The directors present the strategic report for the year ended 31 December 2024.
Principal activities
The principal activity of SQE Energy Group Limited (formerly Squeaky Clean Energy Group Limited) is to operate a platform that enables wholesale traders, aggregators and independent power producers (IPPs) to supply power and other renewable energy services to industrial and commercial (I&C) consumers. This involves arranging and structuring wholesale and renewable transactions, providing a trading platform for wholesale sellers of power, maintaining and developing our billing platform EOS, and providing standard and innovative power supply solutions to our wholesale and retail clients.
The Group's mission is to help accelerate the world’s transition to clean energy. SQE has been at the forefront of development of services that support I&C and public sector organisations on their net zero journey and products that enable generators and traders to actively participate in the I&C market without the need to become a supplier.
Trading Performance
During 2024 the Group expanded the number of market participants by onboarding two of Europe’s largest power trading businesses. This increased market liquidity and product offerings for our wholesale and retail I&C customers which in turn drove some new client wins including a global telecoms company.
Lower wholesale power prices during 2024, competition from the CFD and increased levelized costs of energy for new to earth renewable projects meant that demand for corporate power purchase agreements (PPAs) fell sharply. Whilst some corporates had investigated new to earth PPAs many withdrew from the market due to cost pressures in their businesses or switched to buying PPAs from existing assets.
During the year, the business continued to invest in its trading, billing and reporting platform, EOS, introducing a number of enhancements designed to increase customer self-service and improve control and transparency over trading activity and costs. Additional functionality was also developed to enable the integration of Power Purchase Agreements (PPAs) and to provide reporting on matching and carbon. These investments have further strengthened the company’s operational leverage, supporting growth in customer numbers without a commensurate increase in the cost base.
During the period, Group turnover increased from £115.6m in 2023 to £130.5m in 2024.
Gross Margin increased year on year to £0.91m in 2024 from £0.62m in 2023 due to the increases in customer base and product offering.
Operating losses increased slightly year on year with a loss of £2.89m during the year (2023: £2.49m) despite the increase in revenue as investment in our supply platform and the team to deliver the directors’ long-term strategy to be the leading supplier of energy supply products to the I&C market.
Balance Sheet and working capital
The balance sheet for the year reflects the continued investment in our technology platform and business development with net current liabilities of £12.3m (2023: £9.6m).
Debtors increased due to the timing of collection and value of invoices towards the end of the year. Cash has decreased year on year at the financial year end due to timings of receipts around the year end. The provision for doubtful debts remains minimal at £0.1m (2023: £0.1m) and wholly related to the legacy microbusiness base with historic debts recovered or written off post year end. This reflects the Group’s low risk approach to credit control with most of the payment exposure covered by credit insurance and specific insurance policies in relation to our corporate customers.
Creditors increased year on year, reflecting the increase in consumption to normal levels following the Covid pandemic and higher commodity prices driving higher value direct costs which are passed through to customers.
The group faces a number of risks and uncertainties. The directors believe that the key risks are in respect of wholesale market prices, competition, and availability of credit cover.
Wholesale market prices
The Group operates a unique risk management approach that insulates it from exposure to changes in the wholesale market by transferring this risk to our Wholesale Counterparties. The addition of two new Wholesale Counterparties during the year provided not only additional liquidity on our platform but also enabled the Group to offer longer term deals and new products.
Competition
The Group operates in a highly competitive environment and I&C consumers are typically supplied under long term arrangements that generally come up for renewal every three years. Whilst SQE has a strong proposition, low cost operating model, and offers a number of unique products that deliver cost effective and low carbon energy supply, incumbent suppliers fight hard to retain customers.
Availability of credit insurance
SQE only takes on supply customers where we can obtain payment credit insurance. During 2024 we moved our credit insurance arrangements to a new provider which improved our pricing and flexibility.
Recovery of doubtful debts
The Group takes a low-risk approach to doubtful debts with most of its potential exposure covered by credit insurance. The directors regularly review the Group’s remaining exposure and apply a prudent policy of provisioning for bad and doubtful debts.
Liquidity and cashflow
Liquidity and cashflow risk is the risk that the Group will not be able to meet its financial obligations in the future as they fall due from its available cash resources. Detailed cashflow forecasts and analysis are prepared and reviewed by management on a weekly basis. Cashflow is monitored and controlled closely by management and the directors consider that the Group will meet it’s expected commitments in the foreseeable future from existing cash and future operating cashflows.
The management team responsible for the operation of the business uses a number of financial KPIs in order to manage and develop the business to achieve the Group's strategic objectives. The Group has a wide range of metrics which are measured on a periodic basis.
