REGISTERED NUMBER: 06743329 (England and Wales)

EFFECTIVE ENERGY SOLUTIONS LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

Mr R J Cox

Mr D J Pearson

Mr S K Adams

REGISTERED OFFICE:

1 Boston Road

Leicester

Leicestershire

LE4 1AA

REGISTERED NUMBER:

06743329 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Statutory Auditor, Chartered Accountants

Sidings House, Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

The directors present their strategic report for the year ended 31 March 2025.

STRATEGIC REPORT

The Company's key focus in the period remained the delivery and support of managed services towards environmental and social obligations.

Within the financial year, the company delivered programs under a raft of specific obligation opportunities. Including, the Energy Company Obligation (ECO), the Great British Insulation Scheme (GBIS) and the Warm Homes Discount Industry Initiatives (WHDII). These specific programs form part of a wider £14billion governmental strategy called the Warmer Homes Plan, focussing on energy efficiency and environmental and social improvements, which the company intends to continue to leverage its expertise into delivering a growing number of UK wide managed services programs under this strategy. Whilst the obligations continually adapt focus year on year, the Company's core competencies to deliver large scale social focussed programs, against these long-term targets and requirements, sets Effective Energy Solutions Ltd (EES) on a sound foundation to meet each of the wider targets and increase market share across the entirety of the UK, year upon year.

Specific delivery highlights this year include;

ECO 4, currently in its third year of the scheme during this financial year, has allowed the company to continue its growth resulting in a small increase in turnover. ECO 4 requires significant compliance oversight and the Company's track record in this field has cemented its position and continued to be the go-to delivery partner for several UK Energy Companies.

The second phase of GBIS commenced during the year and the Company has capitalised on its expertise in retrofit insulation, allowing it to reflect strong growth in GBIS revenue. This has enabled to the Company to build on its firm foundation, entering the final year of the obligation.

The Company has further developed its WHDII scheme (Help4Homes) and significantly increased the number of partners, building on relationships developed in the prior year and growing revenue from this initiative.

The Company continues its commitment to eradicating fuel poverty through the delivery of permanent improvements to people's homes. We also continue to work towards making the UK carbon net zero.

Our annual strategic review resulted in the continued development of the market opportunities for the company with transition into a turnkey provider of managed services. This transition ensures the Company builds on its expertise and experience into a wider marketplace. It is the annual strategic review and the ability to develop the delivery model that gives the board the confidence that the changes we made to our existing business model supports our strategic goals and as such the business is looking forward to a very successful year of trading

REVIEW OF THE BUSINESS

The financial period in FY24 saw the first full year of ECO 4 trading, providing a strong benchmark for FY25. The current year saw turnover increasing by 7% from £47,822,397 (YE 31 March 2024) to £50,975,052. Improvements in the delivery model alongside an increase the operating efficiencies and mix of revenue streams of the company, resulting in another year of profitability, with operating profit amounting to £5,228,946 (10% of turnover) compared to the prior year £2,471,295 (5% of turnover)

The financial strength of the business remains strong with cash at bank at the year-end amounting to £3,068,817 and shareholders' funds remaining strong at £2,036,623 (2024: ,£7,042,495). The Company continues to operate without long term debt.

This ensures a strong base for the Company and the wider group to continue to build and deliver against its ongoing growth strategy.

PRINCIPAL RISKS AND UNCERTAINTIES

The UK Government continues to be a leader on the global stage in in its drive towards Net Zero. The recent budget statement detailed the combination of the ECO delivery model and the Warmer Homes initiative, ensuring the delivery of UK Governments strategic goals. The Company has made the relevant changes to the business to support the delivery of the Warmer Homes program and remain flexible to Government changes in the future.

The Company has also developed new initiatives operating in other areas of Government Net Zero and fuel poverty policy and as such the directors consider the target operating market of Effective Energy Solutions Ltd a stable source of business for the future.

The Management Team continue to develop and invest in delivery platform which mitigates concentration risk and protect security from its network of new and existing relationships in both customer and supplier partners. Scheme compliance and fraud prevention remain as key areas of focus for the management team who operate on ongoing process review framework, which incorporates working closely with Energy Companies, Local Authorities and Government organisations.

The Directors and Shareholders remain confident in the strategy and the ability to deliver the performance in line with the high standards to which it operates.

FUTURE DEVELOPMENTS

The Company has continued to develop its income streams by becoming a managed services provider creating access to a large market. The business continues to strengthen supply chain and energy company relationships, which increase its capacity to operate with agility and adaptability in the energy efficiency retrofit grant funded market. Effective Energy Solutions remain close to government policy development regarding domestic energy efficiency, affordable warmth and clean heat strategies and are well placed to deliver any transition of ECO4 and the Warm Homes Plan.

ON BEHALF OF THE BOARD:

Mr S K Adams - Director

23 December 2025

The directors present their report with the financial statements of the Company for the year ended 31 March 2025.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 will be £9,510,000.

DIRECTORS

Mr R J Cox has held office during the whole of the period from 1 April 2024 to the date of this report.

Other changes in directors holding office are as follows:

Mr L J Cottingham - resigned 14 October 2024

Mr S K Adams - resigned 14 October 2024

Mr D J Pearson - resigned 14 October 2024

Mr D J Pearson and Mr S K Adams were appointed as directors after 31 March 2025 but prior to the date of this report.

Mr D G Graby ceased to be a director after 31 March 2025 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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 also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr S K Adams - Director

23 December 2025

Opinion

We have audited the financial statements of Effective Energy Solutions Ltd (the 'Company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the Company's affairs as at 31 March 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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 UK, including the FRC'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

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 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

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page four, 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 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Company, we identified that the principal risks of non-compliance with laws and regulations related to corporation tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements.

As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact of the preparation of the financial statements, such as the Companies Act 2006 and FRS 102.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results.

Audit procedures performed by the engagement team include:

-

Enquiring of and obtaining written representation from management in relation to known or suspected instances of non-compliance with laws and regulations and fraud;

-

Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;

-

Evaluation of management's controls designed to prevent and detect irregularities;

-

Review of board meeting minutes and meetings of those charged with governance;

-

Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations;

-

Assessing and evaluating the business rationale of significant transactions outside the normal course of business;

-

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

-

Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

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 Report of the Auditors.

Use of our 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 a Report of the Auditors 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.

Kelvin Fitton BA FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Statutory Auditor, Chartered Accountants

Sidings House, Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

23 December 2025

TURNOVER

50,975,052

47,822,397

Cost of sales

41,172,417

40,670,004

GROSS PROFIT

9,802,635

7,152,393

Administrative expenses

4,733,178

4,722,762

5,069,457

2,429,631

Other operating income

159,489

41,664

OPERATING PROFIT

4

5,228,946

2,471,295

Intercompany loan write off

5

93,748

1,805,856

5,135,198

665,439

Interest receivable and similar income

14,876

4,285

5,150,074

669,724

Interest payable and similar expenses

6

21,313

45,439

PROFIT BEFORE TAXATION

5,128,761

624,285

Tax on profit

7

624,633

(37,374

)

PROFIT FOR THE FINANCIAL YEAR

4,504,128

661,659

PROFIT FOR THE YEAR

4,504,128

661,659

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,504,128

661,659

FIXED ASSETS

Tangible assets

10

50,848

78,566

Investments

11

1

1

50,849

78,567

CURRENT ASSETS

Debtors

12

14,996,983

22,121,779

Cash at bank

3,068,817

3,166,487

18,065,800

25,288,266

CREDITORS

Amounts falling due within one year

13

15,680,769

17,755,586

NET CURRENT ASSETS

2,385,031

7,532,680

TOTAL ASSETS LESS CURRENT LIABILITIES

2,435,880

7,611,247

CREDITORS

Amounts falling due after more than one year

14

(386,545

)

(559,110

)

PROVISIONS FOR LIABILITIES

16

(12,712

)

(9,642

)

NET ASSETS

2,036,623

7,042,495

CAPITAL AND RESERVES

Called up share capital

17

10,000

10,000

Retained earnings

18

2,026,623

7,032,495

SHAREHOLDERS' FUNDS

2,036,623

7,042,495

The financial statements were approved by the Board of Directors and authorised for issue on 23 December 2025 and were signed on its behalf by:

Mr S K Adams - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

10,000

6,370,836

6,380,836

Changes in equity

Total comprehensive income

-

661,659

661,659

Balance at 31 March 2024

10,000

7,032,495

7,042,495

Changes in equity

Dividends

-

(9,510,000

)

(9,510,000

)

Total comprehensive income

-

4,504,128

4,504,128

Balance at 31 March 2025

10,000

2,026,623

2,036,623

1.	STATUTORY INFORMATION

Effective Energy Solutions Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The principal place of business is Carriage Court, Welbeck, Worksop, S80 3LR.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts are prepared on a going concern basis on the belief that the company will continue in operational existence for the foreseeable future.

The financial statements are prepared in sterling, which is the functional currency of the entity round to the nearest £1.

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under circumstances.

Provisions Against Trade Debtors

When evaluating debtors for recoverability risk, the Directors use their knowledge and experience to determine the provision required.

ECO Scheme Accruals Provision

The Company procures ECO points generated by qualifying energy efficiency measures installed by third-party contractors following a rigorous validation process. These ECO points are then supplied to utility companies as per the existing contract agreements, enabling them to fulfil their obligations under the government's ECO scheme. Despite the Company's diligent efforts to verify that the work conducted by the installers aligns with the requirements of the ECO scheme, there remains a risk that, due to non-compliance or negligence, the measures may be deemed invalid subsequent to the sale of the corresponding ECO points to the utility company. Typically, the rejection of submitted measures accepted by a utility company arises from audits conducted by OFGEM, who possess additional information that may reveal validity issues.

Revenue recognition

The Company operates as a managing agent within OFGEM's Energy Company Obligation (ECO) scheme. It procures qualifying measures from a network of installers and sells them to utility companies obligated to acquire such measures under the scheme. Revenue is derived from these transactions.

Revenue is represented by the fair value of consideration received or receivable between knowledgeable, willing parties in an arm's length transaction.

Revenue is measured based on the price agreed with the utility customer as defined in the contract or associated agreements. This price encompasses all fixed and variable considerations related to the sale of qualifying measures.

Significant risks and rewards of ownership are deemed to be transferred to the utility customer upon submission of qualifying measures (handover date). Revenue recognition aligns with this transfer of control.

Historical experience is utilised to estimate rejections of submitted measures by the utility customer. Revenue recognition is adjusted accordingly to reflect the portion of submitted measures that are at risk of rejection. Revenue is not recognised for measures deemed at risk of rejection until such risks are mitigated or resolved.

Tangible fixed assets

Tangible assets are initially recorded at cost, and subsequent stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings - 20-25% straight line

Equipment - 20-25% straight line

Motor vehicles - 20-25% straight line

Investments in subsidiaries

Investments in subsidiaries are measured at cost less accumulated impairment.

Cash and cash equivalents

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

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that is relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Impairment of investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. the cash-generating unit is the smallest identifiable group of assets the includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or group of assets.

For impairment testing goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,434,577

2,766,749

Social security costs

426,369

360,918

Other pension costs

138,893

122,901

3,999,839

3,250,568

The average number of employees during the year was as follows:

2025

2024

Administrative staff

60

52

2025

2024

£

£

Directors' remuneration

820,900

813,081

Directors' pension contributions to money purchase schemes

20,025

55,928

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

360,233

322,064

Pension contributions to money purchase schemes

10,916

10,916

4.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Depreciation - owned assets

42,247

53,852

Loss on disposal of fixed assets

-

11,087

Auditors' remuneration

-

41,848

Auditors' remuneration for non audit work

-

5,757

Operating leases

94,211

342,414

5.	EXCEPTIONAL ITEMS

2025

2024

£

£

ECO 3 clean up

56,565

(436,295

)

Exceptional items

(37,775

)

-

Intercompany loan write off

(93,748

)

(1,805,856

)

(74,958

)

(2,242,151

)

The exceptional items relate to the release of a credit notes provision which were accrued in the previous period relating to ECO 4. The matter has now come to a close.

Provisions totalling £93,748 relate to irrecoverable balances due from group undertakings.

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

21,313

45,439

7.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

621,563

-

Deferred tax

3,070

(37,374

)

Tax on profit

624,633

(37,374

)

Reconciliation of total tax charge/(credit) included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

5,128,761

624,285

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

1,282,190

156,071

Effects of:

Expenses not deductible for tax purposes

23,991

451,934

Group relief received

(681,548

)

(645,379

)

Total tax charge/(credit)

624,633

(37,374

)

8.

DIVIDENDS

2025

2024

£

£

Ordinary shares shares of 1 each

Final

9,510,000

-

9.	OTHER OPERATING EXPENSES

The audit fee for the Company was borne by the parent company, Effective Energy Group Limited.

10.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 April 2024

113,545

17,282

89,450

220,277

Additions

14,529

-

-

14,529

Disposals

(20,692

)

-

-

(20,692

)

At 31 March 2025

107,382

17,282

89,450

214,114

DEPRECIATION

At 1 April 2024

80,182

9,350

52,179

141,711

Charge for year

22,086

2,271

17,890

42,247

Eliminated on disposal

(20,692

)

-

-

(20,692

)

At 31 March 2025

81,576

11,621

70,069

163,266

NET BOOK VALUE

At 31 March 2025

25,806

5,661

19,381

50,848

At 31 March 2024

33,363

7,932

37,271

78,566

11.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2024

and 31 March 2025

1

NET BOOK VALUE

At 31 March 2025

1

At 31 March 2024

1

The Company's investments at the Balance Sheet date in the share capital of companies include the following:

Effective Energy Limited

Registered office: 1 Boston Road, Leicester, Leicestershire, LE4 1AA

Nature of business: Dormant

%

Class of shares:

holding

Ordinary

100.00