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

The principal activity of the company is that of trade of electricity.

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

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Overview

The Little Kelham development is almost fully complete with, around 98% of homes and businesses now in occupation as of the end of 2024 (4 residential units remaining, and 2 commercial units).

The trading surplus generated from all utilities at Little Kelham in 2024 was £37,806 (£45,479 in 2023). This surplus has been added to the C/F figure from 2023 which was £117,493, which has resulted in a cumulative surplus position of £155,299.

Electricity

At the beginning of 2024, there was a remainder of 5 months left on the previous 12 months fixed contract with EDF. The tariff set at this time was 33.2p per kWh. A new fixed contract for 22 months was agreed on 1st June 2024, again with EDF which saw the electricity tariff reduce to 21.06p per kWh. This contract is in place until 31st March 2026.

From Nov 1st, 2024, it was decided prudent to offer those residents paying by Direct Debit the current electricity tariff of 21.06p per kWh, whilst updating the tariff for those who did not pay by direct debit by 2% in order to cover the payment fees that had been levied onto Little Kelham Utilities Ltd per transaction, this had been previously absorbed by the CIC.

A total of 987,343 kWh of electricity was purchased from respective suppliers in 2024. All the electricity purchased was generated from renewable energy sources.

Total income from electricity consumption sales was £241,736 vs costs of £255,186, resulting in a deficit of £13,450.

Electricity standing charges were over-recovered, with £27,737 of income verses costs of £20,533. This resulted in a surplus of £7,204. It was decided to reduce the electricity standing charges in response to this on Nov 1st 2024. This saw the daily standing charge rate reducing from 45.07p to 32.64p.

Solar Electricity Generation

All the solar panels are live and reporting data with 90,912 kWh (102,246 kWh in 2023) solar energy being produced in 2024.

The Solar energy produced in 2024 served to generate 9% of all energy consumed at Little Kelham Utilities Ltd. Based upon the price of electricity that was charged to residents / kWh, the value generated from solar electricity was £24,346 (£26,556 in 2023).

Water

Cold water consumption sales were £44,637 vs costs of £33,968. This resulted in a £10,669 surplus on Consumption.

Standing charge income from water was £8,185 vs costs of £4,663. This resulted in a £3,522 surplus on Consumption.

It is anticipated that the difference in consumption costs and income are as a result of estimations or metering from the incoming supplier that are less accurate than the water meters installed in residents homes and offices. LKULTD is in the process of investigating these differences.

Biomass

Sales from heating and hot water from energy generated from biomass boilers was £43,713. The costs of pellets totalled £39,587. This resulted in a surplus of £4,126 (deficit of £3,882 in 2023).

Any surplus' or deficits within 10% are rolled into the following year.

Administration

Billing and Admin costs of £10,886 were billed to residents against costs of £14,035.

Accountancy and Bookkeeping costs totalled £6,779 in 2024.

The Energy Finance Manager costs totalled £3,785 in 2024. This role included the overseeing of the billing company, monitoring of data, handling complaints and procurement of new contracts amongst of other tasks.

*Notes

(1) All prices above quoted exclude VAT.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Little Kelham Utilities Ltd for the year ended 31 December 2024 which comprise the profit and loss account, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.

This report is made solely to the board of directors of Little Kelham Utilities Ltd, as a body, in accordance with the terms of our engagement letter dated 20 March 2024. Our work has been undertaken solely to prepare for your approval the financial statements of Little Kelham Utilities Ltd and state those matters that we have agreed to state to the board of directors of Little Kelham Utilities Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Little Kelham Utilities Ltd and its board of directors as a body, for our work or for this report.

It is your duty to ensure that Little Kelham Utilities Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and result of Little Kelham Utilities Ltd. You consider that Little Kelham Utilities Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Little Kelham Utilities Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

For the financial year ended 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Little Kelham Utilities Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Carlton House, Grammar School Street, Bradford, BD1 4NS.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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 company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include 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.

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 company 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.

Equity instruments issued by the company 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 company.

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.

In the application of the company’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 average monthly number of persons (including directors) employed by the company during the year was:

The following amounts were outstanding at the reporting end date: