BROOK_GREEN_SUPPLY_LIMITE - Accounts

The directors present the strategic report for the year ended 31 March 2023.

Since Brook Green Supply was established in 2015, the company has been focused on providing large and complex energy users with power and gas products, market access and a leading innovative energy platform to help customers meet future challenges beyond traditional supply.

Energy markets are currently going through a period of significant change as part of a global shift towards net zero carbon energy solutions. Brook Green Supply partners with consumers and, generators to develop new structures and products that reduce risk and accelerate the energy transition.

The energy market experienced several challenges during the reporting period, but the directors are pleased with the company's performance and its competitive product offering and high-quality customer base. The directors are confident that the company is well positioned to continue to grow and maintain profitability in the future.

The company has established a risk-based framework to identify and manage risks. The principal risks and uncertainties relating to the company are as follows:

Credit risk - Credit risk is the risk that a customer or supplier will fail to meet its contractual obligations. The main areas of risk that are relevant to the company are customer credit risk (customer debt) and supplier credit risk (security deposits and prepayments to suppliers and distributors).

To mitigate customer credit risk, the company conducts thorough credit checks on all new customers to determine creditworthiness prior to onboarding, whilst a dedicated credit team continuously monitor customer balances for non-payment. In addition, the company has an insurance policy with a global financial institution to mitigate the risk of customer non-payment.

Liquidity risk - Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company uses a combination of short and long term cashflow forecasts to manage liquidity using a range of analysis and forecasting techniques. Furthermore, the company has several banking and lending facilities available to it.

External factors - The company is exposed to external economic and geopolitical environments that affect the UK energy supply industry.

The company uses several financial and non-financial KPls to effectively manage the business and ensure that development and performance are in line with the company's strategic objectives. Some of the financial metrics; such as gross profit margin, have been included in the fair review of the business. The company's non-financial metrics include customer and meter count as well as portfolio volume (YoY delivered volume increase 51% power, 88% gas).

The directors recognise the importance of the company’s wider stakeholders when performing their duties under Section 172(1) of the Companies Act 2006, and their duty to act in good faith to promote the success of the company for the benefit of its members and in doing so, to have regard (amongst other matters) to:

1. the likely consequences of any decision in the long term;

2. the interest of the company’s employees;

3. the need to foster the company’s business relationships with suppliers, customers and others;

4. the impact of the company’s operations on the community and the environment;

5. maintaining a reputation for a high standard of business conduct; and

6. the need to act fairly between members of the company.

The directors believe that effective and meaningful engagement with stakeholders is key to promoting the success of the company. The company’s key stakeholders and how the company engages with each of them is set out below:

Customers
Providing a high-quality product offering and excellent customer service is significant to the company to achieve a loyal customer base and continued growth and success. The company aims to deal with all its customers fairly and provide appropriate and competitive solutions that are suitable to their needs. Customer surveys are conducted to help improve the customer service levels and the directors are committed to investing additional time and money into back-office systems to further develop and enhance the customer experience.

Employees
The company recognises that the health and safety of its employees is essential to a successful work environment. It is also fundamental to provide training and development opportunities whereby every employee understands the business strategy and can contribute to its achievements and their own career objectives in a positive and meaningful way with the appropriate skillsets and resources. The directors ensure that the company is dedicated to regular training courses and performance feedback so that it continues to build a talented and well-informed workforce.

Suppliers
The company’s relationship with its suppliers is integral to the quality of its product offering to its customers. The directors are strong advocates of free competition and transparent markets. This includes complying with tax and regulatory requirements and considering the integrity and qualification of its suppliers when entering business relationships. The company observes all applicable national and international laws and foreign trade restrictions and takes all necessary measures to prevent money laundering.

Environment
The company is committed to the growth of renewables in the UK energy market and providing its customers with access to net zero energy solutions that provide affordable energy efficiency without creating negative environmental impact. The directors are invested in implementing technological advancements that support system-wide changes to the generation and consumption of gas and electricity to fight against climate change.

Shareholder
The directors seek to protect the shareholders’ capital investment and providing a fair return on this investment is a prerequisite of the company’s business activities. The directors ensure there is constant engagement between senior management and shareholders to maintain strategic alignment.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2023.

The principal activity of the company is supplying gas and electricity to medium and large enterprises across the UK.

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

There are no matters to report.

In accordance with the company's articles, a resolution proposing that Fisher, Sassoon & Marks be reappointed as auditor of the company will be put at a General Meeting.

In addition to providing its customers with cost and carbon reducing energy solutions, the company is dedicated to ensuring that its own operations achieve energy efficiency and carbon neutrality. The company is a wholly owned subsidiary of CFP Energy Group Limited, which includes all relevant carbon reporting disclosures in the consolidated financial statements, which includes the reporting relevant for the company, and as such the company has applied the exemption given in the Companies Act 2006 not to present the disclosure in its individual financial statements.

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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:

•     properly select and apply accounting policies;

•     present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

•     provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

•     make an assessment of the company's ability to continue as a going concern.

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.

Each director in office at the date of approval of this annual report confirms that:

•     so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

•     the director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

We have audited the financial statements of Brook Green Supply Limited (the 'company') for the year ended 31 March 2023 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows 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 UK adopted international accounting standards.

In our opinion the financial statements:

•     give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended;

•     have been properly prepared in accordance with UK adopted international accounting standards; 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 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.

Other information

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.

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' report 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.

In 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 directors' report.

We have nothing to report in respect of the following matters in relation to which 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.

As explained more fully in the directors' responsibilities statement, 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.

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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the financial services sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, Companies Act 2006, taxation legislation, data protection, anti-bribery, anti-money-laundering, employment, environmental and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

• understanding the design of the company’s remuneration policies.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates as set out in note 2 were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing correspondence with HMRC, relevant regulators and reviewing the company’s compliance monitoring procedures and findings.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or through collusion.

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.

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 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.

Brook Green Supply Limited is a private company limited by shares incorporated in England and Wales. The registered office is 245 Hammersmith Road, London, United Kingdom, W6 8PW. The company's principal activities and nature of its operations are disclosed in the directors' report.

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts 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.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

• inclusion of an explicit and unreserved statement of compliance with IFRS;

• presentation of a statement of cash flows and related notes;

• disclosure of the objectives, policies and processes for managing capital;

• disclosure of key management personnel compensation;

• disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;

• the effect of financial instruments on the statement of comprehensive income;

• disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;

• comparative narrative information and;

• related party disclosures for transactions with the parent or wholly owned members of the group.

Where required, equivalent disclosures are given in the group accounts of CFP Energy Group Ltd. The group accounts of CFP Energy Group Ltd are available to the public and can be obtained as set out in note 22.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group. Brook Green Supply Limited is a wholly owned subsidiary of CFP Energy Solutions Ltd and the results of Brook Green Supply Limited are included in the consolidated financial statements of CFP Energy Group Ltd which are available from 245 Hammersmith Road, London, W6 8PW.

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover arises from the supply of gas and electricity on consumption and related services as these costs are incurred; amounts are derived from the provision of goods and services that fall within the ordinary activities of the Group. Revenue is recognised net of value added tax (VAT) and climate change levy (CCL).

Turnover represents the fair value of the consideration received or receivable from the sale of actual and estimated electricity and gas supplied during the year, net of discounts and value added taxes.

Turnover is recognised when the associated risks and rewards of ownership have been transferred, to the extent that it is probable that the economic benefits associated with the transaction will flow to the company and the revenue can be reliably measured. This includes an estimate of the sales value of units supplied to customers between the date of the last meter reading-and the year-end. Any unbilled revenue is included in trade receivables to the extent that is it considered recoverable, based on historical data. ·

·

The UK Government introduced the Energy Bill Relief Scheme (EBRS) commencing on October 2022 and in operation at 31 March 2023. Under the scheme, energy supplied to customers in this period had a discount applied to their bills to cap their energy tariff, with the discount claimed back from the Government. The discounted price of electricity and gas supplied under the EBRS is recognised in turnover as it is supplied. The discount amount claimed back from the UK Government is recognised within turnover. The Company does not recognise any additional turnover from the scheme than it would have done if it were not introduced.

The company recognises revenue from the following major sources:

• Supply of Electricity

• Supply of Gas

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Revenue from the supply of electricity is a function of end user consumption (according to meter read data) and tariff rates (specified by contract terms). Revenue is recognised net of sales discounts.

Revenue from the supply of gas is also a function of end user consumption (according to meter read data) and tariff rates (specified by contract terms). Revenue is recognised net of sales discounts.

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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:

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 recognised in the income statement.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible 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.

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.

Cash and cash equivalents 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.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

The company has made an irrevocable election to recognise changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognised initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognised or its fair value substantially decreased. Dividends are recognised as finance income in profit or loss.

Financial assets, other than those measured at fair value through profit or loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

The Company uses the IFRS 9 'Financial Instruments' ("IFRS 9") simplified approach to measuring expected credit losses which applies a lifetime expected credit loss allowance for all trade receivables. To measure expected credit losses, trade receivables have been grouped based on days past due and other indicators and losses are calculated based on historical credit loss experience. Trade receivables are written off when there is no reasonable expectation of recovery. Impairment losses on trade receivables are presented as net impairment losses within operating profit and subsequent recoveries of amounts previously expensed are credited against the same line item.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

•     it has been incurred principally for the purpose of repurchasing it in the near term, or

•     on initial recognition it is part of a portfolio of identified financial instruments that the manages together and has a recent actual pattern of short-term profit taking, or

•     it is a derivative that is not designated and effective hedging instrument.

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

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 tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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 income statement, 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.

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 inventories or non-current 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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Company's key bad debt risk relates to energy customer balances, which are mitigated by using direct debit collections, constant monitoring of customer account performance, and controls in respect of customer credit limits and payment terms.

Management calculates a bad debt provision based on historic non-payment percentages based on customer balances outstanding for over 12 months and uses these percentages to calculate the bad debt provision. This calculation is reviewed on a regular basis.

The impairment of trade debtors in the year is disclosed in note 15. Whilst the position adopted reflects management's current best estimate of possible outcomes, actual rates of bad debt may differ from the position adopted in these financial statements.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The charge for the year can be reconciled to the profit per the income statement as follows:

Details of the company's subsidiaries at 31 March 2023 are as follows:

Registered office addresses:

SCMI Limited has a fixed and floating charge over the assets of the company.

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

The company calculated the expected credit loss of its receivables in accordance with IFRS 9. The company determined provisioning for £2,405,000 of expected credit loss should be presented in these financial statements.

In determining the recoverability of a receivable, the company considers any change in the credit quality of the receivable from the date credit was initially granted up to the reporting date. 

The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The company is not subject to any externally imposed capital requirements.

The following amounts were outstanding at the reporting end date:

At the year end the company owed £166,505,018 (2022: £117,597,363) to its subsidiary Brook Green Trading Limited, a company incorporated and registered in England & Wales. Of this amount, £123,490,193 relates to payables for gas and power delivered in March 2023.

At the year end the company owed £887,090 (2022: £113,287) in respect of service charges to CFP Energy (UK) Ltd (Formerly CF Partners Services (UK) Limited), a fellow group company registered and incorporated in England & Wales. This amount is unsecured, interest free and repayable on demand.

At the year end the company owed £47,318 (2022: £71,387) in respect of service charges to CF Partners (UK) LLP, a fellow group entity registered and incorporated in England & Wales. This amount is unsecured, interest free and repayable on demand.

At the year end the company was owed £6,456 (2022: £6,456) by Brook Green Innovations Limited, a fellow group entity registered and incorporated in England & Wales. This amount is unsecured, interest free and repayable on demand.

At the year end the company was owed £298,442 (2022: £40,044,000) by CFP Trading Limited, a company registered and incorporated in Malta. This amount is unsecured, interest free and repayable on demand.

The immediate parent company of Brook Green Innovations Limited is CFP Energy Solutions Limited, a company registered in England and Wales, The ultimate parent undertaking and controlling party is CFP Energy Group Ltd, a company incorporated and registered in England and Wales.

The consolidated financial statements of CFP Energy Group Ltd are available from 245 Hammersmith Road, London, England, W6 8PW.