ACCOUNTS - Final Accounts

Registered number: SC654925

EUROPEAN ENERGY UK LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024


EUROPEAN ENERGY UK LIMITED REGISTERED NUMBER:SC654925

BALANCE SHEET

AS AT 31 DECEMBER 2024

			2024		2023
	Note		£		£

Fixed assets
Tangible assets	5		5,272		9,878
Investments	6		559,314		1,923
			564,586		11,801
Current assets
Stocks	7	2,721,175		3,888,673
Debtors: amounts falling due within one year	8	16,996,154		6,498,181
Cash at bank and in hand	9	1,094,928		386,462
		20,812,257		10,773,316
Creditors: amounts falling due within one year	10	(1,673,069)		(508,544)
Net current assets			19,139,188		10,264,772
Debtors: amounts falling due after more than one year	8		960,568		-
Total assets less current liabilities			20,664,342		10,276,573

Net assets			20,664,342		10,276,573

Capital and reserves
Called up share capital	11	465,100	465,100
Profit and loss account		20,199,242	9,811,473
		20,664,342	10,276,573

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

M Evans

Director

Date: 25 September 2025

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EUROPEAN ENERGY UK LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2023	100	(2,551,687)	(2,551,587)

Profit for the year	-	12,363,160	12,363,160
Contributions by and distributions to owners
Shares issued during the year	465,000	-	465,000

At 1 January 2024	465,100	9,811,473	10,276,573

Profit for the year	-	10,387,769	10,387,769
At 31 December 2024	465,100	20,199,242	20,664,342

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EUROPEAN ENERGY UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

The company is a private company limited by shares and is incorporated in Scotland. The address of its registered office is Floor 1/1 39 St. Vincent Place, Glasgow, Scotland, G1 2ER.
The principal activity of the company is that of developing projects in the renewable energy sector.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 following principal accounting policies have been applied:

2.2

Exemption from preparing consolidated financial statements

The Company, and the group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and group are considered eligible for the exemption to prepare consolidated accounts.

2.3

Going concern

The company has net current assets of £19,139,188 (2023: £10,264,772) at the balance sheet date. Included in debtors less than one year is an amount of £16,313,686 (2023: £6,422,951) owed by the parent company. The directors intend to vote a dividend to clear this balance during 2025. The directors are of the opinion that the company is a going concern, as support will continue to be provided by the company's parent.
Taking into account a period exceeding 12 months from the date of approval of these financial statements, the directors have a reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future, and for this reason will continue to adopt the going concern basis in the preparation of its financial statements.

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EUROPEAN ENERGY UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'administration expenses'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

2.5

Revenue

Revenue consists of: 1) Fees charged in relation to corporate,management and project support. This revenue is recognised when invoiced. 2) Recharge of costs incurred in developing the project to the point of construction. This revenue is recognised when invoiced. Otherwise the costs are included in work-in-progress.

2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

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EUROPEAN ENERGY UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.9

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

2.10

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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:

Computer equipment

25%

straight line

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.

2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.13

Associates and joint ventures

Associates and Joint Ventures are held at cost less impairment.

2.14

Stocks

Stocks and work in progress comprise renewable energy projects in the course of development. They are valued at the lower of cost and anticipated net revenue. Costs include direct costs in connection with specific projects.

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EUROPEAN ENERGY UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.18

Financial instruments

The Company 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 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

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 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 Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

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EUROPEAN ENERGY UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.18

Financial instruments (continued)

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic 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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans 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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EUROPEAN ENERGY UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.18

Financial instruments (continued)

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The directors determine that there are no key judgements or key sources of estimation uncertainty in preparing the financial statements.

Employees

The average monthly number of employees, including directors, during the year was 18 (2023 -12).

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EUROPEAN ENERGY UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

5.	Tangible fixed assets

		Computer equipment
		£
	Cost or valuation
	At 1 January 2024	19,044
	At 31 December 2024	19,044
	Depreciation
	At 1 January 2024	9,166
	Charge for the year on owned assets	4,606
	At 31 December 2024	13,772
	Net book value
	At 31 December 2024	5,272
	At 31 December 2023	9,878

6.	Fixed asset investments

	Investments in subsidiary companies	Investments in associates	Total
	£	£	£
Cost or valuation
At 1 January 2024	1,873	50	1,923
Additions	787,720	-	787,720
Disposals	(230,329)	-	(230,329)
At 31 December 2024	559,264	50	559,314

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EUROPEAN ENERGY UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

7.	Stocks
		2024	2023
		£	£

Work in progress - projects in development	2,721,175	3,888,673
	2,721,175	3,888,673

8.	Debtors
		2024	2023
		£	£

Due after more than one year
Amounts owed by group undertakings	960,568	-
	960,568	-

Interest was charged at a rate of 9.5% (2023: Nil%) on the above loan and interest received during the year was £10,383 (2023: £Nil).

					2024	2023
					£	£

Due within one year
Trade debtors	-	2,182
Amounts owed by group undertakings	16,313,686	6,422,951
Other debtors	612,305	3,411
Prepayments and accrued income	70,163	69,637
	16,996,154	6,498,181

Interest was charged at an average rate of 9.3% (2023: 9.1%) on the above group loan to the company's parent European Energy A/S and interest received during the year was £666,831 (2023: £180,205). The loan is unsecured, and there is no specified end date.

9.	Cash and cash equivalents
		2024	2023
		£	£

Cash at bank and in hand	1,094,928	386,462
	1,094,928	386,462

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EUROPEAN ENERGY UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

10.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Trade creditors	319	641
Corporation tax	558,572	-
Other taxation and social security	766,426	92,101
Other creditors	21,278	12,762
Accruals and deferred income	326,474	403,040
	1,673,069	508,544

In the prior year, a loan facility was provided by the company's parent European Energy A/S. Interest was charged at an average rate of 9.1% and interest paid during the year was £280,313.

11.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

465,100 (2023 -465,100) Ordinary shares of £1.00 each	465,100	465,100

12.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £62,780 (2023: £34,001). Contributions totalling £21,084 (2023: £12,763) were payable to the fund at the balance sheet date and are included in creditors.

13.	Related party transactions
	During the year the company transferred its investment in two subsidiaries to another group company. These shareholdings were transferred at a profit of £764,873. In May 2025 the company issued a charge over its shareholding in a subsidiary in connection with a bank loan made to that subsidiary.

14.	Group financial statements

The parent of the smallest group for which consolidated financial statements are prepared is European Energy ApS, whose registered office address is Gyngemose Parkvej 50, 2860 Soborg, Denmark.

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EUROPEAN ENERGY UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

15.	Auditors' information

The auditors' report on the financial statements for the year ended 31 December 2024 was unqualified.

The audit report was signed on 25 September 2025 by Louise Watts (Senior statutory auditor) on behalf of Venthams.

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