Registration number:
Home Energy Limited
for the Year Ended 30 September 2019
Home Energy Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Home Energy Limited
Company Information
Directors |
Kevin Stoker Charles Fairpo |
Registered Number: |
10225877 |
Registered office |
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Accountants |
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Home Energy Limited
(Registration number: 10225877)
Balance Sheet as at 30 September 2019
Note |
2019 |
2018 |
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Fixed assets |
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Tangible assets |
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Investments |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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Net current assets |
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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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Net assets |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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- |
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Other reserves |
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Profit and loss account |
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Total equity |
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For the financial year ending 30 September 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
Home Energy Limited
(Registration number: 10225877)
Balance Sheet as at 30 September 2019
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
.........................................
Director
Home Energy Limited
Notes to the Financial Statements for the Year Ended 30 September 2019
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Home Energy Limited
Notes to the Financial Statements for the Year Ended 30 September 2019
Going concern
The financial statements have been prepared on a going concern basis.
At the year end the company had both current assets and net assets. However, it had retained losses of £198,515 and the net asset position includes both the investment in and amounts due from the company’s wholly owned subsidiary, Home Energy Trading Limited (“HETL”).
HETL itself had net liabilities of £313,701 at the year end. Should HETL not be able to repay the amounts owing to the company that could mean that the company might need to provide against both the amounts owed by HETL and consider the carrying value of the investment.
The company also had external borrowings at the end of the year. As noted in Note 11 to these financial statements, those loans have subsequently been repaid from funds lent to the company by a director and a shareholder who had agreed not to demand repayment until such time as the company has adequate funds available.
Since the year end the group has continued to be loss-making. Note 11 sets out actions taken to reduce the cost base and the group’s exposure to electricity and gas price volatility.
Also since the year end, the company has been in discussions with third parties regarding potential investments into the group and / or the sale of interests in HETL. While these discussions have been impacted and protracted by COVID they are ongoing as at the date of signing the accounts. The directors consider that a positive outcome to those discussions would allow the group to continue as a going concern for the foreseeable future.
As at the date of signing the accounts, the directors are not aware of any material reason why there would not be a positive outcome to the ongoing discussions. Hence, they have drawn up these accounts on a going concern basis.
As part of their consideration of the going concern basis, the directors have reviewed the carrying value of the investment in and amounts due from HETL and have concluded that no impairment provision is required as of 30 September 2019.
However, should the aforementioned discussions not lead to a positive outcome and should other parties not be willing or able to complete an acceptable transaction, then the directors would have to consider whether adequate actions could be taken to secure the future of the group and would need to revisit the carrying values of items relating to HETL in the company’s balance sheet.
Tax
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Home Energy Limited
Notes to the Financial Statements for the Year Ended 30 September 2019
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Office Equipment |
3 years straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Home Energy Limited
Notes to the Financial Statements for the Year Ended 30 September 2019
Taxation |
Home Energy Limited has tax losses of £197,455 (2018: £27,534). These would give rise to a deferred tax asset of £37,516. However,the deferred tax asset has not be recognised in the accounts due to the current uncertainty that the losses will be utilised in the foreseeable future..
Tangible assets |
Office equipment |
Total |
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Cost or valuation |
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At 1 October 2018 |
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Additions |
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At 30 September 2019 |
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Depreciation |
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At 1 October 2018 |
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Charge for the year |
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At 30 September 2019 |
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Carrying amount |
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At 30 September 2019 |
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At 30 September 2018 |
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Home Energy Limited
Notes to the Financial Statements for the Year Ended 30 September 2019
Investments |
2019 |
2018 |
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Investments in subsidiaries |
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Subsidiaries |
£ |
Cost or valuation |
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At 1 October 2018 |
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Additions |
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At 30 September 2019 |
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Provision |
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Carrying amount |
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At 30 September 2019 |
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At 30 September 2018 |
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Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
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2019 |
2018 |
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Subsidiary undertakings |
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Stoneygate House
England |
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Stoneygate House
England and Wales |
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Home Energy Limited
Notes to the Financial Statements for the Year Ended 30 September 2019
Debtors |
Note |
2019 |
2018 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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Other debtors |
1,547 |
1,900 |
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VAT Control account |
8,379 |
13,878 |
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Home Energy Limited
Notes to the Financial Statements for the Year Ended 30 September 2019
Creditors |
Creditors: amounts falling due within one year
Note |
2019 |
2018 |
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Due within one year |
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Bank loans and overdrafts |
23,880 |
- |
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Trade creditors |
78,551 |
10,803 |
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Other related parties |
1,217 |
2,033 |
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PAYE and NIC |
372 |
1,879 |
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Accruals and deferred income |
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Other creditors |
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Creditors: amounts falling due after more than one year
Note |
2019 |
2018 |
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Due after one year |
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Loans and borrowings |
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- |
Share capital |
Allotted, called up and fully paid shares
2019 |
2018 |
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No. |
£ |
No. |
£ |
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17,325.00 |
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100 |
In 2018 there were Other Reserves of £245,500 relating to amounts received from investors pending the issue of shares. These were issued during the 2019 accounting period.
Home Energy Limited
Notes to the Financial Statements for the Year Ended 30 September 2019
Related party transactions |
Summary of transactions with subsidiaries
Loans to related parties
2019 |
Subsidiary |
Total |
At start of period |
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Advanced |
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Repaid |
( |
( |
At end of period |
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2018 |
Subsidiary |
Total |
Advanced |
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Non adjusting events after the financial period |
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