Registration number:
LG Energy Group Ltd
trading as
for the Year Ended 31 March 2024
LG Energy Group Ltd
trading as LG Energy Group Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
LG Energy Group Ltd
trading as LG Energy Group Limited
Company Information
Directors |
Mr S M Asif H Rizvi Mr Thomas Adam Flack Miss Victoria Jayne Rigby |
Registered office |
|
Auditors |
|
LG Energy Group Ltd
trading as LG Energy Group Limited
Strategic Report for the Year Ended 31 March 2024
The directors present their strategic report for the year ended 31 March 2024.
Principal activity
The principal activity of the company is is energy procurement and consultancy services.
Fair review of the business
LG Energy Group's performance dipped slightly in 2023-24, as despite turnover increasing by 24%, EBITDA reduced by 22%. This was mainly due to an increase in general administrative expenses of £208K, which was driven by high inflation levels. Furthermore, employment costs increased by c£230K. Employment costs are the most significant cost in the business, which as a percentage of turnover decreased from 67% in 2022-23 to 59% in 2023-24.
Consultancy revenue continues to increase each year, with it representing 14.5% of total revenue in 2023-24 compared with 10.8% in 2022-23. We are expecting this trend to continue as we expand our consultancy offerings in a bid to diversify away from being predominantly procurement based.
The directors are confident of the ongoing performance , and whilst we are expecting a similar profit level in 2024-25 as 2023-24, we are forecasting significant growth in 2025-26 and beyond.
There are no banking covenants in the company, woth only a small amount of recovery loan outstanding, that is due to be fully repaid in 2025. The company is owed £2.9m by group companies, which are repayable on demand but are not currently required.
Impact of Brexit related risks
The impact of Brexit on the company and only so far as customer consumption reducing following their relocation of premises or operations or in some cases the dissolution of companies is concerned. The directors are confident that there is sufficient cashflow in the business for this not to present a going concern issue.
Impact from the risks related to the Covid-19 pandemic
The impact of COVID has been more profound on the company. This has been twofold; firstly, clients reduced consumption and therefore our commission due to the various lockdowns and secondly the impact on new business sales which has been significant. The directors are confident that there is sufficient cashflow in the business for this not to present a going concern issue.
The business kept it's staff and other costs consistent, despite the impact of COVID. Doing so ensured that clients continued to receive the correct level of service, at a time where energy administration was more important than ever due to COVID led demand destruction. It was felt that not only was thios the right thing to do, it was also an investment which helps the business to further solidify relationships with clients.
The Directors are confident that this risk has now passed and a specific provision has been applied in the current years accounts for any remaining under consumption experienced through this period. Reconciliations are ongoing with all energy suppliers with commissions owed being recovered. The income accrual is reducing and will continue to do so as these recociliations are completed.
LG Energy Group Ltd
trading as LG Energy Group Limited
Strategic Report for the Year Ended 31 March 2024
The company's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Turnover |
GBP |
4,498,797 |
3,629,193 |
EBITDA |
GBP |
551,193 |
701,691 |
Movement in Turnover |
GBP |
869,604 |
338,707 |
EBITDA as % of T/O |
% |
12 |
19 |
Movement in EBITDA |
GBP |
(155,206) |
823,146 |
Principal risks and uncertainties
The principal risk facing the company is around AI automation of Energy Procurement Services. The Directors are mitigating against this by keeping upto date with with advancements in this area and diversifying its business into more consultancy type services. Utilising AI to our advantage to improve accuracy and automation in order tp reduce costs.
Impact of Energy Prices
The impact of the current climate in relation to energy prices does not have a direct impact on the company as it does not trade speculatively on energy prices nor take title of any supply. The potential impact on the company is indirect as a result of it's client ceasing to trade as a result of becoming insolvent or being unable to meet credit requirements of energy suppliers required to enter into the type of contracts we provide.
Non-financial and sustainability information
Company employees
The company's policy is to consult and discuss with employees matters likely to affect employees' interests.
Approved by the
......................................... |
LG Energy Group Ltd
trading as LG Energy Group Limited
Directors' Report for the Year Ended 31 March 2024
The directors present their report and the financial statements for the year ended 31 March 2024.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The company's financial assets and liabilities consist of trade debtors and creditors, cash balances and bank loans, finance leases and its investments in property.
Price risk, credit risk, liquidity risk and cash flow risk
The directors manage the company's exposure to financial risk by researching the creditworthiness of customers and by seeking advice from the company's providers of finance and its other external financial advisors.
