Registration number:
for the Year Ended 31 December 2025
Contact Solar Ltd
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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Income Statement |
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Statement of Comprehensive Income |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Contact Solar Ltd
Company Information
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Directors |
Mr T Allen Mr AW Swarbrick Mr TP Taylor Mrs E Boase Ms C Humphrey Mr P Commaret |
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Company secretary |
R Robertson |
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Registered office |
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Bankers |
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Auditors |
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Contact Solar Ltd
Strategic Report for the Year Ended 31 December 2025
The directors present their report for the year ended 31 December 2025.
Comparative figures are for an 11-month period following the change in year end to align with the group.
The principal activity of the company in the financial period is the fitting and servicing of solar power panels and associated products.
Fair review of the business
In a continuingly competitive solar market revenue increased to £22,851,026 (2024 £10,785,133). The market is expected to grow, and Contact Solar is aiming to make steady improvements in revenue in future.
Gross margin has experienced a small drop to 33% compared with 2024 at 37%.
Increased administration expenses are largely attributed to staff costs with new jobs being created to support the increased activity. Advertising spend also increased to provide the additional sales.
Despite the increased administration expenses the directors are pleased to report a profit before tax of £55,877 for the period (2024 £173,742).
In assessing the financial position at the year end the net asset value has increased to £2,966,319 (31.01.24: £2,919,911).
Cash balances remain strong at £1,781,717 (2024 £2,134,153) which allows the company to minimise borrowing expenses and move in the market when material prices are favourable.
Principal risks and uncertainties
The directors have noted the following as the principal risks and uncertainties impacting on the company:
a) Market and competition
The company operates in an increasingly competitive environment and faces competition from a broad range of businesses including a number of new entrants to the market. The directors continue to monitor the market to ensure the company is staying ahead of its competitors in all key aspects.
b) Regulation risk
The solar panel sector as well as renewable energy at large can be impacted by government policy. If the government messaging or support to clean energy reduced it could impact demand.
c) People
Retaining and attracting good people is seen as key to maintaining customer service levels. The company tries to invest in its people through a mixture of remuneration reviews, training and providing the right working environment.
Going Concern
The company has very little bank borrowings and healthy cash balances which will be used for working capital. Therefore, the directors are confident that the company will continue trading for the next 12 months. For this reason the accounts are prepared on the going concern basis.
Key Performance Indicators
Contact Solar Ltd
Strategic Report for the Year Ended 31 December 2025
The main financial Key Performance Indicators (KPI's) are turnover and gross profit.
Turnover - £22,851,026 (31.12.24 - £10,785,133)
Gross Profit Ratio - 33.45% (31.12.24 - 37.01%)
As noted the comparative figures were for an eleven month period.
Given the performance in what is seen as the company's KPI's the directors are satisfied with the results for the period.
Approved by the
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Contact Solar Ltd
Directors' Report for the Year Ended 31 December 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
Change of company name
The company changed its name from
Directors' of the company
The directors, who held office during the year, were as follows:
Disclosure of information to the auditors
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.
Approved by the
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Contact Solar Ltd
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 Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework' ('FRS 101'). 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 apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether FRS 101 has been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | 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.
Contact Solar Ltd
Independent Auditor's Report to the Members of Contact Solar Ltd
Opinion
We have audited the financial statements of Contact Solar Ltd (the 'company') for the year ended 31 December 2025, which comprise the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework'.
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the 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.
Contact Solar Ltd
Independent Auditor's Report to the Members of Contact Solar Ltd
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, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors’ remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], 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:
Contact Solar Ltd
Independent Auditor's Report to the Members of Contact Solar Ltd
We design our procedures as to obtain sufficient appropriate audit evidence that the financial statements are not materially misstated due to non-compliance with laws and regulations or due to fraud or error.
Based on our understanding of the Company, industry and discussions with the Directors we identified FRS101 and Companies Act 2006 as having a direct effect on the amounts and disclosures in the financial statements.
Other laws and regulations where non-compliance may have a material effect on the Company's operations is compliance with the Health & Safety regulations.
