Annual
Report
& Financial Statements
2015
Contents
Annual Report & Financial Statements
Year ended 31 December 2015
2015
Annual Report
Good Energy - 2015 highlights
Strategic Report
Chairman’s Statement
Strategic Review
Chief Executive’s Review
Chief Financial Officer’s Review
The Good Energy Group PLC Board
Directors’ Report
Directors’ Remuneration Report
4 – 5
6 – 17
7 – 8
9 – 11
12 – 15
16 – 17
18 – 19
21 – 34
31 – 34
Independent Auditors’ Report to the members of Good Energy Group PLC
35 – 39
Financial Statements
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Parent Company Statement of Financial Position
Consolidated Statement of Changes in Equity
Parent Company Statement of Changes in Equity
Consolidated Statement of Cash Flows
Parent Company Statement of Cash Flows
Notes to the Financial Statements
Directors and Corporate Resources
41
42
43
44
45
46
47
48 – 90
91
3
Strategic ReportDirectors’ ReportFinancial Statements Good Energy - 2015 highlights
Revenue
Gross profit
EBITDA
Compound annual growth
over five years: 26%
Compound annual growth
over five years: 27%
Compound annual growth
over five years: 42%
PBT
Non current assets
Compound annual growth
over five years: -29%
Compound annual growth
over five years: 37%
EBITDA is calculated using operating profit
before exceptional costs.
Financial summary
Revenue increased 12% to £64.3m
Cash balance £4.8m
Gross profit increased by 13% to £21.3m
Net debt £54.0m
EBITDA increased by 28% to £7.3m
Basic (loss) / earnings per share (1.4p)
Profit before tax of £0.1m
Total dividend for the year maintained at 3.3p
4
Customer growth
Customers
Electricity customer numbers grew 32%
to 68,000
Gas customer numbers rose 55% to 38,800
Feed-in Tariff administration sites grew 48%
to more than 112,600
Generation & Development
Four solar farms completed and commissioned –
Rook Wood and Lower End (Wiltshire), Carloggas
(Cornwall) and Crossroads (Dorset) with a total
combined capacity of 23MW
Total solar output at year end was 23.3GWh
Total number of owned and operated solar
farms at year end was six - with a total capacity
of 30MW
A seventh solar farm, Oaklands (Dorset) went
live in early January 2016
Planning permission for three additional solar
sites was received in January 2016
Wind farm installed capacity at year end was
17.5MW
Total wind farm output during 2015 was
53.3GWh
Total installed capacity at year end was 47.5MW
The combined output of Good Energy’s wind
and solar sites was 76.6MWh - enough to power
around 19,135 average homes
Good Energy continues to
focus on building its customer
base and delivering excellent
customer service.
Hampole wind farm, near Doncaster.
5
Strategic ReportDirectors’ ReportFinancial Statements Strategic
Report
Chairman’s Statement 7 – 8
Strategic Review 9 – 11
Chief Executive’s Review 12 – 15
Chief Financial Officer’s Review 16 – 17
6–17
Our Strategic Report for 2015 contains contributions from Good Energy’s
Chairman, its Chief Executive and its Chief Financial Officer, in addition to a
strategic review. Detailed financial information and data can be found in later
sections of the document.
Chairman’s Statement
Good Energy’s strategic objectives for 2015 were
to grow its customer base, to continue to invest in
renewable generation capacity and to diversify its
funding stream to support this investment.
In 2015, overall customer numbers grew by 44% and
Good Energy invested in bringing four new solar sites
on stream, making a total as at year end of six. It also
drew down £18.6m of funding from its debt facility to
support the development of these generation assets.
The company delivered profit before tax of £128k, in
line with expectations.
There was considerable focus on the renewable
energy sector in the UK during the year. The Paris
climate summit in December 2015 demonstrated
a renewed commitment by all participating
governments to take action to address climate
change.
At the same time, the UK has seen demand for
renewable energy grow year on year. Nearly a quarter
of the country’s electricity needs are now being
met by renewable sources such as wind and solar
- evidence that there is a clear growth market for
renewable energy in the medium to long term.
Good Energy, which was set up more than 15
years ago, continues to offer a proven blueprint
for a commercially viable and sustainable 100%
renewable power supply and generation business.
2015 saw a number of changes to UK energy
policy and subsidy landscape which negatively
impacted plans for wind and solar development and
generation. It was also the UK’s warmest year on
record, resulting in decreased energy usage.
However, as a vertically integrated utility business,
both generating and supplying renewable
electricity, Good Energy is well placed to deal
with such challenges.
There is evidence of a strong
growth market for renewables
in the medium to long term.
In September, it announced its new strategic focus
and five-year business plan. This is designed to
deliver the company’s growth target of a five-
fold increase in customer numbers (household
equivalents) from a total of 176,500 as at June 2015
to approximately 900,000 as at 31 December 2020.
This will enable Good Energy to leverage scale from
its operating model in order to deliver sustainable,
profitable growth.
The strategy focuses on four key areas:
Improving efficiency
Investing in technology to improve
customer experience
Developing new and differentiated propositions
for domestic and business customers
Identifying scaleable acquisition channels
Dividend details
Our dividend policy remains in line with our
objective to continue to balance an appropriate
return to shareholders with continued investment
in the business.
The Directors recommend a final dividend of 2.3p
per share (2014: 2.3p). The dividend has been
maintained, subject to approval at the company’s
AGM.
Strategic Report 6 – 17
Chairman’s Statement
7
Strategic ReportDirectors’ ReportFinancial Statements Good Energy’s ethical approach and focus on
excellent service has been a consistent driver of
both customer growth and retention. I’m pleased
to report that the company scored an impressive
81% in the latest Which? energy company customer
satisfaction survey, putting it in second place,
just one percentage point behind the leader. The
company has consistently secured first or second
place in each of the last five years. At the same
time, Good Energy has topped the three most
recent Martin Lewis MoneySavingExpert energy
company polls.
Matters of sustainability and corporate social
responsibility are becoming increasingly important
for businesses, and Good Energy received new
accreditation during the year for its brand promise
of delivering 100% renewable electricity to its
customers. Renewable energy supplies are becoming
of increasing importance to the business sector. The
company is clearly in a strong position to respond
to this, backed up by independent accreditation.
This presents the company with a promising
commercial opportunity.
A founder member of the Social Stock Exchange,
Good Energy is now dual listed on the social impact
segment of the ISDX, having successfully completed
a social impact report and passed the high
standards set by independent auditors.
During the year, the company further invested in
its management team and leadership capability,
bringing new people on board with a broad range
of skills and experience. The benefits of this
additional strength are already being felt across
the business. In addition, the company is proposing
to introduce a long term incentive plan (LTIP) for the
Executive team.
The business sector presents
a promising commercial
opportunity for us.
All these factors provide a good foundation from
which to support the company’s ambitions for
growth. There has been an encouraging start to
2016, with planning permission received for three
solar farms, and continued momentum in customer
growth. This gives confidence in the outlook for the
remainder of the year.
I would like to set on record my thanks to everyone
at Good Energy for all their hard work and
dedication throughout what has undoubtedly been a
challenging year.
Thanks to their commitment, the company has been
able to continue to deliver strong customer growth
and offer great levels of service.
I would also like to thank all our customers for their
support and commitment in helping us to address
climate change.
Good Energy commissioned four new solar farms during 2015.
John Maltby
Chairman
11 April 2016
8
Strategic Review
As noted in the company’s 2015 interim report, Good
Energy has undertaken a strategic review and set out
clear priorities for the next five years.
differentiated propositions for domestic and
business customers, and identifying scalable
acquisition channels.
The company sees strong prospects for growth
in the renewables sector as evidenced by the
momentum achieved at the 2015 Paris climate talks,
where governments around the world united in their
commitment to tackle climate change.
In the business sector, Good Energy will pursue
significant growth driven by corporate social
responsibility requirements and carbon
reduction commitments.
The challenge of delivering a climate change
programme that keeps to the agreed pathway
presents a major risk to the balance sheets of some
of the world’s largest companies. The Governor of
the Bank of England has noted that the vast majority
of reserves are ‘unburnable’ if global temperature
rises are to be limited. As a result, fossil fuel assets
such as coal, oil and gas are likely to continue to
devalue as companies write down their reserves to
reflect useable amounts.
At the same time, in the UK, there has been steady
year on year growth in renewable generation.
Renewable electricity capacity as at end Q3 2015.
Source: Department of Energy & Climate Change.
The focus on the domestic sector will be to drive
down the cost to serve and introduce enhanced
digital technology which will deliver a better
experience for customers.
Similarly, it will target efficiencies in its Feed-in Tariff
(FIT) business and explore new opportunities for
solar and battery storage.
The focus on generation will shift to wind power in
the medium term. In the longer term, Good Energy
will seek new investment opportunities in the hydro
and tidal sectors.
The company will also seek to secure access to
long term supplies of renewable electricity through
growing its network of power purchase agreements.
Good Energy recognises the important role that
innovation has to play in helping it meet its targets,
and will continue to explore the potential offered by
peer-to-peer energy trading in the form of its Piclo
trial, and battery storage solutions.
As part of this approach, the company plans to
launch a new ‘green gas’ product during April
2016, which will further differentiate it from
its competitors.
The new five-year strategy will support Good
Energy’s focus on targeting the delivery of
sustainable, profitable growth.
Good Energy is looking to deliver growth across both
its domestic and business customer bases, targeting
a five-fold increase in customer numbers (household
equivalents) to approximately 900,000 by 31
December 2020.
Although there are risks and uncertainties, Good
Energy benefits from its vertically integrated
structure and has robust plans in place to manage
and mitigate these wherever possible. Further
details on risks and uncertainties can be found in the
Directors’ Report on page 23.
It seeks to achieve this by delivering improved
efficiency, investing in technology to improve
customer experience, developing new and
Strategic Report 6 – 17
Strategic Review
9
Strategic ReportDirectors’ ReportFinancial Statements
Investments
Customers
Good Energy continues to focus on building its
customer base and delivering high quality
customer service.
Good Energy monitors KPIs which will support the
delivery of its customer strategy, including customer
growth, and customer churn and retention. 2016
will see the introduction of three additional KPIs to
measure customer satisfaction, competitiveness
and brand awareness.
Operational
Supply
Good Energy’s operational strategy for its supply
businesses is to drive efficiency whilst delivering a
great customer experience. Primary operational KPIs
are ‘cost to serve’ for existing supply customers and
‘cost to acquire’ for new supply customers.
The customer is at the heart of the company’s
enhancements to its systems, processes and staff
training and this ensures cost to serve reductions are
managed alongside continual improvements in the
whole Good Energy customer experience.
Good Energy also monitors the cost of power from
the market and from the company’s own generation
assets to understand the effectiveness of its energy
procurement approach.
Generation
Its generation business goal is to maximise efficiency
and return on investment across its portfolio of wind
and solar sites. Performance will be measured by
availability - the % of time each site is available
to generate.
Good Energy continues to make strategic
investments to underpin growth in its supply
business and maintain its ability to capitalise on
the long-term growth opportunity that exists.
During 2015, this included investment in people and
processes within our customer operations area.
For example, a new smart phone ‘app’ was launched
to help customers take and submit meter readings.
At the same time, the company has introduced a
new on-line portal, enabling customers to opt for
on-line billing, submit meter readings or activate
other services.
2015 also saw the company’s first successful ‘clean
energy’ collective switch which delivered just under
10,000 new domestic customers, nearly 80% of
which are dual fuel. It has also continued to invest
in the planning and development of new generation
projects with four solar farms coming on stream in
2015. A further three received planning permission
early in 2016.
Planned investment for 2016 includes a new billing
system, and enhancements to existing processes
and systems.
Key Performance Indicators
Good Energy uses a range of performance indicators
(KPIs) to monitor business performance in four key
areas - Customer, Operational, Financial and People.
As part of the strategic review undertaken in 2015,
enhancements were made to these metrics to align
them to the delivery of the company’s five year plan.
The strategic KPIs are reported to the Board,
Executive and Heads of Function on a monthly
basis with lead and lag success indicators reported
more frequently within the business. This enables
consistency of reporting at all levels and provides a
balanced overview of the health and performance of
the company.
Customer KPIs
Strategic goal
To increase the number of customers
supplied with renewable electricity and
to grow revenue
2015
2014
44%
34%
To develop a compelling proposition
that enables long term customer
retention
<8% <8%
Customer
growth (all
supply
customers)
Customer
churn
10
Across the company
Two further operational KPIs, introduced early in
2016, will have an impact across Good Energy.
One will measure the equivalent emissions of
its activities.
The second will monitor the effectiveness of its
risk management processes.
Financial Performance
The company’s financial performance is of
fundamental importance to all stakeholders. Good
Energy’s main objectives are to deliver growth
in profit and value and to ensure it is adequately
funded to meet its on-going requirements and long
term objectives. The business monitors growth in
revenue, gross margin and overhead costs to support
the delivery of its financial targets.
The funding strategy of the business is also reviewed
on a regular basis to ensure that both the cost of
funding and the balance between debt and equity
funding are appropriate for the business and provide
the foundation to support its future growth plans.
People
The Executive team is focused on developing the
culture of Good Energy in a way which enables it
to attract and retain employees with the right
skills, knowledge and mind-set to help deliver its
growth plans.
To achieve this, the company has invested in a
programme to embed its core values into its people
management processes. This is supported by an
improved learning and development programme and
company reward strategy.
Additional KPIs introduced in 2015 included employee
engagement and employee retention. Employee
engagement is measured company-wide on an annual
basis. The first set of results, collected in Q4 2015,
showed an engagement score of 78%, which is an
extremely strong result for the organisation’s first
formal engagement survey. The highest performing
businesses industry-wide aim for a score of 80%
or higher.
Employee retention is also an important enabler of the
company’s growth plans, ensuring the business can
retain the skills and knowledge it requires. By investing
in employee development and encouraging internal
promotions, Good Energy aims to offer employees
longer term career growth opportunities.
To support the company’s ambition for continued
growth, investment in people, capability development
and systems during the year was maintained. This
investment enabled the company to hire a number
of new senior roles, bringing in additional skills to
ensure it is able to respond effectively to maximise the
business growth opportunities.
Good Energy continues to invest in the
skills and capabilities of its people.
Financial KPIs
Strategic goal
2015
2014
Revenue
growth (%)
1
To generate strong revenue growth
in line with customer growth
12% 43%
Gross margin
(%)
To deliver the right level of
contribution to overheads,
investment and shareholder returns
whilst maintaining attractive prices
for our customers
33% 33%
Administration
cost
growth (%)
2
To grow administration costs at
a lower rate than gross margin,
enabling contribution to deliver
against a wider range of targets
14% 54%
1. 2014 revenue included £10.1m from the sale of West Raynham
2. Excludes depreciation and marketing costs
Strategic Report 6 – 17
Strategic Review
11
Strategic ReportDirectors’ ReportFinancial Statements Good Energy continues
to work with like-minded
partners, including the Eden
Project in Cornwall.
Chief Executive’s
Review
2015 was a year of political change and uncertainty
for the renewable energy industry. Throughout
this period, Good Energy demonstrated that as a
business it is both flexible and responsive to change,
while it continues to grow. It has delivered a year end
performance in line with expectations.
In the autumn of 2015, Good Energy announced a
renewed five-year strategy for profitable growth,
setting out its future customer growth targets.
Its goal is to have 900,000 domestic customers
(household equivalents) by 2020.
This growth path will enable the company to
further pursue its mission to tackle climate change,
capitalising on the strengths of its vertically
integrated supply and asset business model, and
using its approach to innovation to gain market
share, whilst growing profitably.
Supply
customer numbers to 112,600 (2014: 76,000).
Business sales revenue grew 30% during the year
(2014: 22%), reflecting a number of factors including
a year on year improved competitive pricing position,
rising brand awareness through avenues such as
social media and increased interest in corporate
social responsibility. The number of sites supplied
almost doubled, while the amount of power
delivered to business customers grew by more
than 52%.
These figures reflect Good Energy’s record of
consistent year on year growth in customer numbers
and reflect the ongoing investment in customer
service, staff, and back office systems. Third-party
endorsements from Which? and MoneySavingExpert
have also helped drive customer growth and
high levels of customer retention, along with
endorsements from organisations such as Ethical
Company Organisation, the Good Shopping Guide
and the Social Stock Exchange.
Good Energy’s electricity, gas and Feed-in Tariff
(FIT) customer numbers continued to show strong
growth, with 219,400 in total by 31 December 2015
(2014: 152,500). The company’s domestic supply
base received a major boost as a result of winning
the Big Deal clean energy collective switch in the
autumn, and by 31 December 2015, total electricity
customers numbers had risen by 32% to 68,000
(2014: 51,500).
Generation & development
During the year, the company also continued to
invest in its pipeline of generation sites. Four solar
farms were built and commissioned during the
12-month period, bringing the total number of
owned and operated solar sites to six, with a
combined installed capacity of 30MW.
Gas customer numbers rose by 55% to 38,800
(2014: 25,000) while there was a 48% rise in FIT
Construction of a seventh 5MW solar farm
began during the last quarter of 2015 and the
site is now ‘live’.
The solar panels installed at Good Energy’s Oaklands solar farm in Dorset are
designed to follow the contours of the land.
Strategic Report 6 – 17
Chief Executive’s Review
13
Strategic ReportDirectors’ ReportFinancial Statements Planning consent for a further three sites was
received early in 2016. These sites will be developed
to balance appropriate returns on the company’s
assets with an objective of securing access to
long term renewable electricity to support
customer growth.
Output from its two wind farms at Delabole
(Cornwall) and Hampole (Yorkshire) during the full
year totalled 53.3GWh, up 38% (2014: 38.7GWh).
Work continued in 2015 on two new wind farm
projects - one in Scotland and one in Cornwall -
which together could power tens of thousands
of homes.
Good Energy continues to review its ongoing strategy
on asset development in light of the Government’s
review of renewable energy policy. As part of
this, the company has taken the decision to write
off £575k of early-stage development costs on a
number of small sites which are now unable to
progress, reduce the size of the development team,
redeploying staff into other business roles where
appropriate and reviewing the on-going focus.
As a result, the team will now concentrate on Good
Energy’s existing portfolio, and consider what
development plans the company will explore in 2017
and beyond.
The company invested in a new finance system
during the year to facilitate improved internal
reporting and as an ongoing driver to reduce costs
as the organisation continues to grow. It also rolled
out a new on-line portal, which more than 25% of
the customer base has already signed up to. A new
meter reading ‘app’ was also unveiled, which
is supporting the company to produce regular
accurate bills.
The company has grown considerably since its
creation and 2015 was a year of particularly strong
expansion. It now employs more than 300 staff at its
Chippenham, Wiltshire offices and this figure is set to
rise in 2016.
10:10 Solar School winners receive their prize cheque to help boost
their solar panel fund- raising campaign.
14
The average Good Energy
electricity customer saved 1.12
tonnes of carbon in 2015.
A project to refresh and further embed the
company’s core values across the organisation was
rolled out during the year. This has provided the
framework to help all employees maximise their
potential and successfully deliver the company’s
strategy and objectives. The work on this has been
reflected in relatively high employee engagement
scores, which compare well with other high
performing organisations.
Corporate Social Responsibility (CSR)
Good Energy has sustainability at the heart of
its strategy, and as a progressive business, it
understands that its role in society is far more than
just delivering profit. It is committed to using its
business as a force for good.
The company continued to make a positive impact
on addressing climate change during the year. It
added four new solar farms to its portfolio by the
year end, increasing the amount of renewable
electricity generation.
An increasing number of customers also opted to
buy the company’s 100% renewable electricity,
enabling each individual to reduce their carbon
footprint. The average Good Energy electricity
customer saved 1.12 tonnes of carbon last year by
being 100% renewable - the equivalent of not driving
5,700 miles. As generation and usage of renewable
electricity increases, this in turn reduces the reliance
on fossil fuels and energy imports.
The company will shortly be releasing its first
Sustainability Report, which addresses and refreshes
the company’s approach to CSR and associated
reporting. Good Energy is a founder member of the
Social Stock Exchange and at the end of the year,
was dual listed on the social impact segment of the
ISDX Growth Market.
The company has continued to build upon its work
with a range of like-minded partners during the year,
including the Soil Association, Friends of the Earth,
10:10 Solar Schools and the Eden Project. In the
fourth quarter, the company also further cemented
its relationship with the National Trust, and will now
be the charity’s energy partner for an additional
two years.
The company remains committed to supporting
and working with local communities so that they
can benefit from its wind and solar development
activities, and has set up community funds alongside
each of the new solar farms it commissioned during
the year. The local tariffs for customers living close
to the company’s two wind farms remain in place
and in August, Delabole residents enjoyed a windfall
payment to reflect the high performance of the site’s
four turbines.
The domestic customer proposition will continue
to develop and build on the progress made in 2015,
such as the on-line portal and the Good Energy ‘app’.
The company’s long- term vision is for the domestic
customer to be the central hub for all sustainable
energy initiatives in the home, and to help consumers
take advantage of a smart-enabled future. It will
seek to engage with its customers and make it
possible for them to manage and understand their
energy use more effectively than ever before.
Good Energy believes that innovation and
technology will play a vital role in helping the UK
move towards a future powered exclusively by
renewables. Work on battery storage and peer-to-
peer trading which it undertook during 2015 and will
continue to explore, will help the company develop
new 100% renewable solutions. These will play an
important role in helping the drive to reduce carbon
emissions in the future.
Looking ahead
Good Energy believes there is real potential for it to
take full advantage of the long-term opportunity
as the UK begins to embrace a new decentralised,
low carbon energy market. Since 2010, more than
one million homes are now producing power in their
own homes from sustainable sources of energy,
and in 2015, in quarter two alone, renewable energy
provided over 25% of the UK’s electricity. Good
Energy is at the heart of this change, and has the
right long-term proposition, the right experience
and a proven strategic approach to deliver growth
going forward.
The business sector will be a focus for Good Energy
in 2016 and beyond. For example, the commitments
of the RE100, a collaboration of the world’s most
influential companies which have pledged to work
towards 100% renewable power, play well to Good
Energy’s strengths. The company is in an excellent
position to support these organisations in their drive
both to reduce carbon emissions and demonstrate
their CSR and carbon credentials to customers.
The company’s approach to its development of
assets will be adapted in the short term to reflect the
impact of government policy. It remains optimistic
about the available returns from operational assets
and its ability to secure the long term supply of
renewable electricity required to match growing
customer demand.
Good Energy’s customer numbers have risen an
average 36% year on year for the last three years,
demonstrating a clear, consistent record of growth.
During 2015, it has continued to build on these strong
foundations already laid and I am confident Good
Energy will be able to both continue to maximise
the opportunities for growth and respond to
changing energy policy throughout the coming
year and beyond.
The company’s second local tariff applies to
residents living near Hampole wind farm.
Juliet Davenport
Chief Executive
11 April 2016
Strategic Report 6 – 17
Chief Executive’s Review
15
Strategic ReportDirectors’ ReportFinancial Statements Chief Financial Officer’s
Review
Financial performance overview
Good Energy’s strategic objectives for 2015 were to
continue to deliver customer growth, improve the
profitability of the supply business and invest in
renewable generation assets.
It delivered a profit before tax of £128k which was
in line with expectations. Revenue grew by 12%,
supported by strong growth in customers up 44% in
the supply business and 93% growth in generation
revenue. 2014 results included revenue from the
sale of West Raynham. Total assets grew by 18% as
a result of continued investment in generation. The
company had cash balances of £4.8m at the year
end and borrowing had increased from £46m in
2014 to £62m as further drawdowns were made
from the fixed rate debt facility announced at the
end of 2014 to finance the construction of the four
solar farms built and commissioned during 2015,
and to start work on the two new wind farm projects
noted previously.
In June, Good Energy became the UKs first energy company to
accept a local currency, with customers now able to pay their
energy bills using the Bristol Pound.
16
Revenue grew by 12%,
supported by strong growth in
both customer numbers and in
generation.
Profit before tax and exceptional items of £128k
was down by £1.2m compared with 2014, despite an
improvement of £3.2m PBT in the Supply business.
The results for 2014 included a profit from the sale of
West Raynham of £3.6m. The 2015 results included
£113k PBT in relation to site sales and a write-off of
£575k for sites no longer to be developed.
Financial performance by segment
The Supply business delivered a profit before tax
of £3.7m in 2015, up by £3.2m from 2014. Revenue
grew by 32%, with gross margin flat at 29%. Overall
customer numbers grew by 44%, and the business
has benefited from falling power prices, partially
offset by the over-purchase of gas referred to in the
interim results.
The Supply business benefitted from a non-recurring
credit of £1.0m which arose following the removal
of Levy Exemption Certificates (LECs) announced
by Government with effect from 1 August 2015.
Good Energy had purchased LECs in excess of
those needed to ensure compliance with regulatory
requirements for supplying 100% renewable energy
and had written back this excess cost to the income
statement. The Autumn Statement confirmed
that these LECs could be used up to March 2018 to
offset the cost of Climate Change Levy for business
customers. For this reason, the LEC inventory has
been written back with a corresponding credit to the
income statement.
Total administration costs grew by 13%, reflecting
strong cost control. The Supply business generated a
positive cash flow in 2015.
The Generation business delivered a loss before
tax of £636k, which was in line with expectations.
This reflects the performance of solar sites, which
are cash positive but profit negative in their first few
years and also reflects the removal of the benefit
of LECs from 1st August 2015. Overall generation
revenue grew by 93%.
The Development business reported a loss
before tax of £2.1m. This includes the costs of the
development team that cannot be capitalised
against on-going projects and a write-off of early-
stage development costs on sites that will not
be developed. As a result of the strategic review
undertaken during the year, the Development team
has been reduced in size going forward to reflect the
change in focus with a reduction in investment in
solar development anticipated in the future.
Financial position and financing
The long term fixed rate funding facility secured
at the end of 2014 has supported the growth of
£16m of solar assets with an additional four sites
having been completed in 2015. The company has
adopted a prudent approach to drawing down
against this facility, in order to optimise the overall
level of borrowings.
Good Energy continually reviews the funding
requirements for the business to ensure that it can
meet its strategic growth objectives with appropriate
funding products taking into account the cost of
capital, duration and overall gearing levels.
In the autumn, Good Energy announced its new
strategy and growth targets for 2020. There is good
potential for growth in the supply of renewable
energy for both business and domestic customers
and the company continues to invest to take
advantage of these opportunities.
The planned implementation of the billing system
in 2016 and further process improvements in our
operations teams will deliver reductions in cost to
serve as well as improving customer experience and
enable the business to deliver increased profitability
as it leverages its cost base.
Revenue growth
by segment
2015
2014
%
Notes
Supply
£60.5m
£45.7m +32%
Strong growth in both domestic and
business customers
Generation
£7.5m
£3.9m +93% Four new solar sites commissioned
in year and a full year of operation
for existing sites
Development
£0.2m
£10.2m -98%
2014 sale of West Raynham;
2015 sale of small solar site
Denise Cockrem
Chief Financial Officer
11 April 2016
Strategic Report 6 – 17
Chief Financial Officer’s Review
17
Strategic ReportDirectors’ ReportFinancial Statements
Introducing the Good Energy Group PLC Board
John Maltby – Chairman
John holds a number of roles in UK and international companies including
Chairman-elect of Swedish Bank BlueStep, Non-Executive Director of Bank
of Ireland UK, and Non-Executive Director and Chairman of Risk and Audit for
Tandem Bank plc.
Previous roles include Chief Executive Officer of Williams & Glyn, Senior
Advisor to Corsair Capital, Group Director of the UK commercial bank of
Lloyds Banking Group, Group Chief Executive of Kensington Group plc and
a number of senior executive positions across the financial services sector,
including NatWest Group plc, Barclays Bank plc and Abbey National plc.
Other directorships:
Bank of Ireland (UK) plc
Tandem Bank Ltd
Lunar Investors (Holding) LLP
Joined Board:
October 2012
Responsibilities:
Member of Audit and
Risk Committee
Member of Remuneration
Committee
Juliet Davenport – Chief Executive Officer
Juliet was appointed Chief Executive of Good Energy Group and Good Energy
in 2002. She started her career in renewable energy at Energy for Sustainable
Development Ltd (ESD) in 1995 and was appointed Executive Director of
both ESD (now CAMCO) and ESD Ventures Ltd in 1996. Passionate about
renewable energy and its potential to impact on climate change, in 2013 she
was awarded the OBE for services to the sector.
Juliet is highly regarded in the renewable energy industry and has held
positions on many strategic and advisory boards, including DECC’s Renewable
Advisory Board, OFGEM’s Environmental Advisory Committee, Ministerial
Smart Metering, and Regen SW. She also represents small suppliers on the
remuneration committee of Energy UK and is a council member of NERC.
Denise Cockrem – Chief Financial Officer
Denise was appointed Chief Financial Officer in May 2014. Her previous
experience includes senior finance roles in FTSE 100 companies within the
financial services sector. Prior to joining Good Energy, Denise was Finance
Director for RSA Insurance Group’s UK & Western Europe region. She has
previously worked as Finance Director for Direct Line Insurance, and her
career includes finance roles with Royal Bank of Scotland, Barclays Bank
and Ernst & Young. Denise is an FCA, who qualified with Neville Russell
and has an MA from Oxford in Law.
Denise is also a Trustee on the Board of Macintyre, a charity providing
learning, support and care for more than 900 children and adults with
learning disabilities. She is a member of the CBI South West Council and a
Non-Executive Director of Skipton Building Society.
Appointed CEO:
2002
Appointed CFO:
May 2014
18
Joined Board:
November 2012
Responsibilities:
Member of Audit and
Risk Committee
Member of Remuneration
Committee
Francesca Ecsery – Non-executive
Francesca is a Portfolio Non-Executive Director with 23+ years’ experience in
directing both blue chip companies and start-ups in the digital, retail, FMCG,
leisure and travel industries. She is an investor in a number of start-ups, acts
as advisor in the leisure, travel, retail and digital marketing sectors and is a
commercial coach to several entrepreneurs. Francesca is also the founder and
Director of Advantage Portugal.
Previously, Francesca worked as Global Business Development Director and
UK General Manager at Cheapflights Media. She has extensive experience
encompassing consultancy with McKinsey & Co, marketing with PepsiCo, and
general management in a range of blue-chip travel companies.
Other directorships:
Marshall Motor Holdings
Advantage Portugal LLP
Foreign & Colonial Investment Trust plc
Share plc
The Share Centre Limited
Sharefunds Limited
VISTA (Logistik Holdings Ltd)
Martin Edwards – Non-executive
Martin was appointed as a director of Good Energy Group at its formation,
bringing to the Group valuable knowledge of the renewable generation business.
He was instrumental in taking Delabole wind farm – the UK’s first commercial
wind farm – from concept to completion in the 1990s. Delabole wind farm was
acquired by Good Energy Group in 2002 and Martin continued to direct all local
operations, maintenance and contract negotiations associated with it. He also
played a key role in implementing the £12 million redevelopment of the site
during 2010/11.
Joined Board:
June 2000
Responsibilities:
Chairman of Remuneration
Committee
Other directorships:
Windelectric Ltd
Windelectric Management Ltd
Rick Squires – Non-executive
Rick holds a number of non-executive board directorships of companies
within the renewable energy sector, including Green Investment Bank
Financial Services and Green Energy For Education Limited.
Until 2009, Rick was the Non-Executive Chairman of Eclipse Energy Company
Ltd, a UK-based privately owned wind power company with a development
portfolio of approximately 250MW. Rick is also the founder of PiEnergy Ltd,
He has held senior commercial positions with Royal Dutch Shell Group and
InterGen, a US-based power producer.
Other directorships:
UK Green Investment Bank Financial Services Limited
Chippenham Rotary and Inner Wheel Trust Limited
PiEnergy Limited
Milford Haven Port Authority
Green Energy for Education Ltd
Joined Board:
March 2008
Responsibilities:
Chairman of Audit and
Risk Committee
19
Strategic ReportDirectors’ ReportFinancial Statements
Schoolchildren discover
biodiversity in action at
Woolbridge solar farm
in Dorset.
20
Directors’
Report
Directors’ Remuneration Report 31 – 34
21–34
21
The Directors submit their report, together with the audited consolidated
financial statements of the Good Energy Group of companies, for the year
ended 31 December 2015. This report includes the Corporate Governance
section and the Directors’ responsibility statement.
The company is required to set out a fair review
of the group’s activities and a description of the
principal risks and uncertainties facing the business.
This requirement includes an analysis of the
development and performance of the company’s
business during the financial year, and the position
of the Group at the end of the reporting period
consistent with its size and complexity.
The Directors’ Report has been prepared and is
published in accordance with, and with reliance
upon, applicable English company law and the
liabilities of the Directors in relation to that report are
subject to the limitations and restrictions provided
by such law.
Risk Management Approach
Good Energy recognises that effective risk
management is critical to enable it to meet its
strategic objectives.
The Board has overall responsibility for the
company’s risk management and internal controls
framework. The Audit and Risk Committee, under
delegation from the Board, reviews the nature and
extent of risk exposure.
The company has a clear framework for identifying
and managing risk, both at an operational and
strategic level. Its risk identification and mitigation
processes have been designed to be responsive to
the changing environment in which it operates. The
impact of emerging risks on our business model are
also considered and this is used to make informed
decisions as we continue to refine our strategy.
The Board’s review of internal control
The Board retains overall responsibility for the
company’s risk management and internal controls
framework. Responsibility for reviewing the
effectiveness of internal control is delegated to the
Audit and Risk Committee.
The Audit and Risk function is responsible for
Good Energy’s risk management activities, and
for provision of its internal audit service. As such,
its activities include ensuring the regular review of
internal controls relating to key risks, reporting on
risk events to the Audit and Risk Committee, and
reviewing and testing the effectiveness of internal
controls through audit reviews.
In 2015, the Audit and Risk function worked
collaboratively with the business to establish a
control environment - the ‘Guiding Principles’
approach that is appropriate for a fast-growing
business. This will help ensure that everyone who
works at Good Energy adheres to a way of working
together that reflects the company’s ethos. In turn,
this will ensure Good Energy employees can make
informed decisions that are in the best interests
of the business and the environment in which
it operates.
Registered office details
The company’s registered office and principal place
of business is:
Monkton Reach
Monkton Hill
Chippenham
Wiltshire SN15 1EE
The company’s registered number is 04000623.
22
Accurate forecasting is key, in the long term, to
informed hedging and thus mitigating against
adverse market movements, and in the short term
to avoiding imbalance risk. Investment in forecasting
systems has provided Good Energy with a greater
degree of granularity and a reduction in forecasting
errors related to demand and all forms of generation.
Cyber-attack: As with many businesses, a
successful cyber-attack on Good Energy’s network
could result in the company being unable to deliver
service to its customers, potentially damaging its
reputation, and leading to consequential customer
and revenue loss. It could also lead to the imposition
of financial penalties.
Good Energy continually assesses its security
policies, standards and procedures and adjusts them
so they are proportionate to the threat profile the
company faces.
Data management: Good Energy carries and stores
confidential, personal and commercially sensitive
information. Failure to protect or correctly use
this data could result in unintentional loss of, or
unauthorised access to, customer data. This could
adversely affect Good Energy’s reputation and
potentially lead to legal action.
Good Energy takes the security of customer data
very seriously. It has a mandatory data privacy
programme in place designed to ensure it uses data
in its possession appropriately. The programme is
based on existing regulations and reflects the nature
of the data the company possesses.
All applications which hold or transmit confidential
personal and commercially sensitive information
include appropriate security features. All staff
undergo data protection training to ensure they
are fully aware of their roles and responsibilities
in this matter.
Financial risk management: This has been
considered within note 3.1 in the Notes to the
Financial Statements.
Principal risks and uncertainties
Political and regulatory risk: Good Energy faces
a range of political pressures that could potentially
lead to adverse, additional legislation or regulation
for the business.
In 2015, this took the form of the removal of
significant levels of renewable support by the
government. At the same time, the government’s
support for nuclear power and the exploitation of
shale gas has increased. Good Energy does not
believe this is the best solution to long-term energy
security and ignores the potential of renewable
technologies. Any such changes to regulations or
policies are considered as part of the regular and
continuing review of the Group’s operating strategy.
Ahead of the June 2016 referendum, public debate
continues about the relative benefits and drawbacks
of the UK’s potential withdrawal from the European
Union. Good Energy believes that ‘Brexit’ would lead
to a period of increased regulatory uncertainty, but
that the company is adaptable and well placed to
meet any regulatory changes.
Good Energy believes that Brexit may lead to higher
energy prices for UK households and businesses as
a possible decline in the value of sterling and new
trade tariffs would make imported energy relatively
more expensive.
Wholesale market and price volatility: Revenue
from sales of electricity and gas are affected by
fluctuations in wholesale prices and the associated
costs of purchases when market conditions are
volatile. Good Energy mitigates this risk partly
through the benefits of its vertical integration,
and partly via its forward-looking and prudent
hedging policy.
Good Energy announced one price change in 2015
- a reduction in both its electricity and gas prices.
Subsequently, in early February 2016, the company
announced a 7.2% gas price drop, effective from 1
April 2016.
Weather, forecasting demand and generation:
On the supply side, temperature drives demand and
customer behaviour. From a generation perspective,
the annual variability of wind speeds and solar
radiation can result in year-to-year volatility. Any
material reduction could have a consequent adverse
impact on financial results and potentially, the future
prospects for the business.
Directors’ Report 21 – 34
Directors’ Report
23
Strategic ReportDirectors’ ReportFinancial Statements Night falls at Good Energy’s Lower End solar farm in Wiltshire.
The company’s share register is maintained and
managed by Computershare Investor Services PLC
for which contact details can be found in our Directors
and Corporate Resources section on page 91.
The company does not have shareholder authority
to acquire its own shares. Clarke Willmott Trust
Corporation Limited holds 521,989 (2014: 208,863)
Ordinary Shares of the company in trust for current
and future beneficiaries of the Good Energy Group
Employee Share Option Scheme. These are deducted
from equity as shown in the Consolidated and Parent
Company Statements of Changes in Equity.
During 2015 the trust disposed of 197,000 (2014:
179,135) shares as a result of exercised options.
General company information
The Group is a public limited company incorporated
in the United Kingdom under the Companies Act
1985, and is listed on the Alternative Investment
Market (AIM) of the London Stock Exchange.
The company’s registered office and principal
place of business is Monkton Reach, Monkton Hill,
Chippenham, Wiltshire, SN15 1EE. The company’s
registered number is 04000623.
Capital structure
The Group is financed through both equity share
capital and debt instruments.
As at 31 December 2015, the company’s issued share
capital was 14,970,680 Ordinary Shares of 5p each.
Ordinary Shares in the Group carry rights to dividends
and Ordinary shareholders are entitled to attend and
vote at general meetings.
24
Significant shareholders
Significant shareholders holding over 3% of the issued share capital as at 31 December 2015, other than any
Directors and their family as defined in the AIM rules, are detailed below:
31 December 2015
% of Issued
Share Capital
31 December 2014
% of Issued
Share Capital
Green Beannie Limited
2,457,457
16.42%
2,352,597
16.04%
Legal and General
Investment
1,021,117
6.82%
1,176,471
8.02%
Schroders PLC
743,874
4.97%
592,685
4.04%
John Sellers
479,797
3.20%
588,797
4.01%
Berti Investment Limited
486,318
3.25%
486,318
3.32%
Peter Dixon Edwards
451,098
3.01%
451,098
3.08%
Directors’ interests and their interests in the company’s shares
Details of the company’s Directors who served during the year and up to the date of approval of this report
(unless otherwise stated) are detailed on page 27.
The interests (all of which are beneficial unless otherwise stated) of the Directors and their families as
defined in the AIM Rules in the issued share capital of the parent company are:
31 December 2015
% of Issued
Share Capital
31 December 2014
% of Issued
Share Capital
Martin Edwards 2
686,827
4.68%
686,827
4.68%
Juliet Davenport
592,810
4.04%
592,810
4.04%
John Maltby
120,000
0.82%
120,000
0.82%
Richard Squires
36,000
0.25%
36,000
0.25%
Francesca Ecsery
2,400
0.02%
2,400
0.02%
Notes
1. Certain of the Directors hold share options for which details are set out in the Directors’ Remuneration Report (on page 31).
2. In addition to the shareholding of Martin Edwards detailed above, his father Peter Dixon Edwards holds 123,450 Ordinary Shares as trustee of a
discretionary trust under which Martin Edwards is one of the potential beneficiaries.
Directors’ Report 21 – 34
Directors’ Report
25
Strategic ReportDirectors’ ReportFinancial Statements Directors’ Indemnity Statement
Future developments
As permitted by the Group’s Articles of Association,
the Directors have the benefit of an indemnity which
is a qualifying third party indemnity provision as
defined by Section 234 of the Companies Act 2006.
The indemnity was in force throughout the last
financial year and is currently in force. The company
also purchased and maintained throughout the
financial year Directors’ and Officers’ liability
insurance in respect of itself and its Directors.
Financial instruments
Details of future developments are given in the Chief
Executive’s Overview on page 12.
Research and development
Given the nature of the Group’s activities it does not
carry out any material research and development
work. However, the company does invest in small-
scale R&D projects, often grant-funded, as it believes
innovation is key to the future development of its
business proposition.
The Group’s financial instruments include bank
loans and other borrowings, a corporate bond,
overdraft and revolving credit facilities.
Dividends
The principal objective of these instruments is
to raise funds for general corporate purposes and
to manage financial risk. Further details of these
instruments are given in Note 22 in the Financial
Statements.
Details on 2015 final dividend proposed are given in
the Chairman’s Statement on page 7.
Turbines at Good Energy’s Hampole wind farm near Doncaster.
26
Corporate Governance
The Group recognises the importance of good
corporate governance practices. The Board is familiar
with the UK Corporate Governance Code, although it is
not currently required to comply with the Code. In the
interests of transparency, the Directors have decided
to provide certain corporate governance disclosures
that would be required of a fully listed company.
The Board and its committees
Board of Directors
The Board comprises the following individuals:
Executive Directors
Non-Executive Directors
Juliet Davenport
Chief Executive
John Maltby1
Denise Cockrem
Chief Financial Officer
Richard Squires
Martin Edwards
Francesca Ecsery1
Non-Executive Chairman
of the Board; Member
of the Audit and
Risk Management
Committee; Member
of the Remuneration
Committee
Chair of the Audit and
Risk Management
Committee
Chair of the
Remuneration
Committee
Member of the Audit
and Risk Management
Committee; Member
of the Remuneration
Committee
Notes
1. Independent Non-Executive Directors.
Directors’ Report 21 – 34
Directors’ Report
27
Strategic ReportDirectors’ ReportFinancial Statements Operations of the Board
The roles of Chief Executive and Chairman have
always been split, with the Chairman operating in
a Non-Executive capacity. The Chief Executive is
responsible for the day-to-day management and
running of the business and is supported by a
team of senior management including a Chief
Financial Officer, Managing Director, Supply,
Director of Trading & Origination and Director of
People & Culture.
During the year ended 31 December 2015, there
were seven scheduled Board meetings. Additional
Board meetings were convened when the Board
was required to deal with the review and approval of
material matters affecting the Group.
The Group’s performance is reviewed at these
scheduled meetings and the Board is responsible for
agreeing and reviewing the strategy for the Group,
for which it maintains both short term (12 months)
and longer-term plans (five years). In addition, it
is also responsible for matters relating to Director
and employee recruitment and remuneration, audit
and accounting policies, risk management, strategy,
health and safety and other specific subjects.
Directors have the right to request that any concerns
they have are recorded in the appropriate committee
or Board minutes.
The Board reviews the operational and financial
results of the Group on a monthly basis against a pre-
agreed set of performance targets operating within
the delegated authorities, which are reviewed annually
by the Board or as and when changes are required.
In addition, the Board receives information obtained
through a system of continuous financial planning
which is used to better manage profit and cash flow
forecasting, and to inform investment decision-
making. The formal financial plan for the forthcoming
year is set out as a detailed proposition and authorised
by the Board before the end of each year.
The Remuneration Committee
The members of the Remuneration Committee are
John Maltby, Francesca Ecsery and Martin Edwards.
This committee held three scheduled meetings in
the year ended 31 December 2015. The primary duty
of the Remuneration Committee is to supervise
and advise the Group’s policy in relation to the
remuneration of the Executive Directors and senior
managers of the Group, on behalf of the Board.
No Director may be involved in any decisions as
to their own remuneration. Further details of the
Remuneration Committee and remuneration policy
are set out in the Directors’ Remuneration Report on
pages 31-34.
Audit and Risk Management Committee
The members of the Audit and Risk Management
Committee are John Maltby, Richard Squires and
Francesca Ecsery. John Maltby is considered to have
recent, relevant financial experience. The Chief
Executive and Chief Financial Officer are normally
invited to attend meetings of the Committee. The
Committee met four times in the year ending 31
December 2015.
The primary duty of the Audit and Risk Management
Committee is to oversee the accounting and
financial reporting process, the internal accounting
practices, external audit arrangements and
effectiveness of the Group’s risk management and
internal control system.
