The directors present their annual report and financial statements for the year ended 29 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

Kelham Central was around 74% complete as of 31st December 2024 with 85 homes of the planned 114 homes now built and reporting utilities usage. The utility business plan operates at full efficiency when the development is complete. The trading deficit generated from all utilities at Kelham Central in 2024 was £9,400 (surplus of £40,973 in 2023). This deficit has been added to the C/F surplus from 2023 which was £41,475, which has resulted in a cumulative surplus position of £32,075.

Electricity

On 1st October 2022, a 24-month energy contract was agreed with Octopus, with rates of 48.89p/kWh (day) and 38.25p/kWh (night), plus Climate Change Levy (CCL). This resulted in a blended rate of 46p/kWh. At the time, this was favourable, as it was below the forecasted domestic price cap of 51.89p/kWh, amid a highly volatile energy market.

From 1st April 2023 to 31st March 2024, the government’s Energy Bills Discount Scheme (EBDS) was in effect. Octopus applied a larger-than-expected discount, and since residents were being charged at the capped rate, a surplus built up. This surplus was allocated to the CIC. To help reduce it, the resident tariff was lowered to 0.23p/kWh from January 2024.

Between 1st April and 9th October 2024, supply costs returned to the original Octopus contract rates. However, residents continued paying the reduced rate of 0.23p/kWh, further drawing on the surplus to subsidise energy costs.

The overall surplus at the end of 2023 stood at £40,973.

To offset some of this surplus, the tariff was reduced on January 1st 2024 to 23p per kWh. This tariff was lower than the cost of sales at the time and remained in place until October 2024.

On 10th October 2024, a new 24-month contract was agreed with EDF, with rates of 27.89p/kWh (day) and 21.88p/kWh (night), plus CCL. This produced a blended rate of 25.95p/kWh, which has now been reflected in the resident tariff.

From Nov 1st, 2024, it was decided prudent to offer those residents paying by Direct Debit the current electricity tariff of 25.95p 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 Kelham Central Utilities Ltd per transaction, this had been previously absorbed by the CIC.

During 2024 a total of 299,875 kWh of electricity was consumed and purchased from Octopus and EDF respectively, sourced from renewable sources.

The total cost of electricity consumption billed to residents in 2024 was £73,961. The amount purchased from Octopus and EDF was £79,033.

The total cost of electricity standing charges billed to residents in 2024 was £12,932. The standing charges issued by Octopus and EDF £17,938.

This resulted in a £10,078 deficit on the Consumption and Standing charges.

Solar Electricity Generation

Three different arrays of solar panels were installed between May and December 2022. Two arrays came online at the time of installation, and the 3rd array came online in 2024. The total solar production in 2024 was 35,098 kWh (56,373 kWh in 2023), with a value generated from solar electricity of £3,738 (£22,695 in 2023). The represented 12% of all energy consumed being generated by Solar.

Data

The income generated from the provision of data was £24,853, verses fixed costs of £12,455. This resulted in a surplus of £12,398. The incoming data is charged to residents at the market rate and will continue to result in an increasing surplus trajectory as more homes are built.

Administration

Billing and administration standing charges of £4,148 were charged to residents against costs of £5,161. It was decided to increase the billing and administration charges on October 10th 2024 as a reaction to this deficit. The billing and admin tariff was therefore increased from £4.56 to £5.78 per month. As with electricity standing charges, this gap will close due to the fixed element of some of these costs as more residents take occupation throughout the development of the scheme.

The costs accrued by the Energy Finance Manager in 2024 totalled £3,038. This covers the monitoring of metering data and oversight of the billing company along with Tariff setting and procurement from the relevant energy companies.

A bad debt of £728 was applied to the CIC during 2024 relating to non-paid utility costs. This has since been reversed and re-billed to the responsible owner of the property in question in the second quarter of 2025.

The Accountancy and Bookkeeping costs totalled £5,801 in 2024.

Notes

*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 Kelham Central Utilities Ltd for the year ended 29 December 2024 which comprise the income and expenditure 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 Kelham Central 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 Kelham Central Utilities Ltd and state those matters that we have agreed to state to the board of directors of Kelham Central 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 Kelham Central Utilities Ltd and its board of directors as a body, for our work or for this report.

It is your duty to ensure that Kelham Central 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 Kelham Central Utilities Ltd. You consider that Kelham Central 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 Kelham Central 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 income and expenditure account has been prepared on the basis that all operations are continuing operations.

For the financial year ended 29 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.

Kelham Central Utilities Ltd is a private company limited by guarantee 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.

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.

The company is exempt from corporation tax, it being a company not carrying on a business for the purposes of making a profit.

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 company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

As at 29 December 2024, the company was owed a total of £30,016. In 2023, they owed a total of £17,735. CITU Group Ltd owed £26,250.59 (2023 - £2,439), Little kelham owed £Nil (2023 - £Nil) and Kelham Central limited owed £3,765 (2023 - £15,296).