The members present their annual report and financial statements for the year ended 31 December 2025.
The principal activity of GW Mozambique Investments LLP ('the LLP') is investment in and management of international development finance projects in Mozambique, any other business associated with, relevant to, or necessary for, the activities specified above or as otherwise approved by Gridworks Development Partners LLP.
The partnership was incorporated on 15 December 2023.
The LLP values its portfolio in accordance with IFRS 13 Fair Value Measurement and the International Private Equity and Venture Capital Valuation Guidelines. This being the price which would be received in an orderly transaction between market participants at the measurement date. The valuation methodology is further explained in note 1. Valuation risks are mitigated by comprehensive reviews of underlying investments in the projects on an ongoing basis, and formally evaluated by management twice a year.
The LLP’s activities expose it to a variety of financial risks including market risk, credit risk, climate risk and liquidity risk. Market risk includes foreign currency risk, interest rate risk and price risk. The main financial risks managed by the LLP are liquidity risk, credit risk, market risk and valuation risk. Climate risk is considered by the LLP's Investment Committee at the beginning of and during investments.
The transmission project remains in development. Operational risks includes risks associated with people, processes, systems and external events.
The LLP recorded a net profit of $30,170 for the year ended 31 December 2025 (2024: net profit of $2,066). The net assets attributable to the members were US$3,681,773 at 31 December 2025 (2024: net assets of US$2,789,031). This increase in deployment represents growth in assets in investment and deployment projects in Mozambique. The key performance indicators for the LLP are profit or loss and net assets.
The Limited Liability Partnership Members' Agreement ('Partnership Agreement') sets out the details and governance around subscription of funds to the LLP. The LLP is not anticipating members' drawings or repayment of members' capital in the short term as the LLP continues being established. All profits and losses belong to Gridworks Development Partners LLP and ultimately to British International Investment plc. Any future drawings or repayment of capital will be considered within the ongoing funding arrangements defined within the Partnership Agreement (see note 12).
The designated members who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor, Deloitte LLP, is deemed to be appointed under section 487(2) of the Companies Act 2006.
The LLP at a corporate level has not consumed more than 40,000 kWh of energy this reporting period, hence, it qualifies as a low energy user and is not required to report on its emissions, energy consumption or energy efficiency activities. It is noted that this does not include the operations of the investments.
The LLP is a wholly owned subsidiary of Gridworks Development Partners LLP which is a wholly owned subsidiary of British International Investment plc and British International Investment Overseas Limited and should operate near breakeven during the development and construction phases of a project. As projects complete and become operational, the LLP expects to become profitable. Gridworks Development Partners LLP made a $862,572 contribution for operational and development costs during the year. Forecasts demonstrate that sufficient liquid resources are in place to fund the business for the 12 months following the signing of the financial statements. Accordingly, the going concern basis of accounting has been used in preparing the report and financial statements.
There have been no material events since the reporting period and before signing that would require adjustment to these financial statements.
The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
The Limited Liability Partnerships (Accounts & Audit) (Application of Companies Act 2006) Regulations 2008 require the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom adopted international accounting standards. The financial statements also comply with the IFRS Accounting standards. The members 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 limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the limited liability partnership will continue in business.
The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements which comprise:
the statement of comprehensive income;
the statement of financial position;
the reconciliation of members’ interests;
the statement of cash flows; and
the related notes 1 to 14.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom adopted international accounting standards and IFRS Accounting Standards as issued by the IASB.
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the members’ 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 limited liability partnership’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.
Other information
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 misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
We considered the nature of the limited liability partnership’s industry and its control environment, and reviewed the limited liability partnership’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the members about their own identification and assessment of the risks of irregularities, including those that are specific to the limited liability partnership’s business sector.
We obtained an understanding of the legal and regulatory framework that the limited liability partnership operates in, and identified the key laws and regulations that:
had a direct effect on the determination of material amounts and disclosures in the financial statements. These included Companies Act 2006; and
do not have a direct effect on the financial statements but compliance with which may be fundamental to the limited liability partnership’s ability to operate or to avoid a material penalty
We discussed among the audit engagement team including relevant internal specialists such as valuation specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for fraud in the following area, and our procedures performed to address it are described below:
Valuation of contract assets with significant unobservable inputs involves the application of a valuation methodology and the use of assumptions which require significant management judgement and therefore there is potential for management bias. We challenged management on the appropriateness of the methodology employed, and evaluated the appropriateness of key inputs and assumptions used in the valuation.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
enquiring of management and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
reading minutes of meetings of those charged with governance.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
enquiring of management and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
reading minutes of meetings of those charged with governance.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report in respect of the following matters 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
we have not received all the information and explanations we require for our audit.
We have nothing to report in respect of these matters.
Use of our report
This report is made solely to the limited liability partnership’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 limited liability partnership’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 limited liability partnership and the limited liability partnership’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The income statement has been prepared on the basis that all operations are continuing operations.
The accompanying notes on pages 12 to 19 form an integral part of these financial statements.
Refer to note 14 for information on restatement of prior year comparatives.
GW Mozambique Investments LLP is a limited liability partnership incorporated in England and Wales. The registered office is 123 Victoria Street, London, SW1E 6DE.
The limited liability partnership's principal activities are disclosed in the Members' Report.
The current reporting period represented is from 1 January 2025 to 31 December 2025. The prior reporting period represented is from 15 December 2023 to 31 December 2024, therefore results are not entirely comparable.
The financial statements have been prepared in accordance with UK-adopted international accounting standards and, with International Financial Reporting Standards as issued by the IASB.
The financial statements are prepared in dollars, which is the functional currency of the limited liability partnership. Assets and liabilities are retranslated at spot rates at the statement of financial position date. Foreign exchange gains and losses resulting from the settlement of such transactions and from translation of assets and liabilities denominated in foreign currencies at the year-end exchange rate are recognised in the statement of comprehensive income. Monetary amounts in these financial statements are rounded to the nearest $.
The financial statements have been prepared on a historical cost basis except for financial assets measured at fair value through profit and loss which have been measured at fair value in accordance with relevant accounting standards.
An amount of $500,000 relating to financing received for repayable grants previously classified as “Change in other payables” under operating activities have been re-classified to “Proceeds from repayable grants” under financing activities in the comparative period of the statement of cash flows to align with the accounting policy (see note 1.6).
The LLP is a wholly owned subsidiary of Gridworks Development Partners LLP which is a wholly owned subsidiary of British International Investment plc and British International Investment Overseas Limited and should operate near breakeven during the development and construction phases of a project. As projects complete and become operational, the LLP expects to become profitable. Gridworks Development Partners LLP made a $862,572 contribution for operational and development costs during the year. Forecasts demonstrate that sufficient liquid resources are in place to fund the business for the 12 months following the signing of the financial statements. Accordingly, the going concern basis of accounting has been used in preparing the report and financial statements.
The LLP assesses its exposure to credit risk and considers it to be nil to low, based on the current state of operations. As such, no formal expected credit loss (ECL) assessment is performed under the amortised cost principle in IFRS 9.
If balances within trade receivables, amounts due from related parties and other receivables became subject to higher credit risk, the LLP would assess expected credit losses in accordance with IFRS 9 and recognise an appropriate loss allowance. The carrying amount of the relevant financial assets is reduced using a loss allowance account, with changes recognised through profit or loss.
Contract assets represent costs incurred in relation to development projects where the LLP is engaged in providing development services but has not yet obtained an unconditional right to consideration. The LLP's entitlement to recover such costs and earn related development fees is contingent upon the relevant project achieving financial close.
Costs incurred in progressing projects to a financial-close-ready state are recognised as contract assets where they satisfy the criteria in IFRS 15 to costs to fulfil a contact. Such costs are recognised as an asset only when they:
relate directly to a specific contract, or anticipated contract
generate or enhance resources that will be used in satisfying future performance obligations; and
are expected to be recovered through future development fees or other contractual consideration.
Costs that do not meet these criteria are recognised as an expense incurred. Contract assets are initially recognised at cost and are assessed for impairment at each reporting date.
Financial assets
Unquoted equity investments are included in the statement of financial position at fair value. There is no material difference between the fair value and the book value of the LLP’s cash.
Basic financial assets, which include trade and other receivables, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the LLP transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Transactions in currencies other than US dollars are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Cash and cash equivalents
Cash and cash equivalents comprise of cash balances held in bank accounts, converted to US$ where relevant at the closing rate, deposits (maturing in less than three months) and money market balances.
New and revised IFRS standards in issue but not yet effective
The accounting policies set out in these financial statements have been applied consistently to all periods presented.
The following accounting standards became effective for the periods commencing on or after 1 January 2025:
Amendments to IAS 21 - Lack of Exchangeability and Hyperinflationary Presentation Currency;
Amendments to IFRS 16 - Lease Liability in a Sale and Leaseback;
Amendments to IAS 7 and IFRS 7 - Supplier Finance Arrangements; and
Amendments to IFRS 9 - Contracts Referencing Nature-dependent Electricity.
The following standards are issued but not yet effective and have not been applied to these financial statements:
IFRS 18 - Presentation and Disclosure in Financial Statements (effective for annual periods beginning on or after 1 January 2026);
IFRS 19 - Subsidiaries without Public Accountability: Disclosures (effective for annual periods beginning on or after 1 January 2027);
Amendments to IAS 1 - Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants (effective from 1 January 2026); and
Amendments to IFRS 9 and IFRS 7 - Classification and Measurements of Financial Instruments (effective from 1 January 2026).
The LLP is currently assessing the impact of IFRS 18. This standard is expected to have a material impact on the presentation and disclosure of the LLP's financial statements, including changes to the structure of the statement of profit or loss and enhanced disclosure requirements.
The LLP does not expect the other standards and amendments listed above to have a material impact on its financial statements.
In the application of the LLP’s accounting policies, the Members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are relevant. Actual results may differ from these estimates.
The key accounting estimate is the carrying value of investment assets which are stated at fair value of $5,117,360. As part of the LLP's valuation policy, projects in the development stage are valued at cost until the stage that the project reaches certain construction milestones or the commercial operations date (COD). From this point, it is most likely the project will be valued using a discounted cash flow model (DCF).
Asset valuations for unquoted investments are inherently subjective, as they are made on the basis of assumptions which may not prove to be accurate in expected cash flows, such as discount rates and foreign exchange rates. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Additional key areas of judgement include the likelihood that the project will reach financial close and therefore the capitalisation of the costs on the balance sheet. |
The following table shows the maturity profile of the LLP’s liabilities:
For both years presented, the expected credit loss (ECL) is $0.
During the year the limited liability partnership entered into the following transactions with related parties:
During the prior year, the LLP received intercompany loans from the parent LLP. The loans were provided to support the LLP's operations and are subject to standard commercial terms. The balance was settled via members' contribution during the year, with costs relating to the investment not being repayable. All transactions with the parent LLP were conducted at arm's length and in compliance with applicable regulations.
Members’ Contributions
In 2025, Gridworks Development Partners LLP made a $862,572 (2024: $2,786,965) contribution for operational and development costs.
The LLP's activities exposes it to a variety of financial risks, including market risk, credit risk and liquidity risk. Market risk includes foreign currency risk, interest rate risk and price risk. The main financial risks managed by the LLP are liquidity risk, credit risk, market risk and valuation risk.
The LLP's immediate parent and controlling party at 31 December 2025 by virtue of its 100% beneficial interest in the LLP capital, is Gridworks Development Partners LLP, a corporate entity registered at 123 Victoria Street, London, SW1E 6DE, England. Gridworks Development Partners LLP acts as the immediate parent company of the LLP and its financial statements are publicly available. British International Investment plc is the parent of Gridworks Development Partners LLP and the ultimate parent of the LLP is the Secretary for Foreign, Commonwealth and Development Affairs. Gridworks Development Partners LLP is not required to produce consolidated accounts. Economic ownership and LLP membership are 100% held by Gridworks Development Partners LLP and 0% GW Overseas Holdings Limited.
The parent company website can be found at www.gridworkspartners.com
There have been no material events since the reporting period that would require adjustment to these financial statements. Events after the reporting period that would require adjustment to these financial statements are those that provide evidence of conditions that existed at 31 December 2025, events after the reporting period are indicative of conditions that arose after the reporting period do not lead to adjustment of the financial states, but are disclosed in the event that they are material.
In the current year, management reassessed the accounting treatment applied to development cost balances relating to projects that remain in the development phase and have not yet reached financial close. These balances were previously presented as equity investments measured at fair value through profit or loss, with costs incurred recognised in administrative expenses and an equal fair value gain recognised in the statement of comprehensive income. Management has concluded that this treatment was not appropriate because, before financial close, there is no existing equity instrument and no present contractual right to receive cash or another financial asset. The Group's right to recover development costs and earn a development fee is conditional on the relevant project reaching financial close.
The balances have therefore been reclassified as contract assets under IFRS 15, representing costs incurred to fulfil a contract, or anticipated contract, to provide development services in progressing the projects to a financial-close-ready state. Such costs are recognised as an asset only where the criterial in IFRS 15.95 are met, including that the costs are directly related to the contract, generate or enhance resources to satisfy future performance obligations, and are expected to be recovered. Revenue in respect of the development services will be recognised when financial close is achieved, being the point at which the performance obligation is satisfied and the entity becomes entitled to the development fee. The prior year comparatives have been restated to reclassify the relevant balances from equity investments to contract assets have to remove the equal and opposite administrative expense and fair value gain previously recognised. An amount of $2,265,136 previously disclosed as a change in value of equity investments has been re-presented as a change in value of contract assets under the operating activities of the Statement of cash flows to align with the reclassification of equity investments as contract assets under IFRS 15. The restatement has no impact on net asset, net profit or equity.
A summary of the effects on the financial statements below: