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Happy Energy Holdings Limited

Annual Report and Consolidated Financial Statements
Year Ended 5 April 2024

Registration number: 09051783

 

Happy Energy Holdings Limited

Contents

Company Information

1

Strategic Report

2 to 16

Directors' Report

17 to 19

Statement of Directors' Responsibilities

20

Independent Auditor's Report

21 to 24

Consolidated Profit and Loss Account

25

Consolidated Statement of Comprehensive Income

26

Consolidated Balance Sheet

27

Balance Sheet

28

Consolidated Statement of Changes in Equity

29

Consolidated Statement of Cash Flows

30

Notes to the Financial Statements

31 to 44

 

Happy Energy Holdings Limited

Company Information

Directors

Mr Adrian Wright

Mrs Lauretta Wright

Registered office

Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

Auditors

PKF Francis Clark
Statutory AuditorLowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

The directors present their strategic report for the year ended 5 April 2024.

Happy Energy Holdings Limited is the parent company of the group, with the main activities carried out through the wholly owned subsidiary companies Happy Energy Solutions Ltd and Retrofit Practice Limited. Retrofit Practice Limited was incorporated on the 21st July 2023.

Principal activity

The principal activity of the group is offering energy efficiency and carbon saving grants to a range of domestic householders for the installation of retrofit measures that will make the home warmer, healthier and less costly to run.

The householders include:

• Social Housing Organisations
• Social Housing Tenants
• Private Owners
• Private Landlords
• Private Tenants

These grants are provided from a range of sources including:

Energy Companies who have a Government - Energy Company Obligation (ECO).
National Government - Social Housing Decarbonisation Fund (SHDF, Home Upgrade Grant (HUG) and others emerging.
Local Authorities who wish to use elements of their funding to make carbon savings, lower levels of fuel poverty, assist residents and improve housing stock (fabric and energy performance) in their boroughs. The funding might include Carbon Offset and / or Bettercare.
Charities who have a remit to assist particular profiles of applicants or are active in the energy efficiency / carbon saving arena.

The purpose of the grants is to provide a range of retrofit energy efficiency and carbon saving measures (EEMs) to meet funding specific criteria which might include:

Energy Bill Savings to take households out of fuel poverty (along with the benefits that has to health, education, employment).
Increase in Energy Performance of the home through an improved Energy Performance Certificate.
Upgrading insulation to walls, floors and roofs.
Installing any energy efficiency measure that will increase the Energy Performance of a home (except fossil fuel related measures).

The range of retrofit measures available include:

• Loft / Roof Insulation
• Cavity Wall Insulation
• Solid Wall Insulation
• Energy efficient glazing and doors
• Solar PV and Thermal
• Heat Pumps

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

• Electric Heating (High Heat Retention Storage Heaters)
• Heating Controls
• Low Energy Lighting

Given the UK Government target of being Net Zero by 2050, coupled with the current energy performance of UK Housing Stock, and the high levels of fuel poverty it is predicted that retrofit carbon and energy efficiency funding, for EEMs, will feature in all Government spending over the coming 30 years.

Happy Energy Solutions Ltd (HESL) is the Principal Contractor for the installation of these retrofit EEMs in conjunction with their network of sub-contractors across England and Wales.

HESL operates within a number of standards, certifications and legislative requirements that have to be adhered to when retrofitting domestic dwellings including:

• PAS2035 - Retrofitting Dwellings for Improved Energy Efficiency- Specification and Guidance
• PAS2030 - Installation of Energy Efficiency Measures in Existing Dwellings - Specification
• MCS - Microgeneration Certification Scheme (renewable EEMs)
• TrustMark - the Government approved quality scheme for retrofitting domestic homes
• Green Deal Installer (PAS2030)
• CDM2015 - Construction Design and Management Regulations
• ISO45001 - Health and Safety accreditation
• ISO14001 - Environmental Management System accreditation
• ISO9001 - Quality Management System accreditation
• And other measure specific competent person schemes

HESL also offer a range of Consultancy Services to our business to business / organisation clients including:

• Development of Funding Applications
• Stock Condition Reports
• Data Analyses
• Minimum Energy Efficiency Standards (MEES) support

Retrofit Practice Limited (RPL) receives commissions for products sold through a partnership with manufacturers, where RPL has secured special approval, which enables the product to receive extra grant funding, where ordinarily it would not.

HEATFLEX
RPL provides a fully managed Energy Company Obligation (ECO) Flex application and compliance process for Local Authorities, reducing the administrative burden to the local authority, and allowing them to offer ECO Flex funding to their residents.

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

With the market expanding for retrofit services across Britain, it was decided that wider professional services should be offered by the group, including the provision of consultancy, bid writing, the development of innovative products and the delivery of survey and design work linked to PAS2035. Due to Happy Energy Solutions Ltd being a Principal Contractor, it was felt that it may be difficult to offer these new services to other similar businesses, due to a perceived conflict of interest, so the decision was taken to establish a separate business within the same group. As the directors of the Happy Energy Holdings Limited group are resident there, it was decided that the new company should be registered and located in Guernsey and Retrofit Practice Limited was therefore established on 21 July 2023, as a 100% subsidiary of Happy Energy Holdings Limited.
 

Fair review of the business

Business model

HESL’s Business Model has both business to business / organisation (B2BO) and business to consumer (B2C) aspects.

Our B2BO clients include:

• Social Housing Organisations – imperative for all their properties to be EPC C Rated or above.
• Local Authorities – imperative to decrease carbon emissions across their borough.
• Construction / Facilities Companies – imperative to increase profit margins and enter new markets.
• Private Landlords – imperative for all their properties to be EPC C Rated or above.

Our B2C customers include:

• Private Owners – imperative to save money on their energy bills, make their home healthier.
• Private Tenants – imperative to save money on their energy bills, make their home healthier.
• Social Housing Tenants – imperative to save money on their energy bills, make their home healthier.

Sales and Marketing is aimed at both of these groups and includes:

B2BO - referrals from other clients; direct contact; delivering informational webinars; social media presence / profile (LinkedIn); direct email; business facing website.

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

B2B - referrals from other customers; direct referrals from B2BO clients; direct mail to homes identified through Energy Performance Certificate (EPC) Register; consumer facing website; social media presence / posts; community outreach and engagement; marketing materials in community centres, libraries, GP surgeries etc; direct referrals from GP surgeries, utility companies, fire and police services; high street Advice Centre.

HESL offer the range of EEMs detailed within the Overview, with a focus on a “fabric first” approach, ensuring the home is fully insulated before undertaking any other EEMs.

Due to the introduction of PAS2035 / 2030, and the introduction of SHDF and HUG, the marketplace in which HESL operate has changed over the preceding 3 - 4 years. Previously, large construction companies, architects etc. did not get involved with providing EEMs to individual, domestic homes. That landscape has now changed with large construction, facilities and architectural companies becoming involved in the retrofit of domestic dwellings.

With a 30 year heritage delivering energy efficiency works, the directors of HESL were able to implement and embed the requirements of PAS2035 / 2030 very quickly, being one of the first companies to deliver a multi-million-pound project (Mayor of London’s Warmer Homes Fund) to the PAS standards commencing in 2020 - at the height of the pandemic.

HESL commenced upskilling their existing team, in 2019, with the PAS2035 required qualifications of:

• Retrofit Advisor
• Retrofit Assessor
• Retrofit Coordinator
• Retrofit Designer
• Retrofit Evaluator

Whilst ensuring that HESL and our Sub-contractor network had the required PAS2030 accreditations for the retrofit EEMs to be installed.

HESL also predicted the increase in EEMs funding not only being delivered to one-off domestic homes but also to multi-property domestic sites so recruited and upskilled existing employees with the skills needed to deliver at scale including health and safety; environmental; quality; architectural; structural and design professionals.

This early introduction of the PAS standards within the organisation has meant that HESL are seen as one of the most competent organisations in the funded EEMs arena - not only having a significant track record of successfully delivering compliant funded projects but also delivering them as a strong Principal Contractor.

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

Key Drivers

Continued availability of funding for EEMs in social housing

The previous introduction of SHDF offered a new marketplace for HESL to build upon previous years’ work with Social Housing clients to deliver EEMs through the Local Authority Delivery (LAD) programmes.

Previous funding programmes came to end during FY 22/23.
 

Increased compliance and complexity for ECO funding

ECO funding in previous years, prior to the introduction of ECO4, had represented around 90% of HESL’s turnover. This has gradually decreased since 2019 due to the increased complexity of ensuring compliance with funding eligibility. HESL are not prepared to risk installing EEMs under ECO4 funding where there is ambiguity in the guidance which might lead to the work being deemed non-compliant at a later date.

HESL continues to hold ECO contracts with large Energy Companies and also has a number of ECO Innovation EEMs that attract commissions when installed by other ECO installers.

Ability to leverage funding

HESL are well equipped at spotting opportunities and this applies where funding has been sourced from an existing client to support the work of a new client - resulting in benefits for both. Meeting targets for properties treated, increase in EPC rating of housing stock, improved conditions for tenants - energy bill savings.

Development of funding applications for B2BO clients

HESL has had significant success in developing funding applications for both Social Housing and Local Authority clients. This has led to HESL being able to deliver the successful projects for the client.

Revenue

Revenue slowed during the year due to funding complexities and reduced availability as schemes came to an end.

Cost management

HESL has ensured efficiency across all operational areas. Updating polices, processes and procedures to ensure that delivery to the PAS standard is streamlined through the continued use of an inhouse, cloud based, digital workflow system.

Efficiencies have also been introduced across procurement and the supply chain to ensure value for money whilst maintaining a collaborative relationship.

Profitability

Profitability has been achieved through careful expense management; economies of scale; increased productivity levels; cost control and operating in a marketplace where there are relatively few competitors with the breadth of knowledge, skills and services that HESL is able to offer.

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

Customer satisfaction and retention

Whilst our B2C customers only afford limited additional revenues in terms of servicing and maintenance, our B2BO clients offer many opportunities for further contracts through the development of funding applications; leveraging other funds; procurement of other products / services etc.

HESL embed our ISO9001 quality management system and principles throughout the business to ensure a high level of quality and therefore client satisfaction. This applies to both funding compliance and products / services.

HESL has dedicated pre and post-sale customer service teams, who deal with individual residents / customers, whilst our Contracts Management team liaise with our business clients. Every project is assigned a Retrofit Coordinator to ensure that the customer / client is kept fully informed throughout the customer journey.

Innovation and product development

HESL’s objectives includes one of having our own energy efficiency / carbon saving product. This project commenced before the pandemic but was placed on hold until revenues / profits returned to pre-pandemic levels. HESL still wish to take this forward.

HESL are always seeking products with the opportunity to “white label” them or to submit an ECO Innovation Application to secure a 45% uplift on ECO funding. HESL has been successful with ECO Innovation measure applications for two solar PV products, an external solid wall insulation product (the first to receive a 45% uplift), a hydrogen fuel cell mCHP and, during the current year, an air source heat pump application was approved. These applications not only benefit HESL, but also the energy suppliers and wider supply chain, who are able to claim greater levels of savings and grant funding by using the products

Regulatory and compliance factors

HESL take our regulatory and compliance seriously and embed across the whole organisation to ensure that all personnel are aware of its importance.

Compliance is at the heart of everything that HESL undertakes as funding, and the compliance thereof, is what HESL offer to clients and customers.

Our Chief Operating Officer (COO), Chief Administration Officer (CAO), Health, Safety and Environment Manager (HSE), overseen by our Chief Executive (CEO) work tirelessly to ensure that our Environment, Health, Quality Management System is adhered to throughout all areas of operation.

HESL were successfully audited for ISO9001, ISO14001 and ISO45001 with zero non-conformities and no actions required.

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

HESL subscribe to the Legislation Update Service to ensure that we are aware of any changes that impact the business across environment, health and safety - so that these can be addressed immediately.

Due to the amount of personal data that HESL manage, data protection and privacy compliance training is provided to all personnel and contractors at least quarterly - to ensure it is at the forefront of their minds. HESL is certified under the Cyber Essentials framework.

As previously mentioned, there are a range of certifications that HESL are proud to have achieved and maintained listed within the Overview.

Economic and market conditions

HESL is in the fortunate position to have benefitted from interest rate rises having a positive cash position in the bank coupled with no loans / overdrafts (only vehicle leases). Obviously, interest rate rises have impacted our supply chain and overhead costs but any price increases have been managed.

HESL operate in a market where customers and clients want / need the products and services that HESL offers, especially as consumer customers usually do not have to contribute any monetary investment in the EEMs - these can usually be delivered with the funding available

Technological advances

HESL’s IT Manager who reviews new, and emerging, technologies on a daily basis in order to ensure operational efficiencies and a differentiation in the marketplace.

Technology usage is embedded throughout the business and is constantly reviewed to assess where improvements can be made. The integration of digital solutions into the delivery of our products and services is a key driver.

Our CEO has a strong interest in technological advances and is keenly involved in these developments.

Whilst driven by legislation and compliance, HESL seek to provide innovation in the industry in respect of EEMs delivered and to disrupt existing ways of working if improvements can be made to the consumer / client experience.

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

Talent management and human resources

HESL prides itself on our company ethos and respect for our team of talented individuals.

We have a defined retrofit career path which has taken a graduate, working as an administration temp, through achieving the Level 3 Domestic Energy and Retrofit Assessor qualification and on to achieve the Level 5 Award in Retrofit Coordination. There are many other examples within the organisation of recruiting from within, upskilling our existing workforce and upskilling our contractors.

HESL has employees who have been in post since 2013 (and previously in other companies with our CEO). Employees that may leave to explore other options, quite often return, due to the caring and compassionate environment that HESL fosters.

HESL firmly believes in investing in our personnel, each has a Training Development and Continuing Professional Development Plan, based on regular Training Needs Analysis. All employees have access to a range of on-line courses covering a range of topics including health and safety; workplace skills; IT etc. this is enhanced with a subscription to Video Arts where tailored programmes are developed for each team member.

Furthermore, HESL has a weekly Training Academy where inhouse or external personnel provide training on a specific topic.

HESL is a diverse organisation welcoming recruits with protected characteristics and providing support.

HESL offers support to all personnel through our occupational health scheme.

Commitment and productivity are rewarded at HESL, we do not adhere to strict criteria for roles, preferring to develop the skills required for those exhibiting motivation and for being impressive.

Strategic partnerships and alliances

HESL has fostered a number of strategic partnerships and alliances, particularly in respect of ECO Innovation products which generates revenue from commissions from installers through licensing agreements. HESL will continue to expand this area of operation.

HESL has fostered long term partnerships with our suppliers and contractors ensuring prompt payment and, in some instances, advance payment.
 

Political

A key driver is the political will to provide, or legislate for, funding in the energy efficiency and carbon saving arena. Given the imperative to limit the impact of climate change, coupled with the legislation for the UK to achieve Net Zero carbon emissions by 2050, it is anticipated that any manifesto / legislative pledges made will be adhered to or the government may face the consequences.

Significant funding had to be provided to householders in light of rising energy bills during 2023 - so the withdrawal / reduction of energy efficiency and carbon saving funding would be counter intuitive and lead to a potential increase in funding elsewhere.

Summary

HESL monitor these key drivers to understand the factors that will impact the performance and success of the business.

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

Significant events, developments and achievements

Significant Events
• 11 years in business

Significant Developments
• ECO Innovation Measures approved by Ofgem.

Significant Achievements
• Exceeding pre pandemic profit levels
• 45+ full time employees
• One of the UK’s largest in-house teams of PAS2035 Retrofit Professionals

Financial review

The Board are pleased with the 2024 results, which show revenues of £8.8m (2023: £15.8m), delivering an operating profit of £3.0m (2023: £6.5m). Cash at the year end was £5.0m (2023: £1.8m) and the total consolidated equity as at 5 April 2024 was £7.3m (2023: £4.7m) providing a strong financial position for future growth.

3 Year Strategy and objectives

HESL will continue to grow revenues and profits through further diversification across all Government funded EEM grant schemes. Having been awarded a place on a number of dynamic purchasing systems and industry frameworks, coupled with our extensive experience, HESL is well placed to pick up a number of new contracts to continue to cement its position as one of the industry leading EEM specialist principal contractor and principal designers.

Talent Management and Employee Engagement
• Continue to attract and retain top talent by offering an excellent, caring working environment; remuneration commensurate with the role and opportunities for career advancement.
• Continually improve employee satisfaction and engagement through initiatives such as flexible working arrangements and professional development programs.
• Continue to foster a diverse and inclusive workplace culture by implementing policies and practices that promote equality and respect.

Financial Health and Stability
• Maintain a healthy balance sheet and liquidity position to support long-term growth and withstand economic downturns.
• Continue to increase profitability margins by optimising pricing strategies, reducing costs, and improving operational efficiency.

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

Sustainability and Corporate Social Responsibility (CSR)
• Reduce carbon emissions and environmental footprint by 17% to 2028 through sustainability initiatives and renewable energy sources.
• Continue to enhance transparency and accountability in CSR practices by publishing sustainability reports and engaging stakeholders.
• Continue to support social causes and community development projects through corporate philanthropy and volunteerism.

Regulatory Compliance and Risk Management
• Continue to ensure 100% compliance with funders, industry regulations and standards to mitigate legal and regulatory risks.
• Continually improve our robust risk management processes and internal controls to identify, assess, and mitigate operational, financial, and strategic risks.
• Continually enhance cybersecurity measures to protect sensitive data and minimise cyber threats and vulnerabilities.

Market position

HESL has a strong position in the retrofit marketplace through the unique combination of:
• Considerable number of years’ experience, within the team, across various energy efficiency and carbon reduction funding streams from the early 1990s.
• Ability to deliver funded projects at scale as Principal Contract and Designer.

Market trends, opportunties and challenges


Market trends
Government Initiatives - The UK government has been implementing various initiatives to promote energy efficiency, such as the Green Homes Grant and the Energy Company Obligation (ECO) scheme. These programs provide financial incentives for homeowners and landlords to retrofit their properties with energy-efficient measures.
Technological Advancements - Continuous advancements in energy-efficient technologies, such as heat pumps, solar, efficient electric heating, smart thermostats / heating controls, LED lighting, and energy-efficient appliances, are driving the retrofit market. These technologies help reduce energy consumption and lower / maintain utility bills for consumers.
Rising Energy Costs - Increasing energy prices are encouraging homeowners and businesses to invest in energy-efficient upgrades to reduce / maintain their energy bills and improve long-term cost savings.
Climate Change Awareness - Growing concerns about climate change and environmental sustainability are motivating individuals and organisations to adopt energy-efficient practices and reduce their carbon footprint.
Shift towards Net-Zero Targets - The UK government's commitment to achieving net-zero carbon emissions by 2050 is driving demand for energy-efficient retrofit solutions across residential, commercial, and public sectors.

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

Opportunities

Market Growth - The retrofit energy efficiency market in the UK is expected to experience significant growth due to increasing awareness, government support, and technological advancements.
Diverse Customer Base - Opportunities exist across various customer segments, including homeowners, landlords, businesses, and public sector organisations, providing a diverse market for energy efficiency products and services.
Innovation and Investment - There are opportunities for innovation and investment in new technologies, products, and services that enhance energy efficiency, such as innovative insulation, renewable / alternative energy systems, monitoring and smart home solutions.
Job Creation - The expansion of the retrofit market creates opportunities for job creation in sectors such as construction, engineering, architecture, data analyses and renewable energy, contributing to economic growth and employment.
Export Potential - The UK's expertise in energy efficiency technologies and solutions presents export opportunities to other countries facing similar energy challenges.
International Opportunities - With a board of directors experienced in delivering works in Ireland and Australia, HESL is well placed to capitalise on any international opportunities, should they arise and should the board feel that it is an opportunity worth progressing.

Challenges

• Upfront Costs – High upfront costs of energy-efficient retrofit measures can be a barrier for homeowners and businesses, especially for low-income households and small businesses.
• Access to Finance – Limited access to financing options and incentives may hinder investment in energy efficiency upgrades, particularly for smaller businesses and homeowners.
• Technical Challenges – Retrofitting older buildings with energy-efficient technologies can pose technical challenges, such as building constraints, structural issues, and compatibility with existing systems.
• Consumer Awareness and Education – Lack of awareness and understanding of the benefits of energy efficiency and available retrofit solutions may slow adoption rates among consumers and businesses.
• Policy and Regulatory Uncertainty – Changes in government policies, regulations, and incentive programs can create uncertainty and impact market confidence, affecting investment decisions and project viability.

Overall, the retrofit energy efficiency market in the UK presents significant opportunities for growth and innovation, driven by government support, technological advancements, and increasing awareness of environmental sustainability. However, addressing challenges related to upfront costs, access to finance, technical complexities, and policy uncertainty is essential to unlock the full potential of the market and achieve long-term sustainability goals.

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

Future outlook and growth prospects

The future outlook and growth prospects for the retrofit energy efficiency market in the UK appear promising, driven by several factors:

Government Commitment to Net-Zero - The UK government's ambitious target to achieve net-zero carbon emissions by 2050 creates a strong impetus for energy efficiency measures. Continued support through policies, incentives, and regulations is expected to stimulate demand for retrofit solutions across residential, commercial, and public sectors.

Increasing Awareness and Demand - Growing awareness of climate change and the importance of energy efficiency is driving consumer and business demand for retrofit solutions. Rising energy costs, coupled with incentives such as the Green Homes Grant and ECO scheme, further incentivise investment in energy-saving upgrades.

Technological Advancements - Ongoing advancements in energy-efficient technologies and smart solutions are enhancing the effectiveness and affordability of retrofit measures. Innovations in building materials, insulation, heating systems, and smart home technologies are expected to drive adoption rates and improve energy efficiency outcomes.

Economic Benefits - Energy efficiency retrofitting not only reduces energy consumption and carbon emissions but also delivers significant economic benefits. Lower energy bills, improved comfort, increased property values, and job creation in the retrofit supply chain contribute to the overall economic attractiveness of energy efficiency investments.

Market Expansion and Diversification - The retrofit market in the UK is expanding beyond traditional sectors such as residential buildings to include commercial properties, public infrastructure, and industrial facilities. Diversification of customer segments and increased uptake of retrofit solutions across different sectors contribute to market growth and resilience.

International Opportunities - The UK's leadership in energy efficiency technologies and solutions presents export opportunities to other countries seeking to address their energy challenges and meet climate targets. Leveraging UK expertise and capabilities in retrofitting, consulting, and technology deployment can open up new markets and revenue streams.

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

However, several challenges and uncertainties may impact the future growth trajectory of the retrofit energy efficiency market:

Policy and Regulatory Changes - Shifts in government policies, regulations, and incentive programs can create uncertainty and affect market dynamics. Ensuring stability and consistency in policy frameworks is crucial to maintaining investor confidence and driving long-term investment in energy efficiency.

Funding and Financing - Access to financing remains a barrier for many consumers and businesses looking to undertake energy efficiency retrofits. Addressing challenges related to upfront costs, availability of financing options, and financial incentives is essential to accelerate market uptake and scale deployment.

Technical Complexity and Skills Gap - Retrofitting older buildings with energy-efficient technologies can pose technical challenges and require specialised skills and expertise. Investing in training and capacity building across the retrofit supply chain is essential to overcome technical barriers and ensure quality retrofit outcomes.

Market Fragmentation and Coordination - The retrofit market is characterised by fragmentation, with multiple stakeholders involved in project delivery and implementation. Enhancing coordination and collaboration among industry players, policymakers, financiers, and consumers is critical to streamline processes and accelerate market growth.

Overall, while the retrofit energy efficiency market in the UK faces challenges and some uncertainties, the outlook remains positive, driven by strong government commitment, increasing awareness, technological innovation, and economic benefits. Continued efforts to address barriers, foster collaboration, and create an enabling environment for energy efficiency investments are essential to unlock the full potential of the market and drive sustainable growth towards a low-carbon future.

HESL are capitalising on the opportunities whilst addressing the challenges detailed here.

Corporate social responsibility (CSR)


CSR initiatives undertaken
Community Outreach and Education Programmes - HESL has organised workshops, seminars and educational campaigns to raise awareness about the importance of energy efficiency and sustainability within local communities. These initiatives have included providing tips on energy-saving practices, conducting home energy audits, and offering advice on available government incentives and funding for retrofitting.

Charitable Partnerships - HESL has establish many partnerships, over the years, with local charities or non-profit organisations focused on fuel poverty, homelessness, employability or environmental conservation. This has involved providing financial support; volunteering time and resources; or funding energy-efficient products and services to help vulnerable individuals / communities improve their living conditions.

Employee Volunteer Programs - HESL has encouraged our personnel to participate in volunteer programs that support environmental and community causes. This has included organising group volunteering activities such as toy donations, beach clean-ups, or energy efficiency workshops in collaboration with local charities or environmental organisations.

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

Green Supplier Partnerships - HESL has prioritised sourcing materials and products from environmentally responsible suppliers that, or persuaded existing suppliers to, adhere to sustainable sourcing practices and reduce carbon emissions in their supply chain. This demonstrates a commitment to sustainability throughout the value chain and encourages our suppliers to adopt more eco-friendly practices.

Carbon Offset Programs - HESL has worked with our Local Authority partners on their carbon offset programs to mitigate the environmental impact of their operations and activities. This has involved their investing in renewable energy projects to offset their carbon footprint and contribute to global climate action.

Employee Training and Development - HESL has significantly invested in training and development programs to enhance the skills and knowledge of our personnel in areas such as energy efficiency, sustainability, and green building / retrofit practices. This has included providing certifications, workshops, and continuing professional development opportunities to empower our personnel to become advocates for sustainability both within the company and in their communities.

Green Building Projects - As HESL is involved in retrofit projects, we have prioritised green building practices and sustainable design principles to minimize environmental impact and maximise energy efficiency. This has included incorporating renewable energy systems; energy-efficient lighting and HVAC systems; and eco-friendly building materials into our projects.

Transparency and Reporting - HESL has enhanced our transparency and accountability in its CSR efforts by regularly reporting on our environmental, social, and governance (ESG) performance. This has included publishing a CSR report that highlights key initiatives, metrics, and progress towards sustainability goals, as well as engaging with stakeholders to gather feedback and input on its CSR strategy.

These illustrates how HESL, operating in the retrofit energy efficiency market in the UK, has integrated CSR into our business practices in order to contribute to positive social and environmental outcomes while also enhancing our reputation and brand value.

Stakeholder engagement

HESL believes that engaging with key stakeholders is essential for a company operating in the retrofit energy efficiency market in order to build trust, foster relationships, and create value for all parties involved. Here is some detail on how HESL has engaged with our key stakeholders:

Customers and clients

Customer / Client Feedback - HESL actively solicits feedback from customers / clients through surveys, focus groups, and customer service channels to understand their needs, preferences, and satisfaction levels.
Relationship Management - HESL maintains ongoing relationships with customers / clients by providing personalised support, assistance, and after-sales services to build long-term loyalty.
Product Innovation - HESL collaborates with customers / clients to co-create innovative solutions, products, and services that address their evolving needs and challenges in energy efficiency and sustainability.

 

Happy Energy Holdings Limited

Strategic Report

Year Ended 5 April 2024

Personnel

Internal Communication - HESL fosters open and transparent communication with their personnel through regular meetings, newsletters, MS Teams, and “town hall” sessions to share company updates, initiatives, and performance metrics.

Training and Development - HESL invests in training and development programs to enhance the skills, knowledge, and capabilities of its personnel in areas such as health and safety; safeguarding; best business practice; energy efficiency; sustainability; customer service etc.

Personnel Engagement - HESL promotes personnel engagement and empowerment by encouraging participation in decision-making processes; soliciting feedback; recognising and rewarding contributions through employee recognition programs and performance incentives.

Suppliers

Supplier Collaboration - HESL collaborates with our suppliers to establish mutually beneficial partnerships based on trust, transparency, and shared values. This includes regular communication, joint planning, and performance reviews to ensure alignment with sustainability goals and supply chain standards.

Responsible Sourcing - HESL encourages responsible sourcing practices among suppliers by setting sustainability criteria, conducting supplier assessments, and providing support and guidance to improve environmental and social performance.

Supplier Diversity - HESL promotes supplier diversity by sourcing from a diverse pool of suppliers, including small and minority-owned businesses, to create economic opportunities and foster inclusion within the supply chain.

By engaging with key stakeholders in a meaningful and transparent manner, HESL are able to build stronger relationships, enhance trust and credibility, and create shared value for all our stakeholders. Our approach not only contributes to our long-term success but also helps drive positive social and environmental impact in the communities we serve.

Approved and authorised by the Board on 3 April 2025 and signed on its behalf by:
 

.........................................
Mr Adrian Wright
Director

 

Happy Energy Holdings Limited

Directors' Report

Year Ended 5 April 2024

The directors present their report and the for the year ended 5 April 2024.

Director of the group

The director who held office during the year was as follows:

Mr Adrian Wright

The following director was appointed after the year end:

Mrs Lauretta Wright (appointed 29 April 2024)

Dividends
Details of dividends declared and paid are provided in the Consolidated Statement of Changes in Equity.

Performance overview

The fiscal year 2023-2024 has been marked by significant achievements and progress in our efforts to drive growth and sustainability in the retrofit marketplace despite our turnover and profit not being at the same level as the previous year.

Despite the challenges posed by supply chain shortages; short project timescales; funding streams coming to an end etc. we are pleased to report good performance across key metrics:

Revenue Growth - the group has experienced continued profitability in our retrofit energy efficiency business segment, driven by increasing demand for energy-saving solutions and government incentives to promote energy efficiency initiatives.

Market Expansion - the group’s market presence has remained robust. We have strengthened relationships with existing clients while acquiring new clients / customers seeking innovative retrofit solutions for their housing stock and homes.

Innovation and Technology - the group continues to invest in research and development to innovate and enhance our product offerings in the retrofit marketplace. Our commitment to technological advancements has enabled us to stay ahead of market trends and deliver value-added solutions to our customers.

Sustainability Initiatives - the group remains committed to sustainability and environmental responsibility in all aspects of our operations. Our efforts to promote energy efficiency and reduce carbon emissions align with our long-term vision of creating a greener and more sustainable future.

Financial instruments
 

Objectives and Policies

The group, an experienced business in the energy efficiency market, approaches financial instruments with the dual objectives of ensuring operational continuity and advancing our environmental mission. The financial policies we have established are designed to support our strategic initiatives in promoting energy conservation solutions while safeguarding our financial health.

 

Happy Energy Holdings Limited

Directors' Report

Year Ended 5 April 2024

Price Risk

Being in the construction sector, we are mindful of the price risks associated with our materials and labour costs and the potential for these to impact our operational costs. We mitigate these risks through the establishment of fixed rate cards for subcontractors and through negotiation of bulk discounts on materials, coupled with working with clients who are flexible in understanding the market volatility and who are willing to renegotiate pricing where reasonable to ensure that a healthy supply chain is maintained and their targets achieved.

Credit Risk

Our credit risk is mainly related to the trade receivables from clients for whom we carry out energy efficiency works. To manage this risk, we only work with large organisations who hold strong credit ratings, such as large energy suppliers, local authorities and social landlords. We also engage in active receivable management to maintain a healthy cash flow and to minimise the risk of defaults.

Liquidity Risk

The group manages liquidity risks by maintaining large cash reserves in instant access bank accounts, to enable fast payments to be made to subcontractors and suppliers and to buffer any delays between works commencing, being fully completed and with all paperwork being available to allow the invoices to be raised to clients.

Cash Flow Risk

Given our prudent avoidance of borrowings, our cash flow risk primarily arises from the operational side of the business. We counteract this by meticulous cash flow forecasting and by structuring our contract delivery to ensure stable and regular payments. This approach allows us to manage our resources effectively and maintain a strong financial position to support sustained growth in delivery of our services.

Conclusion

Our financial strategies are tailored to reinforce our leading position in the energy efficiency market. The absence of borrowings reflects our solid operational performance and strategic foresight. By diligently managing our financial risks and aligning our operational delivery with our sustainability objectives, we are poised to continue our growth trajectory while making a positive impact on the environment.

 

Happy Energy Holdings Limited

Directors' Report

Year Ended 5 April 2024

Prospects for the future

Looking ahead, we are optimistic about the growth prospects and opportunities in the retrofit marketplace. The following factors contribute to our positive outlook:

Government Support - Continued government support through policy incentives and funding programs is expected to drive demand for retrofit solutions, particularly in the context of climate change mitigation and net-zero carbon targets.

Technological Advancements - Ongoing advancements in energy-efficient technologies, smart building solutions, and digital innovations present opportunities to enhance our competitiveness and meet evolving customer / client needs.

Market Trends - Growing awareness of energy efficiency benefits, rising energy costs, and increasing environmental consciousness among consumers and businesses are expected to fuel demand for retrofit products and services.

Strategic Partnerships - Collaboration with industry partners, suppliers, and stakeholders enable us to leverage complementary expertise, expand our market reach, and deliver integrated solutions that create value for our customers / clients.

In conclusion, we are confident in our ability to capitalise on the opportunities in the retrofit marketplace, deliver sustainable growth and value creation for our shareholders, customers, personnel, and communities. We remain committed to excellence, innovation, and responsible business practices as we continue our journey towards a more energy-efficient, carbon saving and sustainable future.

Going concern

The financial statements have been prepared on a going concern basis.

Disclosure of information to the auditor

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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 3 April 2025 and signed on its behalf by:
 

.........................................
Mr Adrian Wright
Director

 

Happy Energy Holdings Limited

Statement of Directors' Responsibilities

The director acknowledges his 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 group and the company 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 apply them consistently;

make judgements 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Happy Energy Holdings Limited

Independent Auditor's Report to the Members of Happy Energy Holdings Limited

Opinion

We have audited the financial statements of Happy Energy Holdings Limited (the 'parent company') and its subsidiary (the 'group') for the year ended 5 April 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Consolidated 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 group's and the parent company's affairs as at 5 April 2024 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 auditor 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 director's 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 and parent 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.

Other information

The director is 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.

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.

 

Happy Energy Holdings Limited

Independent Auditor's Report to the Members of Happy Energy Holdings Limited

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 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 director's 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 20, 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 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.

 

Happy Energy Holdings Limited

Independent Auditor's Report to the Members of Happy Energy Holdings Limited

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.

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:

In assessing the risks of material misstatement in respect of irregularities, including fraud, we:

• Obtained an understanding of the legal and regulatory framework applicable to the company and the sector in general;
• Considered laws and regulations with a direct impact on the preparation of the financial statements such as the Companies Act 2006, FRS 102, and relevant tax laws;
• Considered factors that could suggest an incentive, pressure or opportunity for fraud;
• Asked management about their own identification and assessment of the risks of irregularities, including any known instances, allegations or suspicions of fraud or non-compliance (of which there were none), and how these are monitored;
• Assessed the potential impact of fraud or non-compliance with laws and regulations on the company's ability to continue trading, and the risk of material misstatement to the accounts.

The key legal and regulatory risks we identified were adherence to the Companies Act, Health & Safety, GDPR and various industry specific regulations. In response to these risks, we:

• Discussed any instances of non-compliance in the year with management;
• Evaluated the legal and professional expenditure nominals to identify potential non-compliance
expenditure;

The key fraud risks we identified were management override of controls through inappropriate accounting entries, or the potential for bias in estimates such as revenue cutoff which might lead to overstatement of profits. In response to these risks, we:

• Reviewed journals and other accounting entries for appropriateness;
• Evaluated the business rationale of significant transactions;
• Reviewed judgements and estimates made in the accounts for any indication of bias;
• Obtained a sample of sales invoices, contracts and agreements confirming revenue recognition was appropriate.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. 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 omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

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.

 

Happy Energy Holdings Limited

Independent Auditor's Report to the Members of Happy Energy Holdings 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 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.

......................................
Andrew Allen BSc FCA (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

4 April 2025

 

Happy Energy Holdings Limited

Consolidated Profit and Loss Account

Year Ended 5 April 2024

Note

2024
£

2023
£

Turnover

3

8,823,947

15,832,609

Cost of sales

 

(3,962,134)

(7,865,430)

Gross profit

 

4,861,813

7,967,179

Administrative expenses

 

(1,872,064)

(1,477,313)

Operating profit

4

2,989,749

6,489,866

Other interest receivable and similar income

7

24,603

-

Interest payable and similar expenses

8

(72,909)

(5,809)

   

(48,306)

(5,809)

Profit before tax

 

2,941,443

6,484,057

Tax on profit

9

(327,068)

(1,242,644)

Profit for the financial year

 

2,614,375

5,241,413

Profit/(loss) attributable to:

 

Owners of the company

 

2,614,375

5,241,413

The group has no recognised gains or losses for the year other than the results above.

 

Happy Energy Holdings Limited

Consolidated Statement of Comprehensive Income

Year Ended 5 April 2024

2024
£

2023
£

Profit for the year

2,614,375

5,241,413

Total comprehensive income for the year

2,614,375

5,241,413

Total comprehensive income attributable to:

Owners of the company

2,614,375

5,241,413

 

Happy Energy Holdings Limited

Consolidated Balance Sheet

5 April 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

10

97,830

124,510

Tangible assets

11

157,845

96,708

Investments

12

17,800

-

 

273,475

221,218

Current assets

 

Stocks

13

15,000

15,000

Debtors

14

6,988,729

8,692,008

Cash at bank and in hand

 

4,958,622

1,780,333

 

11,962,351

10,487,341

Creditors: Amounts falling due within one year

16

(4,846,827)

(5,944,245)

Net current assets

 

7,115,524

4,543,096

Total assets less current liabilities

 

7,388,999

4,764,314

Provisions for liabilities

18

(23,612)

(13,302)

Net assets

 

7,365,387

4,751,012

Capital and reserves

 

Called up share capital

20

1,011

1,011

Profit and loss account

7,364,376

4,750,001

Equity attributable to owners of the company

 

7,365,387

4,751,012

Shareholders' funds

 

7,365,387

4,751,012

Approved and authorised by the Board on 3 April 2025 and signed on its behalf by:
 

.........................................
Mr Adrian Wright
Director

Company Registration Number: 09051783

 

Happy Energy Holdings Limited

Balance Sheet

5 April 2024

Note

2024
£

2023
£

Fixed assets

 

Investments

12

1,000,011

1,000,010

Current assets

 

Debtors

14

1

1

Creditors: Amounts falling due within one year

16

(326,650)

(313,283)

Net current liabilities

 

(326,649)

(313,282)

Net assets

 

673,362

686,728

Capital and reserves

 

Called up share capital

20

1,011

1,011

Profit and loss account

672,351

685,717

Shareholders' funds

 

673,362

686,728

The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a loss after tax for the financial year of £13,366 (2023 - profit of £2,996,131).

Approved and authorised by the Board on 3 April 2025 and signed on its behalf by:
 

.........................................
Mr Adrian Wright
Director

Company Registration Number: 09051783

 

Happy Energy Holdings Limited

Consolidated Statement of Changes in Equity

Year Ended 5 April 2024

Share capital
£

Profit and loss account
£

Total
£

Total equity
£

At 6 April 2023

1,011

4,750,001

4,751,012

4,751,012

Profit for the year

-

2,614,375

2,614,375

2,614,375

At 5 April 2024

1,011

7,364,376

7,365,387

7,365,387

Share capital
£

Profit and loss account
£

Total
£

Total equity
£

At 6 April 2022

1,011

2,508,588

2,509,599

2,509,599

Profit for the year

-

5,241,413

5,241,413

5,241,413

Dividends

-

(3,000,000)

(3,000,000)

(3,000,000)

At 5 April 2023

1,011

4,750,001

4,751,012

4,751,012

 

Happy Energy Holdings Limited

Consolidated Statement of Cash Flows

Year Ended 5 April 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

2,614,375

5,241,413

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

76,006

74,346

Finance income

7

(24,603)

-

Finance costs

8

72,909

5,809

Income tax expense

9

327,068

1,242,644

 

3,065,755

6,564,212

Working capital adjustments

 

Decrease/(increase) in trade debtors

14

1,703,279

(1,865,259)

(Decrease)/increase in trade creditors

16

(625,436)

29,428

Decrease in deferred income, including government grants

 

(1,101,030)

(208,677)

Cash generated from operations

 

3,042,568

4,519,704

Income taxes received/(paid)

9

312,290

(229,946)

Net cash flow from operating activities

 

3,354,858

4,289,758

Cash flows from investing activities

 

Interest received

24,603

-

Acquisitions of tangible assets

(110,463)

(12,417)

Acquisition of financial investments other than trading investments

 

(17,800)

-

Net cash flows from investing activities

 

(103,660)

(12,417)

Cash flows from financing activities

 

Interest paid

8

(72,909)

(5,809)

Repayment of other borrowing

 

-

(8,320)

Dividends paid

-

(3,000,000)

Net cash flows from financing activities

 

(72,909)

(3,014,129)

Net increase in cash and cash equivalents

 

3,178,289

1,263,212

Cash and cash equivalents at 6 April

 

1,780,333

517,121

Cash and cash equivalents at 5 April

 

4,958,622

1,780,333

 

Happy Energy Holdings Limited

Notes to the Financial Statements

Year Ended 5 April 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

The principal place of business is:
Unit 1, New Road
Perranporth
Truro
Cornwall
TR15 3PL

These financial statements were authorised for issue by the Board on 3 April 2025.

2

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 UK and Republic of Ireland'.

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.

Summary of disclosure exemptions

FRS102 allows a qualifying entity certain disclosure exemptions subject to certain conditions which the company has complied with. On this basis the company has taken advantage of the following exemptions:

(i) From preparing a statement of cash flows, on the basis that it is a qualifying entity and the consolidated statement of cash flows included in these financial statements includes the company's cash flows;

The group has also taken advantage of the exemption under FRS102 paragraph 33.1A in respect of transactions between members of the group, where the group companies are 100% owned.

 

Happy Energy Holdings Limited

Notes to the Financial Statements

Year Ended 5 April 2024

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 05 April 2024.

As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.

The group recognises revenue when:
- The amount of revenue can be reliably measured;
- it is probable that future economic benefits will flow to the entity;
- and specific criteria have been met for each of the group's activities.

Deposits received in advance are deferred and released upon commissioning.

 

Happy Energy Holdings Limited

Notes to the Financial Statements

Year Ended 5 April 2024

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation 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 group operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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

Other property, plant and equipment

25-33% Straight line

Furniture and office equipment

20-50% Straight line

Motor vehicles

25-33% Straight line

Leasehold improvements

10% Straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

 

Happy Energy Holdings Limited

Notes to the Financial Statements

Year Ended 5 April 2024

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

Goodwill

10% Straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Stocks

Stocks are stated at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is estimated selling price less any further costs expected to be incurred to completion and selling costs.

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.

 

Happy Energy Holdings Limited

Notes to the Financial Statements

Year Ended 5 April 2024

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors, and;
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

 

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

7,712,167

15,829,360

Consultancy fee income

1,112,500

-

Other revenue

(720)

3,249

8,823,947

15,832,609

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

49,326

47,666

Amortisation expense

26,680

26,680

Operating lease expense

70,723

26,130

 

Happy Energy Holdings Limited

Notes to the Financial Statements

Year Ended 5 April 2024

5

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2024
£

2023
£

Wages and salaries

1,697,004

1,372,818

Social security costs

173,052

138,643

Pension costs, defined contribution scheme

36,777

30,267

Redundancy costs

5,810

-

1,912,643

1,541,728

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Technical assessment

3

4

Administration and support

25

21

Retrofit and domestic energy assessment

2

2

Pre sales

2

3

Engineering

1

2

Operations

16

13

49

45

6

Auditor's remuneration

2024
£

2023
£

Audit of these financial statements

21,500

5,000

Other fees to auditors

All other non-audit services

16,482

5,295

 

Happy Energy Holdings Limited

Notes to the Financial Statements

Year Ended 5 April 2024


 

7

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

24,603

-

8

Interest payable and similar expenses

2024
£

2023
£

Interest on borrowings

9

5,712

Interest expense on other finance liabilities

72,900

97

72,909

5,809

9

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

316,758

1,248,403

Deferred taxation

Arising from origination and reversal of timing differences

10,310

(5,759)

Tax expense in the income statement

327,068

1,242,644

 

Happy Energy Holdings Limited

Notes to the Financial Statements

Year Ended 5 April 2024

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 25% (2023 - 19.08%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

2,941,443

6,484,057

Corporation tax at standard rate

735,361

1,237,158

Tax increase from other short-term timing differences

-

795

Effect of expense not deductible in determining taxable profit (tax loss)

10,602

5,392

Effect of foreign tax rates

(418,926)

-

Decrease from effect of tax incentives

-

(701)

Tax increase from other tax effects

31

-

Total tax charge

327,068

1,242,644

Deferred tax

Group

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Difference between capital allowances and depreciaton on fixed assets

-

23,612

-

23,612

2023

Asset
£

Liability
£

Difference between capital allowances and depreciaton on fixed assets

-

13,032

-

13,032

 

Happy Energy Holdings Limited

Notes to the Financial Statements

Year Ended 5 April 2024

10

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

At 6 April 2023

266,802

266,802

At 5 April 2024

266,802

266,802

Amortisation

At 6 April 2023

142,292

142,292

Amortisation charge

26,680

26,680

At 5 April 2024

168,972

168,972

Carrying amount

At 5 April 2024

97,830

97,830

At 5 April 2023

124,510

124,510

The amortisation expense of intangibles is recognised in administrative expenses.

 

Happy Energy Holdings Limited

Notes to the Financial Statements

Year Ended 5 April 2024

11

Tangible assets

Group

Leasehold improvements
£

Furniture and office equipment
 £

Motor vehicles
 £

Other property, plant and equipment
£

Total
£

Cost or valuation

At 6 April 2023

108,580

187,345

62,572

4,889

363,386

Additions

25,617

73,593

-

11,253

110,463

At 5 April 2024

134,197

260,938

62,572

16,142

473,849

Depreciation

At 6 April 2023

52,477

146,867

62,572

4,762

266,678

Charge for the year

14,081

33,313

-

1,932

49,326

At 5 April 2024

66,558

180,180

62,572

6,694

316,004

Carrying amount

At 5 April 2024

67,639

80,758

-

9,448

157,845

At 5 April 2023

56,103

40,478

-

127

96,708

 

Happy Energy Holdings Limited

Notes to the Financial Statements

Year Ended 5 April 2024

12

Investments

Group

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Happy Energy Solutions Ltd

Lowin House, Tregolls Road, Truro, Cornwall, TR1 2NA

Ordinary

100%

100%

England and Wales

Retrofit Practice Limited

Mont Crevelt House, Bulwer Avenue, St Sampson, GY2 4LH

Ordinary

100%

0%

Guernsey

Company

2024
£

2023
£

Investments in subsidiaries

1,000,011

1,000,010

Subsidiaries

£

Cost or valuation

At 6 April 2023

1,000,010

Additions

1

At 5 April 2024

1,000,011

Provision

Carrying amount

At 5 April 2024

1,000,011

At 5 April 2023

1,000,010

13

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Other inventories

15,000

15,000

-

-

 

Happy Energy Holdings Limited

Notes to the Financial Statements

Year Ended 5 April 2024

14

Debtors

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Trade debtors

814,505

6,117,274

-

-

Other debtors

2,667,024

684,051

1

1

Prepayments

98,132

83,237

-

-

Accrued income

3,409,068

1,807,446

-

-

6,988,729

8,692,008

1

1

Included within trade debtors is an amount of £nil (2023: £2,815,430) relating to invoices issued just before the year-end, in advance of works being carried out. As these relate to amounts billed in advance, they are not recognised in sales in the year and are instead included in deferred income, within creditors due within one year (see note 16).

15

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash at bank

4,958,622

1,780,333

-

-

16

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Trade creditors

 

392,952

835,190

-

-

Amounts due to group undertakings

22

-

-

317,625

308,623

Corporation tax

 

2,126,958

1,497,910

-

-

Social security and other taxes

 

69,515

303,002

-

-

Other creditors

 

128,126

210,302

-

-

Accrued expenses

 

186,391

53,926

9,025

4,660

Deferred income

 

1,942,885

3,043,915

-

-

 

4,846,827

5,944,245

326,650

313,283

 

Happy Energy Holdings Limited

Notes to the Financial Statements

Year Ended 5 April 2024

17

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

66,981

41,088

Later than one year and not later than five years

5,796

-

72,777

41,088

The amount of non-cancellable operating lease payments recognised as an expense during the year was £70,723 (2023 - £15,578).

18

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 6 April 2023

13,302

13,302

Additional provisions

10,310

10,310

At 5 April 2024

23,612

23,612

19

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £36,777 (2023 - £30,267).

20

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary shares of £1 each

1,011

1,011

1,011

1,011

         
 

Happy Energy Holdings Limited

Notes to the Financial Statements

Year Ended 5 April 2024

21

Parent and ultimate parent undertaking

The ultimate controlling party is A Wright.

22

Related party transactions

Group

Key management compensation

2024
£

2023
£

Salaries and other short term employee benefits

69,640

66,775

Post-employment benefits

1,798

1,676

71,438

68,451

Transactions with directors

2024

At 6 April 2023
£

Advances to director
£

Repayments by director
£

At 5 April 2024
£

Mr Adrian Wright

(153,617)

1,627,444

(25,240)

1,448,587

-

-

-

-

(153,617)

1,627,444

(25,240)

1,448,587

2023

At 6 April 2022
£

Advances to director
£

Repayments by director
£

At 5 April 2023
£

Mr Adrian Wright

2,039,494

832,459

(3,025,570)

(153,617)

2,039,494

832,459

(3,025,570)

(153,617)

The Director's Loan Account is interest free and repayable on demand.

Other transactions with directors

The group incurred £24,000 (2023: £24,000) of rental expenses on market terms for an industrial unit which is owned by the Adrian Howard Wright AR SIPP and Lauretta Juliet Wright AR SIPP.

There is also £nil (2023: £333) owed to director A Wright for business related expenses.

A group company has an unsecured, interest free loan due to Mr A Wright. At the reporting date the balance of the loan was £22,500 and is included in other creditors.