The trustees present their annual report and financial statements for the year ended 31 March 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with Power Circle Ltd's governing documents, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The advancement of environmental protection and improvement through the promotion of sustainable development for the benefit of the public in the UK and internationally by: (a) The preservation, conservation and protection of the environment and the prudent use of natural resources, including through the provision of energy efficiency and low carbon energy services; (b) The relief of poverty and the improvement of the conditions of life in socially and economically disadvantaged communities;(c) The promotion of sustainable means of achieving economic growth and regeneration. Sustainable development in this context means "development" that aims to meet the needs of the present without compromising the ability of future generations to meet their own needs.
The overall aim of Power Circle Ltd is to support the energy transition in a just and equitable way by facilitating initiatives that ensure that all sections of the community including those on the lowest income and most in need of affordable energy are able to benefit from the need to access affordable green energy.
Our planned activities include:
(i) Projects by trading subsidiaries in disadvantaged communities
(ii) Other projects by trading subsidiaries
(iii) Use of profit gifted by trading subsidiaries
The primary route to facilitating such initiatives will be through trading subsidiaries including through an already established wholly owned subsidiary Power Circle Projects Ltd, over which Power Circle Ltd has and will maintain full strategic oversight. Where Power Circle Projects Ltd's overall business performance gives rise to profit which could be distributed, such profit will be covenanted to Power Circle Ltd to advance Power Circle Ltd.'s charitable Objects. This may be done either by directly or by providing funds for other organisations which further our charitable Objects. There is also scope to raise funding to support our charitable Object via application to grant awarding bodies.
Power Circle Ltd may also establish subsidiary project companies on its own or with funders or customers which will own local energy projects, in each case to facilitate the net zero carbon journey.
Power Circle Project Ltd's mission is "To enable local energy users to access low carbon energy at scale in a way that is affordable, fair and breaks down social barriers." It does this by developing and managing local energy systems including providing advice and support to social landlords and other site owners or developers and establishing and managing and implementing local energy systems on their behalf or in partnership.
As owner, Power Circle Ltd will provide strategic direction to Power Circle Projects Ltd and exercise all ownership rights. Power Circle Ltd's Directors which are the charity's trustees, will monitor how the trading subsidiary is performing and how well it is meeting the goal of raising funds for the charity.
Substantial progress has been made in 2024/25, at this early stage of Power Circle Ltd's development. Key elements are described below.
(i) SHIELD project. SHIELD stands for Smart Heat and Intelligent Energy in Low-Income Districts. SHIELD is an innovative project created by Power Circle Projects Ltd and is led by UK Power Networks. It is funded by the Ofgem Strategic Innovation Fund. In 2024/25, it worked with its project partners to create a successful Beta Phase application and commenced Beta Phase delivery. Significant savings for tenants were evidenced by monitoring of two pilot homes which are served using Power Circle’s social esco (energy services company) business model. Participation by 300 low income households is planned in Beta Phase.
An outline of SHIELD is provided here
www.powercircle.org.uk/shield
Progress in Alpha Phase in 2023/24 is described here:
https://www.youtube.com/watch?v=waBrH6UtLiU&list=PL-hp8OOckWOAsE5eIAGhy7g9AU18-6v9I&index=7&t=5377s
Progress in Beta Phase is too early for public domain information equivalent to the above to have been produced.
(ii) ESSNET project. ESSNET stands for Essex Net Zero Task Force. This is an Innovate UK-funded project led by Essex County Council. Power Circle Projects led on Finance and Business Model workstreams. ESSNET has enabled progress towards the first esco activity at scale by Power Circle Projects Ltd and activation of the first Power Circle project company, Essex Community Energy CIC, which has been set up with support from Essex County Council. Phase 2 of the ESSNET project completed in July 2025.
(iii) Scottish projects including local authority dialogue re strategic energy partnering and provision of consultancy, strategic work and project development of potential future projects.
(iv) Social esco development with funder dialogue for ESSNET Phase 1 and Phase 2 project finance supported by extensive energy and financial modelling led to the entering of £10m project finance agreement with a private funder in July 2025.
Power Circle Ltd has yet to distribute any of the profit gifted by its trading subsidiaries - see Plans for future periods.
This is set out in our Annual Accounts 2024/25.
At this stage of its development, and having no financial commitments, the Trustees believe that it is only necessary to hold a level of financial reserves. Reserves Policy will be reviewed as Power Circle Ltd's activity increases.
The trustees have assessed the main risk to which the Power Circle Ltd is exposed as being the risk that its subsidiaries incur losses and therefore are unable to gift profit to it. The trustees have introduced systems to oversee trading subsidiaries to mitigate this risk.
Our plans for 2025/26 and 2026/27 include:
(i) Deployment of the Solar Circle Phase 1 funded solar PV programme, via the project companies Essex Community Energy and Power Circle Energy Services.
(ii) Securing project finance for a larger Solar Circle Phase 2 programme.
(iii) Delivering early components of the four-year SHIELD Beta Phase.
(iv) Making grant applications for developmental work.
(v) Giving further consideration to use of profit we anticipate will be gifted to Power Circle Ltd in future years.
Power Circle Ltd is a company limited by guarantee. Its governing documents are its Memorandum and Articles of Association.
The trustees have paid due regard to guidance issued by the Office of Scottish Charity Regulator in deciding what activities Power Circle Ltd should undertake.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
As a company, our trustees are our company directors. There have been no changes in our company directors in 2024/25. Becoming a director is by invitation from the Board of Directors following interview by Board members. Any Board member may recommend consideration of a new Director. No external organisations have a right to appoint Directors.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the Power Circle Ltd for the year ended 31 March 2025, which are set out on pages 5 to 12.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In the course of my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with Section 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
have not been met, or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Power Circle Ltd is a private company limited by guarantee incorporated in Scotland. The registered office is c/o Anderson Strathearn LLP, 58 Morrison Street, Edinburgh, EH3 8BP.
The financial statements have been prepared in accordance with Power Circle Ltd's governing documents, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Power Circle Ltd is a Public Benefit Entity as defined by FRS 102.
Power Circle Ltd has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of Power Circle Ltd. 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.
At the time of approving the financial statements, the trustees have a reasonable expectation that Power Circle Ltd has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Income is recognised when Power Circle Ltd is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once Power Circle Ltd has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by Power Circle Ltd. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Power Circle Ltd 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 Power Circle Ltd's balance sheet when Power Circle Ltd becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations 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 Power Circle Ltd’s contractual obligations expire or are discharged or cancelled.
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 Power Circle Ltd is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
In the application of Power Circle Ltd’s accounting policies, the trustees 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.
None of the trustees (or any persons connected with them) received any remuneration or benefits from Power Circle Ltd during the year, or were reimbursed for any expenses incurred.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Interest is payable on the loan to subsidiary undertakings at 0.65% below the Bank of England base rate, which is equivalent to an Instant Access Savings Account paid by Shawbrook Bank, which following a comparison is where the Trustees plan to set up a Power Circle Savings Account when they need to. The loan is repayable on demand.
The Corporation Tax repayable was repaid on 14 August 2025.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2024 - none).
These financial statements are unconsolidated Power Circle Ltd financial statements for the year ended 31 March 2024.
Details of the Power Circle Ltd's subsidiaries at 31 March 2025 are as follows: