The directors present the strategic report for the year ended 31 August 2024.

The Student Energy Group creates value by using its proprietary technology platform to provide utilities bills management services to customers across the UK. As well as providing digital services to companies in the UK property market, the group uses its technology to serve customers directly itself, including both end consumers such as students living in shared accommodation, and business customers such as landlords letting their properties to multiple tenants.

Throughout the year covered by these accounts, the UK retail energy sector continued to be competitive while suffering the effects of a major macroeconomic shock. In this context, the directors were pleased that the group performed well over the year, demonstrating their successful and efficient management of the business, and the strong relationships they have built with customers and key suppliers.

While the directors were pleased with revenue growth and cash flow generation during the year, they took the strategic decision to increase the company’s cost base by investing in their teams. As well as demonstrating a sizeable commitment to the local economy, the directors are confident that this investment in people will enable them to seize several opportunities over the following years that deliver material growth in both revenue and profitability, while maintaining strong cash flow generation.

In particular, the investment in people will be focused on further development of the company’s technology as well as further strengthening relationships with customers and suppliers. Notably, the flexibility of the proprietary technology that powers the group has enabled it to broaden its customer base beyond students to the wider rental market, while deepening its partnerships with suppliers and customers alike will underpin the group’s routes to market.

By combining proven proprietary technology with strong supplier relationships and a range of customer partnerships, the directors are confident that the company will be able to build on its successes so far to drive substantial growth over the coming years.

The directors are aware that risks, uncertainties and unforeseen events outside their control may affect future plans for the development and running of the business. However, they remain confident that they have the market profile, experience and capability to positively react to these events.

As well as closely monitoring the group’s operations and financial position in general, for example its cash flow and working capital balances, the directors proactively identify potential risks and execute appropriate mitigations, including the following:

• Energy market volatility: to manage material changes in a large part of its cost base, the company uses a natural hedging approach by purchasing energy once its customers have made contractual commitments, or otherwise directly hedges any market exposure, while also maintaining relationships with a range of suppliers.

• Legislative changes: as a participant in the UK’s energy and property markets, the company is exposed to any changes in relevant legislation such as the Renters’ Rights Bill and Retail Energy Code, which it manages by maintaining active relationships with a broad range of stakeholders.

• Debt management: over its history to date, the company has continued to better manage its debt by developing its own systems, processes and controls, while also working with both supportive suppliers and debt management partners.

• Key customer dependency: to prevent the company being overly dependent on any particular set of customers, the directors have penetrated several market segments while building deep customer pipelines, aided by developing a multi-brand strategy to support this approach.

• Internal systems and controls: having grown the company rapidly during tough market conditions, the directors have proactively taken steps to ensure that appropriate governance is in place to rapidly scale the business further.

• Key people dependency: the company’s growth has been driven by a core group of key individuals that have successfully worked together for an extended period. To mitigate the risk that any departures would impact the company’s performance, the directors have invested in both the development of business continuity plans and long-term incentives for senior staff.

Development and performance

The position of the group at the year-end is disclosed on the balance sheet.

• The financial key performance indicators (KPIs) that the management team focus on the company’s ability to generate cash by trading profitably.

• The management team focuses on gross profit as a KPI that reflects the company’s ability to procure utilities in a cost-effective way and successfully price them in the marketplace. Gross profit increased in the year by 17% from £6.80m to £7.95m.

• The management team also focus on earnings before interest, tax, depreciation & amortisation adjusted for exceptional items (‘Adjusted EBITDA’) as a measure of the company’s ability to manage the overheads generally required to support its commercial operations. Adjusted EBITDA decreased in the year by 47% from £3.02m to £1.59m as the management team took the strategic decision to increase the company’s cost base by investing in their teams.

• To assess cash generation, the management team focuses on the net cash inflow from operating and investing activities as a proportion of Adjusted EBITDA as a measure of its ability to manage its working capital effectively and efficiently. This conversion measure increased from 32% to 62% during the year.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 August 2024.

The principal activity of the company and group continued to be that of providing bill management services within the utilities sector.

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £600,000 (2023: £117,715). The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The directors have considered the company’s current financial position and future funding requirements in assessing the company’s ability to continue as a going concern. Forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company will be able to operate within the level of its current resources and facilities for at least twelve months from the date of approval of these financial statements.

Accordingly, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have therefore adopted the going concern basis of accounting in preparing the financial statements.

The company has granted an indemnity to one or more of its directors against liabilities incurred in the execution of their duties, to the extent permitted by law. This provision was in force during the financial year and remained in force at the date of approval of this report.

The directors are responsible 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, comprising FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", 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 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 then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable United Kingdom Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of The Student Energy Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024, which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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 31 August 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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of 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 our audit:

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the group and 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.

As explained more fully in the directors' responsibilities statement set out on page 4, 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 and 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 parent company or to cease operations, or have no realistic alternative but to do so.

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:

Our assessment focused on key laws and regulations the group and parent company have to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant tax legislation.

We are not responsible for preventing irregularities. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities included, but was not limited to, the following:

• we identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the group and sector in which they operate;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006 and taxation legislation; and

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and considering available audit information.

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions; and

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias

In response to the risk of irregularities in relation to non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated profit and loss account.

The notes on pages 16 to 33 form part of these financial statements.

The notes on pages 16 to 33 form part of these financial statements.

The notes on pages 16 to 33 form part of these financial statements.

The company has taken advantage of the exemption available under Section 408 of the Company Act 2006 and has not presented its own profit and loss account and related notes. The company’s profit for the year was £773,327 (2023 (restated): £262,963 ).

The notes on pages 16 to 33 form part of these financial statements.

The notes on pages 16 to 33 form part of these financial statements.

The notes on pages 16 to 33 form part of these financial statements.

The Student Energy Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 4th Floor, Regent House, 50 Frederick Street, Birmingham, West Midlands, United Kingdom, B1 3HR.

The group consists of The Student Energy Group Ltd and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The consolidated group financial statements consist of the financial statements of the parent company, The Student Energy Group Ltd, together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 August 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

The directors have assessed the group's financial position and cash flow forecasts and consider it appropriate to prepare the financial statements on a going concern basis.

The directors have considered the current position of the company and have confirmed that the company intends to continue to trade for the 12 months following the date of this report based on strong cash reserves and stable sales growth, much of which is already locked in. Based on the assumption that the company will continue to provide services, the company will have sufficient funds, through its cash generation to meet its liabilities as they fall due for that period.

Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

Revenue is recognised from the provision of services, including utilities management and software licensing, when the service is delivered, the amount can be measured reliably, and it is probable that economic benefits will flow to the group. Revenue is stated net of VAT and discounts.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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.

Amortisation 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:

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:

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 recognised in the profit and loss account.

Assets held under finance leases are included at cost and depreciated over the shorter of the lease term or useful life.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents are basic financial assets and 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.

The group 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 in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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 the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, 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. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

In the application of the group’s accounting policies, the 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.

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.

To provide bundles of services to its customers, the company buys access to water services similarly to the way in which it procures other utilities. However, the billing of costs associated with this service are more complex than other utilities and therefore the company accrues estimated costs based on the revenue it has generated for this service and a reasonable gross profit margin based on its trading experience and knowledge of the industry and relevant regulation.

After the end of the financial period, the Company reached a negotiated settlement with one of its principal energy suppliers. The financial impact of the settlement affected the accruals and cost of sales and has been consistently applied across the financial periods to which it relates.

The Company regularly assesses the recoverability of trade debtor balances based on factors such as customer creditworthiness, the age of balances, and historical experience to make a provision for impairment. The management team apply their experience and judgement in estimating the provision required and actual debt recovery may differ from these estimates.

The company applies judgement in determining whether wages and other staff costs incurred during development activities meet the criteria for capitalisation under FRS 102 Section 18. In making this assessment management consider the proportion of employee time directly attributable to qualifying development activities, whether the development will result in a commercially viable service and evaluate whether capitalised development costs continue to meet recognition criteria. These estimates are reviewed regularly and adjusted if necessary.

Exceptional items in the 2023 and 2024 financial statements include £2,813,923 (2023) and £833,100 (2024) worth of gas and legal costs relating to an ongoing claim against Huoli Dragonfly Capital Limited (formerly Rainman Collateral Limited). These include all costs incurred up to the end of the accounting period in relation to the claim. The directors are confident the legal claim will be won but are not quantifying any gains until settled in court.

The full claim includes a contingent fee payable to other energy suppliers based on a percentage of any successful settlement.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

During the year, retirement benefits were accruing to 6 directors (2023: 6) in respect of defined contribution pension schemes.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

There were no factors affecting future tax charges.

Motor vehicles with a carrying amount of £68,484 (2023 (restated) - £94,994) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Details of the company's subsidiaries at 31 August 2024 are as follows:

Trade debtors are stated after provision for impairment of £1,432,324 (2023: £561,298).

Finance lease payments represent rentals payable by the company or group for motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The amount outstanding to the pension provider at the year end was £10,156 (2023: £7,771).

On 11th April 2023, the company issued 100 G ordinary shares at a nominal value of £1 per share.

On 22 December 2023, 60 C ordinary shares of £1 each were re-designated to 60 A ordinary shares of £1 each.

The ordinary share classes A to G (excluding E) shares, have attached to them full voting rights. All ordinary share classes have attached to them dividend and capital distribution rights including on winding up or return of capital. The ordinary shares do not confer any rights of redemption.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

During the year the group entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

During the year, the Company provided a loan of £149,253 to a related party, which remained outstanding in full at the year end. The balance is included within both the group and Company figures.

The prior year comparative figures have been restated to correct an error in the estimation of revenue cut-off and related accruals.

The effect of the restatement on the prior year figures is as follows:

        As previously reported    Adjustment    As restated

£         £         £

Turnover         20,042,608    (256,761)    19,785,847

Costs             19,904,044    (379,562)    19,524,482

Taxation             21,074    ( 21,074)        -

Assets              6,663,596     608,864      7,272,460    

Liabilities          6,526,176     464,989     6,991,165

Retained earnings      136,320     143,875      280,195

The adjustment has resulted in an increase in assets and liabilities and a corresponding increase in retained earnings. There is no impact on cash flows.