Aquila Services : Half Year Earnings

Annual report and financial statements for the year ended 31 March 2022

Company Registration No. 08988813 (England and Wales)

Contents

01	Group highlights	4
02	Corporate structure	6
03	Aquila at a glance	8
04	Chair's statement	10
05 Strategic report	12
06 Directors' report	36
07	Corporate governance statement	40
08	Directors' remuneration report	45
09 Statement of Directors' Responsibilities	54
10	Independent Auditors' Report to the Members	55
11	Consolidated statement of comprehensive income	61
12	Consolidated statement of financial position	62
13	Company statement of financial position	63
14	Consolidated statement of changes in equity	64
15	Company statement of changes in equity	65
16	Consolidated statement of cash flow	66
17	Company statement of cash flow	67
18	Notes to the financial statements	68
19	Notice of Annual General Meeting	95
20	Directors and advisers	100

4

Group
highlights	Our purpose
	To make a better, more sustainable, and socially
	responsible world.
	Our vision
	To have a direct beneficial impact on communities
	and lives in the UK and beyond.
	To offer staff the opportunity to inspire positive
	change in an environment with a strong social focus.
	To provide investors the opportunity of supporting an
	organisation that combines strong performance with
	a positive social outcome.
	Our culture and values
	We Collaborate
	Working together to succeed together
	We Innovate
	We challenge the norm
	We Care
	We go the extra mile
	What we do
	Our work helps our clients to develop a response to
	a changing world and make a positive difference
	to the communities in which they operate. We
	work throughout the UK and internationally with
	clients across housing and regeneration, sport and
	education, charity and government sectors.

5

Financial highlights

The results for the year ended 31 March 2022.

Revenue	Gross profit	Gross profit margin
£10,119k	£2,206k	22%
(2021: £7,642k)	(2021: £1,640k)	(2021: 21%)
Underlying operating profit*	Statutory profit after tax	Statutory earnings per share
£726k	£579k	1.45p
(2021: £614k)	(2021: £187k)	(2021: 0.48p)
Cash generated by operations	Cash balances	Total dividend payable
£512k	£2,193k	0.6p per share
(2021: £930k)	(2021: £2,127k)	(2021: 0.55p)

*Underlying operating profit is calculated by adjusting the reported pre-tax profit for share- based payment charges and in 2021 restructuring costs related to COVID-19, acquisition costs, and impairments of investments.

Dividend

The Directors propose a final dividend of 0.4p per share (2021: 0.4p). This will be paid on 1 August 2022 to shareholders on the register at 15 July 2022.

Annual report and financial statements for the year ended 31 March 2022

Aquila Services Group plc

6	Corporate Structure

Corporate structure

The corporate structure of the organisation and the Directors of the subsidiary boards are shown below.

Altair

Corporate Structure

7

Within the year of reporting the Group set up two employee led groups with representation across the Aquila Group to focus activities on the environment and sustainability and equality, diversity and inclusion. The composition of these groups is set out below.

Green Group

EDI Group

Aquila

Aquila Services Group plc

Derek Joseph

(Executive Chair)

Claire Banks

(Finance Director & Co Sec)

Fiona Underwood

(Executive Director)

Richard Wollenberg

(Non-Executive)

Altair Consultancy and Advisory Services Ltd

Directors:
Fiona Underwood (CEO)	Cathy Beazley
Michael Appleby	Matt Carroll
Claire Banks	Jim Lashmar

ATFS

Aquila Treasury and Finance Solutions Ltd

Directors:

Claire Banks

Fiona Underwood

Oaks

Oaks Consultancy Ltd

Directors:
Adam Walker (CEO)	Luke Southall
Claire Banks	Fiona Underwood
Rahul Bissoonauth

Michael Appleby	Ellen Spooner	Claire Banks	Jagjeet Tiwana
Milly Clarke	Ellie Dickens	Will Morley	Cydney Loughrey
Annabel Grey	Kate Perham-	Alex Neate	Caroline Toogood
Jennifer Rolison	Marchant	Natasha Raj	Casey-Scarlett
Jess Shepherdson	Peter Latham	Jennifer Rolison	Haylock
Becky Hazell		Beth Sadler	Patrick Goldie

Mihir Shah	Rebecca How
Luke Southall	Alex Chilcott

Annual report and financial statements for the year ended 31 March 2022

Aquila Services Group plc

8	Aquila at a Glance

Aquila at a glance

Aquila Services Group plc ('the Company') is the holding company for Altair Consultancy and Advisory Services Ltd ('Altair'), Aquila Treasury and Financial Solutions Ltd ('ATFS') and Oaks Consultancy Ltd ('Oaks') which form the group ('the Group').

The Group continues to implement its business strategy to encompass all the professional consultancy services that the Group's client base demands. The Group now provides advice and support across the affordable housing, regeneration, sport and education sectors. Its purpose is to assist organisations that benefit local communities such as housing associations, local authorities, government agencies, multi-academy trusts, other non-profit organisations and those set up for community benefit, as well as providing related high-level business advice to the commercial property sector.

Aquila at a Glance

9

Group members

Altair Consultancy and

Advisory Services Ltd

Altair is a specialist management consultancy company that works with organisations that govern, manage, regulate or build housing. Operating within the UK and Europe, its international client base is increasing with expansion in Africa and Asia. Further information is provided within our strategic report on page 12.

The services that Altair offers cover housing development and regeneration, property asset management, health and safety compliance and building safety advice, strategic financial advice, governance and risk management, executive and non-executive recruitment. Our ITC and digital, transformation and people services are areas of investment and growth.

Clients contract with Altair on a fixed-fee basis, through retained contracts in our finance, governance and transformation business streams, and placements for members of the property team at client sites.

Aquila Treasury and Financial Solutions Ltd

ATFS is a specialist treasury management consultancy authorised and regulated by the Financial Conduct Authority that operates across the UK and Europe. It provides advice on treasury policy and strategy, debt and capital market finance, banking and card merchant services, value for money, and financial market information services to local authorities, charities, housing associations, education bodies, private sector housing providers and government bodies.

Work is delivered through fixed price contracts as retained general treasury advisers and information subscription agreements. Specific advisory project contracts are on a fixed fee basis, won through competitive procurement tenders, payable on agreed project milestones.

Oaks Consultancy Limited

Oaks is a specialist sports, charity, statutory and education consultancy operating within the UK and Europe with an increasing international presence. Oaks' clients include national and international sports teams and governing bodies, national and international charities, statutory organisations and local authorities, multi academy trusts and teaching school alliances, housing associations and corporate businesses.

Oaks provides consultancy advice and guidance on strategy and business planning, organisational and cultural change programmes, impact measurement, together with implementation support in relation to income generation and diversification. Contracts are delivered through a mix of fixed-fee projects and retained contracts for general advisory services.

Investments

AssetCore - 5.3% equity holding

AssetCore is a digital financial debt management platform for the affordable housing sector.

Annual report and financial statements for the year ended 31 March 2022

Aquila Services Group plc