REGISTERED NUMBER: 10666902 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
DAFFODIL ENERGY SUPPLY LIMITED |
REGISTERED NUMBER: 10666902 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
DAFFODIL ENERGY SUPPLY LIMITED |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Balance Sheet | 13 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 19 |
DAFFODIL ENERGY SUPPLY LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
55 Loudoun Road |
St John's Wood |
London |
NW8 0DL |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
The Income Statement on Page 11 outlines the group's financial performance for the year. |
For the year ended 30 June 2024, revenue decreased slightly by 1% to £44.2 million (2023: £44.5 million). However, profit before tax increased to £3.7 million (2023: £3.2 million), reflecting strong financial management and the group's ability to adapt to market conditions. |
The group maintains a robust financial position with effective cash flow management, ensuring continued liquidity. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Operating in the energy sector, the group faces several key risks that could impact its financial and operational performance. A primary challenge is the regulatory environment, particularly the Ofgem Price Cap, which limits the selling price of energy while input costs can fluctuate. This creates difficulties, especially for the provision of Standard Variable Tariff (SVT) customers, where thin margins and challenges collecting payments due to the current affordability crisis may lead to lower profits. |
The volatility of wholesale energy prices affects cash flow, with market uncertainty and potential mark-to-market payments requiring careful management. The group closely monitors pricing trends and employs proactive measures to manage these specific risks. |
The group follows a strict commodity hedging policy, ensuring all fixed-term contracts are always fully hedged and variable contracts are hedged in line with Ofgem price cap methodology. Extreme weather events, such as harsh winters, could still present a challenge, but proactive risk management means the size of that risk is constantly modelled and well understood. |
Market dynamics remain impacted by items like the Russia / Ukraine conflict, the Cost-of-Living crisis and sustainability policies. Financial risks, including price fluctuations, credit risks, and liquidity concerns, are key focus areas. The group actively manages these through: |
- Commodity Hedging: A forward purchasing strategy ensures price stability and mitigates market fluctuations. |
- Credit Risk Management: Enhanced credit assessments and proactive debt collection minimise bad debt. |
- Liquidity Management: Cash flow forecasting ensures sufficient liquidity for operational and investment needs. |
The directors have assessed these risks as non-adjusting, with significant impacts expected from broader economic conditions. These factors have been incorporated into the group's going concern assessment. |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
DEVELOPMENT AND PERFORMANCE |
In the year under review, the group made significant progress in strengthening its position as a leading energy supplier. The group successfully expanded its customer base, introduced new ideas, and enhanced service offerings, reinforcing its market presence. The directors are optimistic about the group's continued growth and the opportunities ahead. |
A key element of the Group's growth strategy is its commitment to technological innovation, particularly through the expansion of smart metering. This technology improves the customer experience with transparent billing and energy usage insights, while also enhancing operational efficiency. Significant progress has been made in deploying smart meters, empowering customers to better control their energy consumption and reduce costs. |
The group remains focused on investing in technology and systems to enhance its competitiveness and sustain a strong market position. |
The group recognises that our employees are crucial to our success. We focus on hiring skilled individuals and supporting their growth. Open communication ensures employees understand their roles and how they contribute to group goals. Regular feedback helps refine strategies and improve service delivery. We maintain a fair, respectful work environment where every employee is valued. |
Our customers and suppliers are central to the Group's success. By building strong, transparent relationships, we offer tailored solutions, exceptional service, and competitive pricing. Collaborative partnerships with our suppliers ensure a reliable energy supply, reinforcing our commitment to quality and fairness. |
KEY PERFORMANCE INDICATORS |
The group consistently monitors key business metrics to drive sustainable growth. For the year ended 30th of June 2024, the following KPIs highlight the group's achievements: |
- A 32% increase in electricity volume and a 37% increase in gas volume |
- 39% growth in electricity customer numbers and 35% growth in gas customer numbers, demonstrating the effectiveness of customer acquisition strategies. |
- 26% reduction in the cost per kWh of electricity and 43% reduction in the cost per kWh of gas, reflecting lower wholesale market prices. |
- 26% increase in gross profit, underscoring the success of cost control and pricing strategies.PIS) |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
FUTURE OUTLOOK |
The group is well-positioned to navigate industry challenges and capitalise on market opportunities. With a strong commitment to innovation, operational efficiency, and strategic risk management, the group will remain competitive in an evolving energy landscape. |
The group will continue to invest in technology, maintain regulatory compliance, and monitor market conditions and competitor activities to secure and develop its market position. In addition, the group will continue to focus on its customers, reinforcing these relationships as key pillars of its future success. By working closely with customers, the group aims to deliver innovative solutions and improve service delivery while addressing financial challenges faced by vulnerable customers. Smart meter deployment will remain a priority, increasing accessibility and control for customers over their energy usage. The group is committed to sustaining its growth and leading the way in the UK energy market. |
ON BEHALF OF THE BOARD: |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the supply of electricity and gas. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2024. |
RESEARCH AND DEVELOPMENT |
The group continues to develop its internal CRM system. |
FUTURE DEVELOPMENTS |
Details concerning the group's future developments can be found in the Strategic Report on page 4. |
DIRECTORS |
The directors during the year under review were: |
D Cohen |
P J Brewer |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
AUDITORS |
The auditors, MGR Weston Kay LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DAFFODIL ENERGY SUPPLY LIMITED |
Opinion |
We have audited the financial statements of Daffodil Energy Supply Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DAFFODIL ENERGY SUPPLY LIMITED |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DAFFODIL ENERGY SUPPLY LIMITED |
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. |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
As part of our planning of the audit work required, we obtained an understanding of the legal and regulatory frameworks that are applicable to the entity via enquiries of the company's management, carrying out analytical procedures, holding discussions amongst the engagement team and using our knowledge of the sector. We determined that the most significant laws and regulations were relating to: |
- Ofgem regulations; |
- Employment law; and |
- UK Tax legislation. |
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as FRS102 and the Companies Act 2006. |
Based on the results of our risk assessment we designed our audit procedures to identify instances of non-compliance with the laws and regulations and the fraud risks identified. This included enquiries of management to understand their policies and procedures for compliance with those regulations and we completed the following tests: |
- Obtained an understanding of relevant controls; |
- Reviewed the company's risks assessments, procedures, health and safety policies and communications with employees; |
- Checked a sample of documentation; |
- Reviewed records for evidence of complaints or litigation; and |
- Reviewed correspondence with HMRC. |
We also assessed the risk of material misstatement in relation to fraud in respect of the following: |
- Revenue fraud; |
- Unauthorised expenditure and/or payments; |
- Management override of controls; and |
- Related party fraud. |
Based on the results of our risk assessment we designed audit procedures to identify and address material misstatements in relation to fraud. This included the risk of management bias and the risk of making inappropriate accounting entries. |
No significant issues were identified during our testing. |
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities, including fraud, rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusions, forgery, intentional omissions, misrepresentations or the override of internal controls. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DAFFODIL ENERGY SUPPLY LIMITED |
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. |
Other matters which we are required to address |
We draw your attention to the fact that the comparative figures in the accounts are unaudited. We have obtained sufficient appropriate audit evidence that the opening balances do not contain misstatements that materially affect the current period’s financial statements. |
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 |
Statutory Auditors |
55 Loudoun Road |
St John's Wood |
London |
NW8 0DL |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
TURNOVER | 4 | 44,245,950 | 44,569,859 |
Cost of sales | (37,714,395 | ) | (39,405,585 | ) |
GROSS PROFIT | 6,531,555 | 5,164,274 |
Administrative expenses | (1,735,556 | ) | (1,152,491 | ) |
4,795,999 | 4,011,783 |
Other operating income | 5 | 185,213 | 31,916 |
OPERATING PROFIT | 7 | 4,981,212 | 4,043,699 |
Interest receivable and similar income | 9 | 34,778 | 34,989 |
5,015,990 | 4,078,688 |
Interest payable and similar expenses | 10 | (65,999 | ) | - |
PROFIT BEFORE TAXATION | 4,949,991 | 4,078,688 |
Tax on profit | 11 | (1,231,123 | ) | (804,033 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 3,718,868 | 3,274,655 |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 3,718,868 | 3,274,655 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,718,868 |
3,274,655 |
Total comprehensive income attributable to: |
Owners of the parent | 3,718,868 | 3,274,655 |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
CONSOLIDATED BALANCE SHEET |
30 JUNE 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 13 | 233,473 | 199,079 |
Tangible assets | 14 | 6,070 | 9,271 |
Investments | 15 | - | - |
239,543 | 208,350 |
CURRENT ASSETS |
Debtors | 16 | 7,957,113 | 7,743,655 |
Cash at bank | 5,267,933 | 1,462,279 |
13,225,046 | 9,205,934 |
CREDITORS |
Amounts falling due within one year | 17 | (5,894,540 | ) | (5,563,103 | ) |
NET CURRENT ASSETS | 7,330,506 | 3,642,831 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 7,570,049 | 3,851,181 |
PROVISIONS FOR LIABILITIES | 18 | (26,165 | ) | (26,165 | ) |
NET ASSETS | 7,543,884 | 3,825,016 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 100 | 100 |
Retained earnings | 7,543,784 | 3,824,916 |
SHAREHOLDERS' FUNDS | 7,543,884 | 3,825,016 |
The financial statements were approved by the Board of Directors and authorised for issue on 27 June 2025 and were signed on its behalf by: |
D Cohen - Director |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
COMPANY BALANCE SHEET |
30 JUNE 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investments | 15 |
CURRENT ASSETS |
Debtors | 16 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 | 100 | 550,261 | 550,361 |
Changes in equity |
Total comprehensive income | - | 3,274,655 | 3,274,655 |
Balance at 30 June 2023 | 100 | 3,824,916 | 3,825,016 |
Changes in equity |
Total comprehensive income | - | 3,718,868 | 3,718,868 |
Balance at 30 June 2024 | 100 | 7,543,784 | 7,543,884 |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Balance at 30 June 2023 |
Changes in equity |
Balance at 30 June 2024 |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 5,179,009 | 1,850,493 |
Interest paid | (65,999 | ) | - |
Tax paid | (1,278,185 | ) | 9,841 |
Net cash from operating activities | 3,834,825 | 1,860,334 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (143,748 | ) | (112,899 | ) |
Purchase of tangible fixed assets | (567 | ) | (8,066 | ) |
Interest received | 34,778 | 34,989 |
Net cash from investing activities | (109,537 | ) | (85,976 | ) |
Cash flows from financing activities |
Loan proceeds in year | 80,366 | (400,000 | ) |
Net cash from financing activities | 80,366 | (400,000 | ) |
Increase in cash and cash equivalents | 3,805,654 | 1,374,358 |
Cash and cash equivalents at beginning of year |
2 |
1,462,279 |
87,921 |
Cash and cash equivalents at end of year | 2 | 5,267,933 | 1,462,279 |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.6.24 | 30.6.23 |
£ | £ |
Profit before taxation | 4,949,991 | 4,078,688 |
Depreciation charges | 113,123 | 86,172 |
Finance costs | 65,999 | - |
Finance income | (34,778 | ) | (34,989 | ) |
5,094,335 | 4,129,871 |
Decrease/(increase) in trade and other debtors | 207,354 | (4,557,996 | ) |
(Decrease)/increase in trade and other creditors | (122,680 | ) | 2,278,618 |
Cash generated from operations | 5,179,009 | 1,850,493 |
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 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 5,267,933 | 1,462,279 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 1,462,279 | 87,921 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank | 1,462,279 | 3,805,654 | 5,267,933 |
1,462,279 | 3,805,654 | 5,267,933 |
Total | 1,462,279 | 3,805,654 | 5,267,933 |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | STATUTORY INFORMATION |
Daffodil Energy Supply Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
At the time of approving, the directors have a reasonable expectation that the group 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. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Intangible assets |
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity. |
Patents and Licences - No amorisation |
Development costs - 3 year straight line |
Tangible fixed assets |
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. |
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: |
Computer equipment - 25% straight line |
Motor Vehicles - 25% straight line |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Research and development costs are incurred in the development and enhancement of the company's CRM software. The software has an ongoing benefit to the company's business and these costs are amortised over 3 years to reflect this. The costs captalised represent only the development costs incurred. Costs that represent purely the research element have been reflected in the income statement in the periods they have been incurred. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
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. |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Basic financial assets |
Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction and where material are subsequently measured at amortised cost using the effective interest method, less any impairment. |
Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and where material the changes in fair value are recognised in the Statement of Total Comprehensive Income, except that investments in equity instruments that are not publicly traded and whose fair value cannot be measured reliably are measured at cost less impairment |
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the life of the debt instrument to the net carrying amount on initial recognition |
Impairment of financial assets |
Financial assets, other than those held at fair value are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the Statement of Total Comprehensive Income |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity |
Basic financial liabilities |
Basic financial liabilities, including trade and other payables and loans from company undertakings that are classified as debt are initially measured 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 the market rate of interest . |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payables are classified as current liabilities if a payment is due within one year or less. If not, they are present as non current liabilities. Short term creditors are initially recognised at transaction price and where material are subsequently measured at amortised cost using the effective interest method |
Derecognition of financial liabilities |
Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled, or they expire. |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company’s accounting policies, directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Amortisation of development costs |
Determining the amortisation rate involves judgement as to the useful life of assets, particularly where development is ongoing as is the case with the development costs. The carrying value of the development costs as at the year end is £133,473 (2023: £99,079). |
Recoverability of loans due to the group |
Loan balances are reviewed and estimates are made as to whether the balances are deemed recoverable based on directors knowledge and the information available. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
5. | OTHER OPERATING INCOME |
30.6.24 | 30.6.23 |
£ | £ |
Sundry receipts | 185,213 | 31,916 |
6. | EMPLOYEES AND DIRECTORS |
30.6.24 | 30.6.23 |
£ | £ |
Wages and salaries | 1,065,090 | 787,668 |
Social security costs | 127,289 | 79,367 |
Other pension costs | 11,575 | 9,163 |
1,203,954 | 876,198 |
The average number of employees during the year was as follows: |
30.6.24 | 30.6.23 |
Administrative employees |
The average number of employees by undertakings that were proportionately consolidated during the year was 14 (2023 - 25 ) . |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
6. | EMPLOYEES AND DIRECTORS - continued |
30.6.24 | 30.6.23 |
£ | £ |
Directors' remuneration | 243,000 | 148,000 |
Information regarding the highest paid director for the year ended 30 June 2024 is as follows: |
30.6.24 |
£ |
Emoluments etc | 243,000 |
7. | OPERATING PROFIT |
The operating profit is stated after charging: |
30.6.24 | 30.6.23 |
£ | £ |
Other operating leases | 50,400 | 45,000 |
Depreciation - owned assets | 3,768 | 3,678 |
Development costs amortisation | 109,354 | 82,495 |
8. | AUDITORS' REMUNERATION |
30.6.24 | 30.6.23 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
38,000 |
- |
Auditors' remuneration for non audit work | 6,000 | - |
9. | INTEREST RECEIVABLE AND SIMILAR INCOME |
30.6.24 | 30.6.23 |
£ | £ |
Bank account interest | 34,778 | 34,989 |
10. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.24 | 30.6.23 |
£ | £ |
Loan interest | 65,999 | - |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
11. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.6.24 | 30.6.23 |
£ | £ |
Current tax: |
UK corporation tax | 1,231,123 | 831,834 |
Tax credits | - | (39,990 | ) |
Total current tax | 1,231,123 | 791,844 |
Deferred tax | - | 12,189 |
Tax on profit | 1,231,123 | 804,033 |
Reconciliation of total tax 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: |
30.6.24 | 30.6.23 |
£ | £ |
Profit before tax | 4,949,991 | 4,078,688 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 20.500 %) |
1,237,498 |
836,131 |
Effects of: |
Expenses not deductible for tax purposes | 1,423 | 2,088 |
Capital allowances in excess of depreciation | (7,798 | ) | (6,385 | ) |
Tax credits | - | (39,990 | ) |
Deferred tax | - | 12,189 |
Total tax charge | 1,231,123 | 804,033 |
12. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and | Development |
licences | costs | Totals |
£ | £ | £ |
COST |
At 1 July 2023 | 100,000 | 482,008 | 582,008 |
Additions | - | 143,748 | 143,748 |
At 30 June 2024 | 100,000 | 625,756 | 725,756 |
AMORTISATION |
At 1 July 2023 | - | 382,929 | 382,929 |
Amortisation for year | - | 109,354 | 109,354 |
At 30 June 2024 | - | 492,283 | 492,283 |
NET BOOK VALUE |
At 30 June 2024 | 100,000 | 133,473 | 233,473 |
At 30 June 2023 | 100,000 | 99,079 | 199,079 |
14. | TANGIBLE FIXED ASSETS |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 July 2023 | 4,922 | 44,143 | 49,065 |
Additions | - | 567 | 567 |
At 30 June 2024 | 4,922 | 44,710 | 49,632 |
DEPRECIATION |
At 1 July 2023 | 1,230 | 38,564 | 39,794 |
Charge for year | 1,231 | 2,537 | 3,768 |
At 30 June 2024 | 2,461 | 41,101 | 43,562 |
NET BOOK VALUE |
At 30 June 2024 | 2,461 | 3,609 | 6,070 |
At 30 June 2023 | 3,692 | 5,579 | 9,271 |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
15. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.6.24 | 30.6.23 | 30.6.24 | 30.6.23 |
£ | £ | £ | £ |
Trade debtors | 6,068,950 | 5,743,010 |
Other debtors | 240,675 | 99 |
Deposits | 515,389 | 409,004 | - | - |
Wages debtor | 576 | - | - | - |
VAT | 407,397 | 263,463 |
Accruals & Prepayments | 724,126 | 1,328,079 |
7,957,113 | 7,743,655 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
30.6.24 | 30.6.23 |
£ | £ |
Trade creditors | 3,126,453 | 3,832,540 |
Amounts owed to participating interests | 268,440 | 188,074 |
Taxation | 810,308 | 857,372 |
Social security and other taxes | 45,191 | 32,500 |
Other creditors | - | 160,772 |
Pension control | 9,206 | 15,748 |
Accrued expenses | 1,634,942 | 476,097 |
5,894,540 | 5,563,103 |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
18. | PROVISIONS FOR LIABILITIES |
Group |
30.6.24 | 30.6.23 |
£ | £ |
Deferred tax | 26,165 | 26,165 |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2023 | 26,165 |
Balance at 30 June 2024 | 26,165 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.24 | 30.6.23 |
value: | £ | £ |
Ordinary | 1 | 100 | 100 |
20. | PENSION COMMITMENTS |
The charge to the profit or loss in respect of defined contribution schemes was £11,575 (2023: £9,163). |
The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. |
21. | FINANCIAL COMMITMENTS |
During the year the group had entered into various agreements to forward purchase energy at a fixed price as of 30 June 2024. The total agreed price for these agreements was £14,603,801, (2023 - £16,100,000). The group also entered into various agreements to forward sell energy at a fixed price as at 30 June 2024. The total agreed price for these agreements was £995.380. A connected company who is also a participating shareholder has provided guarantees in respect of these agreements. The energy was purchased on behalf of customers, who have entered into agreements to purchase the energy at an agreed price. |
DAFFODIL ENERGY SUPPLY LIMITED (REGISTERED NUMBER: 10666902) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
22. | RELATED PARTY DISCLOSURES |
During the year, the group entered into the following transactions with related parties: |
During the year revenue of £19,403,748 (2023: £17,922,671) was charged to an entity with the same directors as the group. Expenses of £5,136,589 (2023: £3,564,899) were charged from the same entity. Included in trade debtors is the balance with the entity of £2,254,745 (2023: £1,322,216) which is unsecured and interest free. In the the prior year there was a balance of £456,599 due to the entity included in trade creditors. This year the respective trade creditor balance has been netted off and included in the trade debtor balance due to the fact that the entity receives payment for sales net of |
the expenses due. |
At the year end there was a balance due from an associated entity of £268,431 (2023: £188,074). The current year balance is interest free and repayable on demand. |
23. | ULTIMATE CONTROLLING PARTY |
There is no ultimate controlling party of Daffodil Energy Supply Limited. |
The smallest and largest group for which consolidated accounts are drawn up, of which this company is a member, is Daffodil Energy Supply Limited. The registered office for Daffodil Energy Supply Limited is Gable House, 239 Regents Park Road, London, United Kingdom, N3 3LF. |