Company registration number: 07543880
COMPANY INFORMATION
CONTENTS
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their annual report and the financial statements of Grupotec Renewables Limited for the year ended 31 December 2024.
The principal activity of the Group continued to be providing renewable engineering construction solutions and maintenance.
Business review
In the 2024 fiscal year, it is considered that, with the management aimed at consolidating the Group’s market position through the promotion of commercial activity, increased service quality, cost control, and maximum operational efficiency, the Group’s performance will be adequate within the current operational framework.
The Group continues to diversify its activities, focusing on the battery business and photovoltaic development with 12 projects. Additionally, the Group continues its photovoltaic installation projects at the same pace as in previous years, along with the operation and maintenance of previously built plants.
The Group continues its policy of providing renewable engineering solutions to its customers, working with key clients from an early stage of the tender process.
Conversion of SPV Loans into Equity
One of the most relevant changes has been the conversion of loans granted to Special Purpose Vehicles (SPVs) into equity investments. This strategic decision reflects the Group’s commitment to strengthening its position in the renewable energy sector, particularly in solar generation projects. As a result of this conversion and the subsequent inclusion of the SPVs as consolidated subsidiaries, there has been a significant increase in tangible fixed assets, as the construction assets of these SPVs relate to new solar farm developments.
Revenue Performance
Revenue has decreased compared to the previous year. This decline is mainly due to the completion of certain service contracts and a lower volume of activity in non-core areas that have been progressively divested. However, the new solar projects currently under construction are expected to begin generating recurring revenue in the next financial year, offsetting this temporary decline.
Improved Cash Position and Reduction in Receivables
Cash and cash equivalents have increased notably, driven by more efficient working capital management and the recovery of outstanding balances from previous years. At the same time, there has been a reduction in trade receivables, reflecting improved collection processes and greater financial discipline in client management.
Increase in Financial Expenses and Impact on Net Loss
The Group has recorded a net loss in 2023 and 2024, primarily driven by a significant increase in financial expenses. This increase is mainly attributable to higher interest costs associated with the financing of new renewable energy projects and the consolidation of SPV related debt. The Group continues to monitor its financing structure closely to ensure long-term sustainability and cost efficiency.
The principal activity of the Group continued to be providing renewable engineering construction solutions and maintenance.
Business review
In the 2024 fiscal year, it is considered that, with the management aimed at consolidating the Group’s market position through the promotion of commercial activity, increased service quality, cost control, and maximum operational efficiency, the Group’s performance will be adequate within the current operational framework.
The Group continues to diversify its activities, focusing on the battery business and photovoltaic development with 12 projects. Additionally, the Group continues its photovoltaic installation projects at the same pace as in previous years, along with the operation and maintenance of previously built plants.
The Group continues its policy of providing renewable engineering solutions to its customers, working with key clients from an early stage of the tender process.
Conversion of SPV Loans into Equity
One of the most relevant changes has been the conversion of loans granted to Special Purpose Vehicles (SPVs) into equity investments. This strategic decision reflects the Group’s commitment to strengthening its position in the renewable energy sector, particularly in solar generation projects. As a result of this conversion and the subsequent inclusion of the SPVs as consolidated subsidiaries, there has been a significant increase in tangible fixed assets, as the construction assets of these SPVs relate to new solar farm developments.
Revenue Performance
Revenue has decreased compared to the previous year. This decline is mainly due to the completion of certain service contracts and a lower volume of activity in non-core areas that have been progressively divested. However, the new solar projects currently under construction are expected to begin generating recurring revenue in the next financial year, offsetting this temporary decline.
Improved Cash Position and Reduction in Receivables
Cash and cash equivalents have increased notably, driven by more efficient working capital management and the recovery of outstanding balances from previous years. At the same time, there has been a reduction in trade receivables, reflecting improved collection processes and greater financial discipline in client management.
Increase in Financial Expenses and Impact on Net Loss
The Group has recorded a net loss in 2023 and 2024, primarily driven by a significant increase in financial expenses. This increase is mainly attributable to higher interest costs associated with the financing of new renewable energy projects and the consolidation of SPV related debt. The Group continues to monitor its financing structure closely to ensure long-term sustainability and cost efficiency.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Group’s financial risk management is centralized in the parent company’s finance department, which has mechanisms in place to control exposure to interest rate and exchange rate fluctuations, as well as credit and liquidity risks.
a) Credit Risk
The Group generally maintains its cash and financial investments in reputable banks. Loans granted are typically to Group or related entities for business development, with viability analyses conducted beforehand. Although there is no significant credit risk concentration, the receivables as of 31 December 2024, are substantial and mostly related to ongoing projects, with invoicing pending based on contractual milestones. The Group has mechanisms to accurately estimate project progress.
b) Liquidity Risk
To ensure liquidity and meet payment obligations, the Group has available cash as shown in the consolidated balance sheet, along with credit and financing lines. As of 31 December 2024, the Group shows a positive working capital and consistently generates positive operating cash flows.
c) Market Risk (interest rate, exchange rate, and other price risks)
The Group’s cash and financial debt are exposed to interest rate risk, which could affect financial results and cash flows. However, this is not considered significant by management, as positive operating cash flows are expected to offset financial burdens.
Regarding exchange rate risk, the Group operates internationally in foreign currencies, mainly EUR and USD. No specific hedging is maintained, as these currencies are not highly volatile, and the projects generate sufficient margins to offset potential losses. Geographic diversification also helps mitigate this risk.
Additionally, the Group faces market risks related to future demand. Management expects an increase in net revenue, supporting continued profitability.
a) Credit Risk
The Group generally maintains its cash and financial investments in reputable banks. Loans granted are typically to Group or related entities for business development, with viability analyses conducted beforehand. Although there is no significant credit risk concentration, the receivables as of 31 December 2024, are substantial and mostly related to ongoing projects, with invoicing pending based on contractual milestones. The Group has mechanisms to accurately estimate project progress.
b) Liquidity Risk
To ensure liquidity and meet payment obligations, the Group has available cash as shown in the consolidated balance sheet, along with credit and financing lines. As of 31 December 2024, the Group shows a positive working capital and consistently generates positive operating cash flows.
c) Market Risk (interest rate, exchange rate, and other price risks)
The Group’s cash and financial debt are exposed to interest rate risk, which could affect financial results and cash flows. However, this is not considered significant by management, as positive operating cash flows are expected to offset financial burdens.
Regarding exchange rate risk, the Group operates internationally in foreign currencies, mainly EUR and USD. No specific hedging is maintained, as these currencies are not highly volatile, and the projects generate sufficient margins to offset potential losses. Geographic diversification also helps mitigate this risk.
Additionally, the Group faces market risks related to future demand. Management expects an increase in net revenue, supporting continued profitability.
In 2025, with continued efforts in commercial activity, service quality, cost control, and operational efficiency, the Group’s performance is expected to remain strong. Despite economic and geopolitical uncertainties, the Group aims to maintain and improve its positive results.
There are no significant personnel-related matters to highlight beyond those in the attached consolidated annual accounts.
Regarding equality, non-discrimination, and disability compliance, there are no relevant issues beyond those disclosed in the 2024 consolidated annual report.
Regarding equality, non-discrimination, and disability compliance, there are no relevant issues beyond those disclosed in the 2024 consolidated annual report.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
As at 31 December 2024, the Group has not recognised any provision for possible environmental risks as it considers that there are no significant contingencies related to possible litigation, indemnities, or other items. In addition, the Group has insurance policies and safety plans in place to reasonably cover any possible contingencies that could arise from its environmental activities.
No events have occurred after the close of the 2024 fiscal year.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors who served during the year were:
The loss for the year, after taxation, amounted to £420,123 (2023 - loss £3,309,656 (as restated)).
No dividend was declared or paid during the period (2023 - £Nil (as restated)).
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments 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 Group 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 the Group and to 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.
The Group will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Group has complied with all applicable legislation and regulations.
The Group continues its policy of providing renewable engineering solutions to its customers, working with key clients from an early stage of the tender process.
Margins are expected to remain very tight, but with a strong statement of financial position and highly skilled and loyal workforce the Group is well placed to meet all the challenges of the changes to tariff regulations for solar projects.
Margins are expected to remain very tight, but with a strong statement of financial position and highly skilled and loyal workforce the Group is well placed to meet all the challenges of the changes to tariff regulations for solar projects.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Group since the year end.
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRUPOTEC RENEWABLES LIMITED
We have audited the financial statements of Grupotec Renewables Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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 or 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRUPOTEC RENEWABLES LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRUPOTEC RENEWABLES LIMITED (CONTINUED)
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 Auditors' 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 Group 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:
The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:
∙The Companies Act 2006
∙Financial Reporting Standard 102;
∙UK employment legislation
∙UK health and safety legislation; and
∙General Data Protection Regulations.
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Group are complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes and of the professional costs nominal code. The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area. We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
∙Understanding how those charged with governance considered and addressed the potential for override of control or other inappropriate influence over the financial reporting process;
∙Challenging assumptions and judgments made by management in its significant accounting estimates; and
∙Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation or fraud and identified the greatest potential for fraud in the following areas:
∙Posting of journals to the accounting software which are of a non-routine nature in terms of timing and amount; and
∙The use of management override of controls to manipulate results, or to cause the Group to enter into transactions not in their best interests; and
∙Timing of revenue recognition.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRUPOTEC RENEWABLES LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
2nd Floor
Midas House
62 Goldsworth Road
Surrey
GU21 6LQ
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 31 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 31 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Grupotec Renewables Limited is a private company limited by shares which is incorporated and domiciled in England and Wales, under the Companies Act 2006. The address of the registered office and principal place of business is disclosed on the company information page.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The Group has net current liabilities of £1,492,306 (2023: £1,327,264) and a net loss after tax of £420,123 (2023: £3,309,656).
A letter of support has been provided by the parent company, Grupotec Avanzados S.A ,confirming that they will provide ongoing financial support, so that the entity can continue to meet its financial obligations as they fall due.
As a result, the Director's continue to adopt the going concern basis of accounting in preparing the annual financial statements as they have a reasonable expectation that the Group and Company have adequate resources to continue operational existence for the foreseeable future.
A letter of support has been provided by the parent company, Grupotec Avanzados S.A ,confirming that they will provide ongoing financial support, so that the entity can continue to meet its financial obligations as they fall due.
As a result, the Director's continue to adopt the going concern basis of accounting in preparing the annual financial statements as they have a reasonable expectation that the Group and Company have adequate resources to continue operational existence for the foreseeable future.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Statement of Financial Position when the Group 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
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Financial liabilities
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Due to the characteristics of these contacts, the customer obtains continuous transfers of control and the risks deriving from the contract as the installation of the plant progresses. This method is therefore based on the preparation of estimates of the degree of project completion, the total cost of the contracts and the costs remaining until completion.
The whole of the turnover is attributable to the construction and maintenance of solar photovoltaic plants.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
10.Taxation (continued)
There were no factors that may affect future tax charges.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Tangible fixed assets (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Subsidiary undertakings (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
During its entire term, the balance shown in 'Amounts owed to group undertakings' will accrue an ordinary interest rate consisting of the applicable Euribor rate plus a 2.5% margin at the maturity date. This interest rate is subject to a cap equal to the Group’s maximum financing rate. This loan is due for repayment in February 2026.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit and loss account
There have been several prior year adjustments performed relating to the period 1 January 2023 to 31 December 2023.
The first is a reversal of the dividend which was declared and paid in the prior year. The impact of this adjustment is a reduction in group liabilities of £1,500,000 and an increase to the retained earnings of £1,500,000.
The second adjustment is to include the costs of foreign exchange variances on previously existing bank forward contracts which had not previously been recognised. This increased the foreign exchange costs in the prior year by £306,447 and increasing liabilities by £306,447. The impact of this adjustment is a reduction in the retained earnings brought forward of £306,447.
The third adjustment was to recognise previously existing bank guarantees that were not previously included within the financial statements. This has increased bank charges in the prior year by £3,392,573 with a corresponding increase to liabilities of £3,392,573. The impact of this adjustment is a reduction in the retained earnings brought forward of £3,392,573.
A fourth adjustment was raised to reflect the impact on corporation tax that the previous adjustments caused. This resulted in a reduction to the tax charge of £106,404 with a corresponding decrease in the tax liability due as at the year end. This has caused an increase in the retained earnings brought forwards of £106,404.
The final adjustment was to reclassify direct costs recognised in administrative expenses totalling £1,877,612. This increased cost of sales and reduced administrative expenses. There was no impact to retained earnings.
The impact of these adjustments totals a decrease of the opening retained earnings brought forward of £2,092,616.
The first is a reversal of the dividend which was declared and paid in the prior year. The impact of this adjustment is a reduction in group liabilities of £1,500,000 and an increase to the retained earnings of £1,500,000.
The second adjustment is to include the costs of foreign exchange variances on previously existing bank forward contracts which had not previously been recognised. This increased the foreign exchange costs in the prior year by £306,447 and increasing liabilities by £306,447. The impact of this adjustment is a reduction in the retained earnings brought forward of £306,447.
The third adjustment was to recognise previously existing bank guarantees that were not previously included within the financial statements. This has increased bank charges in the prior year by £3,392,573 with a corresponding increase to liabilities of £3,392,573. The impact of this adjustment is a reduction in the retained earnings brought forward of £3,392,573.
A fourth adjustment was raised to reflect the impact on corporation tax that the previous adjustments caused. This resulted in a reduction to the tax charge of £106,404 with a corresponding decrease in the tax liability due as at the year end. This has caused an increase in the retained earnings brought forwards of £106,404.
The final adjustment was to reclassify direct costs recognised in administrative expenses totalling £1,877,612. This increased cost of sales and reduced administrative expenses. There was no impact to retained earnings.
The impact of these adjustments totals a decrease of the opening retained earnings brought forward of £2,092,616.
At the year end the Group had in place bank guarantees of £19,461,951 (2023 - £21,928,639) related to Grupotec Renewables Limited. These guarantees were in respect of certain projects. At the date of signing no amounts related to guarantees have been required to be paid.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £11,010 (2023 - £12,954). Contributions totalling £Nil (2023 - £2,355) were payable to the fund at the reporting date and are included in creditors.
The Group is controlled by its ultimate parent undertaking, Grupotec Servicios Avanzados S.A., a company incorporated in Spain. Financial statements of Grupotec Servicios Avanzados S.A. can be obtained from the registrar of companies in Spain, Registro Mercantil.
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