IRIS Accounts Production v23.4.0.336 09805175 Board of Directors 31.3.23 1.4.22 31.3.23 31.3.23 The Group of companies operate across the energy efficiency and green energy services related markets. Principal activities include the supply and installation of energy efficiency and green energy generation products to homes and businesses throughout the UK. These products include, energy efficient heating systems, numerous types of building insulation, solar systems, battery storage systems, electric car chargers and other renewable energy generation and energy saving measures. The Group supplies and installs these measures through a diverse range of clients, including directly to residential homeowners, social landlords, through the management and distribution of funds associated to the UK Energy Company Obligation (ECO) and the supply and installation of the company's green energy services to the new-build, commercial and Governmental sectors. true true false true true false false false true false Ordinary 0 B Ordinary 0 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh098051752022-03-31098051752023-03-31098051752022-04-012023-03-31098051752021-03-31098051752021-04-012022-03-31098051752022-03-3109805175ns15:EnglandWales2022-04-012023-03-3109805175ns14:PoundSterling2022-04-012023-03-3109805175ns10:Director12022-04-012023-03-3109805175ns10:Consolidated2023-03-3109805175ns10:ConsolidatedGroupCompanyAccounts2022-04-012023-03-3109805175ns10:PrivateLimitedCompanyLtd2022-04-012023-03-3109805175ns10:Consolidatedns10:FRS1022022-04-012023-03-3109805175ns10:Consolidatedns10:Audited2022-04-012023-03-3109805175ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-04-012023-03-3109805175ns10:LargeMedium-sizedCompaniesRegimeForAccounts2022-04-012023-03-3109805175ns10:Consolidatedns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-04-012023-03-3109805175ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Consolidated2022-04-012023-03-3109805175ns10:FullAccounts2022-04-012023-03-310980517512022-04-012023-03-3109805175ns10:OrdinaryShareClass12022-04-012023-03-3109805175ns10:OrdinaryShareClass22022-04-012023-03-3109805175ns10:Consolidated2022-04-012023-03-3109805175ns10:Director22022-04-012023-03-3109805175ns10:Director32022-04-012023-03-3109805175ns10:Director52022-04-012023-03-3109805175ns10:Director62022-04-012023-03-3109805175ns10:Director72022-04-012023-03-3109805175ns10:RegisteredOffice2022-04-012023-03-3109805175ns10:Director42022-04-012023-03-3109805175ns5:ContinuingOperationsns10:Consolidated2022-04-012023-03-3109805175ns5:DiscontinuedOperationsns10:Consolidated2022-04-012023-03-3109805175ns5:ContinuingOperationsns10:Consolidated2021-04-012022-03-3109805175ns5:DiscontinuedOperationsns10:Consolidated2021-04-012022-03-3109805175ns10:Consolidated2021-04-012022-03-3109805175ns5:CurrentFinancialInstruments2023-03-3109805175ns5:CurrentFinancialInstruments2022-03-3109805175ns5:ShareCapital2023-03-3109805175ns5:ShareCapital2022-03-3109805175ns5:FurtherSpecificReserve1ComponentTotalEquity2023-03-3109805175ns5:FurtherSpecificReserve1ComponentTotalEquity2022-03-3109805175ns5:RetainedEarningsAccumulatedLosses2023-03-3109805175ns5:RetainedEarningsAccumulatedLosses2022-03-3109805175ns5:ShareCapital2021-03-3109805175ns5:RetainedEarningsAccumulatedLosses2021-03-3109805175ns5:FurtherSpecificReserve1ComponentTotalEquity2021-03-3109805175ns5:ShareCapital2021-04-012022-03-3109805175ns5:RetainedEarningsAccumulatedLosses2021-04-012022-03-3109805175ns5:FurtherSpecificReserve1ComponentTotalEquity2021-04-012022-03-3109805175ns5:RetainedEarningsAccumulatedLosses2022-04-012023-03-3109805175ns5:FurtherSpecificReserve1ComponentTotalEquity2022-04-012023-03-3109805175ns5:NetGoodwill2022-04-012023-03-3109805175ns5:IntangibleAssetsOtherThanGoodwill2022-04-012023-03-3109805175ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-04-012023-03-3109805175ns5:MotorVehicles2022-03-3109805175ns5:ComputerEquipment2022-03-3109805175ns5:MotorVehicles2022-04-012023-03-3109805175ns5:ComputerEquipment2022-04-012023-03-3109805175ns5:MotorVehicles2023-03-3109805175ns5:ComputerEquipment2023-03-3109805175ns5:MotorVehicles2022-03-3109805175ns5:ComputerEquipment2022-03-3109805175ns5:CostValuation2022-03-3109805175ns5:UnlistedNon-exchangeTradedns5:CostValuation2022-03-3109805175ns5:AdditionsToInvestments2023-03-3109805175ns5:UnlistedNon-exchangeTradedns5:AdditionsToInvestments2023-03-3109805175ns5:CostValuation2023-03-3109805175ns5:UnlistedNon-exchangeTradedns5:CostValuation2023-03-3109805175ns5:UnlistedNon-exchangeTraded2023-03-3109805175ns5:UnlistedNon-exchangeTraded2022-03-3109805175ns5:OtherIncreaseDecreaseInInvestments2023-03-3109805175ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-03-3109805175ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-03-3109805175ns5:Non-currentFinancialInstruments2023-03-3109805175ns5:Non-currentFinancialInstruments2022-03-3109805175ns5:AcceleratedTaxDepreciationDeferredTax2023-03-3109805175ns5:AcceleratedTaxDepreciationDeferredTax2022-03-3109805175ns5:DeferredTaxation2022-03-3109805175ns5:DeferredTaxation2022-04-012023-03-3109805175ns5:DeferredTaxation2023-03-3109805175ns10:OrdinaryShareClass12023-03-3109805175ns10:OrdinaryShareClass22023-03-31
REGISTERED NUMBER: 09805175 (England and Wales)















EFFECTIVE ENERGY GROUP LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 MARCH 2023






EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 6

Report of the Independent Auditors 8

Consolidated Income Statement 12

Consolidated Other Comprehensive Income 14

Consolidated Balance Sheet 15

Company Balance Sheet 17

Consolidated Statement of Changes in Equity 18

Company Statement of Changes in Equity 19

Consolidated Cash Flow Statement 20

Notes to the Consolidated Cash Flow Statement 21

Notes to the Consolidated Financial Statements 23


EFFECTIVE ENERGY GROUP LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2023







DIRECTORS: Mr S Adams
Mr L J Cottingham
Mr R J Cox
Mr D G Graby
Mr J M A Dodd
Mr B E Williams





REGISTERED OFFICE: 1 Boston Road
Leicester
Leicestershire
LE4 1AA





REGISTERED NUMBER: 09805175 (England and Wales)





AUDITORS: Xeinadin Audit Limited
Sidings House
Sidings Court
Lakeside
Doncaster
South Yorkshire
DN4 5NU

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023


The directors present their strategic report of the company and the group for the year ended 31 March 2023.

PRINCIPAL ACTIVITY
The Group of companies operate across the energy efficiency and green energy services related markets. Principal activities include the supply and installation of energy efficiency and green energy generation products to homes and businesses throughout the UK. These products include, energy efficient heating systems, numerous types of building insulation, solar systems, battery storage systems, electric car chargers and other renewable energy generation and energy saving measures. The Group supplies and installs these measures through a diverse range of clients, including directly to residential homeowners, social landlords, through the management and distribution of funds associated to the UK Energy Company Obligation (ECO) and the supply and installation of the company's green energy services to the new-build, commercial and Governmental sectors.

The Group acquired Aztec Solar Energy Limited in November 2022. In acquiring this company, the Group has increased its sales function diversification into the commercial Solar PV industry. Since joining the group, Aztec Solar Energy Limited has successfully expanded its customer base, obtaining contracts with education and government institutions alike, along with an increased pipeline of large scale commercial new build and retrofit Solar and Battery storage projects.

REVIEW OF BUSINESS
The directors are pleased to announce another year of strong performance within a set of key strategic goals for the year. The year represents the achievement of several milestones within what is year 4 of a 5-year strategic build and development plan. The Group has now completed its platform build across each target sector of both energy efficiency and renewable energy products and services. As a result of the successes of this year, the following financial year will see significant uplift in both revenue and profit as these key building blocks, completed in this period, begin to bed in.

In this period, the company completed several of its core objectives which include but are not limited to; The roll out of a new integrated IT platform. The integration of Aztec Solar Energy Limited, within the commercial sector. The completed integration of the Premier Connections and Premier renewables acquisitions in the residential retail sector. The continued development and growth of the Effective Energy Solutions business within the managed funding sector and the continued increase in market dominance in the newbuild market, via the Max Energy business, for both installed energy efficiency measures as well as Solar and battery storage products.

As a result of the platform build this year, the reach of commercial clients across the UK now includes all UK territories, including Northern Ireland. The technical skills competence within the newbuild market is now served and supported by a centralised skills academy, supporting the groups growing engineer requirement. Within the residential retail sector, the business now operates from two centralised sales and operations offices, with a team of highly experienced technical sales, technical surveying and technical field management operatives coordinated throughout the UK from these two HQ hubs. By operating the control functions of the group's retail service out of these two connected centres and by using the group integrated services to coordinate the people interfaced functional control elements of the entire group to support each other, the company's adopted Business Resilience Plan are well met.

In this year, several non-required operations, which were inherited via the above-mentioned acquisitions were discontinued. The underlying profit of the Group without these discontinued operations was £2,242,852.
These discontinued operations were within the Premier Connections and Premier Renewables businesses and are discontinued within this financial year as the elements of those businesses that were sought after in the acquisitions have now been integrated into the BAU of the ongoing Group activities.
Including the discontinued items, the Loss before taxation for the year amounts to £3,164,879 (2022: Profit £3,687,370). Turnover delivered in the year amounts to £71,464,110 (2022; £72,165,560). The loss was reflected in the shareholders' funds which currently stands at £4,213,302. This together with a year-end cash at bank balance of £3,132,273 provides a solid platform to support the groups existing and planned business strategies and will be demonstrated by the ongoing performance of the group, as a direct result of the activities planned, taken, and completed over the course of this year.


EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

STRATEGIC REPORT
The directors remain confident that the operating model fully supports the strategic aim of the shareholders. The Group continues to build on its' reputation as a well-established market leader in the provision of 'whole home' energy efficiency and renewable energy products, providing these products and services to both individual homeowners and commercial businesses, new-build clients and through community scale residential housing programmes.

Through our Max Energy brand, we continue to be the leading provider of insulation products and services to the new-building housing sector and are now the leading provider of Solar solutions in this sector. The experienced management team and dynamic delivery platform continue to generate growth in our customer base, which once again translated in increased financial performance. Relationships across all areas of the supply chain have been strengthened and broadened to support future delivery of our substantial order book.

Effective Energy Solutions continued to provide fulfilment of ECO and other carbon reducing programmes on behalf of the UK Energy Sector and other obligated parties. The company has strengthened its long-term contracts and partnerships across these Energy related sectors. Alongside this, the company continues to build excellent long term strategic partnerships, enhancing its delivery platform with a diverse and robust network of system installation partners.

Effective Home remain focused on following the strategy of assessing each customer's home from a "fabric first" energy efficiency perspective. Effective Home can provide customers with a range of solutions, from the most suitable types of Insulation and/or efficient heating systems, including Air Source Heat Pumps, through to renewable energy products such as Solar PV and/or Solar Thermal, alongside Battery Storage solutions, Smart Controls and Electric Vehicle Chargers. Whilst early adoption of key products has seen singular product purchases within a number of these growing product sectors, the company is significantly increasing its penetration of bundled packages as part of an entire 'one stop' home decarbonisation solution. Being product agnostic and having developed a highly scalable and flexible tech driven platform over our build phase, Effective Home is well structured to build upon and continually review the best available product options for our customers.

FUTURE DEVELOPMENTS
Max Energy has secured a significant orderbook covering the forecast turnover for the next year, with potential for further upside. The business has a strong solar orderbook which is set to accelerate into the new build market as well as delivering GBIS installs generated companies within the group.

Effective Energy Solutions has continued to develop new income streams by becoming the managing agent for Group services in new GBIS and H4H schemes. The business has also held positive discussions with two new energy suppliers which will strengthen its capacity to operate with agility and adaptability in the ECO market.

Effective Home has continued to develop new income streams bringing on board revenue Help4Homes and GBIS which have involved working closely with other group companies to create and maximise the opportunity. The Company has integrated Premier Connections and Premier Renewables Energy which has resulted in an increase in activity across all income streams during the 31 March 2024 accounting period. As such, the Group has identified and actioned its future developments.

PRINCIPAL RISKS AND UNCERTAINTIES
The Group boasts an extremely experienced management team throughout head office functions and within its subsidiaries, recruiting where necessary to acquire the skillset required in a fast-paced industry. The risk management program ensures continuous monitoring of the markets, supply chain and economic landscape in which we operate.

The principal risk to Max Energy and Effective Home would be a change in the economy, effecting the new build and residential housing sector or from a non-scheduled change to the Government Incentivised Retro Fit market. To minimise these risks, the Company's management team continues to monitor and analyse the market closely, sharing data with our customers, key suppliers, and trade bodies. Credit risk is reduced by working with a wide portfolio of well-managed, diverse range of customers across the UK's multiple house builders. These steps have enabled both companies to manage their risk exposure and continue to operate effectively.


EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

PRINCIPAL RISKS AND UNCERTAINTIES (CONTINUED)
Risk to customers delivery, is largely limited to security of supply and price increases of key materials for Max Energy and sufficient supply from delivery partners in Effective Energy to meet ECO contracts. Both are mitigated by having a wide portfolio of suppliers and having a mix of fixed price forward contracts with suppliers and customers, avoiding reliance on any one single entity.

A key risk to Effective Energy would be a change in government legislation surrounding Energy Company Obligation as this will directly impact revenue. Although this is high risk, it is mitigated by the low probability of occurrence as well as high visibility in the sector. Any such changes would take 18 months to materialise.

The directors and shareholders of the group and related companies remain confident that the business will deliver in line with strategy, via its dynamic approach to target markets.

ENVIRONMENTAL POLICY
The Group has introduced an environmental policy and seeks to adopt practices which cause least damage to the environment and is continually exploring methods of recycling materials where practical.

SECTION 172(1) STATEMENT
Employee Engagement.
The group adopts a process of regular staff updates by email to employees by the Management Team. This includes making staff aware of the financial, economic and social factors affecting them and the Group. In addition to this the Group has maintain an Employee Hub which offers its staff affinity discounts, wellbeing advice and access to a specialist employee assistance program.

The Directors and other Senior Management hold regular staff forums to discuss developments within both the Group and the market it operates with.

The Group produces regular Staff Surveys which invite employees to express an anonymous opinion on how the Group is performing and what improvements they would like to see to improve their work experience. These views are discussed with changes made to procedures and conditions to meet aspirations .

The Directors and other Senior Management operate an 'open door' policy where any employee can meet with them at any convenient time.

Recruitment and Equal Opportunities
In recruitment the Group is committed to a policy of equal opportunity regardless of sex, sexual orientation, marital status, age, disability, colour, race, ethnic or national origin, religious or political beliefs.

We will ensure that each candidate is assessed only in accordance with their merits, qualifications, and ability to perform the relevant duties required by that vacancy.

Account is taken of disabilities only in so far as they affect ability to perform their substantive role, the Group will seek to make reasonable adjustments to retain them in any available suitable employment.

Where staff become disabled under UK disability legislation, and are unable to perform their substantive role, the Group will seek to make reasonable adjustments to retain them in any suitable employment.


EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

SECTION 172(1) STATEMENT (CONTINUED)
Other Stakeholder Engagement.
The Group has a Customer Experience Team which corresponds with individual customers. Senior managers in the business are involved in trade forums and where required the business units are active member of the relevant accreditation bodies.

The Directors and other Senior Management liaise closely with trade bodies and participate in government working parties to improve the offering and keep them abreast of developments in the network.

The Directors are in regular contact with major suppliers to advise on likely developments within the business, and the effect this may have for them.

The Directors ensure that suppliers are paid according to their terms and conditions.

ON BEHALF OF THE BOARD:





Mr S Adams - Director


28 March 2024

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023


The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023.

DIVIDENDS
Particulars of dividends are detailed in note 10 to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

Mr S Adams
Mr L J Cottingham
Mr R J Cox
Mr D G Graby

Other changes in directors holding office are as follows:

Mr G Roddan - resigned 1 December 2022
Mr J M A Dodd - appointed 1 December 2022
Mr B E Williams - appointed 1 December 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023


AUDITORS
The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr S Adams - Director


28 March 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EFFECTIVE ENERGY GROUP LIMITED


Opinion
We have audited the financial statements of Effective Energy Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 March 2023 and of the group's loss 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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.

In connection with our audit of the financial statements, 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EFFECTIVE ENERGY GROUP LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EFFECTIVE ENERGY GROUP LIMITED


Auditors' 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 a Report of the Auditors 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 Group, we identified that the principal risks of non-compliance with laws and regulations related to corporation tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements.

As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and FRS 102.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results.

Audit procedures performed by the engagement team include:

- Enquiring of and obtaining written representation from management in relation to known or suspected instances
of non-compliance with laws and regulations and fraud;
- Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws
and regulations;
- Evaluation of management's controls designed to prevent and detect irregularities;
- Review of board meeting minutes and meetings of those charged with governance;
- Identifying and, where relevant, testing journal entries posted by senior management or with unusual
combinations;
- Assessing and evaluating the business rationale of significant transactions outside the normal course of
business;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with
applicable laws and regulations;
- Review of correspondence with regulators in so far as they are related to the financial statements;
- Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 misrepresentation, or through collusion.

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 Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EFFECTIVE ENERGY GROUP LIMITED


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 a Report of the Auditors 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.




Kelvin Fitton BA FCA (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Limited
Sidings House
Sidings Court
Lakeside
Doncaster
South Yorkshire
DN4 5NU

28 March 2024

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

CONSOLIDATED
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

2023 2023 2023
Continuing Discontinued Total
Notes £    £    £   

TURNOVER 4 68,248,180 3,215,930 71,464,110
Cost of sales (50,090,952 ) (5,990,347 ) (56,081,299 )
GROSS PROFIT/(LOSS) 18,157,228 (2,774,417 ) 15,382,811

Administrative expenses (16,922,576 ) (2,587,587 ) (19,510,163 )
1,234,652 (5,362,004 ) (4,127,352 )

Other operating income 841,924 391 842,315


OPERATING PROFIT/(LOSS) 6 2,076,576 (5,361,613 ) (3,285,037 )

Interest receivable and similar income 148,951 331 149,282
Interest payable and similar expenses 9 (3,380 ) (25,744 ) (29,124 )
PROFIT/(LOSS) BEFORE TAXATION 2,222,147 (5,387,026 ) (3,164,879 )
Tax on profit/(loss) 10 20,705 119,310 140,015
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

2,242,852

(5,267,716

)

(3,024,864

)
Profit/(loss) attributable to:
Owners of the parent (3,866,740 )
Non-controlling interests 841,876
(3,024,864 )

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

CONSOLIDATED
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

2022 2022 2022
Continuing Discontinued Total
Notes £    £    £   

TURNOVER 4 72,110,158 55,402 72,165,560
Cost of sales (53,287,997 ) (22,168 ) (53,310,165 )
GROSS PROFIT 18,822,161 33,234 18,855,395

