These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Lee Valley Heat Network Operating Company Limited, trading as Energetik, is a private company limited by share capital, incorporated in England and Wales, registration number 09763702. The address of the registered office and principal place of business is Civic Centre, Silver Street, Enfield, England, EN1 3XA.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

The company’s parent undertaking has provided assurance to the directors that it is their intention to ensure that the Company has sufficient financial resources necessary to enable it to continue in operational existence and to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements. On this basis the directors have deemed it reasonable to prepare these financial statements on a going concern basis.true

Turnover represents the fair value of consideration receivable for services supplied by the company, exclusive of value added tax and trade discounts. Turnover principally consists of the supply of energy and heat to commercial and residential clients as well as connection fees received for properties that connect to the heat network.

Revenue from the supply of energy and heat is recognised as the services are provided, based on consumption over the period to which the supply relates.

Connection fee income relates to amounts charged to customers for connecting properties to the heat network. These arrangements comprise a single contract for the construction of a connection, with revenue recognised over the term of the project.

Intangible assets are represented by development expenditure, principally relating to the design and installation of pipework and plant, which is capitalised where there is a clearly defined project, related expenditure is separately identifiable and it has been assessed for technical and commercial viability.

Amortisation of the intangible assets will commence on each project once it has reached full completion, is in use and has started to generate economic benefit to the business. Amortisation will be charged, in line with the associated rates for pipework and other plant as detailed in the tangible fixed asset accounting policy, at the following average rates:

The carrying amounts of the company's assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable. If any such indication exists, the asset's recoverable amount is estimated and an impairment provision made if appropriate.

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation on tangible fixed assets is charged to the profit and loss so as to write off their value, over their estimated useful lives, using the following methods:

Tangible fixed assets are depreciated from the date they are utilised in generating income.

At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Assets under construction

Assets under construction include the company’s investment in a new energy centre and the cost of expanding its underground heat network which will connect to this new energy centre on completion.

These assets include the building which houses the energy centre, the plant and machinery contained within the energy centre and the pipework installed to expand the heat network.

Assets under construction are not being depreciated until they are brought into use, at which point they will be allocated to the appropriate asset class with depreciation applied accordingly.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

The tax expense represents the sum of the tax currently payable and deferred tax.

Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Government grants are recognised on the accrual model and are measured at fair value of the asset receivable. Grants are classified as relating either to other income or to assets. Grants related to other income are recognised in profit or loss over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Transactions in currencies other than pounds sterling 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.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the Company as lessee.

In determining the revenue and costs to be recognised in relation to work completed on long term contracts management must make judgements regarding the stage of completion of the work being undertaken. This judgement is based around the level of costs incurred on a particular job, in comparison to the total expected costs to complete the work. A significant deviation in the estimated costs to complete could have a significant impact on the level of revenue recognised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

In making decisions regarding the depreciation of fixed assets, management must estimate the useful life of said assets to the business. A change in estimate would result in a change in the depreciation charged to the statement of total comprehensive income in each year.

The company accounts for provisions in accordance with FRS 102. Full details are provided in note 11. There are currently the following type of provisions:

Bad Debt Provision

The company provides for bad debts based on 1% of domestic revenue (2025: 1%).

Long-term Maintenance Provision

Provisions are recognised for providing long term maintenance where the the company may need to replace assets such as boilers or other components. The provision is recognised based on 7.5% (prior years - 5%) of the fixed and variable turnover for the year on residential contracts.

The average monthly number of persons (including directors) employed by the company during the year was:

Wage costs in the financial statements include recharges from an umbrella company who operates on behalf of Enfield Council, and costs of people directly employed by Lee Valley Heat Network Operating Company Limited.

The amounts disclosed above relate to wage costs posted to profit and loss. In addition to these costs, the business has capitalised any wage costs that are directly related to the construction of the heat network. Included in Development cost additions are wages of £252,728 (2025: £410,855).

During the year, the Company allotted 565,507 ordinary shares of £1 each for non-cash consideration following the conversion of convertible loan notes into equity. The shares were issued fully paid and resulted in an increase in called up share capital of £565,507.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2026 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.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

Amounts contracted for but not provided in the financial statements:

At 31 March 2026 the company had capital commitments of £47.0m (2025: £11.6) relating to the construction of its heat network infrastructure. These amounts represent contracted expenditure not provided for in the financial statements.

During the year, the company paid fees to its directors amounting to £18,000 (2025: £15,000). These payments represent compensation for services provided in their capacity as directors and were made on normal commercial terms.

The ultimate parent entity is Enfield Council which is the next senior parent for which publicly available consolidated financial statements are prepared which include the results of Lee Valley Heat Network Operating Company Limited. Enfield Council is the parent of the smallest and largest group for which consolidated financial statements are prepared, The parent's company's registered office is Civic Centre, Silver Street,Enfield, England, EN1 3XA. The consolidated financial statements can be obtained from the Enfield Council website.

The ultimate controlling party is The Mayor and Burgesses of the London Borough of Enfield by virtue of their controlling interest in the ultimate parent, Enfield Council.