Solar Water PLC - Accounts

Registered number

04094302

Solar Water PLC

Annual Report and Financial Statements

For the year ended 31 December 2024

Solar Water PLC
Report and accounts
Contents




Page

Company information	1
Directors' report	2-3
Strategic report	4-7
Independent auditor's report	8-11
Income statement	12
Statement of comprehensive income	13
Statement of financial position	14
Statement of changes in equity	15
Statement of cash flows	16
Notes to the financial statements	17-25

Solar Water PLC

Company Information

Directors

Malcolm Aw

Xavier Tonnellier

Ian Graham (appointed on 7 November 2024)

Kwai Cheong Chen (appointed on 11 March 2025)

Toby John Cruse (appointed on 29 September 2025)

Solar Water Engineering Limited (Resigned on 2 August 2024)

Christopher Leslie Sansom (Resigned on 30 November 2025)

Auditors

Makesworth Audit Services Ltd

Unit 101

First Floor, Cervantes House

5-9 Headstone Road

Harrow

HA1 1PD

Registered office

19 Marina Point Lensbury Avenue

Imperial Wharf

London

SW6 2GX

Registered number

04094302

Solar Water PLC
Registered number:		04094302
Directors' Report

The directors present their report and financial statements for the year ended 31 December 2024.

Principal activities
The company's principal activity during the year continued to be water collection, treatment and supply.

Directors
The following persons served as directors during the year:

	Malcolm Aw
	Xavier Tonnellier
	Ian Graham (appointed on 7 November 2024)
	Kwai Cheong Chen (appointed on 11 March 2025)
	Toby John Cruse (appointed on 29 September 2025)
	Solar Water Engineering Limited (Resigned on 2 August 2024)
	Christopher Leslie Sansom (Resigned on 30 November 2025)

Directors' responsibilities

The directors are responsible for preparing the report and 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 (Financial Reporting Standard 102 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 estimates that are reasonable and prudent;
●	state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
●	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.


Auditors
Makesworth Audit Services Ltd were appointed as auditors to the company 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.

Disclosure of information to auditors

Each person who was a director at the time this report was approved confirms that:
●	so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and
●	he 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 auditor is aware of that information.



This report was approved by the board on 23 December 2025 and signed on its behalf.



Malcolm Aw
Director

Solar Water PLC
Strategic Report
For the year ended 31 December 2024

The directors present the strategic report for the year ended 31 December 2024

Business Review
Solar Water Plc is pleased to present its strategic report for the year ended 31 December 2024, detailing significant developments, achievements, and future prospects. In the face of challenges and opportunities, the company has remained committed to its mission of revolutionizing the water and energy industry through sustainable solutions.

Special Disclosure
In response to a discernible gap in Mr. Aw's familiarity with the operational intricacies of the company highlighted in the recent audit report, Solar Water Plc embarked on a strategic restructuring process. This initiative aimed to enhance the overall effectiveness of the team by eliminating non-contributing or underperforming employees while strategically recruiting new team members.

Financial Prudence and Business Development
Concurrently, the company has actively pursued cost-cutting initiatives to streamline operations and enhance overall efficiency, aligning with a focus on financial prudence. Directors and employees have engaged in business meetings to attract potential investors, foster partnerships, and secure financial support for ongoing and future endeavours.

Strategic Initiatives and Partnerships
In 2024, the executive chairman leveraged personal contacts to initiate discussions with new investors from the EU, Hong Kong, Malaysia, Saudi Arabia, the UAE, the UK and the US demonstrating a global approach to attracting investment and fostering international partnerships. Collaboration with an independent contractor and the University of Almeria is underway to conduct research and engage with stakeholders for the first hydro infrastructure project to be completely carbon neutral designed to produce and make available the massive amount of pure clean water for municipal, industrial, farming, biotech consumption and high tech industries that rely on super clean water for their manufacturing. Despite the deleterious mistakes outlined, the Company has prior to and since 31 December 2024, achieved a pathway of new feasible business in Abu Dhabi, China, Jordan, Malta, Malaysia Spain, the USA. It continues to rank highly for goodwill in multiple media, and attracts regular enquiries from prospective customers, agents and investors. It continues to have the endorsement of past co-workers and partners in industry, academia and government, in UK and abroad. It plans its own full-size demonstrator installation in Spain, for which venture capital institutions and wealthy professional investors are in contact to provide finance. The forecast order book is such that, were only 10 percent of it to materialise as income, the Company would be very profitable. The company continues to be sustained at the margin by research grants and VAT recoveries. We expect shortly to be re-filing for 'patent-pending' protection of our innovations in the UK. For all the above reasons, and with adequate operating capital in view, whether by internal funding round and/or external cashflow as well as possible non-dilutive third-party finance for the planned demonstrator plant, the directors are confident that the Company is a going concern, and has the opportunity to become substantially profitable in the coming years, beginning in 2024.
We are conscious that our company is still relatively young, has made mistakes, learning from them and adopting correct priorities, and that our business will require additional financing to achieve its goals. We remain disciplined in our cost base. Above all, relying on customers such as NEOM to fund and be the pioneer of the world first commercial field demonstrator has proven as risky as it should have been anticipated, leaving us back at the Development and planning Stage until our own SWCSPD demonstrator plant comes on line. We thank our shareholders and strategic partners, existing and new, for their continued support in realising our joint ambitions.

Principal risks and uncertainties
• The technology that the company owns and is disruptive and innovative and may have a negative impact on the supply chains of established but outdated technologies. However, it remains to be proven that the technology will be operationally and financially competitive, starting with our own SWCSPD demonstrator in Spain. • The company will have to compete with many organisations that have substantially greater existing market presence and infrastructure. • The company incurs most of its expenses in Pound Sterling, whereas it expects to make all of its revenue in currencies other than Pound Sterling. • The ability of the company to survive and grow past Research and Development Stage will depend on its success in signing commercial contracts, and in raising the necessary capital to execute its business plan.

Key performance indicators
Our present focus is on the successful negotiation, design, build and delivery of SWCSPD demonstrator in Spain from now into 2026. Depending on outcomes, this demonstrator will in likelihood become a commercial operation, supplying via the grid to local farms and the population, so that our stake in the venture will become a capital asset. Our global order book under development will, in contrast not be principal business, but rather take place in various PPP or licensing formats, or direct to consumer for smaller privately contracted installations, not capital intensive. It should be noted that a key financial deliverable, when compared for example to low margins and high operating expenditure in other types of desalination plant, is that with our technology many of the principal components are natural phenomena that come at no intrinsic cost of supply except the technology in employing them. We expect, possibly, that operating expenditures in SWCSPD plants will be a fraction of those for competing and established technologies, allowing the greater part of the gross margin of a SWCSPD plant to flow to the bottom line, accelerating payback, profits, easing financing and lowering costs of supply to water authorities and end-users.
We aspire to see SWCSPD becoming the dominant, sustainable and most affordable desalination technology before the worst effects come to fruition of population growth, climate change and freshwater deficit, and to see 'massive SWCSPD production become a reality for all. including plants donated to the poorest world communities.

Promoting the success of the company
In performing their duties under s172, the directors of the company have had regard to the matters set out in s172(1) as to their duties for the benefit of its members as a whole, considering the following factors: • the likely consequences of any decisions in the long term; • the interests of the company's employees; • the need to foster the company's business relationships with suppliers, customers and others; • the impact of the company's operations on the community and the environment; • the reputation for a high standard of business conduct; and • the need to act fairly as between members of the company. Solar Water plc was founded with the mission of sustainably solving the global water and energy crisis, combating climate change, with our 100% carbon emission free, environmental-impact mitigating, decentralised scalable technology solution using only the power of the sun. The company believes it is an obligation for each person to demonstrate leadership with sustainability in action in their own way and therefore, operates as such. The directors have set out clear corporate objectives, delivered under corporate governance of the highest standards, measured by aligned KPls, as laid out in its public website.
Whilst Solar Water plc is a UK based company, the directors recognise that its business transcends the globe, touching 30+ markets around the world. With this comes the responsibility of flying the British flag, which it carries whole-heartedly with colleagues in the UK Department for Business and Trade (DBT) in each relevant country, working alongside local country partners. All business conduct and interaction with each contact point is managed with due care and attention. The directors have prepared a 5-year strategic growth roadmap which it began implementing in January 2021 to deliver its mission and purpose, end the Company is on track with its plan. We recognise what we do will impact generations today and those to come. In implementing this plan, the company considers that employees and customers are key to its long term success:

