REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
SOLEN ENERGY UK LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
SOLEN ENERGY UK LIMITED |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Statement of Income and Retained Earnings | 8 |
Balance Sheet | 9 |
Notes to the Financial Statements | 10 |
SOLEN ENERGY UK LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
One Derby Square |
Liverpool |
L2 9QR |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company continued to be the supply of solar photovoltaic components including solar modules, inverters, mounting systems and other associated products, as well as electrical components. |
REVIEW OF BUSINESS |
This year has seen continued growth for the business with a 20% increase in turnover compared to the previous year. This increase in business is due to the continuing expansion of the UK solar industry, as well as natural growth for the company. |
Solar remains the popular choice for residential and commercial buildings as the world continues its move away from fossil fuels and towards renewable energy. |
The business has continued to increase the workforce in order to deal with the increased demands as well as investing in new marketing and online strategies. |
KEY PERFORMANCE INDICATORS |
Turnover in the year was £61,867,776 (2022: £51,614,618) representing a 20% increase. Profit before taxation was £5,046,363 (2022: £4,726,545), and the net asset position of the company has increased to £8,604,381 (2022: £5,334,507). |
FUTURE DEVELOPMENTS |
The company is continuing to grow and is looking to expand further nationally, as well as internationally, as demand for renewable energy increases. |
The company continues to invest in training people so they grow in their experience and knowledge along with the company. The company is also investing in a new online presence to further support sales. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the company's strategy are subject to a number of risks: |
Operating risks |
Competition |
Whilst the company continues to perform strongly, new competitors are continuing to enter the market. However, the company is well placed to maintain a strong position in the market due to well established customer relationships as well as regular pricing reviews of the market place to ensure competitiveness. |
Financial risk management |
The directors review and agree policies for managing the risks arising from the company's financial instruments and these are summarised below. |
Credit risk |
The company continues to monitor credit risk closely and considers that its current policies of credit checks meets its objectives. All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary. The company also continues to work with a credit insurance agency in order to avoid potential losses as customers' demand for credit increases. |
Liquidity risk |
As the company experiences continued growth, liquidity and cash flow are challenging. However, regular cash flow forecasting and a healthy balance sheet as well as good financing mechanisms ensure the continued growth runs at an optimal level. |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Financial risk management (continued) |
Foreign exchange and interest rate risk |
As the company continues to grow it is more susceptible to foreign exchange risks. The foreign exchange risk is |
therefore carefully managed and reviewed on a regular basis. Similarly the growth is being partly supported by funding mechanisms which are subject to fluctuations in interest rates. Therefore long term affordable loans are agreed to reduce such risks. |
ON BEHALF OF THE BOARD: |
17 July 2024 |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2023 will be £578,010 (2022 - £318,795). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of The Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410) to be contained in the directors' report. It has done so in respect of future developments and financial risk management. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 company'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 company's auditors are aware of that information. |
AUDITORS |
Additions have expressed their willingness to remain in office as auditors of the company. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SOLEN ENERGY UK LIMITED |
Opinion |
We have audited the financial statements of Solen Energy UK Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 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 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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 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, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SOLEN ENERGY UK LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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. |
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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
Capability of the audit in detecting irregularities, including fraud |
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity: |
- | Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pension legislation, and distributable profits legislation. |
- | Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include environmental regulations, health and safety legislation, trades description act and employment legislation. |
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquires of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; reviewing post year end payments for evidence of claims pay outs and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud. |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
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 |
SOLEN ENERGY UK 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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
One Derby Square |
Liverpool |
L2 9QR |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
STATEMENT OF INCOME AND RETAINED EARNINGS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
5,371,251 | 4,763,273 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
Dividends | 9 | ( |
) | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Solen Energy UK Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore adopts the going concern basis in preparing its financial statements. |
The company's functional and presentational currency is £ sterling. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirement of paragraph 33.7. |
The company is a wholly owned subsidiary of Solen Energy Group Limited and these financial statements are consolidated in the financial statements of Solen Energy Group Limited which may be obtained from 19 Montague Road, Widnes, WA8 8FZ. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements and estimates in respect of carrying values of assets and liabilities which may not be apparent from other sources of information. Management base these critical accounting judgements and estimations on previous historical experience and other factors which management judge to be relevant. Judgements and estimates will invariably differ from actual results and hence such judgements and estimates are reviewed by management on an ongoing basis. |
Key sources of estimation uncertainty |
Stock Provisioning: The recoverability of the cost of stock is assessed by considering the expected net realisable value of stock compared to its carrying value. Where the net realisable value is lower than the carrying value, a provision is recorded. When calculating stock provisions, management considers the nature and condition of the stock, as well as applying assumptions in respect of anticipated saleability of the goods. |
Critical accounting judgements in applying the company’s accounting policies |
No significant judgements have been made by the directors in preparing these financial statements. |
Turnover |
Turnover is recognised at the fair value of the consideration received or receivable, net of discounts, rebates, value added tax and other sales taxes. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the company, and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. |
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: |
Asset class: | Depreciation method and rate: |
Property improvements | 25% reducing balance |
Plant and machinery | 25% reducing balance |
Computer equipment | 33% reducing balance |
Freehold property | 2% straight line |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to sell. Costs include purchase and freight costs and are calculated on a first-in first-out basis. |
At each balance sheet date, a review of stock is undertaken to establish if any is slow-moving or has become obsolete. Where any write-downs of stock become necessary so as to reduce the value from cost to estimated selling price less costs to sell, such write-downs are recognised immediately as an expense in profit or loss. |
Trade and other debtors |
Trade and other debtors are initially recognised at the transaction price and subsequently measured at cost less impairment in respect of bad debts. At each balance sheet date, trade and other debtors are assessed for evidence of impairment and where it is concluded that amounts in respect of trade and other debtors are not recoverable, a specific bad debt provision is recognised. Trade debtors and other debtors are not interest-bearing. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and on hand, on-demand deposits with banks and other short-term highly liquid investments. |
Impairment of financial assets |
Financial assets are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Trade and other creditors |
Trade and other creditors are initially recognised in the financial statements at transaction price. Trade and other creditors are then subsequently measured at amortised cost using the effective interest method, unless the effects of discounting would be considered immaterial. If the effects of discounting are judged to be immaterial, trade and other creditors are stated at cost. Trade creditors are not interest-bearing. |
Share capital |
Ordinary shares are classified as equity. Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Invoice discounting |
The company has adopted the separate presentation method of accounting, whereby gross discounted debts are included in the balance sheet as an asset and the advances from the discounter are included in creditors as a liability. |
Operating lease commitments |
Rentals applicable to operating leases where substantially all of the risks and rewards of ownership remain with the lessor are charged to profit or loss on a straight line basis over the period of the lease. Any incentives related to the lease are also recognised in profit or loss on a straight line basis over the period of the lease. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
Europe |
Rest of World | 3,584 | 78,505 |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Sundry receipts | 4,580 | - |
Management charges |
4,580 | 83,333 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 2 | 2 |
Sales | 9 | 7 |
Warehouse | 10 | 6 |
Administration | 6 | 3 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Operating lease rentals |
Foreign exchange (gains)/losses | ( |
) | ( |
) |
Auditors' remuneration - audit of the financial statements |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Bank loan interest and charges |
Invoice discounting charges |
Other interest |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax: |
Accelerated capital allowances |
Tax on profit |
Reconciliation of total tax 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 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Group loss relief | - | (19,077 | ) |
Effect of capital allowances and depreciation timing differences | 6,154 | 2,184 |
Total tax charge | 1,198,479 | 905,316 |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary share of £1 |
Interim |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Reclassification/transfer | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Reclassification/transfer | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Motor | Office |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Reclassification/transfer |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Reclassification/transfer |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
11. | STOCKS |
2023 | 2022 |
£ | £ |
Goods for resale |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
Trade debtors are subject to an invoice discounting agreement. |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 571,054 | 1,407,483 |
Other creditors | 3,277,655 | 704,939 |
Accrued expenses |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 15) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 773,872 | - |
Included within bank loans is £660,838 (2022: £nil) in respect of a fixed rate loan. The loan incurs a fixed rate of interest of 8.9% per annum until August 2026 and reverts to base plus 3.15% thereafter. The loan is repayable by instalments with the final repayment due in August 2033. |
Also included within bank loans is £660,270 (2022: £nil) in respect of a variable rate loan. The loan incurs a rate of interest of base plus 3.12%. The loan is repayable by instalments with the final repayment due in August 2033. |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
16. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Other creditors | 3,176,395 | 352,050 |
The bank loans are secured by fixed and floating charges over the assets of the company, including a first legal charge over the freehold property. |
Secured other creditors relates to an invoice discounting facility which is secured by fixed and floating charges over the assets of the company. |
18. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Accelerated capital allowances | 5,056 |
Balance at 31 December 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 1 | 1 |
20. | RESERVES |
Retained earnings |
Retained earnings represents cumulative profits and losses net of dividends and other adjustments. |
SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
21. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme for all qualifying employees. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £12,619 (2022: £6,573). |
The assets of the scheme are held separately from those of the company in an independently administered fund. |
22. | ULTIMATE PARENT COMPANY |
The immediate and ultimate parent undertaking is Solen Energy Group Limited, a company registered in England and Wales, which prepares the group's consolidated financial statements. Copies of the consolidated financial statements can be obtained from 19 Montague Road, Widnes, WA8 8FZ. |
The ultimate controlling parties are T J Hughes and M D D Wilke. |
23. | 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. |
During the year, Solen Energy UK Limited undertook sales transactions totalling £556,564 (2022: £406,435) and purchase transactions totalling £17,312 (2022: £nil) with a company which is an associate of the ultimate parent company. These transactions were made under normal trading terms. At 31 December 2023, the balance owed to the company in respect of sales was £nil (2022: £230,933), and the balance owed in respect of purchases was £nil (2022: £nil). |
Also, included in debtors as at 31 December 2023 is a loan balance of £110,000 (2022: £110,000) due from the same company. This loan is unsecured, interest free, and has no fixed date for repayment. |
During the year, the company undertook sales transactions totalling £nil (2022: £147,992) and purchase transactions totalling £nil (2022: £400,370) with a fellow subsidiary (not wholly owned). These transactions were made under normal trading terms. At 31 December 2023, the balance owed to the company in respect of sales was £nil (2022: £nil), and the balance owed in respect of purchases was £nil (2022: £nil). |
The company also charged management fees totalling £nil (2022: £83,333) to the same subsidiary during the year. At 31 December 2023, the balance owed to the company in respect of these fees was £nil (2022: £nil). |
During the year, the company undertook purchase transactions totalling £45,119 (2022: £nil) with a company which is controlled by the directors M D D Wilke and T J Hughes. These transactions were made under normal trading terms. At 31 December 2023, the balance owed by the company in respect of these purchases was £nil (2022: £nil). |
Also, included in debtors as at 31 December 2023 is a loan balance of £85,470 (2022: £nil) due from the same company. This loan is unsecured, interest free, and has no fixed date for repayment. |