Company registration number 10861736 (England and Wales)
SHOREDITCH ENERGY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
SHOREDITCH ENERGY LIMITED
COMPANY INFORMATION
Directors
Mr M Stein
Mr A Goldin
Company number
10861736
Registered office
St Dunstan's House
201 Borough High Street
London
SE1 1JA
Auditor
HJS (Reading) Limited
3 Richfield Place
Richfield Avenue
Reading
Berkshire
RG1 8EQ
Business address
St Dunstan's House
201 Borough High Street
London
SE1 1JA
SHOREDITCH ENERGY LIMITED
CONTENTS
Page
Strategic report
2
Directors' report
1
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 19
SHOREDITCH ENERGY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company for the period under review was that of a holding company.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M Stein
Mr A Goldin
Supplier payment policy
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
Auditor
HJS (Reading) Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
Each director in office at the date of approval of this annual report confirms that:
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and
the director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
On behalf of the board
Mr A Goldin
Director
29 September 2023
SHOREDITCH ENERGY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
The directors present the strategic report for the year ended 31 December 2022.
Principal Activity and future developments
The principal activity of the company for the period under review was that of a holding company.
This is not anticipated to change in the near future.
Principal risks and uncertainties
As a holding company, the principle risk and uncertainty faced is the performance of its subsidiary.
Any dividend or increased funding requirements will be driven by the subsidiary, and therefore these risks are managed there.
For the same reasons, the Directors have not included the disclosure of any key performance indicators in the Directors report as these are managed by the subsidiary.
Financial Risk Management
The Company is subject to its own internal Risk management programme which seeks to limit any adverse impact on its financial performance.
Credit Risk
As the Company does not enter into any trading transactions, all receivables will be held by its subsidiary.
Financing
The Company actively manages its finances to ensure that it has sufficient funds. It is the Directors understanding that its parent companies will continue to support the business to meet its needs.
Mr A Goldin
Director
29 September 2023
SHOREDITCH ENERGY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
The directors are responsible 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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:
properly select and apply accounting policies;
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
make an assessment of the company's ability to continue as a going concern.
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.
SHOREDITCH ENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SHOREDITCH ENERGY LIMITED
- 4 -
Opinion
In our opinion the financial statements:
• give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the year then ended;
• have been properly prepared in accordance with IFRSs as adopted by the United Kingdom; and
• have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Shoreditch Energy Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is International Financial Reporting Standards (IFRSs) and the laws applicable to the United Kingdom.
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.
We draw attention to Note 1.2 to the financial statements, which explains that the company's subsidiary, Orbit Energy Limited, has entered administration and is expected to be fully wound up. As a result, the directors do not consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements as there is no substantial business operation to sustain the company. Accordingly, the financial statements have been prepared on a basis other than going concern as described in Note 1.2.
Our opinion on the financial statements is not modified in respect of this matter.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to
report that fact.
We have nothing to report in this regard.
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
• the directors' report has been prepared in accordance with applicable legal requirements.
SHOREDITCH ENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHOREDITCH ENERGY LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
• Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
• the financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors' remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulatory principles, such as those governed by the relevant construction authorities. We also considered the laws and regulations which have a direct impact on the financial statements such as the Companies Act 2006.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates and judgmental areas of the financial statements.
Audit procedures performed by the audit engagement team included:
• Discussions with senior management, including consideration of known or suspected instances of noncompliance with laws and regulations or instances of fraud;
• Identifying and testing journal entries based on risk criteria;
• Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;
• Testing transactions entered into outside of the normal course of the company's business;
• Reviewing any potential litigation or claims against the entity which indicate any potential noncompliance issues
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or though collusion.
SHOREDITCH ENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHOREDITCH ENERGY LIMITED
- 6 -
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Mark Rogers FCCA (Senior Statutory Auditor)
For and on behalf of HJS (Reading) Limited
29 September 2023
Chartered Accountants
Statutory Auditor
3 Richfield Place
Richfield Avenue
Reading
Berkshire
RG1 8EQ
SHOREDITCH ENERGY LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
Notes
£
£
Administrative expenses
(9,839)
(865)
Operating loss
(9,839)
(865)
Investment revenues
5
10
230,729
Finance costs
6
(230,729)
Loss before taxation
(9,829)
(865)
Income tax expense
7
-
-
Loss and total comprehensive income for the year
(9,829)
(865)
The income statement has been prepared on the basis that all operations are continuing operations.
SHOREDITCH ENERGY LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 8 -
2022
2021
Notes
£
£
Non-current assets
Investments
8
9,310,000
9,310,000
Current assets
Trade and other receivables
10
1,482,520
6,452,924
Cash and cash equivalents
4,338
4,871
1,486,858
6,457,795
Current liabilities
Trade and other payables
12
1,424,284
6,385,392
Net current assets
62,574
72,403
Net assets
9,372,574
9,382,403
Equity
Called up share capital
13
10,548,500
10,548,500
Retained earnings
(1,175,926)
(1,166,097)
Total equity
9,372,574
9,382,403
The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
Mr A Goldin
Director
Company registration number 10861736
SHOREDITCH ENERGY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2021
10,548,500
(1,165,232)
9,383,268
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
(865)
(865)
Balance at 31 December 2021
10,548,500
(1,166,097)
9,382,403
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(9,829)
(9,829)
Balance at 31 December 2022
10,548,500
(1,175,926)
9,372,574
SHOREDITCH ENERGY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
17
(543)
(758)
Interest paid
(230,729)
Net cash outflow from operating activities
(543)
(231,487)
Investing activities
Interest received
10
230,729
Net cash generated from investing activities
10
230,729
Net decrease in cash and cash equivalents
(533)
(758)
Cash and cash equivalents at beginning of year
4,871
5,629
Cash and cash equivalents at end of year
4,338
4,871
SHOREDITCH ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
1
Accounting policies
Company information
Shoreditch Energy Limited is a private company limited by shares incorporated in England and Wales. The registered office is St Dunstan's House, 201 Borough High Street, London, SE1 1JA. The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Shoreditch Energy Limited is a subsidiary of Genie Energy UK Limited and the results of Shoreditch Energy Limited are included in the consolidated financial statements of Genie Energy Ltd which are available from 520 Broad Street, Newark, New Jersey, 07102.
1.2
Going concern
The directors have noted there are material balances outstanding from subsidiary companies that are in administration. Once these balances have been repaid, the directors plan to close the company. There are no trading activities or other transactions, it is anticipated that this will be completed by the end of 2023. Therefore the directors do not consider the company to be a going concern. The financial statementtrues have been prepared on a basis other than going concern.
1.3
Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.4
Cash and cash equivalents
Cash and cash equivalents 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. Bank overdrafts are shown within borrowings in current liabilities.
1.5
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
SHOREDITCH ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
Financial assets at fair value through profit or loss
Financial assets are classified as at FVTPL when the financial asset is held for trading. This is the case if:
the asset has been acquired principally for the purpose of selling in the near term, or
on initial recognition it is part of a portfolio of identified financial instruments that the manages together and has a recent actual pattern of short-term profit taking, or
it is a derivative that is not designated and effective as a hedging instrument.
Financial assets at FVTPL are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset. Interest and dividends are included in 'Investment income' and gains and losses on remeasurement included in 'other gains and losses' in the statement of comprehensive income.
Financial assets held at amortised cost
Financial assets with fixed or determinable payments and fixed maturity dates that the Company has the positive intent and ability to hold to maturity are classified as held to maturity investments.
Held to maturity investments are measured at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Trade Receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Financial assets at fair value through other comprehensive income
Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.
Financial assets classified as available for sale are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income. Where an AFS financial asset is disposed of or determined to be impaired, the cumulative gain or loss previously recognised in other comprehensive income is reclassified to profit or loss.
Dividends and interest earned on AFS financial assets are included in the investment income line item in the statement of comprehensive income.
SHOREDITCH ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.6
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability. A derivative is presented as a non-current asset or liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realised or settled within 12 months. Other derivatives are classified as current.
1.9
Employee benefits
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 inventories or non-current 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.
SHOREDITCH ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
1.10
Foreign exchange
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.
2
Adoption of new and revised standards and changes in accounting policies
At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been adopted by the EU):
The following amendments are effective for the period beginning 1 January 2022:
• Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37);
• Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16);
• Annual Improvements to IFRS Standards 2018-2020 (Amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41); and
• References to Conceptual Framework (Amendments to IFRS 3).
The following amendments are effective for the period beginning 1 January 2023:
• Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2);
• Definition of Accounting Estimates (Amendments to IAS 8); and
• Deferred Tax Related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12).
The directors do not consider any of the standards above will have a significant impact on the financial statements of the company when applied.
3
Critical accounting estimates and judgements
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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Critical judgements
Recovery of investments
On 10 December 2021 the subsidiary Orbit Energy Limited entered into administration. The directors have considered the recovery of the investment and any potential impairment. Based on the administrator's report which currently states 100% of creditors will be repaid and there will be a surplus paid out to the shareholders, the directors consider no impairment is required.
SHOREDITCH ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was nil.
5
Investment income
2022
2021
£
£
Interest income
Financial instruments measured at amortised cost:
Bank deposits
10
Other interest income on financial assets
230,729
Total interest revenue
10
230,729
Income above relates to assets held at amortised cost, unless stated otherwise.
SHOREDITCH ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
6
Finance costs
2022
2021
£
£
Other interest payable
230,729
7
Income tax expense
2022
2021
£
£
The charge for the year can be reconciled to the loss per the income statement as follows:
2022
2021
£
£
Loss before taxation
(9,829)
(865)
Expected tax credit based on a corporation tax rate of 19.00% (2021: 19.00%)
(1,868)
(164)
Unutilised tax losses carried forward
1,868
164
Taxation charge for the year
-
-
8
Investments
Current
Non-current
2022
2021
2022
2021
£
£
£
£
Investments in subsidiaries
9,310,000
9,310,000
The company has not designated any financial assets that are not classified as held for trading as financial assets at fair value through profit or loss.
Fair value of financial assets carried at amortised cost
The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.
Financial assets
Carrying amount
Fair value
2022
2021
2022
2021
£
£
£
£
Investment in subsidaries
-
9,310,000
-
9,310,000
SHOREDITCH ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
9
Subsidiaries
Details of the company's subsidiaries at 31 December 2022 are as follows:
Name of undertaking
Registered office
Principal activities
Class of
% Held
shares held
Direct
Orbit Energy Limited
St Dunstan's House, 201 Borough High Street, London, England, SE1 1JA
Provision of energy services
100.00
On 10 December 2021 Orbit Energy Limited entered into administration. The current report from the administrator shows an expectation creditors will be fully repaid including the share capital.
10
Trade and other receivables
2022
2021
£
£
Amounts owed by subsidiary undertakings
1,482,520
6,452,924
Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.
11
Trade receivables - credit risk
Fair value of trade receivables
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
No significant receivable balances are impaired at the reporting end date.
12
Trade and other payables
2022
2021
£
£
Trade payables
189
143
Amount owed to parent undertaking
1,414,845
6,385,249
Accruals
9,250
1,424,284
6,385,392
13
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,548,500
10,548,500
10,548,500
10,548,500
The company has one class of ordinary shares which carry no right to fixed income.
SHOREDITCH ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
14
Capital risk management
The company is not subject to any externally imposed capital requirements.
15
Related party transactions
Remuneration of key management personnel
The directors consider there to be no other key management personnel beside the directors.
Other transactions with related parties
During the year the company entered into the following transactions with related parties:
Interest receivable
Interest payable
2022
2021
2022
2021
£
£
£
£
Parent company
-
-
-
230,729
Subsidiaries
-
230,729
-
-
230,729
-
230,729
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due to related parties
£
£
Parent company
1,414,845
6,385,249
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due from related parties
£
£
Subsidiaries
1,482,520
6,452,924
16
Controlling party
The immediate parent company is Genie Energy UK Ltd and its registered office is C/o Sable International, 13th Floor, One Croydon, 12-16 Addiscombe Road, Croydon, Surry, CR0 0XT.
The ultimate parent company is Genie Energy Ltd and its registered office is 520 Broad Street, Newark, New Jersey, 07102.
SHOREDITCH ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
17
Cash absorbed by operations
2022
2021
£
£
Loss for the year before income tax
(9,829)
(865)
Adjustments for:
Finance costs
-
230,729
Investment income
(10)
(230,729)
Movements in working capital:
Decrease/(increase) in trade and other receivables
4,970,404
(2,980,728)
(Decrease)/increase in trade and other payables
(4,961,108)
2,980,835
Cash absorbed by operations
(543)
(758)
2022-12-312022-01-01falseCCH SoftwareCCH Accounts Production 2023.200Mr M SteinMr A Goldin108617362022-01-012022-12-3110861736bus:Director12022-01-012022-12-3110861736bus:Director22022-01-012022-12-3110861736bus:RegisteredOffice2022-01-012022-12-31108617362022-12-3110861736core:ContinuingOperations2022-01-012022-12-31108617362021-01-012021-12-3110861736core:Non-currentFinancialInstruments2022-12-3110861736core:Non-currentFinancialInstruments2021-12-31108617362021-12-31108617362021-12-31108617362020-12-3110861736core:CurrentFinancialInstruments2022-12-3110861736core:ShareCapital2022-12-3110861736core:ShareCapital2021-12-3110861736core:RetainedEarningsAccumulatedLosses2022-12-3110861736core:RetainedEarningsAccumulatedLosses2021-12-3110861736core:OtherMiscellaneousReserve2020-12-3110861736core:FinancialInstrumentsFairValueThroughProfitOrLoss2022-01-012022-12-3110861736core:Held-to-maturityFinancialAssets2022-01-012022-12-3110861736core:LoansReceivables2022-01-012022-12-3110861736core:Available-for-saleFinancialAssets2022-01-012022-12-3110861736core:CurrentFinancialInstruments2021-12-3110861736core:ParentEntities2022-12-3110861736core:ParentEntities2021-12-3110861736core:AllSubsidiaries2022-12-3110861736bus:PrivateLimitedCompanyLtd2022-01-012022-12-3110861736bus:Audited2022-01-012022-12-3110861736bus:FullIFRS2022-01-012022-12-3110861736bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP