Registration number:
R Energy Group Limited
for the Year Ended 31 March 2025
R Energy Group Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
R Energy Group Limited
Company Information
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Directors |
Mr Thomas Adam Flack Miss Victoria Jayne Rigby |
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Registered office |
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Auditors |
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R Energy Group Limited
Strategic Report for the Year Ended 31 March 2025
The directors present their strategic report for the year ended 31 March 2025.
Principal activity
The principal activity of the group is Energy Procurement and Consultancy Services.
Fair review of the business
Guild Energy's performance improved improved significantly in 2025 despite turnover being 18% lower than the previous year as EBITDA increased by £1m to a profit of £282K. The main reason for the substantial loss in 2024 was the provision that was made against revenue following the order book reconciliation project. Whilst that project continues it is nearinga conclusion, and we are expecting the final adjustment to be made in the 2026 accounts. The business continues to invest in new sales agants to grow the order book and therefore grow turnover and we are expecting to see that growth materialise in future years.
LG Energy Group performed well in 2025 showing good stable growth on 2024, with turnover increasing by 14% and EBITDA by 29%. Whilst wages increased by £248K in the year ( a 9% increase) to remain competitive and attract the right calibre of staff the increase in turover more than compensated for it. Also, savings were made against Establishment costs of £80K (a 25% reduction) due to us downsizing offices in Manchester given the lower day to day presence having adopted hybrid working after COVID. General expenses increased by £61K (a 9% increase) which was mainly due to an increase in management fees that related to a catch up charge for group head office costs.
Consultancy revenue continues to increase each year, with it representing 17.0% of total revenue in 2024-25 compared with 15% in 2023-24. We are expecting this trend to continue as we expand our consultancy offerings in a bid to diversify away from being predominently procurement based.
The directors are confident of the ongoing performance of both companies and are expectinga sustained growth in both companies for 2025-26 and beyond. Both businesses have now fully recoverd from the impact of COVID-19 and are performing extremely well.
There are no banking covenants in the group, but the group is funded via a related party loan from Rigby Estates LLP. That loan is secure and there are no requirements for it to be repaid in the immediate future. Rigby Estates views this loan as an investment that ultimately benefits the beneficiary of the LLP. The intention to repay these loans when there are share transactions in the future in one or more of the subsidiaries.
The company's key financial and other performance indicators during the year were as follows:
|
Financial KPIs |
Unit |
2025 |
2024 |
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Turnover |
£ |
6,161,476 |
5,778,830 |
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EBITDA |
£ |
994,840 |
(209,169) |
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Year on year change |
% |
16 |
(4) |
Principal risks and uncertainties
The principal risks facing the group is the impact of the current energy markets, mainly on Guild Energy. During the height of the cost-of-living crisesfixed price contracts were withdrawn from the market which resulted in Guild Energy being unable to sell any new business. With the ongoing situation in Ukraine and the Middle East it is likely that global energy proces will remain volatile.
Approved and authorised by the
R Energy Group Limited
Strategic Report for the Year Ended 31 March 2025
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R Energy Group Limited
Directors' Report for the Year Ended 31 March 2025
The directors present their report and the for the year ended 31 March 2025.
Directors of the group
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
Impact of Energy Prices
The impact of the current climate in relation to energy prices does not have a direct impact on the company or any of its subsidiaries as none trade speculatively on energy prices not take any title to supply. The potential impact on the company is indirect as a result of its clients ceasing ceasing to trade as a result of becoming insolvent or being unable to meet credit requirements of energy suppliers required to enter into the type of contracts we provide.
Price risk, credit risk, liquidity risk and cash flow risk
Liquidity Risk
The company aims to mitigate liquidity risk by closely managing cash generation by its operating business and monitring performance. Capital investment is closely controlled with authorisation upto director level.
Interest Rate Risk
The company does not consider it is exposed toa significant financial risk from this but it is closely managed.
Employee involvement
The group's policy is to consult and discuss with employees matters likely to affect employees' interests.
Environmental matters
The group predominately receives its turnover as a commission on its clients energy consumption. In Guild Energy all its turnover is generated in this way however in LG Energy Group around 22% of turnover comes from management fees which are fixed regardless of consumption levels. As more pressure is applied to UK businesses to reduce their energy consumption through statutory reporting and compliance a larger part of the services we provide is centred around consultancy services. New 'Green' energy supply products are being developed to assist our clients move towards Net Zero and an increasing number of new business clients are being contracted on a management fee basis.
Guild Energy operate mainly in the SME space where there is currently little to no compliance requirements and are more focussed on sales volumes.
Whilst larger consumers are expected to inovate their own solutions in regards to reducing their carbon footprint smaller consumers are reliant on renewable infrastructure and new widely available technologies to assist them with hitting their targets.
Research and development
R Energy Group Limited
Directors' Report for the Year Ended 31 March 2025
LG Energy Group Ltd continues to develop new energy management and procurement strategies and systems with a particular focus on renewable energies and net zero.
Going concern
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.
There is a loan owing to the Rigby Childrens Discretionery Trust.The trustees of the Rigby Childrens Discretionery Trust have confirmed their ongoing support for the group, that loans made to it are interest free and there is no requirement to call in the loan.
Guild Energy Ltd successfully completed its Company Voluntary Arrangement in 2024.
The directors have prepaared forecasts for the years to 31st March 2027 and 2028 showing increased profits in these periods.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
The auditors Beckett Rawcliffe Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved and authorised by the
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R Energy Group Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
R Energy Group Limited
Independent Auditor's Report to the Members of R Energy Group Limited
Opinion
We have audited the financial statements of R Energy Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2025 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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.
Emphasis of matter
Loan from Related Party
There is a sum owed to Rigby Children's Discretionery Trust which is a related party. The trustees of the trust have given assurances that there is no intention to call in the loans made to the Group by either the Trust or it's manageing agent Rigby Estates LLP in the foreseeable future. Our report is not qualified in this respect.
Other debtors
Included in other debtors for Guild Energy Ltd there is an amount of £960,639 (2024-£1,093,380) owing in respect of commissions against which a full provision has been made due to it being considered unlikely that these amounts will be realised. We have not been able to verify this due to an ongoing reconciliation process being carried out by the Company, however, virtually the whole of the debtor has been provided against. Our report is not qualified in this respect.
R Energy Group Limited
Independent Auditor's Report to the Members of R Energy Group Limited
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. We discussed going concern with management and reviewed post year end management accounts, future cash and accounting projections, inter company loan accounts, time to pay arrangments with HMRC, managements control of expenditure, regulatory matters, current demand for the groups services and future plans for the Group.
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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and 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 our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company 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. |
R Energy Group Limited
Independent Auditor's Report to the Members of R Energy Group Limited
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], 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 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:
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material mis-statements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material mis-statement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- The engagement partne rensured the team possessed the appropriate competence, capabilities and skills;
- We identified laws and regulations applicable to the Company through discussions with the directors;
- We focussed on those laws and regulations which have a direct material effect on the financial statements: &
- We assessed the extent of compliance my making enquiries of the directors.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures
- tested journal entries to identify unusual transactions
- investigated rationale behind significant or unusual transactions
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual or potential litigation or claims;
- reviewing correspondence with HMRC and the Company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the financial statements, the less likely it is that we would be aware of non-compliance. Auditing Standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material mis-statements that arise due to fraud can be harder to detect that those that arise from error as they may involve deliberate concealment or collusion.
R Energy Group Limited
Independent Auditor's Report to the Members of R Energy Group Limited
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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.
......................................
For and on behalf of
Sovereign Court
Wyrefields
Poulton Le Fylde
Lancashire
FY6 8JX
R Energy Group Limited
Consolidated Profit and Loss Account for the Year Ended 31 March 2025
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Note |
2025 |
2024 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
- |
|
|
Operating profit/(loss) |
|
( |
|
|
Other interest receivable and similar income |
- |
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
(33,245) |
(37,048) |
||
|
Profit/(loss) before tax |
|
( |
|
|
Tax on profit/(loss) |
( |
- |
|
|
Profit/(loss) for the financial year |
|
( |
|
|
Profit/(loss) attributable to: |
|||
|
Owners of the company |
|
( |
|
|
Minority interests |
|
|
|
|
|
( |
The group has no recognised gains or losses for the year other than the results above.
R Energy Group Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2025
|
2025 |
2024 |
|
|
Profit/(loss) for the year |
|
( |
|
Total comprehensive income for the year |
|
( |
|
Total comprehensive income attributable to: |
||
|
Owners of the company |
|
( |
|
Minority interests |
|
|
|
|
( |
R Energy Group Limited
(Registration number: 08798715)
Consolidated Balance Sheet as at 31 March 2025
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Note |
2025 |
2024 |
|
|
Fixed assets |
|||
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Intangible assets |
|
|
|
|
Tangible assets |
|
|
|
|
|
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||
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Current assets |
|||
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Stocks |
|
|
|
|
Debtors |
|
|
|
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Cash at bank and in hand |
|
|
|
|
|
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net liabilities |
( |
( |
|
|
Capital and reserves |
|||
|
Called up share capital |
100 |
100 |
|
|
Share premium reserve |
72,333 |
72,333 |
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|
Retained earnings |
(5,879,254) |
(6,424,334) |
|
|
Equity attributable to owners of the company |
(5,806,821) |
(6,351,901) |
|
|
minority interests |
632,543 |
497,106 |
|
|
Shareholders' deficit |
(5,174,278) |
(5,854,795) |
Approved and authorised by the
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R Energy Group Limited
(Registration number: 08798715)
Balance Sheet as at 31 March 2025
|
Note |
2025 |
2024 |
|
|
Current assets |
|||
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Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Total assets less current liabilities |
( |
( |
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Net liabilities |
( |
( |
|
|
Capital and reserves |
|||
|
Called up share capital |
100 |
100 |
|
|
Retained earnings |
(5,252,988) |
(5,266,864) |
|
|
Shareholders' deficit |
(5,252,888) |
(5,266,764) |
The company made a profit after tax for the financial year of £13,876 (2024 - loss of £5,000).
Approved and authorised by the
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R Energy Group Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 March 2025
Equity attributable to the parent company
|
Share capital |
Share premium |
Retained earnings |
Total |
|
|
At 1 April 2024 |
|
|
( |
( |
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 31 March 2025 |
|
|
( |
( |
|
Non-controlling interests - Equity |
Total equity |
|
|
At 1 April 2024 |
|
( |
|
Profit for the year |
|
|
|
Dividends |
- |
( |
|
At 31 March 2025 |
|
( |
|
Share capital |
Share premium |
Retained earnings |
Total |
|
|
At 1 April 2023 |
|
|
( |
( |
|
(Loss)/profit for the year |
- |
- |
( |
( |
|
At 31 March 2024 |
100 |
72,333 |
(6,424,334) |
(6,351,901) |
|
Non-controlling interests - Equity |
Total equity |
|
|
At 1 April 2023 |
|
( |
|
(Loss)/profit for the year |
|
( |
|
At 31 March 2024 |
497,106 |
(5,854,795) |
R Energy Group Limited
Statement of Changes in Equity for the Year Ended 31 March 2025
|
Share capital |
Retained earnings |
Total |
|
|
At 1 April 2024 |
|
( |
( |
|
Profit for the year |
- |
|
|
|
At 31 March 2025 |
|
( |
( |
|
Share capital |
Retained earnings |
Total |
|
|
At 1 April 2023 |
|
( |
( |
|
Loss for the year |
- |
( |
( |
|
At 31 March 2024 |
100 |
(5,266,864) |
(5,266,764) |
R Energy Group Limited
Consolidated Statement of Cash Flows for the Year Ended 31 March 2025
|
Note |
2025 |
2024 |
|
|
Cash flows from operating activities |
|||
|
Profit/(loss) for the year |
|
( |
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Finance income |
- |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
- |
|
|
|
( |
||
|
Working capital adjustments |
|||
|
(Increase)/decrease in stocks |
( |
|
|
|
(Increase)/decrease in trade debtors |
( |
|
|
|
Decrease in trade creditors |
( |
( |
|
|
Increase in provisions |
|
|
|
|
Cash generated from operations |
|
|
|
|
Income taxes received |
|
- |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
- |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Proceeds from bank borrowing draw downs |
( |
( |
|
|
Repayment of other borrowing |
( |
( |
|
|
Dividends paid |
( |
- |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 April |
( |
|
|
|
Cash and cash equivalents at 31 March |
23,682 |
(58,024) |
|
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
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General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
England
The presentation currency of the financial statements is pounds sterling (£).
These financial statements were authorised for issue by the
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2025.
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
Judgements
The figure for revenue is ultimately derived from an 'Income Profile Model' which is based on estimated revenues for each contract over the life of that contract. The initial estimate is in fact based on actual energy usage of the client prior to entering the new contract. This estimate is periodically updated over the life of the contract with the updates based on actual energy usage. Revenue is realised some time before it is actually invoiced and is carried in the balance sheet as 'Income Accrual' under Other Debtors. |
Key sources of estimation uncertainty
Uninvoiced Commission Revenues derived from an 'Income Profile Model' and carried as 'Other Debtors'. The carrying amount is £2,704,394 (2024 -£2,677,352).
Revenue recognition
When assessing the measurement of progress towards complete satisfaction of the performance obligation of the commission revenue, management deemed that the input method best depicted the transfer of services to the customer.
After thorough assessment of the groups costs to share model, consideration of tendering costs and costs to obtain a contract that do not contribute to the groups progress in satisfying the performance and additional services provided over the life of a corporate sector contract.
Revenue recognised prior to invoicing is included in other debtors.
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Office Equipment |
20% straight line |
|
Fixtures & Fittings |
10-20% straight line |
|
Plant & Machinery |
10% straight line |
|
Information Technology |
20% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Development Costs |
Straight line over 4 years |
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks relate to work in progress which in turn relates to commissions paid to employees on full contact value paid in stages but paid in full at the point the contract starts. This is spread over the average life of contracts within the groups order books with 20% or 50% commission taken at the start of the contract in line with the revenue recognition policy.
Note this is a change of policy over prior years which resulted in a write off of stock put through prior year accounts in accordance with FRS102.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
|
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
|
2025 |
2024 |
|
|
Rendering of services |
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
2025 |
2024 |
|
|
Miscellaneous other operating income |
|
- |
|
Operating profit/(loss) |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Operating lease expense - plant and machinery |
- |
|
|
Other interest receivable and similar income |
|
2025 |
2024 |
|
|
Interest income on bank deposits |
- |
|
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest expense on other finance liabilities |
|
|
|
Foreign exchange gains |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Administration and support |
|
|
|
Research and development |
|
|
|
Sales, marketing and distribution |
|
|
|
|
|
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
In respect of the highest paid director:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of these financial statements |
11,250 |
16,736 |
|
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
5,250 |
5,000 |
|
|
|
|
|
Other fees to auditors |
||
|
Audit-related assurance services |
|
|
|
Taxation compliance services |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
- |
|
UK corporation tax adjustment to prior periods |
|
- |
|
153,877 |
- |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
2025 |
2024 |
|
|
Profit/(loss) before tax |
|
( |
|
Corporation tax at standard rate |
|
- |
|
Tax increase from effect of capital allowances and depreciation |
|
- |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
- |
|
Effect of tax losses |
( |
- |
|
Tax decrease arising from group relief |
( |
- |
|
Tax increase from effect of adjustment in research and development tax credit |
|
- |
|
Total tax charge |
|
- |
|
Intangible assets |
Group
|
Internally generated software development costs |
Total |
|
|
Cost or valuation |
||
|
At 1 April 2024 |
|
|
|
At 31 March 2025 |
|
|
|
Amortisation |
||
|
At 1 April 2024 |
|
|
|
Amortisation charge |
|
|
|
At 31 March 2025 |
|
|
|
Carrying amount |
||
|
At 31 March 2025 |
|
|
|
At 31 March 2024 |
|
|
|
Tangible assets |
Group
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Furniture, fittings and equipment |
Total |
|
|
Cost or valuation |
||
|
At 1 April 2024 |
|
|
|
Additions |
|
|
|
At 31 March 2025 |
|
|
|
Depreciation |
||
|
At 1 April 2024 |
|
|
|
Charge for the year |
|
|
|
At 31 March 2025 |
|
|
|
Carrying amount |
||
|
At 31 March 2025 |
|
|
|
At 31 March 2024 |
|
|
|
Investments |
Company
|
2025 |
2024 |
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 April 2024 |
|
|
Provision |
|
|
At 1 April 2024 |
|
|
Carrying amount |
|
|
At 31 March 2025 |
- |
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2025 |
2024 |
|||
|
Subsidiary undertakings |
||||
|
|
England & Wales |
|
|
|
|
|
England & Wales |
|
|
|
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
|
England & Wales |
|
|
|
|
|
England & Wales |
|
|
|
|
Subsidiary undertakings |
|
