REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30 September 2024 |
for |
PROGRESSIVE ENERGY LIMITED |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30 September 2024 |
for |
PROGRESSIVE ENERGY LIMITED |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Contents of the Financial Statements |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 15 |
PROGRESSIVE ENERGY LIMITED |
Company Information |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Bath House |
6 - 8 Bath Street |
Bristol |
BS1 6HL |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Strategic Report |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
The directors present their strategic report for the year ended 30 September 2024. |
FAIR REVIEW OF THE BUSINESS, DEVELOPMENT AND PERFORMANCE |
Turnover for the year to 30 September 2024 was in line with the directors' expectations at £6.2 million (2023 - |
£12.2 million). The company's gross profit margin increased to 61.6% (2023 - 30.5%). The company recorded a profit before tax of £0.4m (2023 - £1.5m) before a provision of £0.6m against a loan to Grenian Hydrogen Limited, facilitated through the company's subsidiary Progressive Energy Net Zero A Limited.. |
BUSINESS ENVIRONMENT AND STRATEGY |
Progressive Energy Limited ('Progressive') is a low carbon project development company. The company aims to make and create value by making a material contribution to the reduction of greenhouse gases and has a particular focus on Carbon Capture Utilisation and Storage (CCUS) and hydrogen. Progressive Energy Limited has been an early mover in conceiving and developing full chain CCUS projects and CCS-enabled hydrogen projects to supply hydrogen to industrial consumers. |
This year saw continued significant advances in both the CCUS and hydrogen project portfolios resulting in a substantial reduction in the development risk for key projects in these areas. |
HyNet is a large-scale project in the North West of England, originated by Progressive, which aims to make a major contribution to the decarbonisation of industry across the region by direct capture of emitted CO2 on site and/or the substitution of fossil fuel by low carbon hydrogen. Progressive has a commercial interest in the HyNet project which crystallises at Final Investment Decision (FID) and is a shareholder in Vertex, a joint venture with Essar Oil UK, developing CCS-enabled hydrogen production plant whose first plant was selected for support. FID of these projects is anticipated in 2024/25. |
The development of HyNet is advancing in parallel with the development of the necessary legislation by Government. This includes regulated business models for CCUS transportation and storage, hydrogen production, transport and storage, industrial carbon capture and low carbon power generation. The Energy Security Bill provides the enabling legislation, receiving royal assent in late 2023, and the individual business model instruments are being put in place. |
The primary risk is a change in Government policy to deprioritize CCUS and hydrogen. However the risk has reduced considerably in this reporting period and subsequently, by the commitment to two clusters (including HyNet) backed by an associated budget over 20 years of £20b, and by the announcement of the intent to support two further Clusters. CCUS deployment has strong support from the Committee for Climate Change whose assessment is that it is an essential requirement to enable the UK to meet the legally binding targets set in place by the 2008 Climate Change Act and its subsequent commitment made in 2019 to achieve Net Zero UK emissions by 2050. This, and the strong cross-party support, reduces the risk. However the risk of delay and budget limitations remain. |
Further value is being created, and risk diversified, elsewhere in the Progressive development portfolio with the development of electrolytic hydrogen projects, power generation projects and other initiatives. The electrolytic hydrogen projects continue to advance through Grenian Hydrogen Limited, a joint venture between Progressive Energy Limited, Statkraft and Foresight. Work continues with FEED and consenting activities on the project portfolio. Progressive is undertaking early development opportunities in the dispatchable low carbon power sector, defining appropriate project definition and approach to partnering for delivery. |
Peak Cluster is an innovative collaboration between Progressive Energy, Tarmac, Breedon, Aggregate Industries, Lhoist and SigmaRoc to capture, transport and permanently store carbon dioxide (CO2) emissions from the cement and lime industries across Derbyshire, Staffordshire and Cheshire. The project continues to make good progress with the completion of the pre-FEED and commencement of the establishment of the joint venture Special Purpose Vehicle. |
The Bacton Hydrogen Hub is progressing as a collaboration between Summit Energy Evolution Limited and Progressive Energy. Bacton is a key energy node on the UK and European gas system, through which substantial volumes of natural gas flow in both directions. The purpose of this project is to decarbonise the facility and provide low carbon hydrogen to regional offtakers. |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Strategic Report |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
RESULTS AND DIVIDENDS |
The results, as summarised above, are in line with the directors' expectations and they consider the results achieved to be satisfactory in the context of the current economic position. |
The directors do not recommend the payment of a dividend for the year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company's principal risks and uncertainties are considered to be as follows: |