As part of the engagement team discussion about how and where the Company's financial statements may be materially misstated due to fraud, including management override of systems but did not conclude there to be any areas with an increased risk of fraud.
Our audit procedures included:
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the business sector;
- enquired with the Directors about the Company's policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance;
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- examining supporting documents for all material balances, transactions and disclosures;
- review and inspection of relevant correspondence and costs with the Company's legal representatives;
- analytical procedures to identify any unusual or unexpected transactions or relationships;
- testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in preparation of the financial statements;
- review of accounting estimates for manipulation including any accounting estimates used.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
The potential impact of inherent limitations could be significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organised schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. This responsibility lies with the Directors and management.
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.
Contact Solar Ltd
Independent Auditor's Report to the Members of Contact Solar Ltd
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For and on behalf of
Preston
Lancashire
PR2 3AE
Contact Solar Ltd
Income Statement for the Year Ended 31 December 2025
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Note |
2025 |
2024 |
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Revenue |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating profit |
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Finance income |
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Finance costs |
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( |
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Net finance income/(cost) |
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( |
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Profit before tax |
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Corporation tax expense |
( |
( |
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Profit for the year |
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Contact Solar Ltd
Statement of Comprehensive Income for the Year Ended 31 December 2025
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2025 |
2024 |
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Profit for the year |
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Total comprehensive income for the year |
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Contact Solar Ltd
(Registration number: 08847741)
Statement of Financial Position as at 31 December 2025
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Note |
31 December |
31 December |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Right of use assets |
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Current assets |
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Stocks |
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Trade and other receivables |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
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( |
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Net assets |
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Capital and reserves |
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Share capital |
100 |
100 |
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Capital redemption reserve |
12 |
12 |
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Retained earnings |
2,966,207 |
2,919,799 |
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Shareholders' funds |
2,966,319 |
2,919,911 |
Approved by the
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Contact Solar Ltd
Statement of Changes in Equity for the Year Ended 31 December 2025
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Share capital |
Capital redemption reserve |
Retained earnings |
Total |
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At 1 January 2025 |
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Profit for the year |
- |
- |
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Total comprehensive income |
- |
- |
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At 31 December 2025 |
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Share capital |
Capital redemption reserve |
Retained earnings |
Total |
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At 1 February 2024 |
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Profit for the year |
- |
- |
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Total comprehensive income |
- |
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At 31 December 2024 |
100 |
12 |
2,919,799 |
2,919,911 |
Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
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General information |
The company is a private company limited by share capital, incorporated and domiciled in England & Wales.
The address of its registered office is:
The principal place of business is:
10 Eaton Avenue
Matrix Park
Buckshaw Village
Chorley
Lancashire
PR7 7NA
These financial statements were authorised for issue by the
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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.
Basis of preparation
These financial statements were prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework.
The financial statements have been prepared under the historical cost convention.
These financial statements are presented in Sterling (£), which is the company's functional currency.
The preparation of financial statements in conformity with FRS 101 requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in the process of
applying the company's accounting policies. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant to the financial statements, are
disclosed below.
Summary of disclosure exemptions
In these financial statements, the company has taken advantage of the exemptions available under FRS 101 in respect of the following disclosures:
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IFRS 7 - ‘Financial instruments: Disclosures’. |
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Paragraph 38 of IAS 1 - ‘Presentation of financial statements’ (comparative information requirements in respect of): |
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IAS 7 - ‘Statement of cash flows’. |
Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
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Paragraphs 30 and 31 of IAS 8 - ‘Accounting policies, changes in accounting estimates and errors’ (requirement for the disclosure of information when an entity has not applied a new IFRS that has been issued but is not yet effective). |
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Paragraph 17 of IAS 24 - ‘Related party disclosures’ (key management compensation). |
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The requirements in IAS 24, ‘Related party disclosures’ (to disclose related party transactions entered into between two or more members of a group). |
Changes in accounting policy
None of the standards, interpretations and amendments effective for the first time from 1 January 2025 have had a material effect on the financial statements.
Revenue recognition
Revenue comprises the fair value of consideration received or receivable for the sale and installation of solar panel systems, excluding value-added tax, rebates and discounts. The company recognises revenue when it transfers control of goods or services to a customer in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services.
Revenue from the supply and installation of solar panel systems is recognised over time as performance obligations are fulfilled. The company typically recognises revenue upon completion and installation, as this best reflects the transfer of control to the customer.
Customer deposits received in advance of performance are recorded as contract liabilities and recognised as revenue when the related services or goods are delivered.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the statement of profit and 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 company operates and generates taxable Income.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
Property, plant and equipment
Property, plant and equipment is stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.
Right of use asset
Leases are accounted for by recognising a right of use asset and a lease liability.
Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the bank borrowings offered by the company's bankers.
Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for:
lease payments made at or before commencement of the lease;
initial direct costs incurred;
Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over the remaining term of the lease or over theremaining economic life of the asset if, rarely, this is judged to be shorter than the lease term.
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:
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Asset class |
Depreciation method and rate |
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Property improvements |
10% on cost |
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Plant & machinery |
20% on cost |
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Fixtures & fittings |
20% on cost |
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Motor vehicles |
20% on cost |
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Computer equipment |
33% on cost |
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:
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 changes in value.
Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
Trade receivables
Trade receivables are amounts due from customers for the sale and installation of solar panels and associated products performed in the ordinary course of business.
Trade receivables are recognised initially at the transaction price. They are subsequently measured at cost less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the average cost method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, inventories are assessed for impairment. If inventories is impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade payables
Trade payables 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 payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.
Borrowings
All borrowings are initially recorded at the amount of proceeds received, net of transaction costs. 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 income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in finance costs.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
Provisions
Provisions are recognised when the company has a present obligation (legal or constructive) 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.
Provisions are measured at the directors’ best estimate of the expenditure required to settle the obligation at the reporting date and are discounted to present value where the effect is material.
Leases
Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
Definition
A lease is a contract, or a part of a contract, that conveys the right to use an asset or a physically distinct part of an asset (“the underlying asset”) for a period of time in exchange for consideration. Further, the contract must convey the right to the company to control the asset or a physically distinct portion thereof. A contract is deemed to convey the right to control the underlying asset if, throughout the period of use, the company has the right to:
· Obtain substantially all the economic benefits from the use of the underlying asset, and;
· Direct the use of the underlying asset (e.g. direct how and for what purpose the asset is used)
Where contracts contain a lease coupled with an agreement to purchase or sell other goods or services (i.e., non-lease components), the non-lease components are identified and accounted for separately from the lease component. The consideration in the contract is allocated to the lease and non-lease components on a relative standalone price basis using the principles in IFRS15.
Initial recognition and measurement
Each lease is recognised as a right-of-use asset with a corresponding liability at the date at which the
lease asset is available for use by the Company. The right-of-use asset is initially measured based on
the initial amount of the lease liability adjusted for any lease payments made at or before the
commencement date, plus any initial direct costs incurred, less any lease incentives received.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate for the same term as the underlying lease. Lease payments included in the measurement of lease liabilities comprise fixed payments less any lease incentives receivable and variable lease payments that depend on an index or a rate as at the commencement date. Lease modifications result in remeasurement of the lease liability.
Subsequent measurement
The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. Depreciation is recognised in operating expenses costs and interest expense is recognised under finance expenses in the statement of profit or loss. The lease term includes periods covered by an option to extend if the Company is reasonably certain to exercise that option.Right-of-use assets are reviewed for indicators of impairment and an impairment test is performed when an impairment indicator exists.
Short term and low value leases
The company has made an accounting policy election, by class of underlying asset, not to recognise lease assets and lease liabilities for leases with a lease term of 12 months or less (i.e., short-term leases). The company has made an accounting policy election on a lease-by-lease basis, not to recognise lease assets on leases for which the underlying asset is of low value.
Lease payments on short term and low value leases are accounted for on a straight line bases over the term of the lease or other systematic basis if considered more appropriate. Short term and low value lease payments are included in operating expenses in the profit and loss account.
Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
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.
Defined contribution pension obligation
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.
Financial instruments
Initial recognition
The company classifies financial instruments in accordance with IFRS 9 - Financial Instruments, as adopted in the UK.
Financial assets and liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. Financial instruments are initially recognised at fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs.
Classification and measurement
Financial instruments are classified at inception into one of the following categories, which then determine the subsequent measurement methodology:-
Financial assets are classified into one of the following categories:-
· financial assets at amortised cost;
· financial assets at fair value through the profit or loss (FVTPL).
Financial liabilities are classified into one of the following categories:-
· financial liabilities at amortised cost; or
· financial liabilities at fair value through the profit or loss (FVTPL).
Derecognition
Financial assets
A financial asset is derecognised when the contractual rights to the cash flows expire, or when the financial asset is transferred and the company has transferred substantially all the risks and rewards of ownership
Financial liabilities
The company derecognises a financial liability when its contractual obligations are discharged, cancelled, or expire.
Impairment of financial assets
Measurement of Expected Credit Losses
The company applies the expected credit losses (ECL) on financial instruments measured at cost. Credit losses are recognised in the profit or loss and updated at each reporting date to reflect changes in credit risk.
Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
Evidence that the financial asset is credit-impaired include the following;
- Significant financial difficulties of the borrower or issuer;
- A breach of contract such as default or past due event;
- The restructuring of the loan or advance by the company on terms that the company would not consider otherwise;
- It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation;
- The disappearance of an active market for the security because of financial difficulties; or
- There is other observable data relating to a group of assets such as adverse changes in the payment status of borrowers or issuers in the company, or economic conditions that correlate with defaults in the company.
For trade receivables, the company applies the simplified approach, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of contracts. The company has therefore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets.
The expected loss rates are based on the payment profiles of sales over a period of 36 month before 31 December 2025 and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The company has identified the GDP and the unemployment rate of the countries in which it sells its goods and services to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors.
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Critical accounting judgements and key sources of estimation uncertainty |
In the preparation of the financial statements, the directors have made judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenses during the year. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Significant area of estimation uncertainty includes the residual value of tangible fixed assets and depreciation applied to these assets. The directors use their industry knowledge and statistic from earlier years in their estimation techniques.
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Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
|
2025 |
2024 |
|
|
Installation of solar panel systems |
|
|
The analysis of the company's turnover for the year by market is as follows:
|
2025 |
2024 |
|
|
UK |
|
|
Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Operating profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Depreciation on right of use assets - property |
124,960 |
56,946 |
|
Depreciation on right of use assets - other |
104,364 |
- |
|
Amortisation expense |
|
|
|
Low value, short-term leases and non-lease property costs |
|
|
|
Finance income and costs |
|
2025 |
2024 |
|
|
Finance income |
||
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Interest income on bank deposits |
|
|
|
Finance costs |
||
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Interest on bank overdrafts and borrowings |
( |
( |
|
Interest on obligations under finance leases and hire purchase contracts |
( |
( |
|
Other interest expenses |
(4,664) |
(42,537) |
|
Total finance costs |
( |
( |
|
Net finance income/(costs) |
|
( |
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Administration and support |
|
|
|
|
|
Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
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Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
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Contributions paid to money purchase schemes |
|
|
|
|
|
In respect of the highest paid director:
|
2025 |
2024 |
|
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Remuneration |
|
|
|
Auditors' remuneration |
|
2025 |
2024 |
|
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Audit of the financial statements |
|
|
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Corporation tax |
Tax charged/(credited) in the income statement
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
- |
|
Deferred taxation |
||
|
Arising from origination and reversal of temporary differences |
( |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:
Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Increase/(decrease) from effect of capital allowances depreciation |
|
( |
|
Increase from effect of expenses not deductible in determining taxable profit (tax loss) |
|
|
|
Deferred tax (credit)/expense from unrecognised tax loss or credit |
( |
|
|
Total tax charge |
|
|
Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Intangible assets |
|
Software development costs |
Total |
|
|
Cost or valuation |
||
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At 1 January 2025 |
|
|
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At 31 December 2025 |
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|
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Amortisation |
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At 1 January 2025 |
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Amortisation charge |
|
|
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At 31 December 2025 |
