The directors present their Annual Report on the affairs of the Company, together with the financial statements and auditor’s report, for the year ended 31 December 2025. They have been prepared based on the accounting policies shown in note 3, in accordance with International Financial Reporting Standards (“IFRSs”) as adopted by the United Kingdom.

The Company is an investment holding Company. The Company holds a 50% joint venture investment in Seabank Power Limited, a UK Company which owns and operates a power station, and equity accounts for its share of the results of Seabank Power Limited.

The results for the Company show a profit after taxation of £6.8m (2024: £8.6m), the decrease being driven by lower profits shared from the joint venture, Seabank Power Limited. The net cash inflow in the year was £0.4m (2024: outflow of £-4.8m). The movement compared to the prior year was primarily driven by the repayment of fixed rate bonds in December 2024, with no equivalent financing outflow in the current year.

The key financial performance indicators used by the Board of Directors in their monitoring of the Company are operating profit, net cash flow from operating activities and net assets. All KPIs, as set out below are in line with the expectation of management.

Key performance indicators movement:

Operating profit has decreased by £6.6m due to lower profit shared from the joint venture.

Net cash flow from operating activities improved during the year due primarily to lower working capital outflows, particularly reduced movements in payables and accruals compared to the prior year.

Net asset value has decreased by £-3.7m as dividends received from Seabank Power Limited during the year exceeded the Company’s share of profits recognised from the joint venture. Under the equity method of accounting, dividends received reduce the carrying value of the investment and resulted in a reduction in net assets during the year.

Donations

There were no charitable or political donations made in the year (2024: nil).

Dividends

A dividend of £-10.5m was declared and paid in the year (2024: £0.0). The Directors do not recommend the payment of a final dividend for either the current or prior year.

Climate Reporting

Given the company does not trade and therefore consumes less than 40,000 KWH of energy per annum, it is exempt from reporting any disclosures under the Government Streamlined Energy and Carbon reporting regulations (SECR).

Future Prospects

The Company will perform consistently with that seen in the year ended 2025, with dividend income funding operational costs. The Directors will consider the declaration and payment of an interim dividend in the final quarter of the 2026 calendar year.

Following the full redemption of its £50m listed bonds on 19 December 2024 - funded through a £29m equity injection from its shareholder Sino Task Limited and a £23.1m dividend received from Seabank Power Limited, Electricity First Limited was financed solely through equity during 2025, with no external borrowings outstanding. The risks and uncertainties of the Company reflect those associated with the recoverability of the investment in its joint venture. The recoverability of the investment in its joint venture will be mitigated by reviewing the recoverable amount annually each December and recognising a write down of investment cost if required. Management have concluded no impairment is required in the current year as the recoverable amount remains significantly above carrying value.

The Company’s business activities, performance, and position together with its principal risks and uncertainties likely to affect its future development and performance are set out above. The Company has net current assets of £1.4m (2024: £1.9m) and net assets of £107.0m (2024: £110.7m). The company has no liquidity risks.

The directors have made enquiries and reviewed the 5-year cash flow forecasts of Electricity First Limited and have a reasonable expectation that the Company has adequate resources and an ongoing dividend income, so to continue in operational existence for the foreseeable future and at least for the 12 month period following the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing financial statements, despite the current uncertain economic climate.

Section 172 of the Companies Act 2006 requires that a director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefits of its members as a whole, and in doing so have regard to the following factors:

The board of directors have agreed to the factors set out above when discharging our section 172 duties through the decisions we have made across the year, along with any other relevant factors. We acknowledge that not every decision will have a positive outcome for all our stakeholders. We do however consider the company’s strategic priorities and values and believe we have a decision-making process in place to enable us to make consistent and predictable decisions.

As a company we believe that we are trusted by our stakeholders and have a good reputation for high standards of professionalism within the business we conduct. As part of this, the Board has oversight of and actively monitors the strong control environment managed by senior management to ensure a high standard of business conduct is met and the reputation of the company is maintained.