Economic uncertainty |
Refer to business environment and strategy narrative above. |
Technological challenges |
Refer to business environment and strategy narrative above. |
Key staff |
There are a number of key personnel who are considered to be crucial to the success of the business. Staff relationships and remuneration packages, together with clear career development, are implemented such that key personnel are retained. |
Cash flows |
Cash is crucial to the ongoing development of the business. The company actively manages cash flow to ensure that sufficient funding is available to meet its obligations as they fall due. |
Credit risk |
Credit risk is the financial exposure generated by the potential default of third parties in fulfilling their obligations. Credit risk arises for the company if it is unable to recover sums due from customers and business partners. It is mitigated by rigorous credit control. |
KEY PERFORMANCE INDICATORS |
The directors monitor the progress of the company by reference to certain key performance criteria, both financial and non-financial. The primary indicators are: |
- Carbon savings achieved through the portfolio of projects being delivered by the business |
- Revenue |
- Cashflow |
- New contract success |
- Retention of sufficient management and staff to deliver the project portfolio |
- Impact of the business on the environment |
ON BEHALF OF THE BOARD: |
25 June 2025 |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Report of the Directors |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
The directors present their report with the financial statements of the company for the year ended 30 September 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of energy sector project developments. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 September 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
No political donations were made in the year (2023 - £nil) |
DISCLOSURE IN THE STRATEGIC REPORT |
The Companies Act 2006 (Strategic Report and Directors' Report) regulations 2013 requires a Strategic Report to be prepared. Where mandatory disclosures in the Directors' Report are considered by the directors to be of strategic importance, these have been included within the Strategic Report rather than the Directors' Report in accordance with S414C(11) Companies Act 2006. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Report of the Directors |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
AUDITORS |
The auditor, Gravita Audit Western Limited, is deemed to have been reappointed in accordance with Section 487 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Progressive Energy Limited |
Opinion |
We have audited the financial statements of Progressive Energy Limited (the 'company') for the year ended 30 September 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Progressive Energy Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, 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 four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Irregularities, including fraud, are instances on non-compliance with laws and regularities. 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: |
o We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which it operates. We determined the following laws and regulations of most significance were: Companies Act 2006, UKGAAP, and UK corporate taxation laws. |
o We obtained an understanding of how the company complies with those legal and regulatory frameworks by making inquiries of management. |
o We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. |
Report of the Independent Auditors to the Members of |
Progressive Energy Limited |
Audit procedures performed by the engagement team included: |
o Identifying and assessing the effectiveness of controls management has in place to prevent and detect fraud; |
o Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
o Challenging assumptions and judgements made by management in its significant accounting estimates; |
o Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations; and |
o Assessing the extent of compliance with the relevant laws and regulations. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusions. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
Bath House |
6 - 8 Bath Street |
Bristol |
BS1 6HL |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Statement of Comprehensive Income |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
(187,372 | ) | 933,754 |
Other operating income | ( |
) |
OPERATING (LOSS)/PROFIT | 5 | ( |
) |
Income from fixed asset investments |
Interest receivable and similar income |
(251,469 | ) | 1,438,178 |
Gain/loss on revaluation of investments | 111,173 | 45,723 |
(140,296 | ) | 1,483,901 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 7 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Balance Sheet |
30 SEPTEMBER 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors: amounts falling due within one year | 11 |
Debtors: amounts falling due after more than one year |
11 |
Investments | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Capital redemption reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Statement of Changes in Equity |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 October 2022 |
Changes in equity |
Profit for the year | - | 1,325,721 | - | - | 1,325,721 |
Total comprehensive income | - | - |
Balance at 30 September 2023 |
Changes in equity |
Deficit for the year | - | (104,846 | ) | - | - | (104,846 | ) |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 30 September 2024 |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Cash Flow Statement |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) |
