REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 JUNE 2023 |
FOR |
FOXGLOVE ENERGY SUPPLY LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 JUNE 2023 |
FOR |
FOXGLOVE ENERGY SUPPLY LTD |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 JUNE 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 6 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Notes to the Financial Statements | 14 |
FOXGLOVE ENERGY SUPPLY LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 29 JUNE 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Accountants |
Granville Hall |
Granville Road |
Leicester |
LE1 7RU |
BANKERS: |
Town Hall Square |
Leicester |
LE87 2BB |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 29 JUNE 2023 |
The director presents his strategic report for the year ended 29 June 2023. |
At Foxglove Energy Supply Ltd, we pride ourselves on aligning our business operations with our core family values. Sustainability remains a cornerstone of our focus, as we continue to provide energy to domestic customers and attract experienced professionals who share our commitment to serving our valued customers. Our aim is to contribute positively to the future while keeping household energy bills affordable. |
Customer satisfaction remains paramount to us, reflected in our 'Excellent' TrustPilot ratings. We are dedicated to fairness, honesty, and transparency in all our dealings, ensuring our customers receive the support they need, when they need it most. |
In response to global challenges (both past and present) such as the pandemic and energy market volatility, we have significantly strengthened our risk management strategies. Our resilience ensures continuity in both supply and service, while our refined hedging strategies protect our financial stability. |
Despite the global energy crisis and geopolitical tensions, Foxglove Energy Supply Ltd has remained resilient. We've navigated through extreme market volatility with stability, emerging as a reliable energy supplier in a turbulent market. |
Looking ahead, our resilience will continue to deliver profits and sustainability. However, as commodity markets become more stable, this will be reflected in tariff pricing. We anticipate a significant reduction in profitability with energy household debt and affordability for a number of customers remaining a major issue in the retail market. |
This year, our strong financial performance positions us competitively in the energy sector and within an increasingly regulated market. Our profits enable us to meet new financial obligations while remaining competitive and sustainable. |
Moving forward, we remain committed to delivering exceptional customer service and investing in our service infrastructure and employee training. Our financial strength allows us to adapt and innovate, ensuring compliance with regulatory requirements while continuing to deliver value to our customers. |
In summary, our strategic report underscores our commitment to sustainability, customer satisfaction, and prudent risk management. Foxglove Energy Supply Ltd is well-equipped to navigate the challenges and opportunities ahead, remaining a trusted and responsible energy supplier in an ever-changing landscape. |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 29 JUNE 2023 |
REVIEW OF BUSINESS |
In prior years, our company consistently achieved growth; however, in the current fiscal year, we deemed it prudent to prioritize stabilization, resulting in a relatively stable portfolio volume of customers. This strategic decision was aimed at strengthening our working capital and mitigating risks associated with market volatility. To enhance customer service and foster better engagement amidst uncertain conditions, we allocated resources to invest in our service department through training initiatives and increased staffing, thus reducing customer wait times. |
While the financial results show an increase in turnover, this is primarily attributable to adjustments in the Ofgem tariff cap, reflecting the significant rise in energy wholesale prices, thus impacting customer tariffs. However, our hedging strategy, combined with a one-time adjustment to the Tariff Cap where the regulator increased the price cap to rectify previously undervalued rates, resulted in an improved year-on-year gross margin position, ultimately driving positive operating profit. Despite maintaining a relatively stable portfolio, we made strategic investments across various departments, contributing to the year-on-year increase in operating expenses. |
The recent profit levels are not anticipated to be repeated. Earnings for Foxglove Energy Supply Limited are expected to revert to a more typical range, projected to be between £3 to £4 million. This adjustment is partially attributed to the anticipated decrease in the Ofgem price cap. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The company has achieved turnover of £355 million (2022: £166 million) and gross profit margins of 31.4% (2022: 5.3%). This has resulted in an operating profit of £98 million (2022: £1.5 million) and net assets of £72 million (2022: net liabilities of £6 million). A net profit of £77.6 million (2022: net loss of £930k) was achieved in the period. |
Our KPI's for the year show how much we have achieved this year: |
KPI's £ | 2023 | 2022 |
Turnover | 355,473 | 166,352 |
Gross Profit | 111,583 | 8,867 |
Gross Profit % | 31.4 | 5.3 |
Operating Profit/(Loss) | 97,949 | 1,525 |
Operating Profit/(Loss) % | 27.6 | 0.9 |
Net Profit/(Loss) | 77,564 | (930) |
Net Assets/(Liabilities) | 71,546 | (6,018) |
NON FINANCIAL KEY PERFORMANCE INDICATORS |
The Company uses a number of non financial factors to measure performance of its business segments. |
Customer ratings and reviews from Trustpilot, the independent consumer review website, shows ratings of 4.6 stars out of 5. |
Customer numbers are also deemed a crucial factor. For the Company customer numbers at the year end were maintained at 104k (2022: 114k). |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 29 JUNE 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors identify, assess and manage risks associated with the Group's business objectives and strategy in the following categories; |
Competition |
The Company operates within a competitive energy market in the United Kingdom. Despite a reduction in the number of energy suppliers, the Company now faces competition from larger suppliers with greater financial resources and established brands. Nonetheless, the directors hold the opinion that the Company maintains a robust position owing to its experienced workforce, agile business model, capable management team, ingrained culture, and efficient operational processes. |
Liquidity and cashflow risk |
The Company mitigates liquidity risk by maintaining adequate funds to fulfill obligations to trade creditors and other payments. Management of trade debtors involves monitoring outstanding amounts in terms of time and credit limits, with a high percentage of collections facilitated through direct debit. |
Cash management is conducted responsibly, with the Company employing both a daily cash flow model to monitor short-term forecasted cash flows up to six months ahead and a long-range forecast model. These models undergo ongoing monitoring and review, allowing the Group to proactively manage risk by appropriately allocating cash and preparing for potential shortfalls well in advance. The Company's robust cash position further serves to mitigate liquidity risks. |
Energy commodity market risks |
Movements in the energy commodities market can significantly affect both turnover and gross margin for the Company. To mitigate this risk, the Company has implemented an energy commodities hedge. This involves adhering to a stringent and sophisticated hedging strategy, actively managing the mark-to-market margin call risk stemming from forward fuel contracts by promptly responding to fluctuations in wholesale prices. |
The Energy Commodity Market has been significantly influenced by global geopolitical events, leading to extreme price increases impacting markets worldwide. Despite these challenges, the Company remains steadfast in following its hedging policy to mitigate such risks. |
Bad debt risk |
The Company holds significant customer debtor balances, which have grown amidst the ongoing energy crisis and cost of living challenges, exacerbated by higher energy prices impacting customers' ability to pay. Throughout this period, the Company has extended support to customers through measures such as payment holidays and reduced Direct Debits, aiming to alleviate the impact of rising energy costs. However, to address this risk, the Company predominantly collects monthly direct debits from a vast majority of its customers and has implemented various debt management protocols to substantially minimize the risk of payment defaults and bad debts. |
Considering these risks and uncertainties, we acknowledge that future business development plans may be susceptible to unforeseen events beyond our control. Despite these challenges, we remain committed to prudently managing our operations and adapting to evolving market conditions. |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 29 JUNE 2023 |
SECTION 172(1) STATEMENT |
The board of directors have complied with their S172 Companies Act 2006 duties during the period by initially identifying the main types of stakeholders in the business. In doing this we have considered our impact on stakeholders including our position on the environment. |
One of our primary stakeholder groups is our esteemed employee base, and throughout the year, we have continuously evaluated risks and adapted policies to ensure adherence to best practices. Regular communication with our employees allows us to gauge their perspectives, maintaining our open culture and fostering an environment conducive to attracting and retaining top talent. |
Central to our values is the recognition of the importance of engaging with our customers, actively listening to their feedback, and promptly responding to their needs. This ongoing dialogue enables us to continually enhance our customer service offerings, ensuring customer satisfaction remains at the forefront of our operations. |
We place significant emphasis on cultivating strong relationships with our suppliers and partners, ensuring alignment of aims and objectives to deliver the highest standard of service to our customers. |
Moreover, regulatory compliance is paramount, and we maintain transparent and regular communication with various regulatory bodies, including Ofgem, to facilitate smooth operations and stay abreast of sector developments. |
At all levels, from board to group meetings, our decision-making process reflects a holistic consideration of key stakeholder groups, underscoring our commitment to responsible and ethical business practices. |
ENERGY AND EMISSIONS REPORT |
In the year we took the following actions; |
1) Review the need for travel |
2) Considered using on-line meetings |
3) Considered reducing electrical usage by use of 'green' policies |
FUTURE ACTIVITIES |
The company remains committed to investing in its marketing and sales activities with the objective of expanding its customer base and enhancing its customer service offerings. Through strategic investments, recruiting of experienced team members, we aim to broaden our reach and deepen our engagement with both existing and prospective customers. By continually improving our service offerings, we endeavour to strengthen customer satisfaction and loyalty, ultimately driving sustainable growth and success for the company. |
ON BEHALF OF THE BOARD: |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 29 JUNE 2023 |
The director presents his report with the financial statements of the company for the year ended 29 June 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 29 June 2023. |
DIRECTOR |
POLITICAL DONATIONS AND EXPENDITURE |
No political donations were made in the period. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Mark J Rees LLP, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FOXGLOVE ENERGY SUPPLY LTD |
Opinion |
We have audited the financial statements of Foxglove Energy Supply Ltd (the 'company') for the year ended 29 June 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 29 June 2023 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 Auditors' 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 director's 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 a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, 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 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 this 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 Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FOXGLOVE ENERGY SUPPLY LTD |
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 the Report of the Director. |
We have nothing to report in respect of the following matters where 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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page six, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FOXGLOVE ENERGY SUPPLY LTD |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISA's (UK). |
We obtained an understanding of the legal and regulatory frameworks applicable to the Company and industries in which it operates through our general commercial experience. We determined that the following laws and regulations were most significant: FRS 102, Companies Act 2006 and the relevant tax compliance regulations in the UK. In addition, we concluded that there are certain laws and regulations that may have an effect in the determination of the amounts and disclosures in the financial statements such as health and safety and employee related matters. |
We enquired of management concerning the Company's policies and procedures relating to: |
- the identification and compliance with laws and regulations |
- the detection and response to the risks of fraud |
- the internal controls inherent within the company to mitigate fraud risk and non-compliance to laws and regulations. |
We enquired of management, whether they were aware of any instance of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected or alleged fraud. |
We communicated relevant laws and regulations and potential areas of fraud to all audit team members including the potential for fraud in revenue recognition through the manipulation of costs incurred on contracts. We remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
We have determined that the principal risk areas where material irregularities could occur were related to posting manual journal entries to manipulate financial performance, revenue recognition, valuation of amounts recoverable on contracts and significant one-off or unusual transactions. |
Our audit procedures were designed to respond in particular to these identified risks (including non compliance with laws and regulations and fraud). |
Our audit procedures included but were not limited to: |
- A review of calculations for turnover, testing average price computations to ensure that the method of calculation is appropriate and accurate and that revenue has been recognised correctly. As part of this we confirmed consumption figures to third party data. |
- A review of significant estimates, critically assessing to confirm that the basis of calculation is appropriate and in line with applicable accounting standards. |
