Directors' Report and Financial Statements

The principal activity of the Company is the generation and sale of renewable energy, renewable energy certificates, the provision of associated services and the trading of feedstock.

The Company maintains appropriate Directors' and Officers' Liability Insurance on behalf of the directors. In addition, individual qualifying third party indemnities are given to the directors which comply with the provisions of Section 234 of the Companies Act 2006, and were in force throughout the period and up to the date of signing the Directors' Report.

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

In our opinion the financial statements of Gorst Energy Limited (the "Company"):

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's responsibilities for the audit of the financial statements section of our report.

The other information comprises the information included in the Annual Report, other than the financial statements and our Auditor’s Report thereon. The directors are responsible for the other information contained within the annual report. 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.

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.

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.

The accounting reference period has been extended so as to end on 31 December 2024 in order to achieve alignment with the Group reporting period end. In which case, the 15 month current period and 12 month prior period reported in the Statement of Comprehensive Income are not directly comparable.

All amounts relate to continuing activities.

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' ("FRS 101") and the Companies Act 2006.

The presentational and functional currency of these accounts is GBP. The level of rounding is to the nearest pound.

The following new standards and amendments are effective for the period beginning 1 October 2023:

The directors have assessed the Company’s ability to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements. This assessment has considered the Company’s financial position, forecast cash flows, liquidity requirements, and the support available from Group through its parent undertaking, ENGIE Renewable Gases UK Limited.

Turnover represents the fair value of the consideration received or receivable for the supply of goods and services in the ordinary course of business, net of value added tax and other sales related taxes. To determine whether to recognise revenue, the Company follows a 5-step process as follows:

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Interest receivable and similar income is recognised in profit or loss using the effective interest method.

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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 income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

Pillar Two of the Organisation for Economic Co-Operation and Development's (“OECD's”) Two Pillar Solution provides for the taxation of income of large groups at a minimum effective rate of 15% on a jurisdictional basis.

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Assets that are subject to depreciation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised as the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Stocks consist of feedstocks and maintenance spares.

The Company leases land, plant and equipment and motor vehicles used in its operations.

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the amounts reported in the financial statements. Actual outcomes may differ from these estimates.

All turnover during the current period and prior year arose within the United Kingdom.

The Company has no employees other than the directors (year ended 30 September 2023 - Nil), who did not receive any remuneration (year ended 30 September 2023 - £Nil).

The Company has trading losses and unrelieved non-trade loan relationship deficits carried forward at the reporting date of £12,864,669 (year ended 30 September 2023 - £12,857,630) available for offset against future profits of the business. A deferred tax asset has been recognised on these losses only up to the level of the Company's deferred tax liabilities relating to fixed asset timing differences. The deferred tax asset on the remaining losses at the reporting date of £2,400,713 (year ended 30 September 2023 - £2,547,314) has not been recognised as its recoverability is uncertain.

Included within the FRS 101 transition adjustments is the reclassification of a hire purchase asset with a cost of £111,350 and accumulated depreciation of £9,279 from Plant and machinery to Right of use assets. The reclassification had no impact on net book value

Amounts owed by group undertakings are unsecured, repayable on demand and do not bear interest.

Following the ENGIE acquisition, amounts owed to group undertakings are unsecured, interest free and repayable on demand.