The Group's main KPIs include both financial targets which are reviewed periodically:
Financial KPls
Gross Margin % - Value from our contracts is regularly compared to forecasts and reviewed by management. The Group achieved a gross margin of 0.70% during the period. This has increased from 0.53% achieved during 2023 due to the increase in customers as well as moving to more profitable offerings.
Operating profitability - The Group assesses operating profit as profit before tax and interest. During the year, the Group made an operating loss of £2.88m in the year (2023: Loss £2.49m) reflecting the accelerated development of our EOS platform and investment in developing our other renewable energy products.
The events in Ukraine and the resulting power price volatility have fundamentally reshaped the UK energy industry and whilst power price volatility reduced significantly in 2024 liquidity, particularly along the forward curve, remains very low and market spreads high. Against this backdrop a supply platform that allows generators to cross that spread and sell directly to I&C buyers makes increasing sense. This massive market opportunity is not lost on the investment community and during 2024 the Company was approached by several potential investors and these discussions culminated in a decision in 2025 to proceed with a funding round with existing and new investors which closed recently and was oversubscribed at just over £6 million. A combination of this new equity, and further interest from several institutional and strategic investors combined with a very strong cash generation and pipeline of business has put SQE on a very firm financial footing.
Under s172 of the Companies Act 2006 directors of UK companies have a duty to promote the success of their company for the benefit of the members as a whole and, in doing so, have regard to:
The likely consequences of any decision in the long term;
The interests of the company's employees;
The need to foster the company's business relationships with suppliers, customers and others;
The impact of the company's operations on the community and the environment; and
The desirability of the company maintaining a reputation for high standards of business conduct.
The Directors of SQE Energy Group Limited (previously Squeaky Clean Energy Group Limited) consider the following areas to be of key importance in their fulfilment of this duty:
Carrying out detailed planning and forecasting to ensure the ongoing financial safety of the business;
Monitoring the business plan in order to control deviation and achieve continued growth;
Seeking opportunities, by finding new locations to grow the business for the benefit of current and future employees, customers and suppliers as well as the wider UK economy;
Supervising the overall strategy of the Company and maintaining the highest standards of integrity and honesty in the Company's dealing with employees, suppliers, the general public and local and national government; and
Ensuring that we are vigilant in reducing the environmental impact of the business.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 10.
No ordinary dividends were paid. 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:
As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
The financial statements have been prepared on the going concern basis as the Directors have assessed that there is a reasonable expectation that the Group will be able to continue in operation and meet its commitments as they fall due over the going concern period.
Like other energy suppliers, the key risk to the going concern basis of preparation is a lack of working capital to manage the seasonality of the business' cash flows. The Group has developed a sophisticated cashflow analysis tool that enables it to forecast daily cash balances under various scenarios.
These scenarios are a combination of price and demand-based impacts reflecting changes in the wholesale market plus growth of our customer base over the coming year. In addition, the Company has flexible payment facilities and payment insurance cover or letters of credit for all its customers. The worst-case scenario test prudently assumes the retention of existing customers alongside a small number of new contract wins next year.
Looking to the future, the Group has performed a going concern review, forecasting out until at least 12 months beyond the date of signing the accounts considering both a base case and worst-case scenario using various externally provided scenarios. These scenarios are provided to Ofgem on a quarterly basis as part of their ongoing review into the financial stability of UK Energy suppliers. Having reviewed this forecast, and having applied various stress tests, the cash position of the Group remains sufficient to meet all commitments as they fall due without additional mitigations being implemented. That said, if the Directors felt it was necessary to reduce the Group's cash burn there are a number of mitigants that could be implemented that would not put the day-to-day operation of the business at risk.
The Group has demonstrated excellent progress in the development of its operating platform and this investment gives the business significant operating leverage enabling us to scale without a material increase in our operating costs.
Detailed cashflow modelling has been completed for the Group which has confirmed that there are sufficient funds in place to sustain operational targets for the immediate period. In addition, the Group continues to have the support of its investors and to attract interest from a number of institutional investors. The Group continues to weigh up its options and constantly review its capital requirements to meet its ambitious growth targets.
We have audited the financial statements of SQE Energy Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, 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).
Basis for opinion
Emphasis of matter - Net liabilities
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
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.
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 approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the green energy sector;
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 company, including environmental legislation, renewable energy certification, electricity licensing and the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal and regulatory correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’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;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
understanding the design of the company’s remuneration policies.
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;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation; and
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.
Use of our report
This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0.
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
SQE Energy Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 151 Wardour Street, London, England, W1F 8WE.
The group consists of SQE Energy Group Limited 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 SQE Energy Group Limited 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 December 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.
The group acquired SQE Energy Limited (previously Squeaky Clean Energy Limited), SQE Energy Trading Limited (previously Squeaky Clean Energy Trading Limited), and SQE OS Technology Limited (previously EOS Technology Limited) in a prior reporting period. As the companies that were acquired were under common control, the acquisition applied the principles of merger accounting as it is deemed to be a group reconstruction under FRS 102. Therefore the results of the companies were included in these consolidated financial statements as if they had always been part of the group. The carrying values of the entities’ assets and liabilities are not adjusted to fair value. The nominal value of shares issued plus the fair value of other consideration equated to the nominal value of shares received thus the merger reserve is £nil.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Like other energy suppliers, the key risk to the going concern basis of preparation is a lack of working capital to manage the seasonality of the business' cash flows. The Group has developed a sophisticated cashflow analysis tool that enables it to forecast daily cash balances under various scenarios.
These scenarios are a combination of price and demand-based impacts reflecting changes in the wholesale market plus growth of our customer base over the coming year. In addition, the Group has flexible payment facilities and payment insurance cover or letters of credit for all its customers. The worst-case scenario test prudently assumes the retention of existing customers alongside a small number of new contract wins next year.
Looking to the future, the Group has performed a going concern review, forecasting out until at least 12 months beyond the date of signing the accounts considering both a base case and worst-case scenario using various externally provided scenarios. These scenarios are provided to Ofgem on a quarterly basis as part of their ongoing review into the financial stability of UK Energy suppliers. Having reviewed this forecast, and having applied various stress tests, the cash position of the Group remains sufficient to meet all commitments as they fall due without additional mitigations being implemented. That said, if the Directors felt it was necessary to reduce the Group's cash burn there are a number of mitigants that could be implemented that would not put the day-to-day operation of the business at risk.
The Group has demonstrated excellent progress in the development of its operating platform and this investment gives the business significant operating leverage enabling us to scale without a material increase in our operating costs.
Detailed cashflow modelling has been completed for the Group which has confirmed that there are sufficient funds in place to sustain operational targets for the immediate period. In addition, the Group continues to have the support of its investors and to attract interest from a number of institutional investors. The Group continues to weigh up its options and constantly review its capital requirements to meet its ambitious growth targets.
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.
Turnover is recognised on a monthly basis according to consumption volumes.
Intangible assets comprise of software development costs incurred by external contractors that are utilised by the group in its trade. Costs are amortised on a straight line basis over the software's expected useful life.
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.
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 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.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
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.
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 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.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue includes an estimate of the sales value of units supplied to customers between the date of the last meter reading and the period end. This is calculated by reference to the data received through third party settlement systems, together with estimates of consumption not yet processed through settlements and selling price estimates. These estimates are sensitive to the assumptions used in determining the portion of sales not billed and based on meter readings at the reporting date.
Squeaky Clean Energy Group Limited applies critical judgements and estimates in financial reporting, particularly in calculating key costs such as Commodity, Balancing Services Use of System (BSUoS), Transmission Network Use of System (TNUoS), Distribution Use of System (DUoS), Capacity Market (CM), Feed-in-Tariff (FiT), Contracts for Difference (CfD), Renewable Obligations (RO), and Renewable Energy Guarantees of Origin (REGO). Estimates are based on market data, regulatory frameworks, and historical patterns. For Commodity costs, forecasts include wholesale price trends and hedging outcomes, while BSUoS, TNUoS, and DUoS costs are based on network operator charges. CM costs reflect forecasted auction results and supplier obligations, and FiT, CfD, and RO liabilities are calculated based on generation volumes and regulated rates. REGO estimates are informed by renewable energy production and market pricing.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
The group has tax losses of £11,830,072 (2023: £9,284,029). A deferred tax asset has not been recognised as it isn't considered sufficiently probable that they will be recovered against the reversal of future taxable profits.
Details of the company's subsidiaries at 31 December 2024 are as follows:
Two of the company's UK trading subsidiaries, registered in England and Wales, have been included in the consolidation and taken the exemption from audit under Section 479A of the Companies Act 2006 and have been given a guarantee in accordance with Section 479C of the act.
These entities are: SQE Energy Trading Limited and SQE OS Technology Limited.
The Group utilises an invoice discounting facility on a proportion of the trade receivables and the facility is secured against those trade receivable balances. As at the year-end there was £nil outstanding.
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 shares rank pari passu in all respects except that the directors may at any time resolve to declare a dividend on one class of shares and not the other class and to pay different amounts of dividends on each class.
On 9th September 2025 6,005,000 A Preference shares were issued for a nominal value of £1 each, for a total cash consideration of £6,005,000.
The company has taken advantage of the exemption available in paragraph 33.1A of FRS 102 whereby it has not disclosed transactions with other companies that are wholly owned within the group.
In 2019 a loan was made at market rate to an employee who subsequently became a director.
Interest has been charged on this loan in line with the rate agreed.
Along with other expenses paid for by the company on behalf of the directors, the balance owed by the directors is £72,736 as at 31 December 2024 (2023: £70,040).