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Registered number: SC654925
EUROPEAN ENERGY UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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EUROPEAN ENERGY UK LIMITED
REGISTERED NUMBER:SC654925
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BALANCE SHEET
AS AT 31 DECEMBER 2025
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Debtors: amounts falling due after more than one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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EUROPEAN ENERGY UK LIMITED
REGISTERED NUMBER:SC654925
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BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2025
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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EUROPEAN ENERGY UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The company is a private company limited by shares and is incorporated in Scotland. The address of its registered office is 4th Floor Afton House, 26 West Nile Street, Glasgow, Scotland, G1 2PF.
The principal activity of the company is that of developing projects in the renewable energy sector.
2.Accounting policies
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Basis of preparation of financial statements
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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 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the requirements and the Companies Act 2006. 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 following principal accounting policies have been applied:
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Exemption from preparing consolidated financial statements
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The Company, and the group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and group are considered eligible for the exemption to prepare consolidated accounts.
The company has net current assets of £5,742,593 (2024: £19,139,188) at the balance sheet date. Taking into account a period exceeding 12 months from the date of approval of these financial statements, the directors have a reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future, and for this reason will continue to adopt the going concern basis in the preparation of its financial statements.
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EUROPEAN ENERGY UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'administration expenses'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Revenue consists of: 1) Fees charged in relation to corporate, management and project support. This revenue is recognised when invoiced. 2) Recharge of costs incurred in developing the project to the point of construction. This revenue is recognised when invoiced. Otherwise the costs are included in work-in-progress.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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EUROPEAN ENERGY UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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 balance sheet date in the countries where the Company operates and generates income.
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.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
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Associates and joint ventures
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Associates and Joint Ventures are held at cost less impairment.
Stocks and work in progress comprise renewable energy projects in the course of development. They are valued at the lower of cost and anticipated net revenue. Costs include direct costs in connection with specific projects.
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EUROPEAN ENERGY UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
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EUROPEAN ENERGY UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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Financial instruments (continued)
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If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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EUROPEAN ENERGY UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the Company's financial statements requires management to make judgements, estimates, and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income, and expenses. These judgements, estimates, and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results.
Valuation of WIP
Directors exercise significant judgement in determining whether development expenditure should be recognised as stock. This judgement requires an assessment of whether individual projects are commercially viable and expected to generate future economic benefits.
In making this assessment, management considers factors such as progress in obtaining planning consents, technical feasibility, grid connections and land access arrangements. Judgement is also required in evaluating the probability of the project proceeding to construction and ultimately achieving successful operation.
No other material judgements or key sources of uncertainty have been identified
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The average monthly number of employees, including directors, during the year was 22 (2024 -18).
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EUROPEAN ENERGY UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Charge for the year on owned assets
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Investments in subsidiary companies
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Investments in associates
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EUROPEAN ENERGY UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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The following were subsidiary undertakings of the Company:
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South Park Energy Centre Limited
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Millhouse 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Northington Energy Centre Limited
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Millhouse, 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Chads Farm Energy Centre Limited
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Millhouse 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Shireoaks Energy Centre Limited
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Millhouse, 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Teindland Wind Farm Limited
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4th Floor Afton House, 26 West Nile Street, Glasgow, Scotland, G1 2PF
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Moor Isles Farm Energy Storage Limited
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4th Floor Afton House, 26 West Nile Street, Glasgow, Scotland, G1 2PF
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North Woods Hill Solar Farm Limited
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4th Floor Afton House, 26 West Nile Street, Glasgow, Scotland, G1 2PF
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Church Farm Energy Centre Limited
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Millhouse 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Drinkstone Energy Centre Limited
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Millhouse 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Old Hall Energy Centre Limited
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Millhouse 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Selms Muir Energy Centre Limited
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Millhouse 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Twelve Month Hill Limited
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Millhouse, 32-38 East Street, Rochford, Essex, England, SS4 1DB
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Rempstone Hill Solar Farm Limited
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Millhouse, 32-38 East Street, Rochford, Essex, England, SS4 1DB
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European Energy UK Yield Group Ltd
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Millhouse, 32-38 East Street, Rochford, Essex, England, SS4 1DB
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Stocking Pelham Energy Centre Limited
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Millhouse 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Mathurst Farm Energy Centre Limited
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Millhouse 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Snakes Meadow Energy Centre Limited
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Millhouse 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Melksham Energy Centre One Limited
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Millhouse, 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Melksham Energy Centre Two Limited
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Millhouse, 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Millhouse 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Halesfield Energy Centre Ltd
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Millhouse, 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Manor Farm Energy Centre Limited
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Millhouse, 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Treading Energy Centre Limited
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Millhouse, 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Lowfield Energy Centre Limited
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Millhouse, 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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European Energy Yieldco Limited
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4th Floor Afton House, 26 West Nile Street, Glasgow, Scotland, G1 2PF
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Sealand Manor Energy Centre Limited
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Millhouse 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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EUROPEAN ENERGY UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Subsidiary undertakings (continued)
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Lochaber Energy Centre Limited
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Millhouse 32-38 East Street, Rochford, Essex, United Kingdom, SS4 1DB
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Fowl Farm Energy Centre Limited
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20 Central Avenue, St. Andrews Business Park, Norwich, Norfolk, England, NR7 0HR
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The following was an associate of the Company:
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Trinity Solar Farm Limited
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80 Strand Strand, London, England, WC2R 0DT
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Post year end, the Company disposed of its entire shareholding in its associate, Trinity Solar Farm Limited.
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EUROPEAN ENERGY UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Work in progress - projects in development
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Due after more than one year
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Amounts owed by group undertakings
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Interest was charged on the group loan at an average rate of 8.7% (2024: 9.5%). Interest received during the year was £227,100 (2024: £10,383).
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Amounts owed by group undertakings
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Prepayments and accrued income
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Interest was charged at an average rate of 7.8% (2024: 9.3%) on the group loan to the company's parent European Energy A/S and interest received during the year was £890,274 (2024: £666,831). At the balance sheet date, the loan was a creditor.
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Cash and cash equivalents
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EUROPEAN ENERGY UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Amounts owed to group undertakings
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A loan facility was provided by the company's parent European Energy A/S. Interest was charged at an average rate of 7.5% (2024: 9.1%) and interest paid during the year was £126,311 (2024: £280,313).
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Allotted, called up and fully paid
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465,100 (2024 -465,100) Ordinary shares of £1.00 each
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Profit and loss account
The profit and loss account includes all current and prior year retained profits or losses less distributions made to shareholders.
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EUROPEAN ENERGY UK LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £107,176 (2024: £62,780). Contributions totalling £34,465 (2024: £21,084) were payable to the fund at the balance sheet date and are included in creditors.
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Commitments under operating leases
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At 31 December 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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In May 2025 the company issued a charge over its shareholding in a subsidiary in connection with a bank loan made to that subsidiary.
During the year, the company transferred its investment in two subsidiaries to another group company. These shareholdings were transferred at a profit of £557,700.
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Group financial statements
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The parent of the smallest group for which consolidated financial statements are prepared is European Energy A/S, whose registered office address is Gyngemose Parkvej 50, 2860 Soborg, Denmark.
The auditors' report on the financial statements for the year ended 31 December 2025 was unqualified.
The audit report was signed on 1 October 2026 by Thomas Bates (Senior statutory auditor) on behalf of AAB Audit & Accountancy Limited.
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