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COMPANY REGISTRATION No: 02894377
KENT ENVIROPOWER LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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KENT ENVIROPOWER LIMITED
COMPANY INFORMATION
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KENT ENVIROPOWER LIMITED
CONTENTS
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Independent auditors' report
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Statement of comprehensive income
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Statement of changes in equity
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Notes to the financial statements
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KENT ENVIROPOWER LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present their strategic report on the affairs of Kent Enviropower Limited ("the Company") for the year ended 31 December 2025.
The Company operates within a joint venture structure involving Fomento de Construcciones y Contratas, S.A. (“FCC”), a
company incorporated in Spain and listed on the Madrid Stock Exchange, and investment vehicles advised by iCON
Infrastructure LLP (“iCON”).
The Company is a member of a sub-group (“GRP”, "the Group") comprising five UK-based EfW plants (Allington,
Eastcroft, Lincoln, Millerhill at Edinburgh & Midlothian and Greatmoor in Buckinghamshire) and their related SPV and
holding companies. GRP’s immediate parent, FCC Medio Ambiente Reino Unido SLU (“FCC MARU”), holds a 51% stake
in GRP. GRP EFW Investments Limited, a company controlled by investment vehicles advised by iCON Infrastructure LLP
(collectively, “iCON”), holds the remaining 49%. FCC and iCON have combined their expertise and resources to support
the provision of low carbon energy infrastructure and contribute to the UK’s net zero ambitions.
The Board sees the development of major EfW waste infrastructure projects to support sustainable waste management and
strategic long-term partnerships as key to the Group’s future business growth. Coupled with a greater focus on reduction,
reuse and recycling, EfW is an important part of today’s waste hierarchy.
The principal activity of the Company during the year ended 31 December 2025 was the operation and management of the EfW facility at Allington in Kent.
The activities, strategies and risks affecting the Company are inextricably similar to, and dependent on, those of the Group, and consequently it is appropriate that the following narrative applies to the Group in its entirety.
The Directors consider that the Company’s business performance was in line with expectations during the period.
Commentary on the Company’s results is set out in the Results, dividends, and key performance indicators section on page 2.
The ongoing military conflicts in Ukraine and the Middle East continued to contribute to increased political instability and uncertainty across the world, but during the year, there were signs that fuel prices were becoming more stable and inflation was expected to return to lower, pre-conflict levels. Since the year end, conflict involving Iran, the United States and Israeli forces has increased tensions across the Gulf states and pushed fuel prices higher, exacerbating inflationary pressures and further continuing uncertainty.
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KENT ENVIROPOWER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Results, dividends and key performance indicators
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The results for the year ended 31 December 2025 are set out on page 15. The profit for the financial year ended 31 December 2025 amounted to £19.5million (2024: £24.7million). The profit before tax for the financial year ended 31 December 2025 amounted to £25.8million (2024: £33.1million). The main drivers of the decrease in profits were primarily lower plant availability and inferior waste composition, which contributed to reduced energy output. The Company paid an interim dividend of £12.0million during the year (2024: £19.0million). The Directors do not recommend the payment of a final dividend (2024: £nil).
For the year ended 31 December 2025, revenue decreased by 1.8% to £84.6million (2024: £86.2million).
FCC manages its operations on a divisional basis and information regarding financial and non-financial key performance indicators is included within the FCC annual report. For this reason, the Company’s Directors believe that the disclosure of further key performance indicators for the Company is not appropriate for an understanding of the development, performance, or position of the business. Copies of the FCC annual report can be obtained from the address in note 22.
The Directors expect the Company to continue to operate in line with its principal activities in future years.
The Directors consider that the climate agenda has become the climate crisis: public concern for the environment has never been greater, and government focus at all levels – internationally, nationally and locally – has shifted significantly. In particular, the UK has committed to Net Zero carbon emissions by 2050 (2045 in Scotland), and new regulations are taking shape under the Labour government elected in 2024, including the Great British Energy Act, which received Royal Assent in 2025 and the introduction of Simpler Recycling for households in 2026.
At GRP, we wholeheartedly support the drive to more and better resource efficiency by reducing waste at source wherever possible, reusing what we can and recycling valuable commodities. For waste that cannot be recycled or reused, EfW is currently the best available and best proven technology to recover maximum value from end-of-life waste as an alternative to landfill. In doing so, EfW is contributing to reductions in landfill emissions, while also producing electricity.
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KENT ENVIROPOWER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Principal risks and uncertainties
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Operating in the UK’s highly regulated waste management market provides a clear legal framework as well as presenting numerous risks and uncertainties to the Group. The Directors regard the following to be the principal risks and uncertainties affecting the Group and their approach to managing these risks and uncertainties is considered below:
∙Environmental risks: The Group’s environmental risks are tightly controlled under environmental legislation enforced principally by the Environment Agency (“EA”) and Scottish Environment Protection Agency (“SEPA”). Compliance with all environmental legislation pertinent to the Group’s activities is a minimum requirement. A dedicated in-house team prepare regular reports on environmental compliance at the Group’s sites for the Board’s review. Environmental objectives are reviewed annually and highlighted within the Group’s Safety Health Environment and Quality (SHEQ) Policy Statement. In addition to this, there are detailed environmental procedures to enable compliance with environmental legislation.
∙Health and safety: Health and safety is a key issue for the Group due to the nature of its operations, including the use of heavy plant equipment and difficult working conditions. The Group is continually improving in this area as a result of ongoing consultation with the relevant authorities and the monitoring of best practice initiatives. Whenever an area is highlighted for improvement, the Group seeks to implement such improvement expeditiously; through bulletins, on-line training courses and tool-box briefings. The Group’s Incident Review Panel meets as required, at which senior management review significant health and safety incidents that have occurred at Group sites to identify improvements and lessons for the business. All employees undertake a rigorous health and safety training programme, which is underpinned by the latest UK legislation, detailed policies and procedures. The Group’s executive management receive regular, detailed reports on health and safety performance affecting the Group’s operations and it employs a dedicated team, led by the Group Safety, Health, Environment and Quality Manager, to monitor and promote high standards. All employees are expected to recognise their role in achieving acceptable standards of health and safety and to exhibit such understanding through their approach and attitude to work.
∙Business continuity: The Group, as part of its risk management programme, has developed business continuity planning for its operations. As part of this planning, the Group has developed a bespoke emergency plan for each operational facility (including the diversion of waste from single or multiple sites in the event of major disruption or disaster affecting a site or region). The Group’s IT systems are covered by an IT disaster recovery plan, to ensure business continuity.
∙Legislation: The Group monitors forthcoming and current legislation to ensure full compliance and to anticipate and assess the impact upon its operations, including the significant opportunities it can present. The waste management industry is subject to extensive government regulation which has a substantial impact on the Group’s business.
∙Economic: The Group has exposure to reduced economic activity. We recognise shorter term uncertainty as a result of the Ukraine and Middle Eastern conflicts, which created inflationary pressures. This could result in higher borrowing costs generally. We have reviewed the potential impacts and consider that we have sufficient mitigations in place. The Group’s strategy is focused on growing through further investment in EfW infrastructure projects.
∙Litigation: The Group could be subject to litigation from time to time. The outcome of legal action is always uncertain and there is a risk that it may prove more costly and time consuming than expected. There is also a risk that litigation could be instigated in the future that could materially impact the Group. In some liability cases legal expenses are covered by the Group’s liability insurance. This risk is mitigated through continued monitoring and employing an experienced and dedicated in-house legal team.
∙Competitive risk: The Group operates in highly competitive markets in which competitors’ service offerings may react faster to legislative and market dynamics than those of the Group. To mitigate this risk, the Group ensures that its asset, cost and capital base is regularly reviewed and flexed to meet changes in customers’ demands and to maximise cash generation.
∙Employees: The Group does not directly employ any staff. Services are provided by wider FCC Group companies through operations and maintenance (“O&M”) contracts. There is a risk of losing experienced management personnel in those O&M contracts which could have a materially adverse effect on the business. To manage this risk, the Company engages with the wider FCC Group in respect of succession planning for senior positions within the FCC Group.
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KENT ENVIROPOWER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Principal risks and uncertainties (continued)
∙Technology: The Group relies on a variety of information technology platforms for the efficient delivery of its services and has therefore employed a structured IT support team, using internal and external resources. In addition, as there are a wide variety of technologies available to the waste management industry, there is a risk that the technologies employed by the Group might fail to deliver expected performance levels or end products for its customers and so the Group has made a significant investment into establishing a dedicated technical and development team. This team review and assess the available technologies before any are adopted to ensure they will meet the needs of the business and those of its customers.
Financial risk management objectives and policies
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The Company is exposed to financial risk through its financial assets and liabilities. The most important components of financial risk are interest rate risk, credit risk and liquidity risk all of which the Directors consider relevant due to the nature of the Company’s activities and the assets contained within the Company’s balance sheet.
Liquidity and credit risk
The Company’s exposure to credit and liquidity risk is reduced as it is a subsidiary of FCC. Credit risk arises from the risk of having credit exposures to third parties, including outstanding receivables. The Directors consider credit risk to be limited as debtor balances included within the Company’s balance sheet consist primarily of external trade receivables and amounts due from group undertakings. External debtor balances are subject to the Company’s normal credit control procedures, and amounts due from group undertakings are considered recoverable. Liquidity risk is the risk that the Company will not have sufficient cash resources to meet its commitments. The Company prepares and reviews cash flow forecasts frequently to ensure that it has sufficient resources to meet its cash flow commitments.
Interest rate risk
The Group’s exposure to interest rate risk is managed by using a mix of fixed and variable rate debt. To manage this mix in a cost effective manner, the Group uses interest rate swaps. Full details of the accounting policy in respect of financial instruments are given in note 2 to the financial statements.
The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Therefore, they continue to adopt the going concern basis in preparing the annual financial statements.
Further details regarding the adoption of the going concern basis can be found in Note 2 to the financial statements.
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KENT ENVIROPOWER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Section 172 of the Companies Act 2006 requires each director to act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard, amongst other matters, to:
∙the likely consequences of any decision in the long term;
∙the interests of the Company’s employees;
∙the need to foster the Company’s business relationships with suppliers, customers and others;
∙the impact of the Company’s operations on the community and the environment;
∙the Company’s reputation for high standards of business conduct; and
∙the need to act fairly between members of the Company.
The Board of directors have complied with these requirements. Details of the Board’s decisions over the year to promote long-term success, and how it engaged with stakeholders and considered their interests when making those decisions, can be found throughout this Strategic report and in the Directors’ report.
Details of our strategy, including future developments, are set out on page 2 of the Strategic report and page 8 of the Directors’ report. The Strategic report highlights performance in the year against that strategy together with future trends and developments.
The Group is also subject to the Code of Ethics issued by its parent company FCC which sets out guidelines for conduct including in relation to corruption and bribery.
The Company’s main stakeholders are its members and external debtors and creditors. Open, constructive dialogue with our key stakeholders is critical to inform the Board’s decisions. Details of how the Group has engaged with its stakeholders are set out on page 10 of the Directors’ report. The Board has overall responsibility for managing relationships with all our stakeholders. Day to day relationships are mainly managed through operations and maintenance contracts with wider FCC Group subsidiary companies.
Operating within the UK’s highly regulated waste management market, the Board’s regard to the environment as well as the health and safety of all persons entering its sites is of paramount importance. How the Group addresses environmental and health and safety risk is set out on page 3.
This report was approved by the board and signed on its behalf.
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KENT ENVIROPOWER LIMITED
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.
Matters covered in the Strategic Report
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Information on the Company's going concern status, financial risk management policies, results and dividends and future developments are disclosed in the Strategic report.
The directors who served during the year were:
During the financial period, qualifying third party indemnity provisions for the benefit of all Directors of the Company were in force and continue to be in force at the date of this report. Such provisions were made by FCC.
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
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KENT ENVIROPOWER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Streamlined energy and carbon reporting
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Energy consumption used to calculate emissions - kWh
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Energy consumption - diesel (kWh)
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Emissions from combustion of gas tCO2e (Scope 1)
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Emissions from combustion of fuel for transport purposes tCO2e (Scope 1)
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Emissions from business travel in rental cars or employee-owned vehicles where company is responsible for purchasing the fuel tCO2e (Scope 3)
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Emissions from purchased electricity tCO2e (Scope 2) market-based
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Emissions from purchased electricity tCO2e (Scope 2) location-based
- for information only
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Total gross (scope 1, 2, & 3) tCO2e
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Intensity ratio: Total gross / tonnes waste processed
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GHG Protocol Corporate Standard
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In the period covered by the report the Company has once again secured REGO certified electricity for 100% of its grid supply which is reflected in the scope 2 market-based emissions reported.
The Company is certified to BS EN 50001:2018 Energy Management System.
All staff have undertaken the internal Energy Management training course designed to increase staff understanding and awareness of the importance of reducing energy consumption in general, as well as more specifically increasing staff knowledge on how energy shall be reduced at their site.
A toolbox talk has been developed, targeted at mobile plant operators, on fuel efficient driving and engine idling. The training is based upon reducing engine idling (keeping vehicles running when not in use) as one of our biggest contributors to unnecessary emissions.
The Company is working closely with Government and Environmental Regulators through the Environmental Services Association (ESA) to agree a fair and transparent national system of cost allocation for UK Emissions Trading Scheme (ETS) allowances.
All Group energy from waste (EfW) facilities are being fitted with Carbon-14 autosamplers to quantify non-biogenic emissions and ensure compliance with ETS and monitoring, reporting and verification (MRV) requirements ahead of EfW’s mandatory inclusion in 2028. The Group is also participating in the ESA/Environment Agency Advanced Voluntary MRV project, which aims to link waste composition with non-biogenic carbon emissions to enable accurate ETS cost allocation by waste stream using nationally established emissions factors.
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KENT ENVIROPOWER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Statement of corporate governance arrangements
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Green Recovery Projects Limited (“GRP”) is a joint venture with Fomento de Construcciones y Contratas, S.A. and iCON Infrastructure LLP. We are a leader in the waste recovery sector, helping to shape the policy landscapes, ensuring that our people, systems, and strategy remain innovative and focused on delivering excellence. The directors recognise their responsibilities under Section 172 Companies Act 2006 which places them in a position of trust with regards to broader stakeholder interests when carrying out their duties to promote the success of the company.
For the year ended 31 December 2025, under The Companies (Miscellaneous Reporting) Regulations 2018, the Board has applied the Wates Corporate Governance Principles for Large Private Companies published by the Financial Reporting Council in December 2018 (the “Principles”). These Principles provide a framework for ensuring that the Company is well run, well managed and aligned behind a clear purpose.
We are committed to reducing our reliance on fossil fuels in the UK’s fight against climate change and the GRP Board proudly supports the waste industry in driving greater action on carbon emissions for which our Energy from Waste facilities are making an important contribution. Our vision is to create sustainable carbon-neutral communities, working with local and national partners, with consideration for the environment at every stage. We understand that our industry is uniquely placed to offer solutions for both energy and climate crisis by offering innovative recycling options and using waste to generate energy to power homes and businesses. Waste streams that cannot be recycled need to be treated efficiently. Our belief is that Energy from Waste (EfW) offers a viable solution which avoids landfill and drives waste up the hierarchy. It shifts waste from disposal into recovery, harnessing heat and energy that would otherwise be lost.
Principle 1 – Purpose and Leadership
As one of the UK’s most trusted resource and waste management businesses, we are a modern progressive company and pride ourselves on innovation and being part of a huge shift in attitudes and changing operations.
We are realistic about materials that cannot be recycled, and it is our firm belief that recovering the energy from that waste to utilise as heat or for conversion into electricity is the best option. “Net Zero” has taken front of stage, and we are proud to support the industry in driving greater action on carbon emissions. The heat and electricity generated by our facilities replaces the need for fossil fuels and imported energy, while providing a safe and sustainable disposal route for non-recyclable waste.
Our commitment to net zero remains a driving force behind our investment decisions. In 2025 we published our first Greenhouse Gas Report.
We have had a major shift in emphasis in our business strategy, and as one of the few proven alternatives to landfill, general waste can be sent to an EfW facility to generate steam from burning the waste and turning it into electricity that is then used to heat nearby homes and businesses. The burning of waste and turning it into energy also greatly reduces the reliance of fossil fuels to supply energy needs to nearby homes and businesses. The waste that is sent to our EfW facilities is treated in a highly regulated environment with emissions continually monitored and regularly checked by the Environment Regulator to ensure that they are in line with required standards.
Our aim is to recycle as much as we can, but extracting value in the form of energy from the waste that we cannot recycle is also an important part of our approach to waste management. The waste that cannot be recycled can be used either as part of fuel for our network of modern EfW’s, or can be compressed and baled, to create Refuse Derived Fuel (RDF), which is also used to power EfW facilities.
People remain at the heart of our success. We are committed to attracting new talent, developing skills, and creating opportunities for colleagues to grow their careers with us. Across all our activities, our focus is clear: delivering responsible, value-driven waste and resource management that benefits our customers, our communities, and the environment.
As a waste management and resource company, our priority is to ensure responsible value-driven waste management, but as a socially aware business, we strive to play a positive role in communities, tackle issues around carbon and place people at the heart of our business.
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KENT ENVIROPOWER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Statement of corporate governance arrangements (continued)
Principle 2 – Board Composition
The Board is collectively responsible for promoting the long-term success of our business. GRP has seven directors, comprising of the Chief Executive Officer, Finance Director and five executive directors.
The directors are made up of four from FCC and three from iCON, enabling an effective composition of the Board, creating clear accountabilities as well as ensuring that it fulfils the strategic needs of the company.
The Board receives monthly updates from each EfW and monthly business review meetings also provide an overview both in terms of performance and strategy, as well as issues relating to operations, development, and wider stakeholder matters.
Principle 3 – Directors Responsibilities
The Board are committed to reducing our reliance on fossil fuels in the UK’s fight against climate change. The Board have placed the recovery of energy from waste at the heart of the strategy of GRP.
The Board has established and maintained effective corporate governance with reference to the Group’s four values:
∙Environmental commitment: We ensure that what we do is environmentally and socially responsible.
∙Forward thinking: Embrace change and prepare for the future.
∙People focus: Value, reward and motivate our team.
∙Doing the right thing: Secure our future by being better at what we do.
We have and continue to work on creating our own special culture, positive ways of working and expectations of how staff behave that set us apart from our competitors.
Keeping ourselves, our customers and our visitors safe is at the heart of our business values, and the Directors at GRP never lose sight of the potential hazards that exist in the workplace. In 2025 three GRP plants were awarded British Safety Council Swords of Honour for Occupational Health & Safety. These were at the Millerhill, Greatmoor and Allington Energy from Waste facilities. This was in addition to the prestigious Power and Utilities Sector Award recognising excellence in health & safety, environmental management and wellbeing. Our Safety Culture Survey confirmed that we maintain a strong and positive safety culture, performing above the wider industry benchmark.
The Code of Ethics and Conduct suite provides practical insight into the values shared across the Group and enables a more robust culture of compliance and supporting the creation of long-term value for our projects. Supported by our Spanish parent company, the Compliance Committee regularly review our governance protocol and continually seek to improve our Policies and Procedures. Through training and expert guidance, the Committee oversee the Stewardship of the Group, ensuring the highest standards are always maintained. The Code of Ethics and Conduct was reviewed in 2024, and adopted by the Board in 2025.
Principle 4 – Opportunity & Risk
Physical growth is only one measure of success, and through our group ESG report we have demonstrated our progress and commitment to innovating, delivering and crucially, monitoring risks and opportunities across our core activities and into the communities we serve. As a market leader in the delivery of resource and waste management services, it is from this platform that we look ahead to the future.
We maintain separate Business Risk and Opportunities Registers to ensure risks are properly identified and that necessary steps are taken to mitigate identified issues at the right level. Risk and opportunity management remains a central and integral part of GRP’s strategic management process, providing a platform to ensure that the risks and opportunities attached to the business form part of the activities in achieving GRP’s strategic goals. GRP undertake a number of waste management activities that are exposed to a range of socio-economic settings and regulatory frameworks, meaning it is exposed to risks as a direct result of its operational activities, as well as those associated within the wider waste industry.
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KENT ENVIROPOWER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Statement of corporate governance arrangements (continued)
Principle 5 – Remuneration
GRP does not remunerate any members of the Board and the Company is not recharged for their services. The remuneration of the FCC representative Board members is controlled by the wider FCC Group of companies and the remuneration of the iCON representative Board members is undertaken by iCON. The Company and Group do not have any further employees.
Principle 6 – Stakeholders
In fulfilling their duties, the directors are committed to promoting accountability and transparency with all stakeholders. In addition to this, fostering effective stakeholder relationships and meaningful engagement, having regard to the long term consequences of their decisions.
We wish to build honest and enduring relationships and seek to work with others who share our ethics in compliance, and our commitments to the safety and wellbeing of our employees. This also helps us overcome current challenges and understand future requirements, provide advice and develop innovative and cohesive solutions that meet these future challenges by using both our local and industry knowledge.
All our stakeholders are key to our business success, and the Board is committed to promoting accountability and transparency with all stakeholders. Good governance is essential to fostering effective stakeholder relationships and meaningful engagement. We wish to build honest and enduring relationships, and seek to work with others, who share our ethics in compliance.
The impact of the Company’s operations on the environment and local communities is a key consideration for the Board. Through targeted community investment, reuse and recycling initiatives, environmental stewardship and educational programs, the Company seeks to deliver positive social and environmental outcomes while supporting the transition to a circular economy.
The Group operates five EfWs, four of which have visitor centres. Stakeholders are at the forefront of our business and liaising with trade customers and local authorities is fundamental to ensuring that we understand their needs and continue to deliver the services that they require. Engagement with regulatory bodies via industry organisations such as ESA and WISH, is critical to ensure that we manage the risks set out in the Strategic Report and remain compliant with applicable laws and regulations.
At GRP, we believe that by maintaining high standards of business conduct, open communication and responsible stakeholder engagement, we support the long-term success and sustainability of the Company and deliver value for shareholders while balancing the needs of all stakeholders.
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KENT ENVIROPOWER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. 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 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;
∙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 to 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.
This report was approved by the board and signed on its behalf.
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KENT ENVIROPOWER LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KENT ENVIROPOWER LIMITED
Opinion
We have audited the financial statements of Kent Enviropower Limited for the year ended 31 December 2025 which comprise the Statement of comprehensive income, the Balance Sheet, the Statement of changes in equity and the related notes 1 to 22, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 101 “Reduced Disclosure Framework’’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
∙give a true and fair view 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’s 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 the period ending 30 June 2027 from when the financial statements are 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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company’s ability to continue as a going concern.
Other information
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 this report, we do not express any form of assurance conclusion thereon.
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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the strategic report and directors’ report have been prepared in accordance with applicable legal requirements.
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KENT ENVIROPOWER LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KENT ENVIROPOWER LIMITED
Matters on which we are required to report by exception
In the light of the 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 or directors’ report.
We have nothing to report in respect of the following matters in relation to which 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 directors’ responsibilities statement set out on page 11, 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's 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.
13
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KENT ENVIROPOWER LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KENT ENVIROPOWER LIMITED
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
∙We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework including FRS 101 and the relevant direct and indirect tax compliance regulations in the UK. In addition, the Company has to comply with laws and regulations relating to its operations, including health and safety and General Data Protection Regulations (‘GDPR’).
∙We understood how Kent Enviropower Limited is complying with those frameworks by making enquiries of management to understand how the company maintains and communicates its policies and procedures in these areas. We corroborated this by reviewing supporting documentation to validate that the company has a process for monitoring legal requirements and has a process for reporting matters of non-compliance and taking appropriate action.
∙We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override. We tested manual journals on areas involving significant estimation and judgement, which were identified through our data analytics techniques based on risk criteria tailored to identify journals most susceptible to fraud.
∙Based on this understanding we designed our audit procedures to identify noncompliance with such laws and regulations. Our procedures involved enquiry of management, review of Board minutes and journal entry testing as set out above. We also considered the results of our substantive procedures on other areas of the audit that may indicate non-compliance with such laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://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.
Richard Lingwood, (Senior statutory auditor)
For and on behalf of Ernst & Young LLP, Statutory Auditor
Leeds
14 May 2026
14
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KENT ENVIROPOWER LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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Depreciation and amortisation
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Profit for the financial year
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There was no other comprehensive income for 2025 (2024:£nil).
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The notes on pages 19 to 32 form part of these financial statements.
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15
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KENT ENVIROPOWER LIMITED
REGISTERED NUMBER: 02894377
BALANCE SHEET
AS AT 31 DECEMBER 2025
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Property, plant & equipment
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Trade and other receivables
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Cash and cash equivalents
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Total non-current liabilities
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Total current liabilities
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Total equity and liabilities
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16
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KENT ENVIROPOWER LIMITED
REGISTERED NUMBER: 02894377
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 32 form part of these financial statements.
17
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KENT ENVIROPOWER LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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The notes on pages 19 to 32 form part of these financial statements.
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18
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KENT ENVIROPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Kent Enviropower Limited is a private company limited by shares incorporated in the United Kingdom under the Companies Act 2006, registered in England and Wales. The address of the registered office is given on the company information page before the contents. The nature of the Company’s operations and its principal activities are set out in the Strategic report.
2.Accounting policies
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Basis of preparation of financial statements
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The principal accounting policies are summarised below. They have all been applied consistently throughout the year and to the preceding year.
General information and basis of accounting
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (“FRS 101”) issued by the Financial Reporting Council.
The functional and presentational currency of Kent Enviropower Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.
Exemptions for qualifying entities under FRS 101
The Company has taken advantage of the following disclosure exemptions under FRS 101:
a)The requirements of paragraphs 45(b) and 46 to 52 of IFRS 2 Share-based Payment;
b)The requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations;
c)The requirements of IFRS 7 Financial Instruments: Disclosures;
d)The requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement;
e)The requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of:
i.paragraph 79(a)(iv) of IAS 1;
ii.paragraph 73(e) of IAS 16 Property, Plant and Equipment;
iii.paragraph 118(e) of IAS 38 Intangible Assets;
f)The requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134 to 136 of IAS 1 Presentation of Financial Statements;
g)The requirements of IAS 7 Statement of Cash Flows;
h)The requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;
i)The requirements of paragraph 17 of IAS 24 Related Party Disclosures;
j)The requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member; and
k)The requirements of paragraphs 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 Impairment of Assets.
Where relevant, equivalent disclosures have been given in the consolidated FCC group financial statements, copies of which are available from its registered office at 3 Sidings Court, White Rose Way, Doncaster, DN4 5NU.
19
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KENT ENVIROPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
At 31 December 2025, the Company had net assets of £50.7million and net current assets of £7.5million.
In performing the going concern assessment, the Directors have considered the post year end performance of the Company, reviewed projected cashflows and carefully considered the risks to the Company’s performance and cash flows, as outlined in the Strategic report, for the forthcoming period ending 30 June 2027 from the date of signing of the financial statements.
The Company’s interest-bearing loans and borrowings are intercompany balances with fellow group companies in the FCC Energy Limited sub-group (see note 15). FCC Energy Limited has external project finance debt on which the final instalment repayment is due in June 2038. The FCC Energy Limited debt is secured by fixed and floating charges over the assets of the Company. The interest rates are fixed by interest rate swaps. The FCC Energy Limited group continues to comply with the terms of the credit agreements and is forecast to continue to do so during the period of review.
The Company generates and manages its own cash flows with oversight from Group management at FCC Energy Limited level. The base case forecasts considered by the Directors contain prudent assessments of waste and power export volumes compared with the usual operating level coupled with a cautious view on longer term power export prices. The Company’s waste supply volumes are fully contracted with a combination of Kent County Council, for whom there is a minimum volume requirement, and top up waste from Allington Waste Company Limited, an FCC Environment (UK) Limited Group subsidiary. The majority of costs are also contracted including operation and maintenance costs and residue disposal costs and consequently there is much certainty over the main operating revenues and costs. The base case forecasts also include sizeable forecast dividend payments as well as early repayment of intercompany debt. These prudent forecasts provide a high level of headroom for both the Company and FCC Energy Limited Group. In a downside assessment, the Company could simply not pay any dividends and intercompany debt and have excess cash, but extreme but implausible stress tests have also shown that the Company and FCC Energy Limited Group could manage with no power revenues or top up waste volumes.
In the 2026 period to date, the Company is performing broadly in line with expectation. Whilst power export prices have fallen from the high points in 2023, they continue to be higher than the base case forecasts considered, giving headroom against downside risk.
