REGISTERED NUMBER: 07935365 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
SOLEN ENERGY GROUP LIMITED |
REGISTERED NUMBER: 07935365 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
SOLEN ENERGY GROUP LIMITED |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
SOLEN ENERGY GROUP 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 GROUP LIMITED (REGISTERED NUMBER: 07935365) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company is that of a holding company. The principal activity of the group 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 16% 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 group. |
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 £61,978,791 (2022: £53,276,430) representing a 16% increase. Profit before taxation was £5,061,121 (2022: £4,811,504), and the net asset position of the group has increased to £8,806,232 (2022: £5,657,884). |
FUTURE DEVELOPMENTS |
The group is continuing to grow and is looking to expand further nationally, as well as internationally, as demand for renewable energy increases. |
The group continues to invest in training people so they grow in their experience and knowledge along with the group. The group 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 group's strategy are subject to a number of risks: |
Operating risks |
Competition |
Whilst the group continues to perform strongly, new competitors are continuing to enter the market. However, the group 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 group's financial instruments and these are summarised below. |
Credit risk |
The group 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 group 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 group 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 GROUP LIMITED (REGISTERED NUMBER: 07935365) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Financial risk management (continued) |
Foreign exchange and interest rate risk |
As the group 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: |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2023 will be £661,460 (2022 - £348,090). |
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 group 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 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; |
- | 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. |
AUDITORS |
Additions have expressed their willingness to remain in office as auditors. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
SOLEN ENERGY GROUP LIMITED |
Opinion |
We have audited the financial statements of Solen Energy Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 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 December 2023 and of the group's 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 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 |
SOLEN 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 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 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. |
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 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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
One Derby Square |
Liverpool |
L2 9QR |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 61,978,791 | 53,276,430 |
Cost of sales | 54,600,770 | 46,509,522 |
GROSS PROFIT | 7,378,021 | 6,766,908 |
Administrative expenses | 1,998,739 | 1,808,707 |
5,379,282 | 4,958,201 |
Other operating income | 4,580 | 7,647 |
GROUP OPERATING PROFIT | 5 | 5,383,862 | 4,965,848 |
Share of operating loss in |
Associates | - | (35,652 | ) |
Interest receivable and similar income | 6,727 | 1,369 |
5,390,589 | 4,931,565 |
Interest payable and similar expenses | 7 | 329,468 | 120,061 |
PROFIT BEFORE TAXATION | 5,061,121 | 4,811,504 |
Tax on profit | 8 | 1,199,959 | 918,708 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 3,862,521 | 3,877,836 |
Non-controlling interests | (1,359 | ) | 14,960 |
3,861,162 | 3,892,796 |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 3,861,162 | 3,892,796 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,861,162 |
3,892,796 |
Total comprehensive income attributable to: |
Owners of the parent | 3,862,521 | 3,877,836 |
Non-controlling interests | (1,359 | ) | 14,960 |
3,861,162 | 3,892,796 |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 2,058,123 | 63,109 |
Investments | 12 |
Interest in joint venture |
Share of gross assets | 50 | 70 |
2,058,173 | 63,179 |
CURRENT ASSETS |
Stocks | 13 | 8,618,882 | 6,612,682 |
Debtors | 14 | 5,692,369 | 5,903,436 |
Cash at bank and in hand | 1,551,839 | 1,183,067 |
15,863,090 | 13,699,185 |
CREDITORS |
Amounts falling due within one year | 15 | 7,874,777 | 8,099,021 |
NET CURRENT ASSETS | 7,988,313 | 5,600,164 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
10,046,486 |
5,663,343 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(1,229,739 |
) |
- |
PROVISIONS FOR LIABILITIES | 21 | (10,515 | ) | (5,459 | ) |
NET ASSETS | 8,806,232 | 5,657,884 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 100 | 4 |
Retained earnings | 23 | 8,782,714 | 5,581,653 |
SHAREHOLDERS' FUNDS | 8,782,814 | 5,581,657 |
NON-CONTROLLING INTERESTS | 23,418 | 76,227 |
TOTAL EQUITY | 8,806,232 | 5,657,884 |
The financial statements were approved by the Board of Directors and authorised for issue on 10 September 2024 and were signed on its behalf by: |
M D D Wilke - Director |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 812,875 | 352,244 |
The financial statements were approved by the Board of Directors and authorised for issue on |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 4 | 2,051,907 | 2,051,911 | 41,592 | 2,093,503 |
Changes in equity |
Total comprehensive income | - | 3,877,836 | 3,877,836 | 14,960 | 3,892,796 |
Dividends | - | (348,090 | ) | (348,090 | ) | - | (348,090 | ) |
Other movement | - | - | - | 19,675 | 19,675 |
Balance at 31 December 2022 | 4 | 5,581,653 | 5,581,657 | 76,227 | 5,657,884 |
Changes in equity |
Total comprehensive income | - | 3,862,521 | 3,862,521 | (1,359 | ) | 3,861,162 |
Dividends | - | (661,460 | ) | (661,460 | ) | (57,128 | ) | (718,588 | ) |
Issue of share capital | 96 | - | 96 | - | 96 |
Other movement | - | - | - | 5,678 | 5,678 |
Balance at 31 December 2023 | 100 | 8,782,714 | 8,782,814 | 23,418 | 8,806,232 |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,171,652 | 1,227,600 |
Interest paid | (329,468 | ) | (120,061 | ) |
Tax paid | (1,607,037 | ) | (162,692 | ) |
Net cash from operating activities | (764,853 | ) | 944,847 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (2,033,173 | ) | (66,527 | ) |
Loans to connected companies | (271,390 | ) | - |
Interest received | 6,727 | 1,369 |
Dividend received from joint venture | - | 33,538 |
Net cash from investing activities | (2,297,836 | ) | (31,620 | ) |
Cash flows from financing activities |
New loans in year | 1,349,950 | - |
Loan repayments in year | (28,842 | ) | - |
Share issue | 96 | - |
Net cash from discounting facility | 2,824,345 | (1,295,513 | ) |
Other loans | - | 33,538 |
Equity dividends paid | (656,960 | ) | (348,090 | ) |
Dividends paid to minority interests | (57,128 | ) | - |
Net cash from financing activities | 3,431,461 | (1,610,065 | ) |
Increase/(decrease) in cash and cash equivalents | 368,772 | (696,838 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,183,067 |
1,879,905 |
Cash and cash equivalents at end of year | 2 | 1,551,839 | 1,183,067 |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 5,061,121 | 4,811,504 |
Depreciation charges | 38,159 | 15,724 |
Profit on disposal of fixed assets | - | (43,428 | ) |
Finance costs | 329,468 | 120,061 |
Finance income | (6,727 | ) | (1,369 | ) |
5,422,021 | 4,902,492 |
Increase in stocks | (2,006,200 | ) | (3,203,592 | ) |
Decrease/(increase) in trade and other debtors | 482,412 | (2,158,155 | ) |
(Decrease)/increase in trade and other creditors | (2,726,581 | ) | 1,686,855 |
Cash generated from operations | 1,171,652 | 1,227,600 |
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 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 1,551,839 | 1,183,067 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,183,067 | 1,879,905 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,183,067 | 368,772 | 1,551,839 |
1,183,067 | 368,772 | 1,551,839 |
Debt |
Debts falling due within 1 year | (385,588 | ) | (2,915,714 | ) | (3,301,302 | ) |
Debts falling due after 1 year | - | (1,229,739 | ) | (1,229,739 | ) |
(385,588 | ) | (4,145,453 | ) | (4,531,041 | ) |
Total | 797,479 | (3,776,681 | ) | (2,979,202 | ) |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Solen Energy Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors therefore consider it appropriate to adopt the going concern basis in preparing these financial statements. |
The group's functional and presentational currency is £ sterling. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The parent 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. |
Basis of consolidation |
The group financial statements consolidate the financial results of Solen Energy Group Limited and its subsidiary undertakings drawn up to 31 December 2023. The results of subsidiary undertakings acquired or disposed of in the period are consolidated for the periods from or to the date on which control passed. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. |
Business combinations are accounted for under the purchase method. The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. |
All intra-group transactions, balances, expenses and income are eliminated on consolidation. |
Investments |
Investments in subsidiaries, associates and joint ventures are shown in the company balance sheet at cost less provision for impairment. Investments are reviewed annually for indicators of impairment. |
In the consolidated financial statements, interests in associated undertakings and joint ventures are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investor's share of the profit or loss, other comprehensive income and equity of the associate or joint venture. The consolidated profit and loss account includes the group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the group. In the consolidated balance sheet, the interests in associated undertakings and joint ventures are shown as the group's share of the identifiable net assets. If the group's share of the losses of an associate or joint venture exceeds or equals the carrying amount of its investment in the associate or joint venture, the group then recognises additional losses by a provision where it has incurred a legal or constructive obligation or has made payments on behalf of the associate or joint venture. |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
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 and group'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 group, and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
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. |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Invoice discounting |
The group 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 group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Solar PV and electrical goods | 61,978,791 | 53,276,430 |
61,978,791 | 53,276,430 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 60,925,676 | 50,596,278 |
Europe | 1,049,531 | 2,601,647 |
Rest of World | 3,584 | 78,505 |
61,978,791 | 53,276,430 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,447,725 | 1,035,527 |
Social security costs | 163,085 | 119,828 |
Other pension costs | 12,619 | 6,573 |
1,623,429 | 1,161,928 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 2 | 2 |
Sales | 9 | 7 |
Warehouse | 10 | 6 |
Administration | 6 | 4 |
The company had nil (2022: nil) employees during the year and therefore incurred no payroll costs (2022: £nil). |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
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 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 38,159 | 15,273 |
Gain on disposal of shares in subsidiary undertaking | - | (43,428 | ) |
Operating lease rentals | 171,068 | 140,333 |
Foreign exchange (gains)/losses | (506,177 | ) | (106,356 | ) |
6. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Audit of these financial statements | 5,500 | 5,500 |
Audit of the financial statements of subsidiaries | 16,000 | 19,500 |
21,500 | 25,000 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | - | 18 |
Bank loan interest | 55,154 | - |
Invoice discounting charges | 253,691 | 119,798 |
Other interest | 20,623 | 245 |
329,468 | 120,061 |
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 |
Foreign tax | 1,460 | 13,392 |
Joint ventures corporation tax | 20 | - |
Total current tax | 1,194,903 | 915,900 |
Deferred tax: |
Accelerated capital allowances | 5,056 | 2,808 |
Tax on profit | 1,199,959 | 918,708 |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | TAXATION - continued |
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 | 5,061,121 | 4,811,504 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.521 % (2022 - 19 %) |
1,190,426 |
914,186 |
Effects of: |
Expenses not deductible for tax purposes | 5,393 | 24,587 |
Capital allowances and depreciation timing differences | 1,098 | 2,010 |
Timing of group loss relief | - | (9,386 | ) |
Foreign tax adjustment | 3,042 | (12,689 | ) |
Total tax charge | 1,199,959 | 918,708 |
9. | 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. |
10. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim | 661,460 | 348,090 |
11. | TANGIBLE FIXED ASSETS |
Group |
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 |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
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 |
12. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in joint |
venture |
£ |
COST |
At 1 January 2023 | 70 |
Share of profit/(loss) | (20 | ) |
At 31 December 2023 | 50 |
NET BOOK VALUE |
At 31 December 2023 | 50 |
At 31 December 2022 | 70 |
Company |
Shares in | Interest | Interest |
group | in joint | in |
undertakings | venture | associate | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 50 | 36 | 36,543 |
Disposals | - | ( |
) | (10 | ) |
At 31 December 2023 | 50 | 36,533 |
NET BOOK VALUE |
At 31 December 2023 | 50 | 36,533 |
At 31 December 2022 | 50 | 36,543 |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 19 Montague Road, Widnes, England, WA8 8FZ |
Nature of business: |
% |
Class of shares: | holding |
Registered office: ul. Zelazna 40 lok. 101,00-832 Warsaw, Poland |
Nature of business: |
% |
Class of shares: | holding |
Joint venture |
Registered office: 19 Montague Road, Widnes, England, WA8 8FZ |
Nature of business: |
% |
Class of shares: | holding |
Associated company |
Registered office: Meteor Business Park, Cheltenham Road East, Gloucester, England, GL2 9QL |
Nature of business: |
% |
Class of shares: | holding |
Up to 30 September 2022, the company owned 80% of the issued ordinary share capital of Clarkson Evans Solar Limited (CES), and therefore this company was accounted for as a subsidiary in these financial statements up to this date. On 1 October 2022, the company disposed of part of it's holding for a consideration of £45. Following this disposal, the company's remaining interest in the issued share capital of CES was 35.9% and the investment has been accounted for as an associate from the date of disposal. On 6 June 2023 the company's shareholding in CES was reduced to 25.9% following a transfer of shares for nil consideration to Mark Wilke and Terry Hughes. |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Goods for resale | 8,618,882 | 6,612,682 |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 5,344,388 | 5,605,550 |