- A review of laws and regulations the company is subject to, followed by compliance checks and discussion with management to ensure no instances of non compliance. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FOXGLOVE ENERGY SUPPLY LTD |
- Identifying and testing journal entries, on a sample basis, to review for potential management bias or manipulation of revenue recognition. |
We did not identify any matters during the course of our work that indicated non-compliance with laws and regulations or relating to fraud. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
Granville Hall |
Granville Road |
Leicester |
LE1 7RU |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 29 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
98,844,092 | 1,525,131 |
Interest payable and similar expenses | 6 |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 7 | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
BALANCE SHEET |
29 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
ASSETS |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank |
155,386,428 | 51,411,757 |
CAPITAL, RESERVES AND LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 12 |
Retained earnings | 13 | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
CREDITORS | 14 |
The financial statements were approved by the director and authorised for issue on |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 29 JUNE 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 30 June 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 29 June 2022 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 29 June 2023 |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 29 JUNE 2023 |
1. | STATUTORY INFORMATION |
Foxglove Energy Supply Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 33.7. |
Preparation of consolidated financial statements |
The financial statements contain information about Foxglove Energy Supply Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Bastian Plc, Northbridge Place, Frog Island, Leicester, Leicestershire, United Kingdom, LE3 5DH. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Significant judgements and estimates |
The preparation of the financial statements requires the use of certain accounting estimates, as detailed in the accounting policies. It also requires management to exercise judgement in the process of applying the accounting policies. |
The directors are required to make judgements, estimates and assumptions in respect of 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 relevant. These estimates and their underlying assumptions are reviewed on an ongoing basis. The key sources of estimation uncertainty are detailed below. |
Revenue recognition |
Revenue includes an estimate of the sales value of units supplied to customers between the date of the last meter reading and the period end. This is calculated by reference to data received through third party settlement systems, together with estimates of consumption not yet processed through settlements and selling price estimates. These estimates are sensitive to the assumptions used in determining the portion of sales not billed and based on meter readings at the reporting date. |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
Turnover |
Revenue is recognised on the basis of electricity and gas supplied during the year. Revenue includes an estimate of the sales value of units supplied to customers between the date of the last meter read and year end date. This estimate is based on the latest data provided by the industry at a certain point in time and takes into account seasonal variations and usage patterns. Revenue is recognised net of sales discounts, VAT and climate change levy. |
Turnover includes the directors' best estimate of differences between estimated sales and billed sales. All actual metered consumption data related to customer's electricity consumption received by the end of the period has been reflected in turnover. The estimated consumption data is revised over a fourteen month settlement period. |
Any unbilled revenue is included in trade revenue, net of related provisions, to the extent that it is considered recoverable. Accrued revenue supplied since the last billing date is recognised in the balance sheet and is only netted off against deferred income once it can be matched against specific customer payments. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Fixtures and fittings | - |
Fixed assets are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable or as otherwise required by relevant accounting standards. |
Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use, are recognised as impairment losses. Impairments of revalued assets are treated as a revaluation decrease. All other impairment losses are recognised in profit and loss. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Financial instruments |
Derivative financial instruments are recognised using a valuation technique with material movements being recognised in the profit and loss in the relevant period. Outstanding material derivatives at reporting date are included under the appropriate format heading in debtors or creditors depending on the nature of the derivative. |
The company has a risk management strategy in place and the energy commodities risk arising from fluctuating energy requirements and market prices is hedged. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Going concern |
The financial statements have been prepared on the going concern basis. The industry the company operates in is volatile and heavily reliant on estimates. Accordingly, the directors have analysed the going concern status in detail. This analysis, along with confirmed support from group companies, has allowed the directors to conclude there is no material uncertainty in relation to going concern. |
There is currently a Provisional Order in place, issued by Ofgem, which restricts the company from all sales, marketing and customer acquisition activity which includes the acquisition of any new domestic customers or upgrading of all existing customers to dual fuel. The Provisional order also restricts the company from making any payment, providing any loan or transferring any asset to any third party unless that payment, loan or transfer is one that the company is required to make by virtue of a legal requirement or is essential to the company's operation as a supplier of gas and electricity to consumers. Although all indications suggest the Provisional Order will be released. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 JUNE 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 1 | 2 |
Operations | 57 | 51 |
Administration | 6 | 16 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Development costs amortisation |
Auditors remuneration |
Auditors' remuneration for non audit work |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Other Interest |
Loan interest |
Interest was paid on an intercompany loan at market rate. |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Tax on profit/(loss) | ( |
) |
UK corporation tax has been charged at 25% . |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 JUNE 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods | ( |
) |
Tax losses surrendered to group | - | 176,464 |
Change in tax rate | (4,513,888 | ) | - |
Total tax charge/(credit) | 20,449,280 | (2,469 | ) |
8. | INTANGIBLE FIXED ASSETS |
Development |
costs |
£ |
COST |
At 30 June 2022 |
Disposals | ( |
) |
At 29 June 2023 |
AMORTISATION |
At 30 June 2022 |
Amortisation for year |
Eliminated on disposal | ( |
) |
At 29 June 2023 |
NET BOOK VALUE |
At 29 June 2023 |
At 29 June 2022 |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 JUNE 2023 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
and |
fittings |
£ |
COST |
At 30 June 2022 |
Disposals | ( |
) |
At 29 June 2023 |
DEPRECIATION |
At 30 June 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 29 June 2023 |
NET BOOK VALUE |
At 29 June 2023 |
At 29 June 2022 |
10. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 30 June 2022 |
and 29 June 2023 |
NET BOOK VALUE |
At 29 June 2023 |
At 29 June 2022 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: 19-20 North Mills, Frog Island, Leicester, Leicestershire, England, LE3 5DH |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 JUNE 2023 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Taxation |
VAT |
Prepayments |
12. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 1 | 1 |
13. | RESERVES |
Retained |
earnings |
£ |
At 30 June 2022 | ( |
) |
Profit for the year |
At 29 June 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Taxation |
Paye/Ni payable | 43,121 | 62,179 |
Other creditors |
Accruals and deferred income |
15. | SECURED DEBTS |
At the balance sheet date there are fixed and floating charges held over all assets of the company. |
There is a limited guarantee from the directors Mr KC Bastian and Mrs MA Bastian amounting to £100,000 dated 17 February 2017. |
There is a cross guarantee and debenture dated 22 June 2020 between Bastian Plc, Fischer Future Heat Group Limited, Fischer Future Heat UK Limited, Foxglove Energy Supply Limited, Foxglove Energy Trading Limited, Novorad Limited and Woodlands Installations UK Limited. |
FOXGLOVE ENERGY SUPPLY LTD (REGISTERED NUMBER: 09689035) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 29 JUNE 2023 |
16. | PENSION COMMITMENTS |
The company operates a pension scheme. The assets of the scheme are held separately from those of the company within independently administered funds. The charge for the year was £26,554 (2022: £31,796). Contributions of £5,104 (2022: £6,785) were unpaid at the year end. |
17. | ENERGY PURCHASE COMMITMENTS |
The company hedges its exposure to changes in market prices from energy purchases. |
The company has committed to purchase energy totalling £13,183,382 (2022: £14,560,138). |
The fair value of these forward contracts amounts to £11,565,106 (2022: £16,388,540) at the balance sheet date. |
18. | RELATED PARTY DISCLOSURES |
During the year, a total of key management personnel compensation of £225,543 (2022: £575,009) was paid. |
19. | ULTIMATE PARENT COMPANY |
In the directors' opinion, the company's ultimate parent company is Bastian Plc. |
The registered address of Bastian Plc is Granville Hall, Granville Road, Leicester, Leicestershire, England, LE1 7RU and the group accounts can be found at Companies House, Crown Way, Cardiff, CF14 3UZ. |