IRIS Accounts Production v24.2.0.383 07539158 Board of Directors 1.1.23 31.12.23 31.12.23 the supply of solar photovoltaic components (including solar modules, inverters, mounting systems and other associated products) as well as electrical components. true false true true false false true true true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh075391582022-12-31075391582023-12-31075391582023-01-012023-12-31075391582021-12-31075391582022-01-012022-12-31075391582022-12-3107539158ns15:EnglandWales2023-01-012023-12-3107539158ns14:PoundSterling2023-01-012023-12-3107539158ns10:Director12023-01-012023-12-3107539158ns10:PrivateLimitedCompanyLtd2023-01-012023-12-3107539158ns10:FRS1022023-01-012023-12-3107539158ns10:Audited2023-01-012023-12-3107539158ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3107539158ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-3107539158ns10:FullAccounts2023-01-012023-12-3107539158ns10:OrdinaryShareClass12023-01-012023-12-3107539158ns10:Director22023-01-012023-12-3107539158ns10:RegisteredOffice2023-01-012023-12-3107539158ns5:RetainedEarningsAccumulatedLosses2022-12-3107539158ns5:RetainedEarningsAccumulatedLosses2021-12-3107539158ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-3107539158ns5:RetainedEarningsAccumulatedLosses2022-01-012022-12-3107539158ns5:RetainedEarningsAccumulatedLosses2023-12-3107539158ns5:RetainedEarningsAccumulatedLosses2022-12-3107539158ns5:CurrentFinancialInstruments2023-12-3107539158ns5:CurrentFinancialInstruments2022-12-3107539158ns5:Non-currentFinancialInstruments2023-12-3107539158ns5:Non-currentFinancialInstruments2022-12-3107539158ns5:ShareCapital2023-12-3107539158ns5:ShareCapital2022-12-310753915812023-01-012023-12-3107539158ns5:ReportableOperatingSegment12023-01-012023-12-3107539158ns5:ReportableOperatingSegment12022-01-012022-12-3107539158ns5:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2023-01-012023-12-3107539158ns5:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2022-01-012022-12-3107539158ns15:UnitedKingdom2023-01-012023-12-3107539158ns15:UnitedKingdom2022-01-012022-12-3107539158ns15:Europe2023-01-012023-12-3107539158ns15:Europe2022-01-012022-12-3107539158ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2023-01-012023-12-3107539158ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2022-01-012022-12-310753915812023-01-012023-12-310753915812022-01-012022-12-3107539158ns5:OwnedAssets2023-01-012023-12-3107539158ns5:OwnedAssets2022-01-012022-12-3107539158112023-01-012023-12-3107539158112022-01-012022-12-3107539158122023-01-012023-12-3107539158122022-01-012022-12-3107539158132023-01-012023-12-3107539158132022-01-012022-12-310753915822023-01-012023-12-310753915822022-01-012022-12-310753915852023-01-012023-12-310753915852022-01-012022-12-3107539158ns10:OrdinaryShareClass12022-01-012022-12-3107539158ns5:LandBuildings2022-12-3107539158ns5:LeaseholdImprovements2022-12-3107539158ns5:PlantMachinery2022-12-3107539158ns5:LandBuildings2023-01-012023-12-3107539158ns5:LeaseholdImprovements2023-01-012023-12-3107539158ns5:PlantMachinery2023-01-012023-12-3107539158ns5:LandBuildings2023-12-3107539158ns5:LeaseholdImprovements2023-12-3107539158ns5:PlantMachinery2023-12-3107539158ns5:LandBuildings2022-12-3107539158ns5:LeaseholdImprovements2022-12-3107539158ns5:PlantMachinery2022-12-3107539158ns5:MotorVehicles2022-12-3107539158ns5:ComputerEquipment2022-12-3107539158ns5:MotorVehicles2023-01-012023-12-3107539158ns5:ComputerEquipment2023-01-012023-12-3107539158ns5:MotorVehicles2023-12-3107539158ns5:ComputerEquipment2023-12-3107539158ns5:MotorVehicles2022-12-3107539158ns5:ComputerEquipment2022-12-3107539158ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3107539158ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-3107539158ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2023-12-3107539158ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2022-12-3107539158ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-12-3107539158ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2022-12-3107539158ns5:WithinOneYear2023-12-3107539158ns5:WithinOneYear2022-12-3107539158ns5:BetweenOneFiveYears2023-12-3107539158ns5:BetweenOneFiveYears2022-12-3107539158ns5:MoreThanFiveYears2023-12-3107539158ns5:MoreThanFiveYears2022-12-3107539158ns5:AllPeriods2023-12-3107539158ns5:AllPeriods2022-12-3107539158ns5:Secured2023-12-3107539158ns5:Secured2022-12-3107539158ns5:AcceleratedTaxDepreciationDeferredTax2023-12-3107539158ns5:AcceleratedTaxDepreciationDeferredTax2022-12-3107539158ns5:DeferredTaxation2022-12-3107539158ns5:DeferredTaxation2023-12-3107539158ns10:OrdinaryShareClass12023-12-31
REGISTERED NUMBER: 07539158 (England and Wales)















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: M D D Wilke
T J Hughes





REGISTERED OFFICE: 19 Montague Road
Widnes
WA8 8FZ





REGISTERED NUMBER: 07539158 (England and Wales)





AUDITORS: Additions
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:





T J Hughes - Director


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.

M D D Wilke
T J Hughes

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:





T J Hughes - Director


17 July 2024

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.




Maxine Desse BA (Econ) FCA (Senior Statutory Auditor)
for and on behalf of Additions
Chartered Accountants
Statutory Auditors
One Derby Square
Liverpool
L2 9QR

17 July 2024

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 61,867,776 51,614,618

Cost of sales 54,491,565 45,275,554
GROSS PROFIT 7,376,211 6,339,064

Administrative expenses 2,004,960 1,575,791
5,371,251 4,763,273

Other operating income 4 4,580 83,333
OPERATING PROFIT 6 5,375,831 4,846,606


Interest payable and similar expenses 7 329,468 120,061
PROFIT BEFORE TAXATION 5,046,363 4,726,545

Tax on profit 8 1,198,479 905,316
PROFIT FOR THE FINANCIAL YEAR 3,847,884 3,821,229

Retained earnings at beginning of year 5,334,506 1,832,072

Dividends 9 (578,010 ) (318,795 )

RETAINED EARNINGS AT END OF YEAR 8,604,380 5,334,506

SOLEN ENERGY UK LIMITED (REGISTERED NUMBER: 07539158)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 2,058,123 63,109

CURRENT ASSETS
Stocks 11 8,618,882 6,513,714
Debtors 12 5,577,418 5,974,440
Cash at bank and in hand 1,426,872 855,315
15,623,172 13,343,469
CREDITORS
Amounts falling due within one year 13 7,836,660 8,066,612
NET CURRENT ASSETS 7,786,512 5,276,857
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,844,635

5,339,966

CREDITORS
Amounts falling due after more than one
year

14

(1,229,739

)

-

PROVISIONS FOR LIABILITIES 18 (10,515 ) (5,459 )
NET ASSETS 8,604,381 5,334,507

CAPITAL AND RESERVES
Called up share capital 19 1 1
Retained earnings 20 8,604,380 5,334,506
SHAREHOLDERS' FUNDS 8,604,381 5,334,507

The financial statements were approved by the Board of Directors and authorised for issue on 17 July 2024 and were signed on its behalf by:





T J Hughes - Director


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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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. The financial statements have been prepared under the historical cost convention.

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 improvements25% reducing balance
Plant and machinery25% reducing balance
Computer equipment33% reducing balance
Freehold property2% 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
£    £   
Solar PV and electrical goods 61,867,776 51,614,618
61,867,776 51,614,618

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 60,925,676 50,213,203
Europe 938,516 1,322,910
Rest of World 3,584 78,505
61,867,776 51,614,618

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 - 83,333
4,580 83,333

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,447,725 1,008,896
Social security costs 163,085 119,828
Other pension costs 12,619 6,573
1,623,429 1,135,297

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
27 18

2023 2022
£    £   
Directors' remuneration 24,000 24,000
Directors' pension contributions to money purchase schemes 346 346

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

Money purchase schemes 2 2

6. OPERATING PROFIT

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

2023 2022
£    £   
Depreciation - owned assets 38,159 14,618
Operating lease rentals 171,068 140,333
Foreign exchange (gains)/losses (485,993 ) (164,222 )
Auditors' remuneration - audit of the financial statements 16,000 16,000

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest - 18
Bank loan interest and charges 55,154 -
Invoice discounting charges 253,691 119,798
Other interest 20,623 245
329,468 120,061

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 1,193,423 902,508

Deferred tax:
Accelerated capital allowances 5,056 2,808
Tax on profit 1,198,479 905,316

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 5,046,363 4,726,545
Profit multiplied by the standard rate of corporation tax in the UK of
23.521% (2022 - 19%)

1,186,955

898,044

Effects of:
Expenses not deductible for tax purposes 5,370 24,165
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 578,010 318,795

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 - 50,800 10,589
Additions 1,999,992 - 4,234
Reclassification/transfer - (800 ) -
At 31 December 2023 1,999,992 50,000 14,823
DEPRECIATION
At 1 January 2023 - 8,827 3,708
Charge for year 14,884 10,319 2,632
Reclassification/transfer - (101 ) -
At 31 December 2023 14,884 19,045 6,340
NET BOOK VALUE
At 31 December 2023 1,985,108 30,955 8,483
At 31 December 2022 - 41,973 6,881

Motor Office
vehicles equipment Totals
£    £    £   
COST
At 1 January 2023 - 56,888 118,277
Additions 20,495 8,452 2,033,173
Reclassification/transfer - 800 -
At 31 December 2023 20,495 66,140 2,151,450
DEPRECIATION
At 1 January 2023 - 42,633 55,168
Charge for year 3,624 6,700 38,159
Reclassification/transfer - 101 -
At 31 December 2023 3,624 49,434 93,327
NET BOOK VALUE
At 31 December 2023 16,871 16,706 2,058,123
At 31 December 2022 - 14,255 63,109

11. STOCKS
2023 2022
£    £   
Goods for resale 8,618,882 6,513,714

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 5,344,388 5,605,550
Other debtors 195,470 351,249
Prepayments and accrued income 37,560 17,641
5,577,418 5,974,440

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) 91,369 -
Trade creditors 3,087,277 4,617,789
Tax 503,312 902,508
Social security and other taxes 37,659 46,761
VAT 571,054 1,407,483
Other creditors 3,277,655 704,939
Accrued expenses 268,334 387,132
7,836,660 8,066,612

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 15) 1,229,739 -

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 91,369 -

Amounts falling due between one and two years:
Bank loans - 1-2 years 99,693 -

Amounts falling due between two and five years:
Bank loans - 2-5 years 356,174 -

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 101,318 140,412
Between one and five years 300,286 481,353
In more than five years - 416,500
401,604 1,038,265

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 1,321,108 -
Other creditors 3,176,395 352,050
4,497,503 352,050

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 10,515 5,459

Deferred
tax
£   
Balance at 1 January 2023 5,459
Accelerated capital allowances 5,056
Balance at 31 December 2023 10,515

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1 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.