Company Registration No. 13489265 (England and Wales)
EBL HB Limited
Financial statements
for the year ended 31 December 2022
Pages for filing with the registrar
EBL HB Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 9
EBL HB Limited
Statement of financial position
As at 31 December 2022
Page 1
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
5,057,529
Current assets
Debtors
5
9,321,357
10,605
Cash at bank and in hand
13,235,978
16,230,049
22,557,335
16,240,654
Creditors: amounts falling due within one year
6
(2,085,731)
(915,771)
Net current assets
20,471,604
15,324,883
Total assets less current liabilities
25,529,133
15,324,883
Creditors: amounts falling due after more than one year
7
(23,925,606)
(13,215,077)
Net assets
1,603,527
2,109,806
Capital and reserves
Called up share capital
38,600
26,500
Share premium account
3,777,115
2,579,190
Profit and loss reserves
(2,212,188)
(495,884)
Total equity
1,603,527
2,109,806
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
EBL HB Limited
Statement of financial position (continued)
As at 31 December 2022
Page 2
The financial statements were approved by the board of directors and authorised for issue on 29 June 2023 and are signed on its behalf by:
James Cross
Director
Company Registration No. 13489265 (England and Wales)
EBL HB Limited
Notes to the financial statements
For the year ended 31 December 2022
Page 3
1
Accounting policies
Company information
EBL HB Limited is a private company limited by shares incorporated in England and Wales. The registered office is 35 Ballards Lane, London, N3 1XW.
1.1
Reporting period
The previous reporting period was the first period of accounts for EBL HB Limited. As a result, the previous accounting period was six months long, as such the comparative amounts presented within the financial statements are not entirely comparable.
1.2
Accounting convention
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.3
Going concern
The company relies on the continued support of its private equity investors to meet its working capital requirements. 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.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
EBL HB Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 4
Revenue from contracts for the provision of professional 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. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
30 year straight line
Leasehold improvements
over the term of the lease agreement
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
1.8
Financial instruments
The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
EBL HB Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 5
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Leases
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 leases asset are consumed.
EBL HB Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 6
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The company did not operate a PAYE scheme during the reporting period, therefore, no individuals were employed by the company during the year. The average monthly number of directors was 2 (2021: 2).
4
Tangible fixed assets
Land and buildings
£
Cost
At 1 January 2022
Additions
5,087,397
At 31 December 2022
5,087,397
Depreciation and impairment
At 1 January 2022
Depreciation charged in the year
29,868
At 31 December 2022
29,868
Carrying amount
At 31 December 2022
5,057,529
At 31 December 2021
EBL HB Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 7
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
500,000
Other debtors
5,938,450
10,605
6,438,450
10,605
2022
2021
Amounts falling due after more than one year:
£
£
Other debtors
2,882,907
Total debtors
9,321,357
10,605
6
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
55,897
9,566
Other creditors
2,029,834
906,205
2,085,731
915,771
7
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
23,925,606
13,215,077
Other creditors totalling £23,925,606 (2021: £13,215,077) comprise loan notes which are secured by way of fixed and floating charges over all property, assets and rights of the company present and future not subject to a fixed charge.
EBL HB Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 8
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Peter Harker
Statutory Auditors:
Saffery Champness LLP
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
Within one year
73,588
Between two and five years
416,866
In over five years
2,562,168
3,052,622
EBL HB Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 9
10
Related party transactions
During the reporting period revenue totalling £9,027 (2021: £Nil), and expenses totalling £4,461,907 (2021: £329,923), were recognised in respect of transactions with The Environment Bank Limited, the parent company. Furthermore, at the reporting date trade creditors totalling £26,588 (2021: £9,419) were due to The Environment Bank Limited.
During the reporting period interest was charged at a rate of 14% totalling £26,082 (2021: £Nil) in respect of a loan facility provided to The Environment Bank Limited, the parent company. The total loan facility available to The Environment Bank Limited is £1,000,000. At the reporting date the company was owed £500,000 (2021: £Nil) from The Environment Bank Limited. The loan is repayable on demand.
During the reporting period expenses totaling £591,619 (2021: £Nil) were recognised in respect of transactions with entities controlled by Gresham House Plc, an indirect shareholder. Furthermore, interest was charged totaling £1,383,110 (2021: £32,753) and amortisation was charged totalling £91,444 (2021: £Nil) in respect of loan notes issued and respective arrangement fees to entities controlled by Gresham House Plc. The loan notes bear interest at a rate of 13%, and arrangement fees are calculated at 3% of drawdowns. At the reporting date the company owed £23,925,606 (2021: £13,215,077) to the entities controlled by Gresham House Plc. The loan notes are repayable upon the earlier of 31 March 2029 or when specific financial performance metrics are met.
11
Parent company
The parent company of EBL HB Limited is The Environment Bank Limited by virtue of its voting percentage and its registered office is 35 Ballards Lane, London, N3 1XW.