Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income. The depreciation expense is charged to administrative expenses within the Statement of Comprehensive Income. The Development costs are tangible assets in progress which will not be subject to depreciation at this stage.At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.true2022-10-21false4false 14434315 2022-10-21 2023-12-31 14434315 2021-10-21 2022-10-20 14434315 2023-12-31 14434315 2022-10-20 14434315 1 2022-10-21 2023-12-31 14434315 d:Director1 2022-10-21 2023-12-31 14434315 d:Director1 2023-12-31 14434315 d:Director2 2022-10-21 2023-12-31 14434315 d:Director2 2023-12-31 14434315 d:RegisteredOffice 2022-10-21 2023-12-31 14434315 e:PlantMachinery 2022-10-21 2023-12-31 14434315 e:OfficeEquipment 2022-10-21 2023-12-31 14434315 e:OfficeEquipment 2023-12-31 14434315 e:OfficeEquipment 2022-10-20 14434315 e:OfficeEquipment e:OwnedOrFreeholdAssets 2022-10-21 2023-12-31 14434315 e:CurrentFinancialInstruments 2023-12-31 14434315 e:Non-currentFinancialInstruments 2023-12-31 14434315 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 14434315 e:UKTax 2022-10-21 2023-12-31 14434315 e:ShareCapital 2022-10-21 2023-12-31 14434315 e:ShareCapital 2023-12-31 14434315 e:ShareCapital 2022-10-20 14434315 e:CapitalRedemptionReserve 2022-10-20 14434315 e:OtherMiscellaneousReserve 2023-12-31 14434315 e:OtherMiscellaneousReserve 1 2022-10-21 2023-12-31 14434315 e:RetainedEarningsAccumulatedLosses 2022-10-21 2023-12-31 14434315 e:RetainedEarningsAccumulatedLosses 2023-12-31 14434315 e:RetainedEarningsAccumulatedLosses 1 2022-10-21 2023-12-31 14434315 e:RetainedEarningsAccumulatedLosses 2022-10-20 14434315 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 14434315 e:TaxLossesCarry-forwardsDeferredTax 2023-12-31 14434315 e:OtherDeferredTax 2023-12-31 14434315 d:OrdinaryShareClass1 2022-10-21 2023-12-31 14434315 d:OrdinaryShareClass1 2023-12-31 14434315 d:FRS102 2022-10-21 2023-12-31 14434315 d:Audited 2022-10-21 2023-12-31 14434315 d:FullAccounts 2022-10-21 2023-12-31 14434315 d:PrivateLimitedCompanyLtd 2022-10-21 2023-12-31 14434315 e:WithinOneYear 2023-12-31 14434315 e:BetweenOneFiveYears 2023-12-31 14434315 e:MoreThanFiveYears 2023-12-31 14434315 f:PoundSterling 2022-10-21 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 14434315









FRV SERVICES ENERGY UK LIMITED









DIRECTORS' REPORT AND AUDITED FINANCIAL STATEMENTS

FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023

 
FRV SERVICES ENERGY UK LIMITED
 
 
COMPANY INFORMATION


Directors
David Menendez Martin (appointed 21 October 2022)
Pilar Lopez Munoz (appointed 21 October 2022)




Registered number
14434315



Registered office
R+, 2 Blagrave Street,

Reading, Berkshire,

United Kingdom,

RG1 1AZ




Independent auditor
Ernst & Young LLP

London

25 Churchill Place,

United Kingdom

E14 5EY.





 
FRV SERVICES ENERGY UK LIMITED
 

CONTENTS



Page
Directors' Report
1 - 2
Independent Auditor's Report
3 - 6
Statement of Comprehensive Income
7
Statement of Financial Position
8
Statement of Changes in Equity
9
Notes to the Financial Statements
10 - 20


 
FRV SERVICES ENERGY UK LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023

The Directors present their report and the financial statements for FRV Services Energy Limited (the 'Company')  for the 15 month period ended 31 December 2023.
The Company was incorporated on 21 October 2022. The Company has extended its accounting reference period from 31 October 2023 to end on 31 December 2023 and subsequent periods will end on the same day and month in future years.

Directors' responsibilities statement

The Directors are responsible for preparing the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Company is facilitating the management, supervision and advice in the execution of all types of work related to the development of Battery Energy Storage System ('BESS') projects.

Directors

The Directors who served during the 15 month period were:

David Menendez Martin (appointed 21 October 2022)
Pilar Lopez Munoz (appointed 21 October 2022)

Page 1

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023

Going concern

During the period, the Company made a loss of £1,043,694 and had net liabilities of £220,694 at 31 December 2023. The Company is dependent on their parent company for the working capital needs. The Company’s parent entity has confirmed and has provided confirmation that for at least the next 12 months from the date of approval of these financial statements, it will continue to make available such funds that are needed by the Company. Based on these the directors believe that it is appropriate to prepare the financial statements on a going concern basis. 

Disclosure of information to auditor

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

The auditor, Ernst & Young LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





David Menendez Martin
Director
Pilar Lopez Munoz
Director


Date: 5 March 2025
Date: 5 March 2025

Page 2

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FRV SERVICES ENERGY UK LIMITED
 


Opinion

We have audited the financial statements of FRV Services Energy UK Limited (the ‘Company’) for the 15 month period ended 31 December 2023 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes 1 to 16, 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” ('United Kingdom Generally Accepted Accounting Practice').

In our opinion, the financial statements:

give a true and fair view of the state of the Company’s affairs as at 31 December 2023 and of its loss for the 15 month period 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
 

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of 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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company’s ability to continue as a going concern.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.   
Page 3

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FRV SERVICES ENERGY UK LIMITED
 

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon. 
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 course of 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 the 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
the directors were not entitled to prepare the financial statements in accordance with the small companies' regime and take advantage of the small companies’ exemption in preparing the Directors' Report and from the requirement to prepare a Strategic Report.
Page 4

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FRV SERVICES ENERGY UK LIMITED
 

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 1, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors intend either to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor’s report 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.
 
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud 
 
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 risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. 
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to United Kingdom Generally Accepted Accounting Practice, relevant direct and indirect tax compliance, and the Companies Act. 
We understood how the Company is complying with those frameworks by making enquiries of management and by seeking representation from those charged with governance to understand how the Company maintains and communicates its policies and procedures in these areas. We corroborated this by reviewing relevant policy and procedures manuals.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by making enquiries of management and those charged with governance to understand where they considered there was susceptibility to fraud. We performed journal entry testing by specific risk criteria, with a focus on manual journals and journals indicating large or unusual transactions based on our understanding of the Company’s business. 
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved enquiries of management and those charged with governance, review of legal and professional expense and review of meeting minutes of the board.


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 auditor’s report.
 
Page 5

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FRV SERVICES ENERGY UK LIMITED
 

Use of the audit 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 an auditor's report 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.




Thomas Culhane (Senior statutory auditor)  
for and on behalf of Ernst & Young LLP, Statutory Auditor


London

5 March 2025
Page 6

 
FRV SERVICES ENERGY UK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023

15 month period ended
31 December
2023
Note
£

  

Turnover
  
291,437

Other income
  
114,607

Gross profit
  
406,044

Management expenses
  
(832,309)

Administrative expenses
  
(965,326)

Operating loss
 4 
(1,391,591)

Tax credit on loss
 6 
347,897

Loss for the financial 15 month period
  
(1,043,694)

There was no other comprehensive income for 2023.

The notes on pages 10 to 20 form part of these financial statements.

Page 7

 
FRV SERVICES ENERGY UK LIMITED
REGISTERED NUMBER: 14434315

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
Note
£

Fixed assets
  

Tangible fixed assets
 7 
13,649

  
13,649

Current assets
  

Debtors: amounts falling due after more than one year
 8 
347,897

Debtors: amounts falling due within one year
 8 
412,555

Cash and cash equivalents
  
34,676

  
795,128

Creditors: amounts falling due within one year
 9 
(1,029,471)

Net current liabilities
  
 
 
(234,343)

Total assets less current liabilities
  
(220,694)

  

Net liabilities
  
(220,694)


Capital and reserves
  

Share capital
 11 
1

Capital contributions
 12 
822,999

Profit and loss account
 12 
(1,043,694)

  
(220,694)


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 March 2025.




David Menendez Martin
Pilar Lopez Munoz
Director
Director

The notes on pages 10 to 20 form part of these financial statements.

Page 8

 
FRV SERVICES ENERGY UK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023


Share capital
Capital contributions
Profit and loss account
Total equity

£
£
£
£

At 21 October 2022
-
-
-
-



Loss for the period
-
-
(1,043,694)
(1,043,694)

Capital contributions
-
822,999
-
822,999

Issuance of shares
1
-
-
1


At 31 December 2023
1
822,999
(1,043,694)
(220,694)

The notes on pages 10 to 20 form part of these financial statements.

Page 9

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023

1.


General information

FRV Services Energy UK Ltd (the 'Company') is a private company limited by shares, incorporated in England and Wales, registration number 14434315. The Company's registered address is R+2, Blagrave Street, Reading, Berkshire, United Kingdom, RG1 1AZ.

The principal activity is facilitating the management, supervision and advice in the execution of all types of work related to the development of BESS projects. 

The Company's functional currency is the same as the primary economic environment in which it operates. All figures are presented in Pounds Sterling (£), rounded to the nearest Pound. 

The Company has extended its accounting reference period from 31 October 2023 to end on 31 December 2023 and subsequent periods will end on the same day and month in future years.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

During the period, the Company made a loss of £1,043,694 and had net liabilities of £220,694 at 31 December 2023. The Company is dependent on their parent company for the working capital needs. The Company’s parent entity has confirmed and has provided confirmation that for at least the next 12 months from the date of approval of these financial statements, it will continue to make available such funds that are needed by the Company. Based on these the directors believe that it is appropriate to prepare the financial statements on a going concern basis. 

 
2.3

Turnover

The turnover this company generates is management fees, which relates to time spent on developing various Battery Energy Storage Systems (BESS). The charges are calculated based on timesheets entered by staff and then a markup is applied as per the FRV Services transfer pricing agreement.

Other income
 
The other income relates to recharges of administrative expenses incurred by this company i.e. rent, recruitment fees and other office cost. These are recharged to other companies within the FRV Group. 

  
2.4

Administrative Expenses

Administration costs are measured on an accrual basis at the fair value of the consideration paid or payable, net of discounts and value added taxes.

Page 10

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.5

Operating leases : the Company as leasee

Rentals paid under operating leases are charged to profit or loss on a staright-line basis over the lease term.

  
2.6

Management fee expenses

The Company is charged a management fee based on timesheet hour allocations, the costs are marked up as per the Company’s transfer pricing agreement and recharged for the relevant projects. For projects which have achieved land terms agreed status, the relevant costs are capitalised in the service company and will be transferred over to the relevant project company as a development fee once it undergoes construction. 

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
 
 
2.8

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 11

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
 
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Office equipment
-
Straight line depreciation, 4 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
 
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
The depreciation expense is charged to administrative expenses within the Statement of Comprehensive Income. The Development costs are tangible assets in progress which will not be subject to depreciation at this stage.
 
 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in bank and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 12

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
 
Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
 
Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the Statement of Comprehensive Income.
 
Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
 
Page 13

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.13
Financial instruments (continued)

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. 

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the directors have made the following judgements:
Tangible fixed assets 

Tangible fixed assets are depreciated over their useful lives considering the residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. 
 

4.


Operating loss

The operating loss is stated after charging:

15 month period ended 31 December
2023
£

Operating lease
170,145

Exchange differences
(4,420)

Depreciation of tangible fixed assets
1,997

Audit fee
18,000

There were no non-audit services provided by the auditor.

Page 14

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023

5.


Employees

Staff costs, including Directors' remuneration, were as follows:

15 month period ended
31 December
2023
£

Wages and salaries
489,573

Social security costs
44,002

Cost of defined contribution scheme
15,437

549,012


The average monthly number of employees, including directors, during the 15 month period was 4.


6.


Taxation


15 month period ended
31 December
2023
£

Corporation tax


Current tax on profits for the period
-

Adjustments in respect of previous periods
-


Total current tax
-

Deferred tax


Origination and reversal of timing differences
317,004

Effect of changes in tax rates
30,893

Total deferred tax
347,897


Total tax credit
347,897
Page 15

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023
 
6.Taxation (continued)


Factors affecting tax charge for 15 month period

The tax assessed for the 15 month period is higher than the standard rate of corporation tax in the UK of 22.78%. The differences are explained below:

15 month period ended
31 December
2023
£


Loss on ordinary activities before tax
(1,391,591)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 22.78%
(317,004)



Tax rate changes
30,893

Total tax credit for the 15 month period
(347,897)


Factors that may affect future tax charges

From 1 April 2023, the rate of corporation tax in the United Kingdom increased from 19% to 25%. Companies with profits of £50,000 or less are continuing to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase. Deferred tax recognised during the year has been calculated at 25%.

Page 16

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023

7.


Tangible fixed assets





Office equipment

£



Cost 


At 21 October 2022
-


Additions
15,646



At 31 December 2023

15,646



Depreciation


At 21 October 2022
-


Charge for the period
1,997



At 31 December 2023

1,997



Net book value



At 31 December 2023
13,649



8.


Debtors

2023
£

Due after more than one year

Deferred tax asset (note 10)
347,897

347,897


2023
£

Due within one year

Amounts owed by group undertakings
327,883

Other debtors
84,672

412,555


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

Other debtors comprise of short term deposits and VAT receivable.

Page 17

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023

9.


Creditors: Amounts falling due within one year

2023
£

Amounts owed to group undertakings
889,006

Accruals and deferred income
91,731

Other taxes and social security
32,862

Trade creditors
15,872

1,029,471


Amounts owed to group undertakings are unsecured, interest free and repayable on demand.


10.


Deferred taxation



2023


£






At beginning of period
-


Credited to the profit or loss account
347,897



At end of year
347,897

The deferred tax asset is made up as follows:

2023
£


Fixed asset timing differences
499

Short term timing differences - trading
1,256

Losses
346,142

347,897

Page 18

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023

11.


Called up share capital

2023
£
Allotted, called up and fully paid


1 Ordinary share of £1.00 each
1


The Company was incorporated and shares were alloted on 21 October 2022.
The Company has one class of ordinary shares which carry voting rights, but no right to fixed income.


12.


Reserves

Capital contributions

Capital contribution reserve relates to the working capital contribution received from the immediate parent company, FRV - X Renewable S.L.

Profit and loss account

The profit and loss account represents cumulative profits and losses of the Company.


13.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £5,025. Contributions totalling £15,437 were payable to the fund at the reporting date and are included in creditors.


14.


Commitments under operating leases

At 31 December 2023 the Company had commitments under operating lease as set out below:

2023
£


Not later than 1 year
237,150

Later than 1 year and not later than 5 years
488,400

Later than 5 years
-

725,550


15.


Related party transactions

The Company has taken advantage of the exemption offered in FRS 102, not to disclose transactions entered into between two or more members of a group, provided that any subsidiary undertaking which is a party to the transaction is wholly owned by the same parent undertaking.

Page 19

 
FRV SERVICES ENERGY UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 15 MONTH PERIOD ENDED 31 DECEMBER 2023

16.


Controlling party

The Company is owned by FRV - X Renewable S.L. (100%) which is incorporated in Spain and is the controlling undertaking.
 
The largest group to consolidate the accounts is Fotowatio Renewable Ventures S.L. and smallest group for which consolidated financial statements are prepared is by FRV - X Renewable S.L.
 
The registered office of the parent company is Calle Maria De Molina No. 40, 5th Floor, Madrid, Spain, 28006.

Page 20