Having considered the cash flows for the Company, giving particular attention to the factors detailed above, the Directors have identified no reason to believe that a material uncertainty exists that may cast significant doubt about the ability of the Company to continue as a going concern.
The Directors therefore continue to adopt the going concern basis in preparing the Annual report and financial statements.
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Property, plant and equipment
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Property, plant and equipment assets are stated at cost net of depreciation and any provision for impairment. Depreciation has been provided on the plant and machinery over its remaining expected useful life, which at 31 December 2025 was 21 years.
No depreciation is provided for on freehold land.
20
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KENT ENVIROPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in comprehensive income as described below.
Non-financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Financial assets and liabilities
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Non-current debt instruments which meet the following conditions, are subsequently measured at amortised cost using the effective interest method:
1.Returns to the holder are (i) a fixed amount; or (ii) a fixed rate of return over the life of the instrument; or (iii) a variable return that, throughout the life of the instrument, is equal to a single referenced quoted or observable interest rate; or (iv) some combination of such fixed rate and variable rates, providing that both rates are positive.
2.There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
21
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KENT ENVIROPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
3.Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in relevant taxation or law.
4.There are no conditional returns or repayment provisions except for the variable rate return described in (1) and prepayment provisions described in (3).
Debt instruments that are classified as payable or receivable within one year and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.
Other debt instruments not meeting these conditions are measured at fair value through profit or loss.
Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Group transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Group, despite having retained some significant risks and rewards of ownership, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
For the Company’s financial instruments, the Company recognises lifetime Expected Credit Losses (‘ECL’) when there has been a significant increase in risk since initial recognition. When estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis. The assessment is based on the Company’s historical experience and includes forward-looking information. If the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to the 12–month ECL as defined below.
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12–month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering the asset in its entirety or a portion thereof. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.
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Trade and other receivables
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Trade and other receivables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost less any allowance for doubtful debts. Trade receivables, which generally have 30-60 day terms, are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when identified.
22
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KENT ENVIROPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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Cash and cash equivalents
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Cash and cash equivalents include cash-in-hand, deposits held at call with banks and other short-term investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Cash and cash equivalents are carried in the balance sheet at cost. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet.
Trade and other payables, excluding derivative liabilities are recognised initially at fair value. Subsequent to initial recognition, they are measured at amortised cost less any impairment losses.
Revenue, expenses and assets are recognised net of the amount of sales tax except:
∙where the sales tax incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
∙debtors and creditors are stated with the amount of sales tax included.
The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of debtors or creditors in the balance sheet. Tax on the profit or loss for the year comprises current and deferred tax.
Current tax is the expected tax payable on the taxable surplus for the year using average tax rates in place during the financial year, and any adjustments in respect of previous periods. Income tax relating to items recognised directly in equity is recognised in equity and not in the statement of comprehensive income.
Deferred income tax is provided, using the liability method, on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax assets are recognised for all deductible temporary differences and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.
Revenue is stated net of value added tax and trade discounts. Revenue from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the value of the consideration due. Revenue is recognised in respect of waste disposal services when the waste has been received and in respect of sale of electricity, when the electricity has been transferred to the national grid. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.
23
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KENT ENVIROPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Judgements in applying accounting policies and key sources of estimation uncertainty
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In the application of the Company’s accounting policies, which are described in note 2, the Directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
∙Useful economic lives of tangible assets – The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of tangible fixed assets.
There are no areas of significant judgement relevant to the Company.
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All revenue was generated in the United Kingdom principally from the operation and management of the EfW facility at Allington in Kent.
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The profit before tax is stated after charging:
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Depreciation of tangible fixed assets
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Auditor’s remuneration in respect of audit fees totalling £22,000 (2024: £22,000) was met by the Company
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Directors' remuneration and employees
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None of the Directors received any remuneration or other benefits through the Company during the year ended 31 December 2025 or the previous financial year.
All directors are remunerated through companies outside the GRP group.
The Company had no employees during the current or previous financial year.
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24
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KENT ENVIROPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Bank deposit interest receivable
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Intercompany loan interest payable
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Electricity Generator Levy
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Origination and reversal of timing differences
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Adjustment in respect of prior years
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25
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KENT ENVIROPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
10.Taxation (continued)
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Factors affecting tax charge for the year
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The total tax charge for the year differs from the standard rate of corporation tax in the UK of 25% (2024: 25%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024: 25%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Adjustments to tax charge in respect of prior periods
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Electricity Generator Levy
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Total tax charge for the year
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Due to the increased energy prices as a result of the Ukraine conflict, the UK government introduced the Electricity Generator Levy.
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There were no factors that may affect future tax charges.
26
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KENT ENVIROPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Property, plant & equipment
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Charge for the year on owned assets
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The cost of financing the expenditure relating to the construction of the Allington EfW Facility prior to its opening date has been included in the cost of the project. Included in fixed assets is capitalised interest with a net book value of £9,956,000 (2024: £10,490,000). Depreciation during the year in respect of this interest amounted to £534,000 (2024: £529,000).
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Trade and other receivables
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Amounts owed by fellow subsidiary undertakings
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Prepayments and accrued income
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Amounts owed by fellow subsidiary undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
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27
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KENT ENVIROPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Amounts owing to fellow subsidiary undertakings
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Accrued interest on borrowing - FCC Energy Limited
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Accruals and deferred income
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Amounts owed to fellow subsidiary undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
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Other payables (non-current)
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Accrued interest on borrowing - Kent Energy, Ltd
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28
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KENT ENVIROPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Effective interest rate %
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Amounts due to related party - FCC Energy Limited
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Amounts due to immediate parent undertaking - Kent Energy, Ltd
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Amounts due to related party - FCC Energy Limited
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Amounts due to related party - FCC Energy Limited
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Within one year or on demand
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Between one and two years
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Between two and five years
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The Loan Agreement dated 31 March 2004 between the Company and Kent Energy, Ltd for a principal amount of £17,205,084 provides for the payment of interest by the Company to Kent Energy, Ltd at a non-compounding interest rate of 12.5% per annum. On 18 April 2008, this loan agreement was amended and is now repayable in full on 31 March 2030.
The amount owed to FCC Energy Limited of £4,556,000 (2024: £9,111,000) is unsecured, bears interest at a rate of 3.1%+LIBOR and is repayable in instalments with the final repayment due in December 2026. A further amount owed to FCC Energy Limited of £21,447,000 (2024: £31,410,000) is unsecured, bears interest at 4.0% (2024: 4.0%) per annum and is repayable in March 2030.
From 1 January 2022, LIBOR has been replaced by an equivalent rate, calculated by using a risk-free rate (SONIA) and adding a fixed Credit Adjustment Spread of 0.27660.
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KENT ENVIROPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Deferred tax is provided as follows:
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Credited to statement of comprehensive income
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The provision for deferred taxation liability is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
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100,002 (2024: 100,002) Ordinary shares of £1.00 each
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The company has one class of ordinary shares which carry no right to fixed income.
The entire issued share capital of the Company of 100,002 ordinary shares of £1 each is charged to The Royal Bank of Scotland PLC pursuant to a legal mortgage created by a Security Agreement dated 31 March 2004 between Kent Energy, Ltd and The Royal Bank of Scotland plc. Under this Security Agreement and prior to any security becoming enforceable in accordance with the terms set out therein, Kent Energy, Ltd controls the voting rights in respect of the issued shares in the Company and is therefore the Company’s immediate parent undertaking.
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Interim dividend paid of £120.00 per share (2024: £190.00 per share)
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Retained earnings
The retained earnings reserve comprises cumulative profits or losses, including unrealised profits or losses recognised in the statement of comprehensive income, net of dividends.
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KENT ENVIROPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
a.The Company is a member of a group VAT registration and as such has contingent liabilities for VAT in respect of certain other members of the group.
b.There are fixed and floating charges over the assets of the Company in connection with the financing of the FCC Energy Limited group, of which the Company is a member.
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Related party transactions
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The Directors regard all subsidiaries of FCC, together with the Group’s 49% shareholder, GRP EFW Investments Limited, as related parties. In the ordinary course of business, the Company has traded with fellow subsidiaries of FCC.
Under FRS 101, the Company is exempt from disclosing related party transactions with other wholly owned subsidiaries of the Green Recovery Projects Group. Therefore, the table below represents transactions and outstanding balances with related parties that are not covered by this exemption.
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Year Ended 31 December 2025
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Allington O&M Services Limited
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Allington Waste Company Limited
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FCC Recycling (UK) Limited
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Waste Recycling Group (Central) Limited
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Allington Energy Networks Limited
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Year ended 31 December 2024
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Allington O&M Services Limited
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Allington Waste Company Limited
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FCC Recycling (UK) Limited
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Waste Recycling Group (Central) Limited
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FCC Waste Services (UK) Limited
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Kent Conservation & Management Limited
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FCC Recycling (UK) Limited
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KENT ENVIROPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The immediate parent of the Company is Kent Energy Limited, a company registered in England and Wales.
The Directors regard Control Empresarial de Capitales, S.A. de C.V., a company registered in Mexico, as the ultimate parent company and ultimate controlling party.
Fomento de Construcciones y Contratas, S.A. is the parent company of the smallest and the largest group of which the Company is a member and for which statutory group accounts are drawn up. Copies of the financial statements of Fomento de Construcciones y Contratas, S.A. are available from FCC Environment (UK) Limited, 3 Sidings Court, White Rose Way, Doncaster, DN4 5NU. The registered office of Fomento de Construcciones y Contratas, S.A. is c/Balmes, 36. 08007 Barcelona, Spain.
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