The company is a holding company and therefore has no customers, suppliers or employees. As a holding company, its impact on the community and environment is insignificant.

Approved by the Board and signed on its behalf by:

The directors present the Annual Report, together with the audited financial statements of the company for the year ended 31 December 2025. The principal activity, financial and operational review, dividends, prospect, climate reporting, principal risks and uncertainties and going concern are presented in the Strategic report.

The following persons were directors of the company during the whole of the financial year and up to the date of this report, unless otherwise stated:

The directors did not receive any indemnities in relation to their services to the Company during the current or prior years.

No contract of significance, to which the Company or any of its holding companies or fellow subsidiaries was a party and in which a Director of the Company had a material interest, whether directly or indirectly, subsisted at the end of the year or at any time during the year. At no time during the year was the Company or any of its holding companies or fellow subsidiaries a party to any arrangements to enable the directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other corporate body.

Please see ‘Climate Reporting’ paragraph in the strategic report.

Each of the persons who is a director at the date of approval of this report confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

Deloitte LLP has expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place [are being made] for them to be deemed reappointed as auditors in the absence of an Annual General Meeting.

There were no significant events since the balance sheet date.

Approved by the Board and signed on its behalf by:

The Directors are responsible 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 International Financial Reporting Standards ('IFRS') as adopted by the United Kingdom. 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 the profit or loss of the company for that year.

In preparing these financial statements, the directors are required to:

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. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

There are no other items therefore no separate statement of other comprehensive income is presented. All components of other comprehensive income may be recycled through the income statement. All results are derived from continuing operations.

The financial statements of Electricity First Limited, registration number 07233880, were approved by the Board of Directors and signed on behalf of the Board of Directors.

All shares rank pari passu in all respects.

In the current year, the Company has adopted a number of amendments to International Financial Reporting Standards (“IFRSs”), that are effective for accounting periods beginning on or after 1st January 2025, the adoption of those IFRSs and IASs has had no material impact on the Company’s results and financial position for the current year or prior years and does not result in any significant change in accounting policies of the Company.

Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates titled Lack of Exchangeability

The company has adopted the amendments to IAS 21 for the first time in the current year. The amendments specify how to assess whether a currency is exchangeable, and how to determine the exchange rate when it is not.

These general purpose financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the United Kingdom, and the Companies Act 2006.

The financial statements have been prepared on the historical cost basis. The principal accounting policies adopted are set out below.

The Company’s business activities, performance, and position together with its principal risks and uncertainties likely to affect its future development and performance are set out above. The Company has net current assets of £1.4m (2024: £1.9m) and net assets of £107.0m (2024: £110.7m). The company has no liquidity risks.

The directors have made enquiries and reviewed the 5-year cash flow forecasts of Electricity First Limited and have a reasonable expectation that the Company has adequate resources and an ongoing dividend income, so to continue in operational existence for the foreseeable future and at least for the 12 month period following the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing financial statements, despite the current uncertain economic climate.

A joint venture is a contractual arrangement whereby the venturers agree to share control of the arrangement which exists only when the decisions about the relevant activities require unanimous consent of the parties sharing control, and have rights to the net assets of the arrangement.

The results and assets and liabilities of joint ventures are incorporated in the Company’s financial statements using the equity method of accounting. Under the equity method, investments in joint ventures are carried in the statement of financial position at cost as adjusted for post-acquisition changes in the Company’s share of the net assets of the joint ventures, less impairment in the values of individual investments.

Losses of the joint venture in excess of the Company’s interest in that joint venture (which includes any long-term interests that, in substance, form part of the Company’s investment in the joint venture) are not recognised.

Dividends received from joint ventures accounted for using the equity method are recognised as a reduction in the carrying amount of the investment and are not recognised within profit or loss.

Where the basis of preparation of the results of the joint arrangement differs from that of the company, accounting adjustments are made to align the reported balances with IFRS.

Financial assets and financial liabilities are recognised on the statement of financial position when the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. All recognised financial assets are measured subsequently in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

Debt instruments that meet the following conditions are measured subsequently at amortised cost:

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period.

