The directors present the strategic report for the year ended 31 July 2025.
The Directors are pleased to report that the Group has delivered a strong performance for the year, with all key metrics broadly in line or exceeding expectations. As trading conditions have stabilised, the retail supply market has become increasingly competitive.
Despite a decline in wholesale prices over the past 12 months, the potential for significant price volatility remains. Gas and electricity markets remain coupled anchoring energy prices within the UK to global energy markets. Several historic and ongoing factors have shaped physical supply and market sentiment, including:
A mild winter in 2024/25
Limited UK storage
Lower LNG during the 2024/25 period
Heightened geopolitical tensions in the Middle East
Weak wind generation and extensive Norwegian pipeline maintenance.
The trading team continues to manage these risks effectively through robust modelling and proactive market strategies.
The group is currently navigating a challenging market landscape, driven by rising non-commodity costs, the introduction of new charges and net-zero costs. These pressures are affecting the entire market and are expected to continue impacting suppliers and customers in the short to medium term.
Looking ahead, the group remains committed to a strategy of controlled, service-led growth. This includes embracing regulatory changes such as the Market-Wide Half-Hourly Settlement (MHHS), which will enable the development of new, customer-focused products.
Continued investment in digital infrastructure will support the transition to a more data-driven marketplace, while ensuring the delivery of best-in-class service to our expanding customer base.
The group has made good progress in relation to the key elements of its strategy. The Board monitors the progress of the company using the following Key Performance Indicators:
Number of new acquisitions
Renewal Rates
Volume delivered by product
Debtor Days and Debtor Aging Profile
Gross Profit Margin
Overall, Balance Sheet Strength
Performance is measured against the forecast and prior month for each of these measures and has been satisfactory for the current year. The overall portfolio growth has actually been ahead of budget. Management continues to monitor these KPI’s on a monthly basis and any significant variance is investigated and acted upon promptly.
The Group uses financial instruments; these include cash, loans and other various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations.
The existence of these financial instruments exposes the Group to several financial risks. The Directors review and agree policies for managing each of these risks which have remained unchanged from previous year and are described in more detail below.
Liquidity risk
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash safety and profitably.
Interest rate risk
The Group finances its operations through a combination of retained profits, directors' current accounts, other loans and cash. The Group manages its exposure to interest rate fluctuations on its finance leases by entering into fixed rate agreements.
Commodity/Trading Risk
The Group is exposed to movements in the wholesale gas markets. The Group typically procures gas based on its customers seasonal normal demand, using forward contracts, at fixed prices. Customers demand is subject to fluctuations, the trading team are constantly reviewing demand and amending forecasts and hedges accordingly to ensure all demand is procured.
Credit risk
The Group's principle financial assets are cash and trade debtors. The risk associated with cash is limited. The principal credit risks arise therefore from trade debtors.
The price of Natural Gas has a direct impact upon the value of debt incurred. The continuation of a relatively high base commodity price of natural gas during the year has a negative impact upon the risks associated with trade debtors.
The Group offers credit terms to its customer in line with standard industry credit terms. The group has a diverse portfolio of SME and mid-market sized customers. All customers are credit assessed at the point of agreeing a contract, limits for customers are based on a combination of payment history, third party credit references and commercial credit insurance availability. Credit limits are reviewed by the credit risk manager on a regular basis in conjunction with debt ageing, collection history and the continued availability of credit insurance on individual customers.
Regulatory Risk
To operate as a shipper and supplier of natural gas the group requires licenses which are issued and monitored by Ofgem. To ensure the group commitments under these licenses are met a dedicated regulatory and compliance team is in place reporting to senior management on a monthly basis or when changes dictate.
Section 172 (1) The Directors of the Group must act in accordance with a set of general duties as detailed in section 172 of the Companies Act 2006.
Directors are briefed on their duties as part of their induction and have access to governance framework and professional advice either through the group secretary, the corporate governance team or if necessary, from an independent provider.
The Board of Directors (The “Board”) confirms it has performed its duties in respect in respect of section 172 of the companies act 2006. Specifically, the Board has considered the long-term factors affecting the group and its strategic direction. The Board in its decision-making process and in fulfilling its duty to promote the success of the company as set out in section 172 for the year ending 31st July 2025
Risk Management
The role of the Board is to promote the long-term interest of the Group and to oversee risk management.
Principal risks and uncertainties and financial risks as well as management of these risks are outlined in the paragraphs above.
Professional Conduct
The Board oversees compliance with key policies that are intended to instil a culture of acting lawfully, ethically and responsibly. The people team within the business are responsible for ensuring policies are monitored and updated when necessary.
Employees
The Group recognises that its most important assets are its employees. The Group believes empowering its employees at every level Inspires a collaborative workplace where its employees are driven to excel. Our learning and development team provided our staff with the skills and training required to make informed decisions enabling them to continue to meet high standards in serving the company's stakeholders.
The Group promotes diversity by employing from a range of different backgrounds, bringing together skills and expertise to create a diverse culture.
Suppliers
Our suppliers pay a crucial role in the group’s success, and we prioritise maintaining regular and ongoing communication with them. We focus on building a collaborative relationship that promotes growth and success. This commitment involves active engagement across all levels of the group, including the SLT.
Community and Environment
As a responsible energy supplier, the Board has a duty of care to ensure the Group is adhering to climate change responsibility and making ethical and sustainable choices in all business decisions
Business Relationships
The Group maintains strong relationships with customers, suppliers and regulatory bodies. The Board promotes a high level of customer engagement enabling the Group to gain the best understanding of customer needs and provide a high standard of service.
Maintaining a strong relationship with suppliers and regulatory bodies is integral in achieving the high level of growth outlined in the Group's long-term plan.
Shareholders
The Board is committed to openly engaging with the Group's shareholders on a continuous basis and believes shareholders should be informed of all material business events and risks that influence the Group. As part of the Boards commitment to keeping shareholders informed, financial performance, operational performance, market conditions and other key performance indicators are discussed on a regular basis throughout the year.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 July 2025.
The results for the year are set out on page 11.
Ordinary dividends were declared amounting to £2,000,000 (2024: £20,000,000). 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:
Azets Audit Services were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Crown Gas and Power is committed to reducing its impact on climate change and the reduction of carbon emissions associated with its products and services.
The below carbon emissions associated with the Crown Gas and Power Holdings Group have been offset with the purchase and retirement of Carbon Offset Certificates. This is in line with the requirements of the UK Government Net Zero target of 2050.
Scope 2
As a service-based organisation, the company purchased 136,310 kWh of electricity for its own use. This was primarily for the purpose of heat and light in its premises a further 2,064 kWh were used in relation to remote back up servers. For the entirety of the year ended 31 July 2024, the electricity consumed at the head office is carbon neutral and therefore have not been included in the emissions calculations presented below.
Scope 3
Limited homeworking is available to employees, the business has estimated that 12,766 kWh were consumed offering this flexibility to staff.
The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2024 UK Government’s Conversion Factors for Company Reporting as per https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2024.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, a key metric for the business.
The Directors continue to monitor the usage of energy across the business, with a view to reducing the companies carbon footprint where possible.
In an effort to mitigate the companies carbon emissions and use resources more responsibly, the company has implemented or committed to the following initiatives:
Actioned:
Carbon Offset certificates have been purchased and retired offsetting the business 2024 carbon emissions;
Solar Panels have been installed at the company offices;
Recycle all waste paper, toners, and old IT equipment;
LED lighting throughout the office and car park;
Reduce the day to day amount of paper being used during the day to day running of the business;
Offering a range of green alternative products to our customers;
Installation of heat exchange pumps in the office;
Energy consumed in the head office is carbon neutral
Planned:
Commitment to install electric car charging points
We have audited the financial statements of Crown Gas and Power (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2025 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
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.
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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 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 company and the 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 £2,000,000 (2024 - £20,002,000).
Crown Gas and Power (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Crown Point, Heap Brow, Bury, Lancashire, United Kingdom, BL9 7JR.
The group consists of Crown Gas and Power (Holdings) 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 company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Crown Gas and Power (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 July 2025. 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.
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.
Turnover represents amounts receivable on contracts relating to the supply gas to external consumers. Turnover is recognised in the period in which the services are provided to the end consumers and the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred can be measured reliably.
Additionally, turnover represents amounts due to the company under the terms of a business service agreement with another related entity whereby the company is remunerated for necessary services provided to related entities in order fulfill external customer contracts. Turnover relating to business support services billed in the month following service delivery is recognised within prepayments and accrued income.
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.
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. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the 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. 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.
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.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
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.
An accrual is made for gas obligations requiring management's best estimate of costs that will be incurred in respect of gas supplied to customers. The volume of unbilled costs is calculated by assessing a number of factors such as externally notified aggregated volumes supplied to customers and other adjustments such as industry settlement processes.
All turnover in the group originated in the United Kingdom.
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 charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 July 2025 are as follows:
Registered office addresses (all UK unless otherwise indicated):
Securities
Shell Energy Europe Limited holds a fixed charge over shares, intragroup receivables and bank accounts held by one of the company's subsidiaries, Crown Gas and Power Limited, as described in the charge agreement.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
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.
There are sixteen classes of Ordinary shares, ranking pari passu. There are no restrictions on the distribution of dividends and the repayment of capital. The holders of ordinary shares are entitled to receive dividends as declared and are entitled to one vote per share at meetings of the company.
In addition to the issued shares above, Shell Energy Europe Limited have an option to subscribe for Ordinary E Shares under the conditions of a framework agreement. Such conditions have not occurred at the balance sheet date therefore the E shares are not in issue. Should such an event occur where the shares are issued and subscribed for, the shares entitle the holder to receive dividends whenever any dividend is declared on any other class of shares. They must receive such dividends at the most favourable rate being paid on any class.
Other reserves of the group and company consist of an amount of £3,506,628 (2024: £3,506,628) of group reconstruction reserve created in the year ended 31 July 2021 on the company's acquisition of Crown Gas and Power Limited via a share-for-share exchange.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
In preparing these financial statements, advantage has been taken of the provision under Financial reporting Standard 102 Section 33, which states that disclosure is not required of transactions with entities which are part of the group headed by Crown Gas and Power (Holdings) Limited. The group undertook transactions with related parties during the year and had balances outstanding with these parties as at 31 July 2025 as follows:
During the year the group advanced funds of £7,238,669 (2024: £142,572) to, charged £863,347 of
management fees (£2024: £nil) to and made purchases of £36,402 (2024: £nil) from Crown Gas and Power 2 Limited, a company related by common parties with signficant influence over the entity, in respect of start-up costs and to fund a key supplier deposit payment made by Crown Gas and Power 2. At the balance sheet date, the group was owed £46,856 (2024: £2,548,916) from Crown Gas and Power 2. The amounts are unsecured, repayable on demand and included within debtors due less than one year.
During the year the group made sales of £832,592 (2024: £1,699,767) to, and purchases of £543,129 (2024: £838,895) from Crown Oil Limited, a company related by common parties with significant influence over the entity. At the balance sheet date, a net balance of £64,253 is due to (2024: £74,702 was due from) Crown Oil Limited and is unsecured, repayable on demand. A further amount of £589,148 (2024: £130,778) is due from Crown Oil Limited in respect of the service level agreement between the related entities, and is included within prepayments.
During the year the group made purchases of £190,542 (2024: £268,058) from AMA FIC Limited in respect of rental and management charges, a company related by common parties with significant influence over the entity. At the balance sheet date, £nil (2024: £nil) is due to AMA FIC Limited.