Other debtors | 310,421 | 280,245 |
Prepayments and accrued income | 37,560 | 17,641 |
5,692,369 | 5,903,436 |
Trade debtors are subject to an invoice discounting agreement. |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 91,369 | - |
Trade creditors | 3,087,276 | 4,620,497 |
Tax | 503,312 | 915,466 |
Social security and other taxes | 37,659 | 46,761 |
VAT | 571,054 | 1,380,300 | - | - |
Other creditors | 3,311,273 | 739,492 | 33,618 | 33,618 |
Directors' current accounts | 4,500 | - | 4,500 | - |
Accrued expenses | 268,334 | 396,505 |
7,874,777 | 8,099,021 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 17) | 1,229,739 | - |
17. | 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 | 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 | - |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | LOANS - continued |
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. |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
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 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
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 group, 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 group. |
20. | FINANCIAL INSTRUMENTS |
Group |
2023 | 2022 |
£ | £ |
Financial assets |
Financial assets that are debt instruments measured at amortised cost | 7,206,649 | 7,068,862 |
Financial liabilities |
Financial liabilities measured at amortised cost | 7,992,493 | 5,756,494 |
Financial assets that are debt instruments measured at amortised cost comprise cash, trade debtors, other debtors and amounts owed by associated undertakings. |
Financial liabilities measured at amortised cost comprise trade creditors, bank loans, other creditors, accruals and amounts owed to joint ventures. |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
21. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 10,515 | 5,459 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 5,459 |
Accelerated capital allowances | 5,056 |
Balance at 31 December 2023 | 10,515 |
22. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
96 (2022: 4) | Ordinary | £1 | 96 | 4 |
1 (2022: nil) | Ordinary A | £1 | 1 | - |
1 (2022: nil) | Ordinary B | £1 | 1 | - |
1 (2022: nil) | Ordinary T1 | £1 | 1 | - |
1 (2022: nil) | Ordinary T2 | £1 | 1 | - |
100 | 4 |
The following changes to the company's share capital occurred during the year: |
- | 4 Ordinary shares of £1 each were converted into 1 Ordinary A share, 1 Ordinary B share, 1 Ordinary T1 share and 1 Ordinary T2 share, all of £1 each. |
- | 96 Ordinary shares of £1 each were issued for cash at par value. |
The rights attaching to each class of share are: |
- | Ordinary shares carry the right to vote, receive dividends and to participate in a final distribution in the event of a winding up of the company. |
- | Ordinary A and B shares carry the right to vote, receive dividends and to participate in a final distribution in the event of a winding up of the company. |
- | Ordinary T1 and T2 shares carry the right receive dividends only, |
23. | RESERVES |
Retained earnings |
Retained earnings represents cumulative profits and losses net of dividends and other adjustments. |
24. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme for all qualifying employees. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £12,619 (2022: £6,573). |
The assets of the scheme are held separately from those of the group in an independently administered fund. |
SOLEN ENERGY GROUP LIMITED (REGISTERED NUMBER: 07935365) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
25. | RELATED PARTY DISCLOSURES |
Transactions with related party companies are as follows: |
Group |
2023 | 2022 |
£ | £ |
Sales to associate (normal trading terms) | 556,564 | 188,728 |
Amounts due from associate in respect of sales | - | 230,933 |
Purchases from associate (normal trading terms) | 17,312 | - |
Amounts due to associate in respect of purchases | - | - |
Loans to associate | 295,920 | 110,000 |
Purchases from other related party (normal trading terms) | 45,119 | - |
Amounts due to other related party in respect of purchases | - | - |
Loans to other related party | 85,470 | - |
Company |
2023 | 2022 |
£ | £ |
Loans to associate | 185,920 | - |
The loans due from related parties are interest free, unsecured, and have no fixed date for repayment. |
The key management personnel of the company and group are considered to be the directors of the company. Their total remuneration is disclosed in note 4. |
During the year, the company transferred shares in its associate to Mark Wilke and Terry Hughes. The shares represented 10% of the issued share capital in the associate and were transferred at nil value. |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling parties are T J Hughes and M D D Wilke. |