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|
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Carrying amount |
||
|
At 31 December 2025 |
|
|
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At 31 December 2024 |
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|
|
Property, plant and equipment |
|
Leasehold property improvements |
Furniture, fittings and equipment |
Motor vehicles |
Computer equipment |
||
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Cost or valuation |
|||||
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At 1 January 2025 |
|
|
|
|
|
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Additions |
- |
|
- |
|
|
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At 31 December 2025 |
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|
|
|
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Depreciation |
|||||
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At 1 January 2025 |
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|
|
|
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Charge for the year |
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|
|
|
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At 31 December 2025 |
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|
|
|
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Carrying amount |
|||||
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At 31 December 2025 |
|
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
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Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
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Total |
|||||
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Cost or valuation |
|||||
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At 1 January 2025 |
|
||||
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Additions |
|
||||
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At 31 December 2025 |
|
||||
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Depreciation |
|||||
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At 1 January 2025 |
|
||||
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Charge for the year |
|
||||
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At 31 December 2025 |
|
||||
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Carrying amount |
|||||
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At 31 December 2025 |
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||||
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At 31 December 2024 |
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||||
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Right of use assets |
|
Property |
Other |
Total |
|
|
Cost or valuation |
|||
|
At 1 January 2025 |
|
- |
|
|
Additions |
|
|
|
|
At 31 December 2025 |
|
|
|
|
Depreciation |
|||
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At 1 January 2025 |
|
- |
|
|
Charge for the year |
|
|
|
|
At 31 December 2025 |
|
|
|
|
Carrying amount |
|||
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At 31 December 2025 |
|
|
|
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Inventories |
|
31 December |
31 December |
|
|
Stock |
|
|
Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Trade and other receivables |
|
Current |
31 December |
31 December |
|
Trade receivables |
|
|
|
Receivables from related parties |
|
|
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Prepayments |
|
|
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Other receivables |
|
|
|
|
|
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Cash and cash equivalents |
|
31 December |
31 December |
|
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Cash at bank |
|
|
|
Creditors: amounts falling due within one year |
|
31 December |
31 December |
|
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Trade payables |
|
|
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Accrued expenses |
|
|
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Amounts due to related parties |
- |
|
|
Social security and other taxes |
|
|
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Other payables |
|
|
|
Corporation tax liability |
|
|
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Loans and borrowings |
|
|
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Deferred income |
|
|
|
|
|
|
Loans and borrowings |
|
31 December |
31 December |
|
|
Non-current loans and borrowings |
||
|
Finance lease liabilities |
|
|
Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
31 December |
31 December |
31 January |
|
|
Current loans and borrowings |
|||
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Bank borrowings |
|
|
10,162 |
|
Finance lease liabilities |
|
|
- |
|
|
|
10,162 |
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Bank borrowings
|
The UK Government have provided a 100% guarantee on the Bounce Back Loan Scheme (BBLS), borrowings obtained from the Co-Operative Bank Plc. |
|
Share capital |
Allotted, called up and fully paid shares
|
31 December |
31 December |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
100 |
|
100 |
|
Reserves |
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £46,618 (2024 - £23,389).
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Related party transactions |
At the period end the company was owed £4,226 from Adjack Developments Ltd (31 December 2024 £1,519 owing), a company with a common director. The company paid £81,000 as rent to Adjack Developments Ltd for the premises used (2024: £54,250). This has been allocated in line with the relevant lease arrangements.
The company has taken advantage of the exemption under FRS 101 paragraph 8 (k) not to disclose information about transactions entered into between two or more members of the group where any subsidiary which is a party to the transactions is wholly owned by such member.
Contact Solar Ltd
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Parent and ultimate parent undertaking |
At 31 December 2025, Electrcite de France, a company incorporated in France is regarded by the Directors as the Company's ultimate parent company and controlling party. This is the largest group for which consolidated financial statements are prepared. Copies of that company's consolidated financial statements may be obtained from the registered office address at Electricite de France, 22-30 Avenue de Wagram, 75382, Paris, Cedex 08, France.