Taxation refund |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of current asset investments | (760,000 | ) | - |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Loan advances to group companies | (402,722 | ) | (1,004,668 | ) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,098,470 |
Cash and cash equivalents at end of year | 2 | 455,521 | 1,639,853 |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Notes to the Cash Flow Statement |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Gain on revaluation of fixed assets | (111,173 | ) | (45,723 | ) |
RDEC tax credit | 124,696 | (482,885 | ) |
Movement on provisions | (65,041 | ) | (36,000 | ) |
Intercompany loan provision | 550,244 | - |
Finance costs | 3,446 | 29,101 |
Finance income | (49,575 | ) | (12,156 | ) |
322,217 | 801,309 |
Decrease in trade and other debtors |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 September 2024 |
30.9.24 | 1.10.23 |
£ | £ |
Cash and cash equivalents | 455,521 | 1,639,853 |
Year ended 30 September 2023 |
30.9.23 | 1.10.22 |
£ | £ |
Cash and cash equivalents | 1,639,853 | 1,098,470 |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Notes to the Cash Flow Statement |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.10.23 | Cash flow | At 30.9.24 |
£ | £ | £ |
Net cash |
Cash at bank | 1,639,853 | (1,184,332 | ) | 455,521 |
1,639,853 | ( |
) | 455,521 |
Liquid resources |
Current asset investments | - | 760,000 | 760,000 |
- | 760,000 | 760,000 |
Debt |
Debts falling due within 1 year | (93,750 | ) | 93,750 | - |
(93,750 | ) | 93,750 | - |
Total | 1,546,103 | (330,582 | ) | 1,215,521 |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Notes to the Financial Statements |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
1. | COMPANY INFORMATION |
Progressive Energy Limited is a |
The company's principal activities and nature of its operations was that of energy sector project developments. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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. |
Significant judgements and estimates |
In determining the carrying amounts of certain assets and liabilities, the company makes assumptions of the |
effects of uncertain future events on those assets and liabilities at the balance sheet date. The entities' estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically. These include, but are not limited to, depreciation on tangible assets, amortisation on intangible assets and recoverability of debtors. |
Revenue |
Revenue from energy sector project development is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from energy sector project development is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Rendering of services: |
Revenue from energy sector project development from a contract to provide services is recognised in the period in which the services are provided when all of the following conditions are satisfied: |
- the amount of revenue can be measured reliably; |
- it is probable that the Company will receive the consideration due under the contract; |
- the stage of completion of the contract at the end of the reporting period can be measured |
reliably; and |
- the costs incurred and the costs to complete the contract can be measured reliably. |
Any potential losses on contracts are recognised at the point recovery of the input costs of the company are deemed to be potentially irrecoverable. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Fixtures and fittings | - |
Computer equipment | - |
Assets of a capital nature which have an extended useful economic life are capitalised in the balance sheet. The asset residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively as appropriate, if there is a significant change since the last reporting date. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Cash and cash equivalents |
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets, which include trade and other debtors, amounts due from group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Basic financial liabilities, including trade and other creditors and amounts due to group undertakings are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years. |
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Onerous contracts |
Where the unavoidable costs of a contract exceed the economic benefit expected to be received from it, a provision is made for the present value of the obligations under the contract. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the statement of financial position. |
Holiday pay accrual |
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the statement of financial position date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the statement of financial position date. |
3. | TURNOVER |
The turnover and loss (2023 - profit) before taxation are attributable to the one principal activity of the company. |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Professional staff |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2023 - operating profit) is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Patents and licences amortisation |
Auditors' remuneration |
Auditors' remuneration for non audit work |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Corporation tax interest |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Over/under provision in prior year | (70,812 | ) | 57,730 |
Total current tax | ( |
) |
Deferred tax |
Tax on (loss)/profit | ( |
) |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Unrealised gain on investment | - | (11,431 | ) |
Consortium relief | (119,411 | ) | (164,496 | ) |
Change in corporation tax rates in the year | - | (9,569 | ) |
Deferred tax | 1,633 | - |
Total tax (credit)/charge | (38,896 | ) | 129,079 |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
8. | INTANGIBLE FIXED ASSETS |
Patents |
and |
licences |
£ |
COST |
At 1 October 2023 |
and 30 September 2024 |
AMORTISATION |
At 1 October 2023 |
Amortisation for year |
At 30 September 2024 |
NET BOOK VALUE |
At 30 September 2024 |
At 30 September 2023 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 October 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30 September 2024 |
DEPRECIATION |
At 1 October 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 September 2024 |
NET BOOK VALUE |
At 30 September 2024 |
At 30 September 2023 |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
10. | FIXED ASSET INVESTMENTS |
Shares in |
group | Listed |
undertakings | investments | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 October 2023 | 951,754 |
Additions | 254,827 |
Disposals | ( |
) | (225,562 | ) |
Revaluations | 110,000 |
At 30 September 2024 | 1,091,019 |
NET BOOK VALUE |
At 30 September 2024 | 1,091,019 |
At 30 September 2023 | 951,754 |
Cost or valuation at 30 September 2024 is represented by: |
Shares in |
group | Listed |
undertakings | investments | Totals |
£ | £ | £ |
Valuation in 2024 | - | 110,000 | 110,000 |
Cost | 200 | 980,819 | 981,019 |
200 | 1,090,819 | 1,091,019 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: 38f Swan House, Bonds Mill, Bristol Road, Stonehouse, Gloucestershire GL10 3RF |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 38f Swan House, Bonds Mill, Bristol Road, Stonehouse, Gloucestershire GL10 3RF |
Nature of business: |
% |
Class of shares: | holding |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
11. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Tax |
Deferred tax asset | 985,000 | - |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Deferred tax asset | - | 985,000 |
Aggregate amounts |
Included in debtors is a balance of £856,946 being a gross balance of £1,407,190 owed from Progressive Energy Net Zero A Limited, a wholly owned subsidiary of the company, less a provision against this debt of £550,244. This balance was advanced to support a loan to Grenian Hydrogen Limited, in which the group has a 33.3% stake, for the purpose of development work on a portfolio of projects in the hydrogen sector. Both Grenian Hydrogen Limited and Progressive Energy Net Zero A Limited are in a net liability position. The success of this project is dependent upon approval by the Department of Energy Security and Net Zero. Investment into the joint venture by the investors is currently paused. Although the directors are confident that this debt will be fully repaid, due to the success of the joint venture project being outside of the directors' control and dependent upon Government policy, the recovery of the unprovided element of this debt is conditional on the project being successful. The directors strongly believe that project is highly likely to be approved and as such only a provision equivalent to 50% of the Grenian Hydrogen Limited balance has been made against the amount due. |
12. | CURRENT ASSET INVESTMENTS |
2024 | 2023 |
£ | £ |
Listed investments | 760,000 | - |
Market value of listed investments at 30 September 2024 - £ 760,000 . |
The Company holds shares in a GBP Liquidity Fund through Morgan Stanley. The investment has no fixed term and can be converted to cash. |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Trade creditors |
Amounts owed to group undertakings |
VAT | 277,454 | 313,673 |
Other creditors |
Accruals and deferred income |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
15. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank loans |
The bank loan was secured by a debenture granting a fixed and floating charge over all of the company's assets. |
17. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 1,633 | 2,828 |
Other provisions | - | 65,041 |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 October 2023 |
Credit to Statement of Comprehensive Income during year | ( |
) | ( |
) |
Balance at 30 September 2024 |
PROGRESSIVE ENERGY LIMITED (REGISTERED NUMBER: 03620177) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
17. | PROVISIONS FOR LIABILITIES - continued |
The deferred tax liability is made up of: |
Deferred tax asset |
£985,000 (2023 - £985,000). This asset related to the conditional proceeds from the sale of the intellectual property rights, for which full tax provision has been made but for which the additional proceeds are contingent. |
Deferred tax liability |
£1,633 (2023 - £2,828). This relates to accelerated capital allowances. |
Other provisions |
The other provisions relate to anticipated losses on contracts at the year-end where the company is committed to incur non-reimbursable costs. |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | 0.005 | 1,589 | 1,589 |
19. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 October 2023 | 4,639,360 |
Deficit for the year | ( |
) | ( |
) |
At 30 September 2024 | 4,534,514 |
20. | PENSION COMMITMENTS |
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £372,963 (2023 - £308,188). At the year-end £6,694 (2023 - £Nil) was payable to the fund. |
21. | ULTIMATE CONTROLLING PARTY |
The controlling party is Progressive Energy Holdings Limited. |
The company has no ultimate controlling party. |
22. | CONTINGENT ASSET |
During the year ended 30 September 2021, Progressive Energy Limited made a sale in relation to intellectual property rights which includes conditional proceeds of £3,940,000, these proceeds have not yet been recognised as profit although the tax liability on the proceeds has been paid. Whilst the proceeds remain contingent at the balance sheet date, full receipt of the proceeds occurred in May 2025. |