Company Registration No. SC263298 (Scotland)
Flexitricity Limited
Annual report and financial statements
for the year ended 31 March 2021
Flexitricity Limited
Company information
Directors
Dr Alastair Martin
Simon Heyes
Keith Gains
(Appointed 9 September 2020)
Rory Quinlan
(Appointed 9 September 2020)
Anne Foster
(Appointed 7 September 2021)
Secretary
Pia Tapley
Company number
SC263298
Registered office
Mainpoint
102 West Port
Edinburgh
EH3 9DN
Auditor
Henderson Loggie LLP
11-15 Thistle Street
Edinburgh
EH2 1DF
Bankers
HSBC
76 Hanover Street
Edinburgh
EH2 1EL
Flexitricity Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Notes to the financial statements
10 - 16
Flexitricity Limited
Strategic report
for the year ended 31 March 2021
- 1 -
The directors present the strategic report for the year ended 31 March 2021.
Fair review of the business
During the year under review the company continued to provide Demand Side Response services to National Grid to help balance supply and demand and to ensure the security and quality of electricity supply across Great Britain (GB). Continued progress was made in the supply and Balancing Mechanism (BM) markets during the year as is evidenced by the material growth in revenue which has continued into the current year. The company continues to secure new customers and deliver a valuable range of trading and optimisation services to both new and existing customers. This underpins a continuing strategy of service diversification as the company leads the way in offering integrated supply, trading, optimisation, ancillary and Capacity Market (CM) services to a broad range of organisations, many of whom are commercial or industrial.
In September 2020 the company was acquired by funds managed by Quinbrook Infrastructure Partners, an investment manager with a specialist focus on low carbon and renewable energy supply, storage, grid stability and related assets and businesses. The new owner has supported the company in its ongoing investment in securing new customers and strengthening the organisation, systems, processes and finances necessary to underpin recent and continued growth plans.
Principal risks and uncertainties
The electricity and gas supply industry is in a period of unprecedented change as it accelerates its drive towards the UK Government’s goal of net zero carbon which creates both opportunity and risk for those involved. While the directors believe that Flexitricity is well positioned to benefit from the changing regulatory and commercial environment, there are risks associated with the procurement, delivery and reliability of ancillary services, the Capacity Market and the Balancing Mechanism, not all of which the company can directly control and which could, if not managed appropriately, adversely impact its commercial and financial performance.
By continuing to engage fully with key stakeholders across the sector, by developing and continually improving algorithms to automate and optimise trading opportunities and by maintaining and growing a portfolio across a wide variety of asset types and owners, Flexitricity mitigates the potential impact of these risks and continues to maintain its leading position in the industry.
Flexitricity Limited
Strategic report (continued)
for the year ended 31 March 2021
- 2 -
Future developments
In its existing markets, the company continues to develop and promote a range of services to ensure it is best placed to benefit from ongoing market and regulatory changes. In April 2020, Flexitricity completed the first ever Balancing Mechanism trade as a Virtual Lead Party through the Balancing Mechanism Wider Access route. In October 2020, Flexitricity was a participant from the launch of National Grid’s Dynamic Containment Low service and has continued to deliver in this service during the remainder of the year.
The directors believe that these changes will allow us to further improve the market and financial opportunities for Flexitricity in future years.
The increase in the relative proportion of batteries in the total electrical capacity of all assets under management has led to the development of capability to deliver more than one service concurrently and to prepare for relevant future new services, including Dynamic Containment High.
The directors believe that shifts in the demand-side markets will continue and accelerate with the electrification of transport and heat as well as the increased participation of electrical loads within commercial buildings, all increasing the need and the sources of flexibility. Flexitricity continues to be involved in the early-stage delivery of these technologies to ensure that it remains well placed to benefit from the wide-scale adoption of these and other industry movements.
The continued government-imposed restrictions relating to Covid 19 have had no material adverse impact on either Flexitricity or its customer base. Flexitricity transitioned to wholly homeworking during April 2020 and again in January 2021; for the remaining period staff accessed the office premises whenever a particular task could not be achieved through homeworking.
During the summer of 2020, national Covid 19 restrictions led to very low levels of electricity demand which, when combined with high levels of renewable generation, led to the introduction of new positive and negative flexibility management services from which additional customers and revenues were acquired.
The issue of the Prime Minister’s “Ten Point Plan for a Green Industrial Revolution” in November 2020 emphasised the long-term commitment to a wide range of low carbon technologies and services, many of which will bring additional opportunities for flexible electricity customers. The consequential changes to electricity supply and demand will shape future electricity requirements in GB, with flexibility being ever more essential to efficient functioning of the system and market.