The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the amortised cost of a financial asset before adjusting for any loss allowance.

All financial liabilities are measured subsequently at amortised cost using the effective interest method.

Cash and cash equivalents comprise cash on hand and demand 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.

Borrowing costs are recognised in profit or loss in the period in which they are incurred.

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount.

All dividend declarations are at the discretion of directors and is recognised when the obligation to make payment is established.

Current tax and deferred tax

The tax expenses for the year comprises current and deferred tax. Tax is recognised in the statement of income and retained earnings.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax is provided for all temporary differences arising between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit of the corresponding year. Deferred tax liabilities are generally recognised for all taxable temporary differences, and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of the reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the year when the liability is settled or the asset is realised. Deferred tax is charged or credited in the statement of comprehensive income except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

The Company was exposed to interest rate risk in relation to fixed-rate bonds held, due to intermediate holding companies. The bonds were repaid in 2024. This risk is no longer applicable.

The Company performs impairment assessment under expected credit loss model upon application of IFRS 9 based on individual assessment on each debt at the end of the reporting period to ensure that adequate impairment losses are made.

The Company measures the loss allowance equal to 12-month expected credit loss. Unless when there has been a significant increase in credit risk since initial recognition, the Company recognises lifetime expected credit loss.

The estimated loss rates are estimated based on historically observed default rates over the expected life of the financial assets and are adjusted for forward-looking information that is available without undue cost or effort.

The Company’s maximum exposure to credit risk which will cause a financial loss to the Company due to failure to discharge an obligation by the counterparty is amount due from a joint venture. The Company’s management considers that the credit risk to the above is low as the immediate holding companies will financially support its joint venture should the need arise.

Income represents the Company’s share of results from its joint venture.

Finance cost represented interest expense at 11% on bonds from intermediate holding companies. These bonds were repaid on 19 December 2024.

No staff costs have been incurred as there are no employees employed by the Company during the current or preceding year. No director received emoluments in respect of services provided to the Company during the current or preceding year.

The current tax rate applied during the year was 25% (2024: 25%) based on the standard rate of corporate tax substantively enacted during the period.

A deferred tax asset of £6,027,997 (2024 - £5,587,601) in respect of Corporate Interest Restriction balance carried forward has not been recognised because in the opinion of the directors it will not be able to be recovered in the foreseeable future.

Particulars of the joint venture are set out below:

Seabank Power Limited is incorporated in the United Kingdom. The address of its registered office is Severn Road, Hallen, Bristol, BS10 7SP.

Summarised financial information in respect of the Company’s joint venture is set out below:

The accounting adjustments relating to stock and depreciation arise in the process of aligning the basis of preparation of the joint venture’s results, FRS 102, with that of the company, IFRS.

The stock adjustment relates to the capitalisation of certain strategic spare parts held by the joint venture, whilst the depreciation adjustment reflects the depreciation on these parts, coupled with an extension to the estimated useful life of the joint venture’s core asset to reflect its expected date of retirement.

All ordinary shares rank equally with regard to the Company’s residual assets. The holders of ordinary shares are entitled to one vote per share at meetings of the Company.

The share premium reserve comprises premiums received on the issue of shares over their nominal value. This reserve is recognised as equity under IAS 32 and is non‑distributable in accordance with applicable legislation.

(b) Reconciliation of liabilities arising from financing activities

The table below details changes in the Company’s liabilities from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are liabilities for which cash flows were, or future cash flows will be, classified in the Company’s cash flow statement as cash flows from financing activities.

There have been no transactions with directors in the year (2024: nil).

During the year, the Company entered into the following transactions with related parties:

The following amounts were outstanding at the end of the reporting period:

The balances held with the joint venture do not bear interest.

The directors regard Sino Task Limited, a Company incorporated in British Virgin Islands, as the immediate parent Company but it is not required to prepare consolidated financial statements. No consolidation exemption has been applied in respect of these financial statements accordingly.

The Company has no controlling party as it is ultimately owned by the above consortium members.