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Registered number: 13518341
R&S ENERGY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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COMPANY INFORMATION
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B Edgar (resigned 13 October 2025)
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N Y Fisher (resigned 3 March 2025)
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N Tenne (resigned 28 July 2025)
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G Goldfarb (appointed 5 August 2024
resigned 13 October 2025)
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O Vorobeichik (resigned 5 August 2024)
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O Yannay (appointed 3 March 2025)
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E Michaeli (appointed 28 July 2025)
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Chartered Accountants & Registered Auditors
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CONTENTS
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Independent Auditors' Report
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Statement of Profit or Loss and Other Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their Strategic Report for the year ended 31 December 2024.
The Company’s strategy is to develop, build, and own utility scale batteries that are directly linked to the grid to support the UK’s electricity distribution and transmission systems. Projects are funded from a mixture of equity and debt.
Financial key performance indicators
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Financial performance for the year has been analysed as follows:
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Profit/(Loss) from operations
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Principal risks and uncertainties
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The management of the Company and execution of its strategy are subject to a number of risks and uncertainties. The principal risks and uncertainties facing the business include market risk, currency risk, financial risk, supply chain risk, construction risk, and political and regulatory risk.
Market Risk
The Company is subject to market risk arising from its trading activities, particularly due to energy and price fluctuations. To mitigate this risk, the Company monitors and reviews the revenue optimisation market and trading strategy as well as comparing the performance of its optimisers against pre-agreed industry benchmarks.
Currency
The Company is exposed to currency risks in the supply chain, principally through its construction phase, as our battery storage systems are manufactured overseas, and the contracts can be denominated in foreign currency. The Company aims to secure all its contracts in sterling and if it is unsuccessful in achieving this, then a hedging policy is in place to monitor and mitigate the impact of currency risk.
Supply Chain
Battery systems are manufactured overseas and are impacted by wider supply chain pressures and commodity price risk related to materials such as lithium. The Company aims to mitigate this risk by running competitive tenders and procuring supplies from tier 1 BESS suppliers to ensure the best commercial terms possible are achieved as well as evaluating the need for commodity price hedges where appropriate.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Construction
Technical issues may arise on plant and equipment during construction which include risks related to the environment and weather. These risks combined with potential contractor availability constraints could cause delays in the project timetable, business interruption or additional costs. To mitigate these risks, a robust legal contracting strategy combined with a comprehensive program of construction and operational insurance is employed to transfer certain risks to third parties. Reputable owners' engineers are appointed to oversee engineering, procurement and construction activities on all projects and regular reviews are undertaken to ensure that the construction team and its third-party service providers are appropriately managing the project output.
Health and safety
The Company considers the health and safety of all employees and contractors is a key risk to the business. The Company is committed to creating a culture where safety is the highest priority. By acting as the Client on all projects, it carries out a due diligence process on all contractors throughout a stringent tender qualification process. All designers are required to follow the hierarchy of control to mitigate risk to as low as reasonably practicable, and in line with industry best practice.
The Company provides training to all employees as appropriate to their role. A risk register is maintained for all projects which is regularly reviewed and updated as part of the Company's wider risk management procedure.
Financial
The Company's operations are capital intensive, and its activities expose the Company to credit, cash flow and liquidity risk. The Company mitigates these risks by continuously monitoring forecasted and actual cash flows and maintaining sufficient cash reserves to meet its obligations through equity and loan financing. The Company's main exposure to credit risk is its cash balances with banks; the risk is mitigated through using reputable financial institutions with good credit ratings.
Political and regulatory
The changing political and regulatory landscape is a key risk to the Company's business. The Company operates in a highly regulated sector which may be subject to macro factors outside its control. Battery storage assets play a key role in providing energy security and the transition to net zero and potential regulatory changes are expected to continue to support the build-out of battery storage assets. To reduce future adverse impacts, the Company pursues a route-to-market strategy that does not rely on tariff support schemes and actively participates in merchant trading or bilateral agreements with private parties.
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:
B Edgar (resigned 13 October 2025)
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N Y Fisher (resigned 3 March 2025)
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N Tenne (resigned 28 July 2025)
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G Goldfarb (appointed 5 August 2024, resigned 13 October 2025)
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O Vorobeichik (resigned 5 August 2024)
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Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements, in accordance with applicable law.
Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK-adopted international accounting standards in conformity with the requirements of the Companies Act 2006.
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing the financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and estimates that are reasonable and prudent;
∙state whether they have been prepared in accordance with IFRS Accounting Standards in conformity with the requirements of the Companies Act 2006, subject to any material departures disclosed and explained in the financial statements;
∙assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
∙use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
The principal activity of the Company is to build and develop utility scale batteries that are directly linked to the grid to support the UK’s electricity distribution and transmission systems. Projects are funded from a mixture of equity and debt.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The loss for the year, after taxation, amounted to £719,595 (2023 - profit £20,691).
During the financial year ended December 31, 2023, the company did not declare or distribute any dividends to its shareholders. As a result, there were no dividends claimed or booked in the period. The company’s retained earnings remain intact and will be available for future distributions in accordance with its dividend policy.
In line with the strategy outlined in the strategic report, the Company will continue to progress its projects and grow its asset base through select acquisitions.
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
The auditors, Harris & Trotter LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF R&S ENERGY LIMITED
We have audited the financial statements of R&S Energy Limited for the year ended 31 December 2024 which comprise the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of material accounting policies set out on pages 16 - 18. The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards in conformity with the requirements of the Companies Act 2006.
In our opinion the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its loss for the year then ended;
∙have been properly prepared in accordance with UK-adopted international accounting standards in conformity with the requirements of the Companies Act 2006; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
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 Company 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.
Conclusions relating to going concern
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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. Our evaluation of the directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included:
Reviewing cash flow forecasts, challenging key assumptions, and performing stress testing on potential downside scenarios. We found that management's assumptions were reasonable and appropriately considered market and regulatory risks.
IIn addition, we obtained written representations from the shareholders confirming their continued financial support to the Group, as set out in note 1.1, including confirmation that any amounts currently payable to them will not be recalled within 12 months from the date of approval of these financial statements.
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 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF R&S ENERGY LIMITED (CONTINUED)
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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF R&S ENERGY LIMITED (CONTINUED)
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement on page 3, the directors are responsible
for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditors' responsibilities for the audit of the financial statements
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 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 objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent llimitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:
• We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the iindustry in which it operates. We determined that the following laws and regulations were most significant: IFRS and the Companies Act 2006.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF R&S ENERGY LIMITED (CONTINUED)
• We obtained an understanding of how the Company is complying with those legal and regulatory frameworks
by making enquiries of management.
• We challenged assumptions and judgements made by management in its significant accounting estimates.
We did not identify any key audit matters relating to irregularities, including fraud.
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.
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.
Stephen Haffner (Senior Statutory Auditor)
for and on behalf of
Harris & Trotter LLP
Chartered Accountants
Registered Auditors
101 New Cavendish Street
1st Floor South
London
W1W 6XH
12 December 2025
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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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Profit/(loss) from operations
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(Loss)/profit for the year
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Total comprehensive income
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The notes on pages 16 to 29 form part of these financial statements.
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REGISTERED NUMBER: 13518341
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Property, plant and equipment
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Trade and other receivables
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Trade and other receivables
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Cash and cash equivalents
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Trade and other liabilities
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Trade and other liabilities
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REGISTERED NUMBER: 13518341
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STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024
Issued capital and reserves
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The financial statements and notes on pages 9 to 29 were approved and authorised for issue by the board of directors and were signed on its behalf by:
The notes on pages 16 to 29 form part of these financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Total comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 16 to 29 form part of these financial statements.
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
Cash flows from operating activities
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(Loss)/profit for the year
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Depreciation of property, plant and equipment
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Movements in working capital:
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Increase in trade and other receivables
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Increase in trade and other payables
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Cash generated from operations
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Net cash (used in)/from operating activities
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Cash flows from investing activities
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Purchases of property, plant and equipment
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Transfer of assets from parent
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Net cash used in investing activities
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STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Cash flows from financing activities
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Proceeds from bank borrowings
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Repayment of bank borrowings
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Payment of lease liabilities
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Net cash from financing activities
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Net (decrease)/increase in cash and cash equivalents
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Cash and cash equivalents at the beginning of year
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Cash and cash equivalents at the end of the year
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The notes on pages 16 to 29 form part of these financial statements.
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NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Functional and presentation currency
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Accounting estimates and judgments
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Finance income and expense
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Property, plant and equipment
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Trade and other receivables
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Related party transactions
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Notes supporting statement of cash flows
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
1.Accounting policies
The financial statements have been prepared on the going concern basis. The company is dependent on the directors and shareholders for financial support, which the directors are confident will continue for a period of at least another 12 months following the approval of these financial statements.
As at 31 December 2024, the company had net liabilities of £940,312. The directors and shareholders have indicated their present intention to provide adequate finance to enable the company to continue in operational existence, and on this basis the directors consider it appropriate to prepare the financial statements on the going concern basis.
The financial statements do not reflect any adjustments that would result from a withdrawal of financial support by the directors and shareholders.
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The Company recognises revenue when it transfers control over a product or service to a customer.
The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low-value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. The company determines the incremental borrowing rate (IBR) for its lease liabilities by estimating the rate it would incur to borrow over a similar term and with similar security, the amount required to obtain the right-of-use asset.
Lease payments included in the measurement of the lease liability comprise:
∙fixed lease payments (including in-substance fixed payments), less any lease incentives;
The lease liability is included in the 'Loans and borrowings' line in the Statement of Financial Position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
1.Accounting policies (continued)
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The Company as a lessee (continued)
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payments made.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.
The right-of-use assets are included in the 'Property, Plant and Equipment' and 'Investment Property' lines, as applicable, in the Statement of Financial Position.
The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 1.6.
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has used this practical expedient.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Income tax expense represents the sum of the tax currently payable and deferred tax.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
1.Accounting policies (continued)
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Property, plant and equipment
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Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
Depreciation on assets under construction does not commence until they are complete and available for use. Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:
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over the life of the lease
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Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
R&S Energy Limited (the 'Company') is a private limited by shares company incorporated in England and Wales. The Company's registered office is at 33 Blagrave Street, Reading, RG1 1PW. The Company's principal activity is investing, developing and operating grid-scale battery energy storage
projects in the United Kingdom..
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs). They were authorised for issue by the Company's board of directors on 12 December 2025.
Details of the Company's accounting policies, including changes during the year, are included in note 1.
In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Company accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The areas where judgments and estimates have been made in preparing the financial statements and their effects are disclosed in note 5.
The financial statements have been prepared on the historical cost basis except for the following items, which are measured on an alternative basis on each reporting date.
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3.2 Changes in accounting policies
i) New standards, interpretations and amendments effective from 1 January 2024
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The Company has applied the following standards and amendments for the first time for its annual reporting period commencing 1 January 2024:
• Classification of Liabilities as Current or Non-Current - amendments to IAS 1
• Guidance on Non-current Liabilities with Covenants - amendments to IAS 1
• Disclosure requirements for Supplier Finance Arrangements - amendments to IAS 7 and IFRS 7
• Changes to IAS 16 Property, Plant and Equipment and IAS 37 Provisions, Contingent Liabilities and Contingent Assets as part of the annual improvements process
The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.
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Functional and presentation currency
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These financial statements are presented in pound sterling, which is the Company's functional currency. All amounts have been rounded to the nearest pound, unless otherwise indicated.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Accounting estimates and judgments
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Management are required to make judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates. 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 and in any future periods affected.
Key areas where management has made judgments, estimates, and assumptions include:
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5.1 Estimates and assumptions
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Useful Lives of Property, Plant, and Equipment (PPE)
The determination of the useful lives and residual values of PPE involves significant judgment. These estimates are based on historical experience, technological advances, and anticipated future use. Changes in these assumptions could impact the depreciation and amortisation expense.
Provisions
The recognition and measurement of provisions require judgment about the probability of an outflow of economic benefits and the reliability of the best estimate of the expenditure required to settle the obligation.
Deferred Tax Assets/Liabilities
Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilised. Deferred tax liabilities arise when the NBV of an asset exceeds its WDV for tax purposes or when the tax base of a liability is lower than its carrying amount. The assessment involves judgment regarding the future taxable profits of the entity and the timing of the reversal of temporary differences.
Leases
The determination of the lease term involves judgment in assessing the likelihood of exercising extension or termination options. Additionally, the discount rate used to measure lease liabilities requires estimation, often based on the entity’s incremental borrowing rate.
Right-of-Use (ROU) Assets and Lease Liabilities
The measurement of ROU assets and corresponding lease liabilities requires management to make several estimates and judgments, including:
- Determining the lease term involves judgment, particularly in assessing whether extension or termination options are reasonably certain to be exercised. Changes in these assessments may significantly impact the recognised ROU assets and lease liabilities.
- Where the interest rate implicit in the lease cannot be readily determined, the entity uses its IBR. The IIBR is estimated based on the entity’s borrowing capacity, lease term, and currency of the lease. Estimation of the IBR involves judgment and can significantly impact the lease liability and related ROU asset.
- ROU assets are assessed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. This requires judgment in estimating future cash flows and discount rates.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
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Finance income and expense
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Recognised in profit or loss
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Total interest income arising from financial assets measured at amortised cost or fair value through other comprehensive income
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Interest on lease liabilities
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Loans from group undertakings
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Other loan interest payable
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Net finance (expense)/income recognised in profit or loss
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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8.1 Income tax recognised in profit or loss
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Origination and reversal of timing differences
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Tax expense excluding tax on sale of discontinued operation and share of tax of equity accounted associates and joint ventures
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The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows:
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(Loss)/profit for the year
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Income tax expense (including income tax on associate, joint venture and discontinued operations)
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(Loss)/profit before income taxes
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Short-term timing difference leading to an increase/(decrease) in taxation
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
8.Tax expense (continued)
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8.2 Deferred tax balances
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The following is the analysis of deferred tax assets/(liabilities) presented in the statement of financial position:
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Property, plant and equipment & tax losses carried forward
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Recognised in profit or loss
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Property, plant and equipment
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Property, plant and equipment
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Accumulated depreciation and impairment
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Charge owned for the year
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Charge owned for the year
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
9.Property, plant and equipment (continued)
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9.1. Assets held under leases
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The net book value of owned and leased assets included as "Property, plant and equipment" in the Statement of Financial Position is as follows:
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Property, plant and equipment owned
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Right-of-use assets, excluding investment property
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Information about right-of-use assets is summarised below:
Net book value
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Trade and other receivables
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Prepayments and accrued income
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Total non-current trade and other receivables
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Prepayments and accrued income
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Total current trade and other receivables
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Payables to related parties
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Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
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Total non-current trade and other payables
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Trade and other payables (continued)
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Payables to related parties
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Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
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Total current trade and other payables
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Total loans and borrowings
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Ordinary shares of £1.00 each
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At 1 January and 31 December
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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The Company leases land for its project operations. These leases are typically long-term in nature, with an initial Contractual Term of 35 years, and an option to renew the lease for a further term.
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Lease liabilities are due as follows:
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Contractual undiscounted cash flows due
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Between one year and five years
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Lease liabilities included in the Statement of Financial Position at 31 December
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The company does not face any significant liquidity risk in relation to its lease liabilities. The company manages its lease obligations through effective cash flow management, ensuring sufficient funds are available to meet payment schedules as they arise. Lease payments are made in accordance with the agreed-upon terms, and the company has adequate liquidity to meet these obligations as they become due.
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Related party transactions
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Details of transactions between the Company and its related parties are disclosed below.
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15.1 Loans from related parties
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Transactions with the parent company are conducted on an arm's length basis.
The loan payable to the parent company was utilised for funding the project.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Notes supporting statement of cash flows
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Cash at bank available on demand
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Cash and cash equivalents in the statement of financial position
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Cash and cash equivalents in the statement of cash flows
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