Simon Heyes
Director
30 November 2021
Flexitricity Limited
Directors' report
for the year ended 31 March 2021
- 3 -
The directors present their report and financial statements for the year ended 31 March 2021.
Principal activities
The company’s principal activities are the establishment and operation of an aggregated electricity reserve and balancing service and the supply of electricity and gas to business customers in support of that
.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Dr Alastair Martin
Alastair Kerr
(Resigned 17 December 2020)
Michel Kolly
(Resigned 9 September 2020)
Hans Dahlberg
(Resigned 9 September 2020)
Simon Heyes
Raffaele Beffa
(Resigned 9 September 2020)
Andrew Lowe
(Resigned 17 December 2020)
Keith Gains
(Appointed 9 September 2020)
Rory Quinlan
(Appointed 9 September 2020)
Anne Foster
(Appointed 7 September 2021)
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Simon Heyes
Director
30 November 2021
Flexitricity Limited
Directors' responsibilities statement
for the year ended 31 March 2021
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Flexitricity Limited
Independent auditor's report
to the members of Flexitricity Limited
- 5 -
Opinion
We have audited the financial statements of Flexitricity Limited (the 'company') for the year ended 31 March 2021 which comprise the statement of comprehensive income, the balance sheet and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 31 March 2021 and of its loss 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Flexitricity Limited
Independent auditor's report (continued)
to the members of Flexitricity Limited
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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 directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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. The
specific procedures for this engagement and the
extent to
which these
are capable of detecting irregularities, including fraud, is detailed below
.
Flexitricity Limited
Independent auditor's report (continued)
to the members of Flexitricity Limited
- 7 -
-
Enquiring with management about any known or suspected instances of non-compliance with laws and regulations, including employment law, and fraud;
-
Review of correspondence with regulators including
obtaining electricity and gas supply licenses
;
-
Review of legal fee expenditure and board minutes;
-
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to provisions for penalties, warranties and stock; and
-
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: employment law (including the Working Time Directive); and compliance with the UK Companies Act.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters which we are required to address
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Diana Penny (Senior Statutory Auditor)
For and on behalf of Henderson Loggie LLP
30 November 2021
Chartered Accountants
Statutory Auditor
11-15 Thistle Street
Edinburgh
EH2 1DF
Flexitricity Limited
Statement of comprehensive income
for the year ended 31 March 2021
- 8 -
2021
2020
£'000
£'000
Turnover
17,121
12,282
Cost of sales
(14,622)
(9,777)
Gross profit
2,499
2,505
Distribution costs
(264)
(209)
Administrative expenses
(3,493)
(3,135)
Other operating income
39
149
Operating loss
(1,219)
(690)
Interest receivable and similar income
14
Interest payable and similar expenses
(389)
(182)
Loss before taxation
(1,608)
(858)
Tax on loss
(246)
Loss for the financial year
(1,608)
(1,104)
Flexitricity Limited
Balance sheet
as at 31 March 2021
31 March 2021
- 9 -
2021
2020
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
5
204
285
Current assets
Debtors
6
5,869
2,693
Cash at bank and in hand
1,483
1,397
7,352
4,090
Creditors: amounts falling due within one year
7
(13,039)
(8,249)
Net current liabilities
(5,687)
(4,159)
Net liabilities
(5,483)
(3,874)
Provisions for liabilities
-
Capital and reserves
Called up share capital
1,066
1,066
Share premium account
3,016
3,016
Profit and loss reserves
(9,565)
(7,956)
Total equity
(5,483)
(3,874)
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 30 November 2021 and are signed on its behalf by:
Simon Heyes
Director
Company Registration No. SC263298
Flexitricity Limited
Notes to the financial statements
for the year ended 31 March 2021
- 10 -
1
Accounting policies
Company information
Flexitricity Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Mainpoint, 102 West Port, Edinburgh, EH3 9DN.
1.1
Accounting convention
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 £'000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements are prepared on a going concern basis.
true
Additional loan funding agreements are being agreed shareholders and their support is confirmed for a period of twelve months from signing the financial statements.
Having considered
this along with
the financial projections of the company
the directors believe this basis to be appropriate.
The directors have also considered the impact of the Covid-19 pandemic and consider it appropriate to prepare the financial statements on a going concern basis of preparation for the reasons as set out in the Strategic Report.
1.3
Turnover
Turnover is the value of services supplied to the National Grid, Energy Partners and supply customers, and other goods and services, exclusive of VAT.
Most income is recognised in the month in which it is earned. Where necessary, internal estimations are used and subsequently corrected when statements are received from the appropriate settlement entity outlining services provided. Reserve, frequency, supply and Balancing Mechanism (BM) service revenues all require an element of estimation at the end of each reporting period, with supply and BM revenues requiring a greater degree of judgement and generally being of greater value. Initial statements are available for each of these services within one month of activity which allows for revenue reconciliation within a reasonable timeframe.
Triad and Capacity Market income is recognised as and when services have been provided.
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to
operational activities
are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Flexitricity Limited
Notes to the financial statements (continued)
for the year ended 31 March 2021
1
Accounting policies (continued)
- 11 -
Depreciation 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:
Plant and machinery
20% and 33% straight line
Fixtures, fittings & equipment
20% and 33% straight line
Other assets
20% straight line
Bespoke computer system
10%, 20% and 33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.
Flexitricity Limited
Notes to the financial statements (continued)
for the year ended 31 March 2021
1
Accounting policies (continued)
- 12 -
Basic financial assets
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.
Classification of 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 deducting all of its liabilities.
Basic financial 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.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Flexitricity Limited
Notes to the financial statements (continued)
for the year ended 31 March 2021
1
Accounting policies (continued)
- 13 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date
taking into account future income projections over a two year period (previously three years)
. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Accrued income
Reserve, frequency, supply and Balancing Mechanism (BM) service revenues all require an element of estimation at the end of each reporting period, with supply and BM revenues requiring a greater degree of judgement and generally being of greater value. Initial statements are available for each of these services within one month of activity which allows for revenue reconciliation within a reasonable timeframe.
Flexitricity Limited
Notes to the financial statements (continued)
for the year ended 31 March 2021
- 14 -
3
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the company
11
11
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
40
34
5
Tangible fixed assets
Plant and machinery etc
Other assets
Bespoke computer system
Total
£'000
£'000
£'000
£'000
Cost
At 1 April 2020
310
220
1,110
1,640
Additions
11
6
14
31
At 31 March 2021
321
226
1,124
1,671
Depreciation and impairment
At 1 April 2020
255
60
1,040
1,355
Depreciation charged in the year
39
44
29
112
At 31 March 2021
294
104
1,069
1,467
Carrying amount
At 31 March 2021
27
122
55
204
At 31 March 2020
55
160
70
285
Flexitricity Limited
Notes to the financial statements (continued)
for the year ended 31 March 2021
- 15 -
6
Debtors
2021
2020
Amounts falling due within one year:
£'000
£'000
Trade debtors
149
83
Other debtors
5,720
2,610
5,869
2,693
7
Creditors: amounts falling due within one year
2021
2020
£'000
£'000
Trade creditors
603
470
Taxation and social security
270
90
Other creditors
12,166
7,689
13,039
8,249
8
Financial commitments, guarantees and contingent liabilities
There is a security held over £30k of cash in favour of Nord Pool AS, and a security over €50k of cash in favour of European Commodity Clearing AG. There is also a floating charge over the assets of the company in favour of HSBC.
9
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£'000
£'000
140
281
Flexitricity Limited
Notes to the financial statements (continued)
for the year ended 31 March 2021
- 16 -
10
Related party transactions
During the year the company entered into the following transactions with related parties:
The company was invoiced £2
1
k (20
20
:£2
1
k) of membership costs
for the Association of Decentralised Energy, an organisation in which Alastair Martin is a director. At the year end there was an outstanding balance of £
nil
(20
20
: £2
1
k).
During the year, the company was also invoiced for £
nil
(20
20
: £
154
k) of interest costs from its
previous
parent company
Alpiq Holdings AG
,
and
accrued interest of costs of £
74
k relating to outstanding loan balances.
These balances along with loan balance of £5,544k was settled on sale of the company.
During the year, the company invoiced Alpiq Energie France, a fellow group member
prior to sale of company
, £
10
k (20
20
:
£16
k) for support services. No amounts were outstanding at year end.
Following sale of the company, loans of £7,386k were advanced from parent company Reserve Power Holdings (Jersey) Limited. At the year end, the full balance of this loan and £299k of accrued interest charged thereon remained outstanding.
11
Parent company
The parent company is
Reserve Power Holdings (Jersey) Limited
, a
company incorporated in Jersey, which
owns 100% of the issued share capital.
Reserve Power Holdings (Jersey) Limited
is the parent undertaking of the smallest group of which the company is a member and for which group financial statements are drawn up.
Its registered office is 3rd Floor Standard Bank House, 47-49 La Motte Street, St Helier, Jersey, JE2 4SZ.
2021-03-31
2020-04-01
false
CCH Software
CCH Accounts Production 2021.100
Dr Alastair Martin
Alastair Kerr
Michel Kolly
Dr Alastair Martin
Simon Heyes
Raffaele Beffa
Alastair Kerr
Keith Gains
Rory Quinlan
Michel Kolly
Pia Tapley
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