There is an exposure to currency risk as it trades with certain entities in Euros both in terms of customers and suppliers. This does not currently represent a significant proportion of the business. The directors intend to set up Euro bank accounts during the 2023-24 financial year to help mitigate this risk.
The company does not trade speculatively in derivatives or similar instruments.
Liquidity Risk
The company aims to mitigate liquidity risk by closely managing cash generation by its operating business and monitiring performance. Capital investment is closely controlled with authorisation upto Director Level.
Interest Rate Risk
The company does not consider it is exposed to a significant financial risk from this but it is closely managed.
Employee involvement
The company's policy is to consult and discuss with employees matter likely to affect employees interests.
Environmental matters
LG Energy Group Ltd
trading as LG Energy Group Limited
Directors' Report for the Year Ended 31 March 2024
Impact of Climate Change and Net Zero
The company predominately receives its turnover as a commission on its clients' energy consumption. In LG Energy Group, 22% of its procurement related turnover comes by way of managment fees, which are fixed regardless on consumption levels. As more pressure is applied to UK businesses to reduce their energy consumption through statutory reporting and compliance, a larger part of the services, we provide are centred around consultancy services. New 'Green' energy supply products are being developed to assist our clients move towards Net Zero and an increasing number of new business clients are being contracted on a management fee basis. Management fee income as a percentage of total revenue decreased from 26% in 2022-23 to 22% in 2023-24 but is expected to have increased again in 2024-25.
Whilst larger consumers are expected to inovate their own solutions in regards to reducing their carbon footprint, smaller consumers are reliant on renewable infrastructure and new widely available technologies to assist them with hitting their targets.
Research and development
The company continues to develop new energy management and procurement strategies and systems with a particular focus on renewable energies and Net Zero.
Going concern
There are no banking covenants in the Group, but the Group is funded via a related party loan from Rigby Estates LLP. That loan is secure and there are no requirements for it to be repaid in the immediate future, Rigby Estates views this loan as an investment that ultimately benefits the beneficiary of the LLP. The intention is to repay these loans when there are share transactions in the future in one or more of the subsidiaries.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
The auditors Beckett Rawcliffe Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved by the
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LG Energy Group Ltd
trading as LG Energy Group Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
LG Energy Group Ltd
trading as LG Energy Group Limited
Independent Auditor's Report to the Members of LG Energy Group Ltd
Opinion
We have audited the financial statements of LG Energy Group Ltd (the 'company') for the year ended 31 March 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. We discussed going concern with management and reviewed post year end management accounts, future cash and accounting projections, inter company loan accounts, time to pay arrangements with HMRC, managements control of expenditure, regulatory matters, current demand for the company's services and the future plans for the Company.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.
We are satisfied that the company's cash flow has since largely recovered and we note that HMRC Time to Pay arrangments have been completed and that arrears of pension contributions have been brought upto date.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.
LG Energy Group Ltd
trading as LG Energy Group Limited
Independent Auditor's Report to the Members of LG Energy Group Ltd
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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], 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 either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
LG Energy Group Ltd
trading as LG Energy Group Limited
Independent Auditor's Report to the Members of LG Energy Group Ltd
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 mis-statements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing thje risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- The engagement partner ensured the team possessed the appropriate competence, capabilities and skills;
- We identified laws and regulations applicable to the Company through discussion with the directors;
- We focussed on those laws and regulations which have a direct material effect on the financial statements
- We assessed the extent of compliance by making enquiries of the directors.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures
- tested journal entries to identify unusual transactions;
- investigated rationale behind significant or unusual transactions
In repsonse to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual or potential litigation or claims;
- reviewing correcspondence with HMRC and the company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would be aware of non-compliance. Auditing Standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material mis-statements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 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.
LG Energy Group Ltd
trading as LG Energy Group Limited
Independent Auditor's Report to the Members of LG Energy Group Ltd
......................................
For and on behalf of
Sovereign Court
Wyrefields
Poulton Le Fylde
Lancashire
FY6 8JX
LG Energy Group Ltd
trading as LG Energy Group Limited
Profit and Loss Account for the Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
- |
|
|
Operating profit |
482,900 |
669,181 |
|
Other interest receivable and similar income |
|
- |
|
Interest payable and similar expenses |
( |
( |
|
(35,361) |
(23,507) |
||
Profit before tax |
|
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
LG Energy Group Ltd
trading as LG Energy Group Limited
Statement of Comprehensive Income for the Year Ended 31 March 2024
2024 |
2023 |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
LG Energy Group Ltd
trading as LG Energy Group Limited
(Registration number: 07528567)
Balance Sheet as at 31 March 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
433,630 |
433,630 |
|
Share premium reserve |
72,333 |
72,333 |
|
Retained earnings |
1,591,918 |
1,144,379 |
|
Shareholders' funds |
2,097,881 |
1,650,342 |
Approved and authorised by the
......................................... |
LG Energy Group Ltd
trading as LG Energy Group Limited
Statement of Changes in Equity for the Year Ended 31 March 2024
Share capital |
Share premium |
Retained earnings |
Total |
|
At 1 April 2023 |
|
|
|
|
Profit for the year |
- |
- |
|
|
At 31 March 2024 |
|
|
|
|
Share capital |
Share premium |
Retained earnings |
Total |
|
At 1 April 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
At 31 March 2023 |
433,630 |
72,333 |
1,144,379 |
1,650,342 |
LG Energy Group Ltd
trading as LG Energy Group Limited
Statement of Cash Flows for the Year Ended 31 March 2024
Note |
2024 |
(As restated) |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
- |
|
Finance costs |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
Decrease in trade debtors |
|
|
|
Decrease in trade creditors |
( |
( |
|
Increase in provisions |
|
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
- |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
- |
|
Acquisitions of tangible assets |
( |
- |
|
Acquisition of intangible assets |
- |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
( |
( |
|
Repayment of other borrowing |
- |
|
|
Receipts from finance lease debtors |
- |
|
|
Net cash flows from financing activities |
( |
( |
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 April |
|
|
|
Cash and cash equivalents at 31 March |
(27,640) |
42,869 |
LG Energy Group Ltd
trading as LG Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Name of parent of group
These financial statements are consolidated in the financial statements of R Energy Group Ltd.
The financial statements of R Energy Group Ltd may be obtained from 4 Croft Court, Whitehills Business Park, Blackpool, FY4 5PR.
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The company has made a profit in 2024 and the management accounts continue to show profits into 2025. Forecasts have been prepared to March 2027 and these show an improving profit position. Guild Energy Ltd which is a fellow member of the Group has recently exited it's Company Voluntary Arrangement. The holding company and its owners have indicated their ongoing support for the Group.
Exemption from preparing group accounts
The financial statements contain information about LG Energy Group Ltd as an individual company and do not contain consolidated financial information as the parent of a Group.
LG Energy Group Ltd
trading as LG Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Judgements
The figure for revenue is ultimately derived from an 'Income Profile Model' which is based on the estimated revenues for each contract over the life of that contract. The initial estimate is in fact based on actual energy usage of the client prior to entering the new contract. This estimate is periodically updated over the life of the contract with the updates based on actual energy usage. Revenue is realised some time before it is actually invoiced and is carried in the Balance Sheet as 'Income Accrual' under Other Debtors. |
Key sources of estimation uncertainty
Uninvoiced Commission Revenues derived from an 'Income Profile Model' and carried as Other Debtors.. The carrying amount is £1,480,197 (2023 -£1,389,919).
Revenue recognition
When assessing the measurement of progress towards complete satisfaction of the performance obligation of the commission revenue, management deemed that the input method best depicted the transfer of services to the customer.
After thorough assessment of the company's costs to share model, consideration of tendering costs and costs to obtain a contract that do not contribute to the company's progress in satisfying the performance and additional services provided over the life of a corporate sector contract,
Revenue recognised prior to invoicing is included in other debtors.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Office equipment |
20% staight line |
Fixtures and fittings |
10% straight line |
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
In House Software |
20% straight line |
LG Energy Group Ltd
trading as LG Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks relate to work in progress which in turn relates to commissions paid to employees on full contact value paid in stages but paid in full at the point the contract starts. This is spread over the average life of the contracts within the company's order book.
Note this is a change of policy over prior years which resulted in a write off of stock put through prior year accounts in accordance with FRS102.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
LG Energy Group Ltd
trading as LG Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Research & Development
Expenditure on research and development is charged to revenue and not capitalised.
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Rendering of services |
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2024 |
2023 |
|
Miscellaneous other operating income |
- |
|
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease expense - plant and machinery |
- |
( |
LG Energy Group Ltd
trading as LG Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
- |
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
- |
|
Interest expense on other finance liabilities |
|
|
Foreign exchange gains/(losses) |
|
( |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
( |
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Administration and support |
|
|
Research and development |
|
|
Sales |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
LG Energy Group Ltd
trading as LG Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
2024 |
2023 |
|
Remuneration |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Auditors' remuneration |
2024 |
2023 |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
Audit-related assurance services |
|
|
Taxation compliance services |
|
|
|
|
Taxation |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of tax losses |
( |
( |
Tax increase (decrease) from effect of capital allowances and depreciation |
( |
|
Tax increase (decrease) arising from group relief |
( |
- |
Tax increase (decrease) from effect of adjustment in research and development tax credit |
- |
( |
Total tax charge/(credit) |
- |
- |
LG Energy Group Ltd
trading as LG Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Intangible assets |
Internally generated software development costs |
Total |
|
Cost or valuation |
||
At 1 April 2023 |
|
|
At 31 March 2024 |
|
|
Amortisation |
||
At 1 April 2023 |
|
|
Amortisation charge |
|
|
At 31 March 2024 |
|
|
Carrying amount |
||
At 31 March 2024 |
|
|
At 31 March 2023 |
|
|
Tangible assets |
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
||
At 1 April 2023 |
|
|
Additions |
|
|
At 31 March 2024 |
|
|
Depreciation |
||
At 1 April 2023 |
|
|
Charge for the year |
|
|
At 31 March 2024 |
|
|
Carrying amount |
||
At 31 March 2024 |
|
|
At 31 March 2023 |
|
|
LG Energy Group Ltd
trading as LG Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Stocks |
2024 |
2023 |
|
Work in progress |
|
|
Debtors |
Note |
2024 |
2023 |
|
trade debtors |
|
|
|
Amounts owed by related parties |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Total current trade and other debtors |
|
|
Details of non-current trade and other debtors
£Nil (2023 -£1,702,146) of Inter Company Loan Accounts is classified as non current. Owed by R Energy Group Ltd
Cash and cash equivalents |
2024 |
2023 |
|
Cash on hand |
|
|
Cash at bank |
|
|
|
|
|
Bank overdrafts |
( |
- |
Cash and cash equivalents in statement of cash flows |
(27,640) |
42,869 |
Creditors |
LG Energy Group Ltd
trading as LG Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts due to related parties |
|
- |
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other payables |
|
|
|
Accrued expenses |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Provisions for liabilities |
Onerous contracts |
Total |
|
At 1 April 2023 |
|
|
Additional provisions |
|
|
At 31 March 2024 |
|
|
|
Provision has been made in respect of shortfalls of commissions expected from energy supply contracts.
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
433,630 |
|
433,630 |
LG Energy Group Ltd
trading as LG Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Loans and borrowings |
Non-current loans and borrowings
2024 |
2023 |
|
Bank borrowings |
|
|
2024 |
2023 |
|
Current loans and borrowings |
||
Bank borrowings |
- |
|
Bank overdrafts |
|
- |
|
|
Bank borrowings
Debenture including fixed and floating charges over all assets of LG Energy Group Ltd and R Energy Group Ltd |
Related party transactions |
LG Energy Group Ltd
trading as LG Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Transactions with directors |
2024 |
At 1 April 2023 |
At 31 March 2024 |
Mr Thomas Adam Flack |
||
Directors Loan Account |
|
|
2023 |
At 1 April 2022 |
At 31 March 2023 |
Mr Thomas Adam Flack |
||
Directors Loan Account |
|
|
LG Energy Group Ltd
trading as LG Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Summary of transactions with parent
Summary of transactions with all entities with joint control or significant interest
Summary of transactions with other related parties
The Villa (Wrea Green) Ltd
Functions and team building events at the Villa (Wrea Green)
Income and receivables from related parties
2024 |
|
2023 |
Entities with joint control or significant influence |
Receipt of services |
|
|
Expenditure with and payables to related parties
2024 |
|
2023 |
Other related parties |
Rendering of services |
|
Leases |
|
|
|
|
Loans to related parties
2024 |
Parent |
Entities with joint control or significant influence |
Total |
At start of period |
|
- |
|
Advanced |
- |
|
|
Repaid |
( |
- |
( |
At end of period |
|
|
|
|
LG Energy Group Ltd
trading as LG Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
2023 |
Parent |
Entities with joint control or significant influence |
Total |
At start of period |
|
|
|
Repaid |
|
( |
( |
At end of period |
|
- |
|
|
Terms of loans to related parties
Loans from related parties
2023 |
Other related parties |
Total |
At start of period |
|
|
Repaid |
( |
( |
At end of period |
- |
- |
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate controlling party is