Breeze Energy Supply Limited is a private company limited by shares incorporated in England and Wales. The registered office is Dobson House, Regent Centre, Gosforth, Newcastle upon Tyne, NE3 3PF.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. 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 financial statements are prepared in sterling , which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Energy Partners Limited is the parent company of Breeze Energy Supply Limited.
A t the time of approving the financial statements , t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future - in particular they have the full financial support of the holding company . Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Revenue is recognised upon receipt of monies from customers, who must sign recurring monthly direct debits. Periodic adjustments are made to income when an accurate meter reading is supplied and previously estimated usage is adjusted to reflect actual volumes used.
Direct debits are adjusted to reflect the most recent meter readings and predict future usage based on accurate market algorithms (and past experience of customer trends). As a result, the adjustments are very small and in the opinion of directors no provision needs to be made at the year end for any customers who have not provided an accurate meter reading.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation . All costs relating to the development of the intangible assets, up to the date the system went live, have been capitalised, with all subsequent expenditure expensed to the profit and loss account. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
The average monthly number of persons (including directors) employed by the company during the year was 3 (2016 - 2).
The company has one class of ordinary share which carries no rights to fixed income and one equal vote per share.