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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: T J Hughes
M D D Wilke





REGISTERED OFFICE: 19 Montague Road
Widnes
WA8 8FZ





REGISTERED NUMBER: 07935365 (England and Wales)





AUDITORS: Additions
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:





M D D Wilke - Director


10 September 2024

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.

T J Hughes
M D D Wilke

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:





M D D Wilke - Director


10 September 2024

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.




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

10 September 2024

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 3,861,162 3,892,796
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 36,533 36,543
36,533 36,543

CURRENT ASSETS
Debtors 14 185,920 45
Cash at bank and in hand 7,880 37,734
193,800 37,779
CREDITORS
Amounts falling due within one year 15 38,118 33,618
NET CURRENT ASSETS 155,682 4,161
TOTAL ASSETS LESS CURRENT
LIABILITIES

192,215

40,704

CAPITAL AND RESERVES
Called up share capital 22 100 4
Retained earnings 23 192,115 40,700
SHAREHOLDERS' FUNDS 192,215 40,704

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 10 September 2024 and were signed on its behalf by:





M D D Wilke - Director


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 4 36,546 36,550

Changes in equity
Dividends - (348,090 ) (348,090 )
Total comprehensive income - 352,244 352,244
Balance at 31 December 2022 4 40,700 40,704

Changes in equity
Issue of share capital 96 - 96
Dividends - (661,460 ) (661,460 )
Total comprehensive income - 812,875 812,875
Balance at 31 December 2023 100 192,115 192,215

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

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
27 19

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 36,457 50 36 36,543
Disposals - - (10 ) (10 )
At 31 December 2023 36,457 50 26 36,533
NET BOOK VALUE
At 31 December 2023 36,457 50 26 36,533
At 31 December 2022 36,457 50 36 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

Solen Energy UK Limited
Registered office: 19 Montague Road, Widnes, England, WA8 8FZ
Nature of business: Solar-photovoltaic systems
%
Class of shares: holding
Ordinary 100.00

Solen Energy Europe Sp. z o.o.
Registered office: ul. Zelazna 40 lok. 101,00-832 Warsaw, Poland
Nature of business: Solar-photovoltaic systems
%
Class of shares: holding
Ordinary 80.00

Joint venture

S:Flex Mounting Systems UK Limited
Registered office: 19 Montague Road, Widnes, England, WA8 8FZ
Nature of business: Dormant
%
Class of shares: holding
Ordinary 50.00

Associated company

Clarkson Evans Solar Limited
Registered office: Meteor Business Park, Cheltenham Road East, Gloucester, England, GL2 9QL
Nature of business: Solar-photovoltaic systems
%
Class of shares: holding
Ordinary A 25.90

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 310,421 280,245 185,920 45
Prepayments and accrued income 37,560 17,641 - -
5,692,369 5,903,436 185,920 45

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 38,118 33,618

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.