LG Energy Group Ltd The principal activity of LG Energy Group Ltd is |
|
Greengengroup.co.uk Ltd The principal activity of Greengengroup.co.uk Ltd is |
|
Carr Farm Biogas Ltd The principal activity of Carr Farm Biogas Ltd is |
|
Guild Energy Ltd The principal activity of Guild Energy Ltd is |
|
Stocks |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Work in progress |
|
|
- |
- |
Group
|
Debtors |
|
Group |
Company |
||||
|
Current |
Note |
2025 |
2024 |
2025 |
2024 |
|
Trade debtors |
|
|
- |
- |
|
|
Amounts owed by related parties |
- |
- |
|
|
|
|
Other debtors |
|
|
- |
- |
|
|
Prepayments |
|
|
- |
- |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Cash on hand |
|
|
|
|
|
Cash at bank |
|
|
- |
- |
|
|
|
|
|
|
|
Bank overdrafts |
( |
( |
- |
- |
|
Cash and cash equivalents in statement of cash flows |
23,682 |
(58,024) |
100 |
100 |
|
Creditors |
|
Group |
Company |
||||
|
Note |
2025 |
2024 |
2025 |
2024 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Trade creditors |
|
|
- |
- |
|
|
Amounts due to related parties |
|
|
|
|
|
|
Social security and other taxes |
|
|
- |
- |
|
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
|
Other payables |
|
|
- |
- |
|
|
Accruals |
|
|
|
|
|
|
Income tax liability |
173,937 |
- |
- |
- |
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Other financial liabilities |
|
|
|
|
|
|
|
|
|
|
||
|
Provisions for liabilities |
Group
|
Onerous contracts |
Total |
|
|
At 1 April 2024 |
|
|
|
Increase (decrease) in existing provisions |
|
|
|
At 31 March 2025 |
|
|
|
|
||
Provision has been made in respect of shortfalls of commissions expected from energy supply contracts.
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
100 |
|
100 |
|
Reserves |
Group
Share Premium Account
Arising on past issue on new shares in LG Energy Group Ltd.
|
Loans and borrowings |
Non-current loans and borrowings
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Bank borrowings |
|
|
- |
- |
Current loans and borrowings
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Bank borrowings |
|
- |
- |
- |
|
Bank overdrafts |
|
|
- |
- |
|
|
|
- |
- |
|
Group
Bank borrowings
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Debenture including fixed and floating charges over all assets of LG Energy Group Ltd and R Energy Group Ltd. |
|
|
Other borrowings
Rigby Childrens Discretionary Trust is denominated in GBP with a nominal interest rate of 0%%. The carrying amount at year end is £4,434,016 (2024 - £4,485,252).
|
Obligations under leases and hire purchase contracts |
Group
Finance leases
Finance leases relate to LG Energy Group Ltd
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
- |
- |
Operating leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Dividends |
|
2025 |
2024 |
|||
|
£ |
£ |
|||
|
Interim dividend of £ |
6,125 |
- |
||
|
Related party transactions |
Group
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Transactions with directors |
|
2025 |
At 1 April 2024 |
Repayments by director |
At 31 March 2025 |
|
Mr Thomas Adam Flack |
|||
|
|
- |
- |
- |
|
Directors Loan Account |
|
( |
|
|
81,609 |
(603) |
81,006 |
|
|
2024 |
At 1 April 2023 |
At 31 March 2024 |
|
Mr Thomas Adam Flack |
||
|
|
- |
- |
|
Directors Loan Account |
|
|
|
81,609 |
81,609 |
|
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
Summary of transactions with all entities with joint control or significant interest
R Group of Companies Ltd
Management Charges
Summary of transactions with other related parties
Rigby Group Ltd
Lease of offices used by LG Energy Group ltd
Expenditure with and payables to related parties
|
2025 |
Entities with joint control or significant influence |
Other related parties |
|
Rendering of services |
|
- |
|
Leases |
- |
|
|
|
|
|
|
|
||
|
2024 |
Entities with joint control or significant influence |
Other related parties |
|
Rendering of services |
|
- |
|
Leases |
- |
|
|
|
|
|
|
|
||
Loans from related parties
|
2025 |
Entities with joint control or significant influence |
Other related parties |
Total |
|
At start of period |
|
|
|
|
Repaid |
- |
( |
( |
|
At end of period |
|
|
|
|
|
|||
R Energy Group Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
2024 |
Entities with joint control or significant influence |
Other related parties |
Total |
|
At start of period |
- |
|
|
|
Advanced |
|
- |
|
|
Repaid |
- |
( |
( |
|
At end of period |
|
|
|
|
|
|||
|
Parent and ultimate parent undertaking |
The ultimate controlling party is