Administrative expenses (14,985,626 ) (48,858 ) (15,034,484 )
3,836,535 (15,624 ) 3,820,911

Other operating income 444,643 5,053 449,696


OPERATING PROFIT/(LOSS) 6 4,281,178 (10,571 ) 4,270,607

Profit on sale of operation 8 - 231,873 231,873
4,281,178 221,302 4,502,480

Interest receivable and similar income 163,770 - 163,770
Interest payable and similar expenses 9 (118,801 ) - (118,801 )
PROFIT BEFORE TAXATION 4,326,147 221,302 4,547,449
Tax on profit 10 (860,079 ) - (860,079 )
PROFIT FOR THE FINANCIAL YEAR 3,466,068 221,302 3,687,370
Profit attributable to:
Owners of the parent 2,757,806
Non-controlling interests 929,564
3,687,370

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

CONSOLIDATED
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (3,024,864 ) 3,687,370


OTHER COMPREHENSIVE INCOME
Share option cost recognised in equity 15,315 45,947
Reduction in non-controlling interest on
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

15,315

45,947
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(3,009,549

)

3,733,317

Total comprehensive income attributable to:
Owners of the parent (3,851,425 ) 2,803,753
Non-controlling interests 841,876 929,564
(3,009,549 ) 3,733,317

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

CONSOLIDATED BALANCE SHEET
31 MARCH 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 14 2,914,208 3,014,692
Tangible assets 15 1,695,861 1,608,964
Investments 16
Interest in associate 500,000 500,000
Other investments 1,869 2,001,869
5,111,938 7,125,525

CURRENT ASSETS
Stocks 17 1,344,509 1,112,435
Debtors 18 23,254,496 21,066,937
Investments 19 2,000,000 -
Cash at bank and in hand 3,132,273 3,788,968
29,731,278 25,968,340
CREDITORS
Amounts falling due within one year 20 27,148,622 22,536,105
NET CURRENT ASSETS 2,582,656 3,432,235
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,694,594

10,557,760

CREDITORS
Amounts falling due after more than one
year

21

(749,797

)

(406,053

)

PROVISIONS FOR LIABILITIES 25 (271,243 ) (240,083 )
NET ASSETS 6,673,554 9,911,624

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

CONSOLIDATED BALANCE SHEET - continued
31 MARCH 2023

2023 2022
Notes £    £    £    £   
CAPITAL AND RESERVES
Called up share capital 26 10,102 10,102
Other reserves 27 116,398 101,083
Retained earnings 27 4,086,802 7,953,542
SHAREHOLDERS' FUNDS 4,213,302 8,064,727

NON-CONTROLLING INTERESTS 2,460,252 1,846,897
TOTAL EQUITY 6,673,554 9,911,624


The financial statements were approved by the Board of Directors and authorised for issue on 28 March 2024 and were signed on its behalf by:





Mr S Adams - Director


EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

COMPANY BALANCE SHEET
31 MARCH 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 14 - -
Tangible assets 15 70,079 45,457
Investments 16 1,729,836 3,389,836
1,799,915 3,435,293

CURRENT ASSETS
Debtors 18 2,285,718 839,310
Investments 19 2,000,000 -
Cash at bank 26,832 38,860
4,312,550 878,170
CREDITORS
Amounts falling due within one year 20 8,886,873 3,875,983
NET CURRENT LIABILITIES (4,574,323 ) (2,997,813 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(2,774,408

)

437,480

PROVISIONS FOR LIABILITIES 25 17,520 11,364
NET (LIABILITIES)/ASSETS (2,791,928 ) 426,116

CAPITAL AND RESERVES
Called up share capital 26 10,102 10,102
Other reserves 27 116,398 101,083
Retained earnings 27 (2,918,428 ) 314,931
SHAREHOLDERS' FUNDS (2,791,928 ) 426,116

Company's (loss)/profit for the financial year (3,233,359 ) 2,597,941

The financial statements were approved by the Board of Directors and authorised for issue on 28 March 2024 and were signed on its behalf by:





Mr S Adams - Director


EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023

Called up
share Retained Other
capital earnings reserves
£    £    £   
Balance at 1 April 2021 10,002 7,603,285 55,136

Changes in equity
Issue of share capital 100 - -
Dividends - (2,407,549 ) -
Total comprehensive income - 2,757,806 45,947
Balance at 31 March 2022 10,102 7,953,542 101,083

Changes in equity
Total comprehensive income - (3,866,740 ) 15,315
10,102 4,086,802 116,398
Acquisition of non-controlling
interest

-

-

-
Balance at 31 March 2023 10,102 4,086,802 116,398
Non-controlling Total
Total interests equity
£    £    £   
Balance at 1 April 2021 7,668,423 1,164,718 8,833,141

Changes in equity
Issue of share capital 100 - 100
Dividends (2,407,549 ) (247,385 ) (2,654,934 )
Total comprehensive income 2,803,753 929,564 3,733,317
Balance at 31 March 2022 8,064,727 1,846,897 9,911,624

Changes in equity
Dividends - (239,750 ) (239,750 )
Total comprehensive income (3,851,425 ) 841,876 (3,009,549 )
4,213,302 2,449,023 6,662,325
Acquisition of non-controlling
interest

-

11,229

11,229
Balance at 31 March 2023 4,213,302 2,460,252 6,673,554

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023

Called up
share Retained Other Total
capital earnings reserves equity
£    £    £    £   
Balance at 1 April 2021 10,002 124,539 55,136 189,677

Changes in equity
Issue of share capital 100 - - 100
Dividends - (2,407,549 ) - (2,407,549 )
Total comprehensive income - 2,597,941 45,947 2,643,888
Balance at 31 March 2022 10,102 314,931 101,083 426,116

Changes in equity
Total comprehensive income - (3,233,359 ) 15,315 (3,218,044 )
Balance at 31 March 2023 10,102 (2,918,428 ) 116,398 (2,791,928 )

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 530,557 7,135,394
Interest paid (3,380 ) (114,599 )
Interest element of hire purchase payments
paid

(25,744

)

(4,202

)
Tax paid (65,701 ) (1,575,353 )
Net cash from operating activities 435,732 5,441,240

Cash flows from investing activities
Purchase of intangible fixed assets (26,250 ) (43,300 )
Purchase of tangible fixed assets (621,762 ) (838,908 )
Purchase of fixed asset investments - (500,000 )
Sale of tangible fixed assets 156,456 (23,677 )
Business combinations (340,000 ) (1,000,517 )
Cash gain on acquisition 48,937 -
Amounts advanced to associates (118,064 ) (101,518 )
Interest received 149,282 163,770
Net cash from investing activities (751,401 ) (2,344,150 )

Cash flows from financing activities
Loan advances in year 135,922 1,383,740
Repayment of facilities - (1,023,171 )
HP capital repayments in year (341,371 ) (114,485 )
Amount introduced by directors 95,545 -
Amount withdrawn by directors (6,687 ) -
Share issue - 100
Value of EMI 15,315 45,947
Equity dividends paid - (2,407,549 )
Dividends paid to minority interests (239,750 ) (247,385 )
Net cash from financing activities (341,026 ) (2,362,803 )

(Decrease)/increase in cash and cash equivalents (656,695 ) 734,287
Cash and cash equivalents at beginning of
year

2

3,788,968

3,054,681

Cash and cash equivalents at end of year 2 3,132,273 3,788,968

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023


1. RECONCILIATION OF (LOSS)/PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED
FROM OPERATIONS
2023 2022
£    £   
(Loss)/profit for the financial year (3,024,864 ) 3,687,370
Depreciation charges 1,032,367 698,740
(Profit)/loss on disposal of fixed assets (12,905 ) 29,318
Impairment losses on development costs 53,569 -
Finance costs 29,124 118,801
Finance income (149,282 ) (163,770 )
Taxation (140,015 ) 860,079
(2,212,006 ) 5,230,538
Increase in stocks (68,079 ) (536,896 )
Increase in trade and other debtors (1,739,784 ) (958,002 )
Increase in trade and other creditors 4,550,426 3,399,754
Cash generated from operations 530,557 7,135,394

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 3,132,273 3,788,968
Year ended 31 March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 3,788,968 3,054,681


EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023


3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

Business Other
Combination non-cash
At 1.4.22 Cash flow s changes At 31.3.23
£    £    £    £    £   
Net cash
Cash at bank
and in hand 3,788,968 (705,632 ) 48,937 3,132,273
3,788,968 (705,632 ) 48,937 3,132,273
Debt
Finance leases (583,838 ) 341,371 - (251,749 ) (494,216 )
Debts falling due
within 1 year (2,105,567 ) (151,872 ) (17,369 ) - (2,274,808 )
Debts falling due
after 1 year (22,672 ) 15,950 (53,292 ) - (60,014 )
(2,712,077 ) 205,449 (70,661 ) (251,749 ) (2,829,038 )
Total 1,076,891 (500,183 ) (21,724 ) (251,749 ) 303,235

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023


1. STATUTORY INFORMATION

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 1 Boston Road, Leicester, Leicestershire, LE4 1AA. The principal place of business is Carriage Court, Welbeck Estate, Worksop, Nottinghamshire, S80 3LR.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland.'

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Basis of consolidation
The financial statements consolidate the results of Effective Energy Group Limited and all its subsidiary undertakings. Subsidiaries are all entities over which the group has control. The group controls an entity when the group is exposed to, or has the rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group.

The consolidation stops from the date that control ceases.

The consolidation is based on uniform accounting policies across group companies in all material respects, and elimination of intra-group transactions.

Any goodwill arising on consolidation is written off against profits on a straight line basis over the useful economic life of the asset, which is ten years. A provision is made for any impairment.

All group undertakings included in the consolidated financial statement have 31 March accounting period ends.

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


3. ACCOUNTING POLICIES - continued

Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Provisions Against Trade Debtors
When evaluating debtors for recoverability risk, the Directors use their knowledge and experience to determine the provision required.

ECO Provision
A group company procures ECO points generated by qualifying energy efficiency measures installed by third-party contractors following a rigorous validation process. These ECO points are then supplied to utility companies as per the existing contract agreements, enabling them to fulfil their obligations under the government's ECO scheme. Despite the Company's diligent efforts to verify that the work conducted by the installers aligns with the requirements of the ECO scheme, there remains a risk that, due to non-compliance or negligence, the measures may be deemed invalid subsequent to the sale of the corresponding ECO points to the utility company. Typically, the rejection of submitted measures accepted by a utility company arises from audits conducted by OFGEM, who possess additional information that may reveal validity issues.

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


3. ACCOUNTING POLICIES - continued

Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on dispatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

ECO Measures
A group company operates as a managing agent within OFGEM's Energy Company Obligation (ECO) scheme. It procures qualifying measures from a network of installers and sells them to utility companies obligated to acquire such measures under the scheme. Revenue is derived from these transactions.

Revenue is represented by the fair value of consideration received or receivable between knowledgeable, willing parties in an arm's length transaction.

Revenue is measured based on the price agreed with the utility customer as defined in the contract or associated agreements. This price encompasses all fixed and variable considerations related to the sale of qualifying measures.

Significant risks and rewards of ownership are deemed to be transferred to the utility customer upon submission of qualifying measures (handover date). Revenue recognition aligns with this transfer of control.

Historical experience is utilised to estimate rejections of submitted measures by the utility customer. Revenue recognition is adjusted accordingly to reflect the portion of submitted measures that are at risk of rejection. Revenue is not recognised for measures deemed at risk of rejection until such risks are mitigated or resolved.

Installation of Insulation Materials
Turnover from the installation of insulation materials is recognised upon completion of the installation, it is probable that the economic benefits will flow to the Group and the costs incurred or to be incurred in respect of the installation can be measured reliably

Installation of Solar PV and Battery Systems
Turnover from the installation of Solar PV and battery installations is recognised upon handover to the customer, this when the system has been commissioned and the risk and rewards of the systems have passed to the customer, it is probable that the economic benefits will flow to the and Group the costs incurred or to be incurred in respect of the installation can be measured reliably.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a businesses in 2021, 2022 and 2023 is being amortised evenly over its estimated useful life of ten years.

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


3. ACCOUNTING POLICIES - continued

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

An impairment loss has been recognised in the Consolidated Income Statement, following an assessment at the Consolidated Balance Sheet date indicating the recoverable amount was less than its carrying value.

Development costs are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery20-25% straight line
Fixtures and fittings20-25% straight line
Motor vehicles20-25% straight line
Equipment20-25% straight line


Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amounts being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Investments in associates
Investments in associate undertakings are initially recognised at the transaction price and subsequently adjusted to reflect the Group's share of profit or loss and other Comprehensive income.

Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


3. ACCOUNTING POLICIES - continued

Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.

Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing difference at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Research and development
Research expenditure is written off in the period in which it is incurred.

Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregates benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the relates service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 2 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Non-controlling interests
Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority's share of changes in equity since the date of the combination.

The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the minority interests are determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments.

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


3. ACCOUNTING POLICIES - continued

Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Goodwill
Negative goodwill arising on consolidation of a subsidiary represents the difference between the fair value of consideration due and the fair value of the net assets on acquisition of the subsidiary. The net assets acquired relate primarily to current assets and current liabilities, with no material amount relating to fixed assets. Negative goodwill has been released to the income statement in line with the assets to which it relates, and all fell due in the accounting period in which the subsidiary was acquired.

4. TURNOVER

The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Sale of goods 71,463,321 72,110,158
Rendering of services 789 55,402
71,464,110 72,165,560

The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 14,426,053 11,120,641
Social security costs 1,623,986 1,183,494
Other pension costs 444,154 374,101
16,494,193 12,678,236

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


5. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022

Administrative staff & directors 172 123
Operational staff 182 177
354 300

The average number of employees by undertakings that were proportionately consolidated during the year was 6 (2022 - 19 ) .

2023 2022
£    £   
Directors' remuneration 842,273 859,926
Directors' pension contributions to money purchase schemes 32,738 101,428

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 5 3

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 228,649 220,695
Pension contributions to money purchase schemes - 10,916

6. OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 103,390 84,765
Other operating leases 67,949 101,532
Depreciation - owned assets 424,727 282,213
Depreciation - assets on hire purchase contracts 218,336 150,721
(Profit)/loss on disposal of fixed assets (12,905 ) 29,318
Goodwill amortisation 373,323 265,806
Development costs amortisation 15,981 -
Foreign exchange differences 134 -
Operating lease costs 2,122,503 1,921,423

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


7. AUDITORS' REMUNERATION
2023 2022
£    £   
Fees payable to the company's auditors and their associates for the audit of
the company's financial statements

65,283

45,883
Auditors' remuneration for non audit work 4,228 9,778

8. EXCEPTIONAL ITEMS
2023 2022
£    £   
Profit on sale of operation - 231,873

9. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 25,636 9,614
Loan (22,554 ) 107,324
Interest payable 298 (2,339 )
Hire purchase 25,744 4,202
29,124 118,801

10. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 6,064 682,650
Underprovision in earlier year (177,239 ) -
Total current tax (171,175 ) 682,650

Deferred tax 31,160 177,429
Tax on (loss)/profit (140,015 ) 860,079

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


10. TAXATION - continued

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
(Loss)/profit before tax (3,164,879 ) 4,547,449
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
19 % (2022 - 19 %)

(601,327

)

864,015

Effects of:
Expenses not deductible for tax purposes 73,499 65,038
Utilisation of tax losses (5,017 ) (124,871 )
Adjustments to tax charge in respect of previous periods (5,317 ) 32,879
Enhanced expenses capital allowances (18,174 ) (38,956 )

Unused tax losses 390,307 37,120
movements
Change in deferred tax rates 26,014 24,854
Total tax (credit)/charge (140,015 ) 860,079

Tax effects relating to effects of other comprehensive income

2023
Gross Tax Net
£    £    £   
Share option cost recognised in equity 15,315 - 15,315
Reduction in non-controlling interest on
15,315 - 15,315

2022
Gross Tax Net
£    £    £   
Share option cost recognised in equity 45,947 - 45,947
Reduction in non-controlling interest on
45,947 - 45,947

11. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


12. DIVIDENDS
2023 2022
£    £   
Ordinary shares of 1 each
Final - 2,407,549

During the year, dividends of £Nil were paid by the Company (2022: £2,407,549).

13. GOVERNMENT ASSISTANCE

Company
The Company received no government assistance during the accounting period.

Group
During the year the Group received no grant income under HM Government CJRS (2022: £8,266). This is disclosed in Other Income.

Group subsidiaries utilised the CJRS inline with the guidance provided by HMRC, staff within the group have been furloughed during periods of inactivity or where demand fell for their services, as demand increased staff were brought back to work.

14. INTANGIBLE FIXED ASSETS

Group
Development
Goodwill costs Totals
£    £    £   
COST
At 1 April 2022 3,447,389 43,300 3,490,689
Additions 316,139 26,250 342,389
Impairments - (69,550 ) (69,550 )
At 31 March 2023 3,763,528 - 3,763,528
AMORTISATION
At 1 April 2022 475,997 - 475,997
Amortisation for year 373,323 15,981 389,304
Impairments - (15,981 ) (15,981 )
At 31 March 2023 849,320 - 849,320
NET BOOK VALUE
At 31 March 2023 2,914,208 - 2,914,208
At 31 March 2022 2,971,392 43,300 3,014,692

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


15. TANGIBLE FIXED ASSETS

Group
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 April 2022 14,263 1,011,356 150,561
Additions 2,155 274,644 131,823
Disposals - - -
At 31 March 2023 16,418 1,286,000 282,384
DEPRECIATION
At 1 April 2022 4,130 465,561 100,245
Charge for year 2,960 273,630 51,321
Eliminated on disposal - - -
At 31 March 2023 7,090 739,191 151,566
NET BOOK VALUE
At 31 March 2023 9,328 546,809 130,818
At 31 March 2022 10,133 545,795 50,316

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 April 2022 1,164,765 219,275 2,560,220
Additions 414,954 49,935 873,511
Disposals (170,203 ) (1,126 ) (171,329 )
At 31 March 2023 1,409,516 268,084 3,262,402
DEPRECIATION
At 1 April 2022 268,683 112,637 951,256
Charge for year 306,872 8,280 643,063
Eliminated on disposal (26,652 ) (1,126 ) (27,778 )
At 31 March 2023 548,903 119,791 1,566,541
NET BOOK VALUE
At 31 March 2023 860,613 148,293 1,695,861
At 31 March 2022 896,082 106,638 1,608,964

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


15. TANGIBLE FIXED ASSETS - continued

Group

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 April 2022 750,135
Additions 303,698
Disposals (162,928 )
At 31 March 2023 890,905
DEPRECIATION
At 1 April 2022 153,690
Charge for year 218,336
Eliminated on disposal (22,287 )
At 31 March 2023 349,739
NET BOOK VALUE
At 31 March 2023 541,166
At 31 March 2022 596,445

Company
Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 April 2022 49,590 - 49,590
Additions - 35,125 35,125
At 31 March 2023 49,590 35,125 84,715
DEPRECIATION
At 1 April 2022 4,133 - 4,133
Charge for year 9,918 585 10,503
At 31 March 2023 14,051 585 14,636
NET BOOK VALUE
At 31 March 2023 35,539 34,540 70,079
At 31 March 2022 45,457 - 45,457

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


16. FIXED ASSET INVESTMENTS

Group Company
2023 2022 2023 2022
£    £    £    £   
Shares in group undertakings - - 1,727,967 1,387,967
Participating interests 500,000 500,000 - -
Other investments not loans 1,869 1,869 1,869 1,869
Other loans - 2,000,000 - 2,000,000
501,869 2,501,869 1,729,836 3,389,836

Additional information is as follows:

Group
Interest
in Unlisted
associate investments Totals
£    £    £   
COST
At 1 April 2022
and 31 March 2023 500,000 1,869 501,869
NET BOOK VALUE
At 31 March 2023 500,000 1,869 501,869
At 31 March 2022 500,000 1,869 501,869
Company
Shares in
group Unlisted
undertakings investments Totals
£    £    £   
COST
At 1 April 2022 1,387,967 1,869 1,389,836
Additions 340,000 - 340,000
At 31 March 2023 1,727,967 1,869 1,729,836
NET BOOK VALUE
At 31 March 2023 1,727,967 1,869 1,729,836
At 31 March 2022 1,387,967 1,869 1,389,836


EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


16. FIXED ASSET INVESTMENTS - continued

Group
Other
loans
£   
At 1 April 2022 2,000,000
Other movement (2,000,000 )
At 31 March 2023 -

Company
Other
loans
£   
At 1 April 2022 2,000,000
Other movement (2,000,000 )
At 31 March 2023 -

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


16. FIXED ASSET INVESTMENTS - continued


During the prior year the Company subscribed to 15% of the Ordinary share capital of Alta Capital Limited.

Details of the investments in which the parent company has an interest of 20% or more are as follows:



Subsidiary Undertakings
Company
Registration
Number



Class of
Share


Percentage
of Shares
Held

Effective Energy Solutions Limited 06743329 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Energy Consultancy

Effective Home Limited 10441082 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Installers of Home Heating Solutions

Effective Utilities Limited 10425269 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Energy Consultancy

Effective Energy Limited* 08279688 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Dormant


Max Energy Holdings Limited

12450281

Ordinary
£0.01


78.5%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Intermediate Parent Company

Max Energy Limited* 08992041 Ordinary £1 78.5%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Insulation Installation Contractor

Max Scaffold Limited* 09824501 Ordinary £1 78.5%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Insulation Installation Contractor

Green Beard Limited* 10439937 Ordinary £1 78.5%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Dormant

Max Render Limited* 09846726 Ordinary £1 78.5%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Dormant

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


16. FIXED ASSET INVESTMENTS - continued


Volta Energy Group Limited 10881834 Ordinary £1 66%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Renewable Energy Provider

Volta Energy Green Limited 11001771 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Dormant

Volta Energy Immingham Limited 11002962 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Dormant


Volta Energy Scarborough Limited 11002141 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Dormant

Volta Energy Jordanthorpe Limited 11001771 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Dormant

Volta Energy Turner Crescent Limited 11002585 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Dormant

Volta Energy Doncaster Limited 11002633 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Dormant

Volta Energy Blue Limited 11002670 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Dormant

Volta Energy Thurcroft Limited 11002785 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Dormant

Volta Energy Brodsworth Limited 11002774 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Dormant

Max Renewables Limited (previously Volta Energy
South Kirkby Limited)

11002639


Ordinary £1


100%

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


16. FIXED ASSET INVESTMENTS - continued

Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Dormant

Volta Energy Assets Limited 10999585 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Dormant

Effective Group Investment Ltd 13454225 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Intermediate Parent Undertaking

Premier Connections Limited 11753129 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Renewable solutions

Premier Renewables Energy Limited 11756000 Ordinary £1 100%
Registered Office: 1 Boston Road, Leicester,
Leicestershire, LE4 1AA

Nature of business: Renewable solutions

Aztec Solar Energy Limited 07779745 Ordinary £1 68%
Registered Office: 15 The Prince Phillip Building,
Wellesbourne, Warwick, Warwickshire, CV35 9EF

Nature of business:Installation of Solar PV Systems




Associated Undertakings
Company
Registration
Number



Class of
Share


Percentage
of Shares
Held

Prem IT Solutions Limited 13235982 Ordinary £1 33.3%
Registered Office: 16a Cove Road, Fleet, Hampshire,
GU51 2RN

Nature of business: Software Development and
Consultancy



17. STOCKS

Group
2023 2022
£    £   
Stocks 1,344,509 1,063,632
Work-in-progress - 48,803
1,344,509 1,112,435

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


18. DEBTORS

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year:
Trade debtors 8,795,249 9,349,231 - -
Amounts owed by group undertakings - - 1,673,957 484,978
Amounts owed by associates 264,676 - - -
Other debtors 9,994,971 10,279,431 599,625 347,173
Directors' current accounts 6,687 - - -
Tax 385,688 626,601 - -
VAT 2,266,856 - 6,235 5,548
Prepayments and accrued income 1,508,555 633,248 5,901 1,611
23,222,682 20,888,511 2,285,718 839,310

Amounts falling due after more than one year:
Amounts owed by associates 31,814 178,426 - -

Aggregate amounts 23,254,496 21,066,937 2,285,718 839,310

Amounts owed by group undertakings are interest free and repayable on demand.

19. CURRENT ASSET INVESTMENTS

Group Company
2023 2022 2023 2022
£    £    £    £   
Other 2,000,000 - 2,000,000 -

The loan balance forwarded to Alta Capital Limited was repaid in full on 3 November 2023.

The loan attracted interest at 8% per annum, interest received recognised in the Consolidated Income Statement in the period totalled £160,000 (2022: £Nil).

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


20. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 22) 2,274,808 2,105,567 - -
Hire purchase contracts (see note 23) 234,492 200,457 - -
Trade creditors 12,439,839 4,783,886 86,832 19,198
Amounts owed to group undertakings - - 8,579,989 3,459,977
Tax 31,203 508,685 - 32,457
Social security and other taxes 932,893 390,701 - -
VAT - 44,127 - -
Other creditors 8,616,772 11,618,236 112,202 351,001
Directors' current accounts 100,001 - 100,000 -
Accruals and deferred income 2,518,614 2,884,446 7,850 13,350
27,148,622 22,536,105 8,886,873 3,875,983

Amounts due to group undertakings are interest free and repayable on demand.

21. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
2023 2022
£    £   
Bank loans (see note 22) 60,014 22,672
Hire purchase contracts (see note 23) 259,724 383,381
Other creditors 430,059 -
749,797 406,053

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


22. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 24,444 6,795
Invoice finance 2,250,364 2,098,772
2,274,808 2,105,567
Amounts falling due between one and two years:
Bank loans - 1-2 years 25,726 6,967
Amounts falling due between two and five years:
Bank loans - 2-5 years 34,288 15,705

23. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 234,492 200,457
Between one and five years 259,724 383,381
494,216 583,838

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 1,426,678 982,368
Between one and five years 2,043,971 899,511
3,470,649 1,881,879

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


24. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Hire purchase contracts 494,216 583,838
Invoice finance 2,250,364 2,098,772
Other creditors 2,531,331 2,192,927
5,275,911 4,875,537

Hire purchase borrowings are secured by way of charges over the relevant assets.

Invoice Finance borrowings in Max Energy Limited are secured by a debenture over the Company's assets.

Included in Other creditors are borrowings of Effective Energy Solutions Limited totalling £2,531,331, secured by way of fixed and floating charge over the Company's assets.

25. PROVISIONS FOR LIABILITIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax
Accelerated capital allowances 153 - - -
Deferred tax 271,090 240,083 17,520 11,364
271,243 240,083 17,520 11,364

Group
Deferred
tax
£   
Balance at 1 April 2022 240,083
Provided during year 31,160
Balance at 31 March 2023 271,243

Company
Deferred
tax
£   
Balance at 1 April 2022 11,364
Charge to Income Statement during year 6,156
Balance at 31 March 2023 17,520

The provision for deferred tax derives from accelerated capital allowances less other temporary timing differences, at the enacted tax rate of 25% on which the timing difference is expected to unwind.

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


26. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
10,002 Ordinary 1 10,000 10,000
100 B Ordinary £1 102 102
10,102 10,102

Ordinary Shares
Each Ordinary share is entitled to one vote in any circumstances each ordinary share has equal rights to dividends and is entitled to participate in a distribution arising from a winding up of the Company.

B Ordinary Shares
Each B Ordinary attracts the right to participate in dividends and distributions upon exit, as well as return of capital.

B Ordinary shares do not attract voting rights.

Each share is entitled to one vote in any circumstances. Each share has equal dividend rights. Each share is entitled to participate in a distribution arising from a winding up of the company.

27. RESERVES

Group
Retained Other
earnings reserves Totals
£    £    £   

At 1 April 2022 7,953,542 101,083 8,054,625
Deficit for the year (3,866,740 ) (3,866,740 )
Cost of share options - 15,315 15,315
At 31 March 2023 4,086,802 116,398 4,203,200

Company
Retained Other
earnings reserves Totals
£    £    £   

At 1 April 2022 314,931 101,083 416,014
Deficit for the year (3,233,359 ) (3,233,359 )
Cost of share options - 15,315 15,315
At 31 March 2023 (2,918,428 ) 116,398 (2,802,030 )


EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


28. PENSION COMMITMENTS

The Group operates defined contribution schemes for all qualifying employees. The assets of the schemes are held separately from those of the Group in independently administered funds. The contributions payable by the Group charged to the Consolidated Income Statement amounted to £444,154 (2022 £396,707). Contributions totalling £62,596 (2022: £79,053) were payable to the funds at the Balance Sheet date and are included in creditors.

29. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 March 2023 and 31 March 2022:

2023 2022
£    £   
G Roddan
Balance outstanding at start of year - 60,000
Amounts repaid - (60,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

The loan advanced to Mr G Roddan was interest free.

30. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Group

Our Generation Solar 2 Limited
During the period sales were made within the group, at an arm's length basis, to Our Generation
Solar 2 Limited, a Company with a common director to Effective Energy Group Limited, in the sum of £Nil (2022: £Nil). At the Balance Sheet date £16,990 (2022: £16,990) was outstanding from this Company to a group subsidiary.

Elemental Technologies Limited
At the Balance Sheet date £911,574 (2022: £122,331) was due from Elemental Technologies Ltd, a Company under common control

Prem IT Solutions.
At the Balance Sheet date £296,490 (2022: £178,426) was due from Prem IT Solutions Ltd, an associated undertaking with directors in common.

All directors and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the Group are considered to be key management personnel. Total remuneration in respect of these individuals is £1,716,412 (2022: £1,370,192).

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


31. ULTIMATE CONTROLLING PARTIES

R J Cox and L J Cottingham are regarded as the ultimate controlling parties of the group on the basis of their shareholdings in the parent company.

32. SHARE-BASED PAYMENT TRANSACTIONS

On 15 November 2020, a number of key group employees were granted share options to vest upon an exit event. The options entitled the employees to acquire a maximum of 1,764 ordinary shares in Effective Energy Group Limited at a value of £1 per share.

Following a valuation at the Balance Sheet date, the total expected cost of option is £116,398 (2022: £101,083).

A total of £15,315 (2022: £45,947) has been charged to the Consolidated Income Statement in the year and recognised within equity on the Consolidated Balance Sheet.

EFFECTIVE ENERGY GROUP LIMITED (REGISTERED NUMBER: 09805175)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


33. BUSINESS COMBINATIONS

During the year the group undertook the following business combinations:
Acquisition of Aztec Solar Energy Limited

On 2 November 2022 Effective Energy Group Limited acquired 68% of the share capital of Aztec Solar Energy Limited.

Recognised amounts of identifiable assets acquired and liabilities assumed

Fair value
Book value adjustment Fair value
£    £    £   

CURRENT ASSETS
Stocks 163,995 - 163,955
Debtors 563,937 - 563,937
Cash at bank and in hand 48,937 - 48,937
776,869 - 776,869

CREDITORS
Trade creditors 329,888 - 329,888
Taxation 307 - 307
SSOT 60,760 - 60,760
Bank loans and overdrafts 17,369 - 17,369
Directors loan accounts 4,456 - 4,456
Other creditors and accruals 275,707 - 275,707
NET CURRENT ASSETS 88,382 - 88,382
TOTAL ASSETS LESS CURRENT
LIABILITIES


CREDITORS
Amounts falling due after more than one year (53,292 ) - (53,292 )

PROVISIONS FOR LIABILITIES - - -
TOTAL IDENTIFIABLE NET ASSETS 35,090 - 35,090

NET ASSETS ACQRUIRED (68%) 23,861

Goodwill 316,139
TOTAL PURCHASE CONSIDERATION 340,000
CASH OUTFLOW ON ACQUISITION

Purchase consideration settled in cash 340,000
Cash and cash equivalents acquired (48,937 )
NET CASH OUTFLOW ON ACQUISITION 291,063