Our people
Talent is at the core of our business. Not just our own employees, but also each person within our partners ecosystem who we work with across research & development, operations, sales and corporate functions. We recognise and reward our employees for their performance and results. We operate a non-hierarchical structure whereby each person has a voice and input valued. We interact with our partners the same way we would our employees with the belief that together, we can better solve a challenge and succeed. Solar Water aims to put together a team of talented individuals who share a same vision and are prepared to embark upon the monumental task of actively effect a positive climate change-back and to naturally improve the well-being of the environment with a common sense of mission. Suitable candidates are those with imagination who are prepared to first unlearn and then to have an open mind to learn with applied simplified technology of massive water recovery and reforestation. Imagineers who are entrepreneurial, enterprising end not only prepared to take the initiatives but are willing and able to take the ball and run with it. Solar Water has the solutions to the global water crisis and are looking for inspirational individuals to intelligently provide them.

Our customers
Our mantra is everyone should have access to fresh water. We welcome and value each customer who shares in our mission to provide fresh water in a sustainable manner to its community and its business needs. Each customer. public or private, is given the same high level of attention. We collaborate with our local partners and members of the DIT in each country to ensure cultures are respected and local practices abide by.

Communities & environment
We are proud that by virtue of our mission and what we do, communities can flourish and the environment preserved. The true measure of success will be the adoption of our solution globally and we have set ourselves clear goals in the years to come to achieve this. In doing so, we will aim to engage as many local partners as possible to enhance the in-market benefits we will bring to each market.

Summary and conclusion
In conclusion, Solar Water Plc has made significant strides in 2024, driven by strategic restructuring, financial prudence, and proactive business development efforts. The company remains committed to its mission of sustainability and innovation, positioning itself for continued growth, industry leadership, and positive societal impact in the years ahead.

This report was approved by the board on 23 December 2025 and signed on its behalf.



Malcolm Aw
Director

Solar Water PLC
Independent auditor's report
to the members of Solar Water PLC

Qualified Opinion

We have audited the financial statements of Solar Water PLC (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the 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 the Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
Except for the possible effects of the matter described in the 'Basis for qualified opinion' section of our report, 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 United Kingdom Generally Accepted Accounting Practice; and
●	have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for qualified opinion
The company has recognised an intellectual property (IP) asset valued at £1 million, based on an expert evaluation conducted in 2019. However, the IP has not yet undergone practical testing. Its recognition in the financial statements is contingent upon the successful completion of Solar Water Plc’s Spanish prototype, which represents a critical milestone in substantiating the asset’s value. This dependency introduces uncertainty over the reliability of the IP valuation and its impact on the company’s overall asset position. In addition, as disclosed in the going concern note in the financial statements, which indicates that further funding will be required within 12 months following the date of the approval of the financial statements to meet the working requirements and fund further research to the company’s projects. Furthermore, The company is currently subject to a legal dispute with one of its creditors concerning a liability of £600,000. Management has represented that a settlement agreement was reached with the supplier; however, the validity of this agreement is now uncertain due to the supplier’s formal demand for repayment. This matter introduces material uncertainty regarding the completeness and accuracy of the company’s liabilities and its overall financial position in respect of this creditor. 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 Auditor’s 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
Subject to any adverse implications arising from the matters referred to above, 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 authorized for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the company will continue in operation.

Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor’s 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.

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 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.

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, 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.

Auditor’s 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 auditor’s 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We have considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks and irregularities. We obtained an understanding of the legal and regulatory framework that the company operates in, and identified the key laws and regulations that: - had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, tax legislation, pension legislation etc; and - do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. In common with all audits under ISAs (UK), we are required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making the accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. In addition to the above, our procedures to respond to the risks identified included the following: In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
- obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the company operates in and how the company is complying with the legal and regulatory frameworks; - inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; - discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. - reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; - performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud: and

- enquiring of management and external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations. Due to 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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the accounts is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.


Indra Raj Giri ACA, FCCA
(Senior Statutory Auditor)		Unit 101
for and on behalf of		First Floor, Cervantes House
Makesworth Audit Services Ltd		5-9 Headstone Road
Statutory Auditor		Harrow
23 December 2025		HA1 1PD

Solar Water PLC
Income Statement
for the year ended 31 December 2024


Notes		2024		2023
£			£

Administrative expenses		(428,486)		(484,500)
Other operating income	3	281,293		148,593

Operating loss	4	(147,193)		(335,907)

Amounts written off investments		-		(20,287)
Interest receivable and other incomes		599		-
Interest payable and similar expenses	8	(586)		(2,036)

Loss on ordinary activities before taxation		(147,180)		(358,230)

Tax on loss on ordinary activities	9	-		-

Loss for the financial year		(147,180)		(358,230)

Solar Water PLC
Statement of Comprehensive Income
for the year ended 31 December 2024


Notes	2024		2023
£		£

Loss for the financial year	(147,180)		(358,230)

Other comprehensive income	-		-

Total comprehensive income for the year	(147,180)		(358,230)

Solar Water PLC
Statement of Financial Position
as at 31 December 2024

Notes			2024			2023
£				£
Fixed assets
Intangible assets	10		900,000			950,000
Tangible assets	11		495			1,981
			900,495			951,981

Current assets
Debtors	12	210,740			211,114
Investments held as current assets	13	4,515			4,515
Cash at bank and in hand		5,412			39,071
		220,667			254,700

Creditors: amounts falling due within one year	14	(689,899)			(751,969)

Net current liabilities			(469,232)			(497,269)

Total assets less current liabilities			431,263			454,712

Creditors: amounts falling due after more than one year	15		(4,291)			(15,060)

Net assets			426,972			439,652

Capital and reserves
Called up share capital	16		1,545,914			1,421,914
Share premium	17		2,821,206			2,810,706
Profit and loss account	18		(3,940,148)			(3,792,968)

Total equity			426,972			439,652




Malcolm Aw
Director
Approved by the board on 23 December 2025

Solar Water PLC
Statement of Changes in Equity
for the year ended 31 December 2024

Share		Share		Other		Profit		Total
capital		premium		reserves		and loss
account
£		£		£		£		£

At 1 January 2023	1,421,914		2,810,706		-		(3,434,738)		797,882

Loss for the financial year	-		-		-		(358,230)		(358,230)


At 31 December 2023	1,421,914		2,810,706		-		(3,792,968)		439,652



At 1 January 2024	1,421,914		2,810,706		-		(3,792,968)		439,652

Loss for the financial year	-		-		-		(147,180)		(147,180)

Shares issued	124,000		10,500		-		-		134,500

At 31 December 2024	1,545,914		2,821,206		-		(3,940,148)		426,972

Solar Water PLC
Statement of Cash Flows
for the year ended 31 December 2024

	2024		2023
£		£
Operating activities
Loss for the financial year	(147,180)		(358,230)

Adjustments for:
Loss on the disposal of investments	-		15,302
Interest receivable	(599)		-
Interest payable	586		2,036
Depreciation	1,602		1,567
Amortisation of goodwill	50,000		50,000
Decrease in debtors	374		137,568
Decrease in creditors	(62,070)		(238,922)
	(157,287)		(390,679)

Interest received	599		-
Interest paid	(586)		(2,036)

Cash used in operating activities	(157,274)		(392,715)

Investing activities
Payments to acquire tangible fixed assets	(116)		-
Payments to acquire investments	-		(4,515)
Proceeds from sale of investments	-		15,433

Cash (used in)/generated by investing activities	(116)		10,918

Financing activities
Proceeds from the issue of shares	134,500		-
Repayment of loans	(10,769)		(9,107)

Cash generated by/(used in) financing activities	123,731		(9,107)

Net cash used
Cash used in operating activities	(157,274)		(392,715)
Cash (used in)/generated by investing activities	(116)		10,918
Cash generated by/(used in) financing activities	123,731		(9,107)

Net cash used	(33,659)		(390,904)

Cash and cash equivalents at 1 January	39,071		429,975
Cash and cash equivalents at 31 December	5,412		39,071

Cash and cash equivalents comprise:
Cash at bank	5,412		39,071

Solar Water PLC
Notes to the Accounts
for the year ended 31 December 2024


1	Summary of significant accounting policies

	Basis of preparation
	The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and the Republic of Ireland and the companies Act 2006.

	Going concern
	The directors are confident that, upon completion of the company’s prototype, it will be able to secure contracts in the coming year and will be well-positioned to manage its business risks effectively. The development of the prototype will, however, require additional funding or grants. The directors reasonably expect that the required funding will be obtained from existing shareholders or external investors. Based on these expectations, the directors consider that the company has adequate resources to continue operating for the foreseeable future and, therefore, continue to adopt the going concern basis of accounting in preparing the financial statements.

	Turnover
	Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: · The amount of revenue can be measured reliably; · It is probable that the Company will receive the consideration due under the contract; · The stage of completion of the contract at the end of the reporting period can be measured reliably; and · The costs incurred and the costs to complete the contract can be measured reliably.

	Grant income
	Grant income is recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be fulfilled and the grant will be received. Grants that include specific performance conditions are recognised in income when those conditions are met. Grants without performance conditions are recognised in income when the funds are received or receivable. Any grant received prior to meeting the recognition criteria is recorded as a liability in the balance sheet.

	Research and development
	In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

	Intangible fixed assets
	Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. At each reporting date, the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

	Tangible fixed assets

	Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

	Computer equipment			over 4 years


	The residual values, useful lives, and depreciation methods of assets are reviewed at each reporting date and adjusted prospectively where necessary, including when indicators of significant change are identified.

	Investments
	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.

	Debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Taxation
	Current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Cash and cash equivalents
	Cash and cash equivalents comprise cash at bank and in hand, short term deposits with financial institutions. Cash equivalents are defined as short term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

	Provisions
	Provisions (i.e. liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.

	Share based payment arrangements
	The company operates equity-settled share-based payment arrangements in which equity instruments are issued to third parties in exchange for services. In accordance with Section 26 of FRS 102, the fair value of the services received is recognised as an expense when the services are received, with a corresponding increase in equity. Where the fair value of the services received cannot be measured reliably, the transaction is measured at the fair value of the equity instruments granted at the grant date.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period, foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

	Pensions
	Contributions to defined contribution plans are expensed in the period to which they relate.


2	Judgements and key sources of estimation uncertainty

	In the application of the company's accounting policies, the management is 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 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. There are no significant judgements and estimates involved in the preparation of the financial statements.


3	Other operating income					2024		2023
£							£

	R&D tax credit income					273,416		136,304
	Ground rent receivable					2,000		12,289
	EC Grant income					5,877		-
						281,293		148,593

	In the prior year, R&D tax credit income was presented within turnover. Management has reassessed the presentation and concluded that classifying this income as other operating income provides a more appropriate presentation under FRS 102. Accordingly, the comparative figures have been reclassified. This adjustment affects presentation only and has no impact on profit, net assets, or cash flows.

4	Operating profit					2024		2023
£							£
	This is stated after charging:

	Depreciation of owned fixed assets					1,602		1,567
	Amortisation of intellectual property					50,000		50,000
	Research and development expenditure					6,612		12,306
	Exchange differences					584		4,683


5	Auditors' remuneration

	During the year, the company obtained the following services from the auditors: Makesworth Audit Services Limited
						2024		2023
£							£

	Fee payable to the auditors for the audit of the Company's financial statements					5,000		40,000


6	Directors' emoluments					2024		2023
£							£

	Emoluments					-		66,300


7	Staff costs					2024		2023
£							£

	Wages and salaries					49,713		89,359
	Social security costs					2,597		10,839
	Other pension costs					711		2,028
						53,021		102,226


	Average number of employees during the year					Number	Number

	Administration					2		2


8	Interest payable and similar expenses					2024		2023
£							£

	Other loans					586		2,036


9	Taxation					2024		2023
£							£
	Analysis of charge in period

	Tax on profit on ordinary activities					-		-


	Factors affecting tax charge for period
	The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:

						2024		2023
£							£
	Loss on ordinary activities before tax					(147,180)		(358,230)

	Standard rate of corporation tax in the UK					19%		19%

£							£
	Profit on ordinary activities multiplied by the standard rate of corporation tax					(27,964)		(68,064)

	Effects of:
	Utilisation of tax losses					27,964		68,064

	Current tax charge for period					-		-


	Factors that may affect future tax charges
	The company has a potential deferred tax asset related to timing differences and accumulated losses. In line with the accounting policies, this amount is unrecognized due to uncertainty over the timing of future taxable profits.


10	Intangible fixed assets							£
	Intellectual property:

	Cost
	At 1 January 2024							1,000,000
	At 31 December 2024							1,000,000

	Amortisation
	At 1 January 2024							50,000
	Provided during the year							50,000
	At 31 December 2024							100,000

	Carrying amount
	At 31 December 2024							900,000
	At 31 December 2023							950,000

	Intangible assets are being written off in equal annual instalments over its estimated economic life of 20 years.


11	Tangible fixed assets
								Computer equipment
								At cost
£
	Cost or valuation
	At 1 January 2024							6,268
	Additions							116
	At 31 December 2024							6,384

	Depreciation
	At 1 January 2024							4,287
	Charge for the year							1,602
	At 31 December 2024							5,889

	Carrying amount
	At 31 December 2024							495
	At 31 December 2023							1,981


12	Debtors					2024		2023
£							£

	Other debtors					210,740		210,138
	Prepayments and accrued income					-		976
						210,740		211,114


13	Investments held as current assets					2024		2023
£							£
	Fair value
	Unlisted investments					4,515		4,515


14	Creditors: amounts falling due within one year					2024		2023
£							£

	Bank loans					10,000		10,000
	Trade creditors					666,926		667,252
	Other taxes and social security costs					-		2,403
	Other creditors					7,973		32,314
	Accruals and deferred income					5,000		40,000
						689,899		751,969


15	Creditors: amounts falling due after one year					2024		2023
£							£

	Bank loans					4,291		15,060


16	Share capital	Nominal		2024		2024		2023
value			Number		£		£
	Allotted, called up and fully paid:
	Ordinary shares	£1 each		1,545,914		1,545,914		1,421,914

Nominal			Number		Amount
value			£
	Shares issued during the period:
	Ordinary shares	£1 each		124,000		124,000


	During the year, the company issued 100,000 ordinary shares to a company in exchange for services relating to fundraising activities and the establishment of new strategic collaborations. The resulting charge of £100,000 has been recognised in the profit and loss account, with a corresponding increase in share capital.


17	Share premium					2024		2023
£							£

	At 1 January					2,810,706		2,810,706
	Shares issued					10,500		-

	At 31 December					2,821,206		2,810,706


18	Profit and loss account					2024		2023
£							£

	At 1 January					(3,792,968)		(3,434,738)
	Loss for the financial year					(147,180)		(358,230)

	At 31 December					(3,940,148)		(3,792,968)


19	Defined benefit pension plans

	The company operates a defined contributions pension scheme for all qualifying employees. The assets of this scheme are held separately from the company’s own assets in an independently administered fund. The pension cost charge, which represents the company’s contributions to the fund, amounted to £711 for the year ending in 2024.


20	Contingent liabilities

	The company is currently engaged in litigation with one of its major trade creditors, Sterling Thermal Technology Limited, regarding a payable amount of £600,864. As a result of this ongoing legal dispute, there is a potential VAT liability of £100,144, which relates to the input VAT that was claimed on this payable amount.


21	Controlling party

	The company is controlled by Malcolm Aw, who is the majority shareholder.


22	Presentation currency

	The financial statements are presented in Sterling.


23	Legal form of entity and country of incorporation

	Solar Water PLC is an unlisted public limited company incorporated in England and Wales.


24	Principal place of business

	The address of the company's principal place of business and registered office is:

	19 Marina Point Lensbury Avenue
	Imperial Wharf
	London
	SW6 2GX