation |
- |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
( |
|
Deferred tax expense/(credit) relating to changes in tax rates or laws |
|
( |
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
- |
Tax increase from effect of capital allowances and depreciation |
|
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
2021 |
Liability |
Accelerated Capital Allowances |
|
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
2020 |
Liability |
Accelerated Capital Allowances |
|
Intangible assets |
Internally generated software development costs |
Total |
|
Cost or valuation |
||
At 1 April 2020 |
|
|
Additions internally developed |
|
|
At 31 March 2021 |
|
|
Amortisation |
||
At 1 April 2020 |
|
|
Amortisation charge |
|
|
At 31 March 2021 |
|
|
Carrying amount |
||
At 31 March 2021 |
|
|
At 31 March 2020 |
|
|
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Office equipment |
Total |
|
Cost or valuation |
|||||
At 1 April 2020 |
|
|
|
|
|
Additions |
- |
|
- |
|
|
Disposals |
- |
- |
- |
( |
( |
At 31 March 2021 |
|
|
|
|
|
Depreciation |
|||||
At 1 April 2020 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
At 31 March 2021 |
|
|
|
|
|
Carrying amount |
|||||
At 31 March 2021 |
- |
|
|
|
|
At 31 March 2020 |
|
|
|
|
|
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2021 |
2020 |
|
Motor Vehicles |
10,276 |
22,608 |
Investments in subsidiaries, joint ventures and associates |
2021 |
2020 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 April 2020 |
|
Provision |
|
Carrying amount |
|
At 31 March 2021 |
|
At 31 March 2020 |
|
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Holding |
Proportion of voting rights and shares held |
||
2021 |
2020 |
|||
Subsidiary undertakings |
||||
|
Ordinary shares |
|
|
|
|
Ordinary shares |
|
|
|
|
Ordinary shares |
|
|
|
|
Ordinary shares |
|
|
|
|
Ordinary shares |
|
|
|
|
Ordinary shares |
|
|
|
|
Ordinary shares |
|
|
|
The registered office address of all other subsidiary undertakings above is The Corner House, Brunel Drive, Newark, Nottinghamshire, NG24 2EG.
Debtors |
2021 |
2020 |
|
Trade debtors |
|
|
Amounts owed by related parties |
|
- |
Other debtors |
|
|
Prepayments |
|
|
|
|
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Cash and cash equivalents |
2021 |
2020 |
|
Cash on hand |
|
|
Cash at bank |
|
|
|
|
Creditors |
Note |
2021 |
2020 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts due to related parties |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other creditors |
|
|
|
Accrued expenses |
|
|
|
Corporation tax liability |
136,281 |
106,838 |
|
|
|
||
Due after one year |
|||
Loans and borrowings |
- |
|
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Deferred tax and other provisions |
Deferred tax |
Total |
|
At 1 April 2020 |
|
|
Increase (decrease) in existing provisions |
|
|
At 31 March 2021 |
|
|
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
£
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Share capital |
Allotted, called up and fully paid shares
2021 |
2020 |
|||
No. |
£ |
No. |
£ |
|
|
- |
- |
|
100 |
|
- |
- |
|
62 |
|
|
162 |
- |
- |
|
|
233,000 |
|
233,000 |
|
|
|
|
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Rights, preferences and restrictions
Year ended 31 March 2021
|
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Loans and borrowings |
2021 |
2020 |
|
Non-current loans and borrowings |
||
Finance lease liabilities |
- |
|
2021 |
2020 |
|
Current loans and borrowings |
||
Finance lease liabilities |
|
|
Other borrowings
Lombard loan with a carrying amount of £9,287 (2020 - £20,599) is denominated in UK Sterling with a nominal interest rate of 2.15%. The final instalment is due on 14 January 2022.
The loans are secured against the assets they relate to.
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
2021 |
2020 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
- |
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
2021 |
2020 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Related party transactions |
Key management compensation
2021 |
2020 |
|
Salaries and other short term employee benefits |
|
|
Summary of transactions with other related parties
Income and receivables from related parties
2021 |
Other related parties |
Receipt of services |
|
Amounts receivable from related party |
|
2020 |
Other related parties |
Receipt of services |
|
Amounts receivable from related party |
|
Expenditure with and payables to related parties
2021 |
Other related parties |
Rendering of services |
|
Leases |
|
|
|
Amounts payable to related party |
|
2020 |
Other related parties |
Rendering of services |
|
Leases |
|
|
|
Amounts payable to related party |
|
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Loans to related parties
2021 |
Key management |
At start of period |
|
Repaid |
( |
At end of period |
|
2020 |
Key management |
At start of period |
|
Advanced |
|
At end of period |
|
Terms of loans to related parties
Financial instruments |
Categorisation of financial instruments
2021 |
2020 |
|
Financial assets that are debt instruments measured at amortised cost |
|
|
Financial liabilities measured at amortised cost |
|
|
Items of income, expense, gains or losses
2021 |
Income |
Expense |
Financial assets measured at amortised cost |
14 |
- |
Financial liabilities measured at amortised cost |
- |
902 |
14 |
902 |
2020 |
Income |
Expense |
Financial assets measured at amortised cost |
54 |
- |
Financial liabilities measured at amortised cost |
- |
5,055 |
54 |
5,055 |
Greenzone Facilities Management Limited
Notes to the Financial Statements for the Year Ended 31 March 2021
Control |