The Audit and Risk Management Committee also
meets at least annually with the Group’s external
auditors to review and agree the auditor services
being provided to the Group, including any non-
audit services. It also meets with external auditors,
without management being present, to discuss
audit process.
Risk management and internal control
The Board has overall responsibility for the Group’s
system of internal controls. The responsibility for
reviewing the effectiveness of its internal control
system has been delegated to the Audit and Risk
Management Committee, which reviews this on
an annual basis. The system of internal control is
designed to manage, rather than eliminate, the risk
of failure to achieve business objectives.
Going concern
The Group and Board closely monitor and manage
liquidity. The Directors have taken account of
the current financial position of the Group, its
anticipated future performance and investment
plans in assessing the Group’s going concern
status. The Directors consider that the Group has
adequate resources to continue in operation for
the foreseeable future and continue to adopt the
going concern basis in preparing the 2015 accounts.
Further details on this can be found on page 49.
28
Directors’ responsibilities statement
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
this law, the Directors have prepared the Group
and Parent Company Financial Statements in
accordance with International Financial Reporting
Standards (IFRSs) as adopted by the European
Union. 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 Group and the company and of
the profit or loss of the Group for that period.
During the year, Good Energy announced that its partnership with the
National Trust would continue for a further two years.
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 the Group. They must
also ensure that the Financial Statements comply
with the Companies Act 2006. The Directors are
also responsible for safeguarding the assets of
the company and the Group and hence for taking
reasonable steps for the prevention and detection of
fraud and other irregularities.
The Directors are responsible for the maintenance
and integrity of the company’s website.
Note: Legislation in the United Kingdom
governing the preparation and dissemination of
Financial Statements may differ from legislation in
other jurisdictions.
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
State whether applicable IFRSs as adopted by the European Union have been followed, subject to
any material departures disclosed and explained in the financial statements
Prepare the financial statements on the going concern basis unless it is inappropriate to presume
that the company and the Group will continue in business
Directors’ Report 21 – 34
Directors’ Report
29
Strategic ReportDirectors’ ReportFinancial Statements Consultation with employees or their representatives
has continued at all levels, with the aim of ensuring
that views are taken into account when decisions
are made that are likely to affect their interests
and that all employees are aware of the financial
and economic performance of the business.
Communication with all employees continues
through a variety of mechanisms, including regular
team briefs and twice-yearly off-site all-company
meetings. A network of company champions was
established during the year to encourage grassroots
involvement and feedback on all aspects of working
for Good Energy.
Reappointment of Auditors
PricewaterhouseCoopers LLP acted as auditors for
the financial year to 31 December 2015. A resolution
to reappoint PricewaterhouseCoopers LLP as auditors
will be proposed at the Annual General Meeting.
By order of the Board
Referral Arrangements
The company has operated and continues to
operate referral arrangements with the Liberal
Democrats and the Green Party. It considers these
to be commercial arrangements, with a referral
payment made for each customer referred by them
to Good Energy. However, the Companies Act 2006
definitions of the making of political donations or
the incurring of political expenditure are capable of a
wide interpretation. In the interests of transparency,
the company obtained shareholder approval for the
referral arrangements at its Annual General Meeting
in 2015 and anticipates requesting that authorisation
be refreshed at the Annual General Meeting in 2016.
Disclosure of Information to Auditors
So far as each Director is aware, there is no relevant
audit information of which the company’s auditors
are unaware and each 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 auditors are aware of that information.
Employees
The Group’s employment policies follow best
practice based on equal opportunities for all
employees, irrespective of race, gender, nationality,
colour, sexual orientation, disability, marital status,
religion or age. All decisions relating to employment
are objective, free from bias and based upon work
criteria and individual merit.
Stephen Rosser
Company Secretary
11 April 2016
30
Directors’
Remuneration Report
Introduction
This report sets out the information about the
remuneration of the Directors of the company for the
year ended 31 December 2015. This report has been
prepared in accordance with the requirements for
AIM listed companies set out in the Companies Act
2006 and the AIM rules.
Remuneration Committee and policy
Details of the company’s Remuneration Committee
are set out on page 28. The Remuneration
Committee has agreed a remuneration policy to
ensure that the company is able to attract, retain
and motivate its Executive Directors and senior
management.
The Group operates in a competitive environment.
It therefore sets out to provide competitive
remuneration to all its employees, appropriate to the
business environment and geographical location.
The Group aims to align the interests of shareholders
with those of Directors and senior management
by giving the latter the opportunity to build up a
shareholding interest in the company. In addition, it
is proposing to introduce a long-term incentive plan
(LTIP) for the Executive team.
Service agreements, notice periods and
termination payments
Executive Directors
The service agreements for the Executive Directors
are not for a fixed term and may in normal
circumstances be terminated on the notice periods
listed below:
Name
Position
Date of contract
Notice period
2015 Salary £
Juliet Davenport
Chief Executive
2 August 2007
9 months
196,809
Denise Cockrem
Chief Financial Officer 22 January 2014
6 months
192,159
The company reserves the right to pay Executive Directors in lieu of notice.
Directors’ Report 21 – 34
Directors’ Report
31
Strategic ReportDirectors’ ReportFinancial Statements Chairman and Non-Executive Directors
The remuneration of the Chairman of the company
and the Non-Executive Directors consists of fees
that are paid monthly in arrears. Salaries are
benchmarked on an annual basis. The Chairman
and the Non-Executive Directors did not participate
in any bonus scheme or long-term incentive
reward schemes, nor did they accrue any pension
entitlement. Following the publication in August
2015 of HMRC’s express confirmation of the travel
rules that apply to non-executive directors, the
company reimburses non-executive directors’ travel
expenses between home and the company’s Head
Office.
The key terms of the Non-Executives’ appointments
are as follows:
Name
Date of appointment
Notice period
2015 Salary £
John Maltby
15 October 2012
3 months
41,303
Richard Squires
28 June 2011
3 months
28,050
Martin Edwards
7 May 2008
3 months
24,000
Francesca Ecsery
15 November 2012
3 months
20,910
It is the Board’s policy to allow the Executive Directors to accept directorships of other companies provided
that they have obtained the consent of the Board.
The climate talks in Paris in 2015 represented a potential turning point in history.
32
Salary, annual bonus and benefits (Audited)
Non-Executive
Chairman
Salary/
fees £
Pension
Contributions £
Benefits in
kind £
Annual Bonus £
Total
2015 £
Total 2014 £
John Maltby
41,303
-
-
-
41,303
40,800
Executive Directors
Juliet Davenport
196,809
23,868
2,063
nil
222,740
252,183
Denise Cockrem
192,159
18,200
1,598
nil
211,957
272,129
Garry Peagam*
-
-
-
-
-
239,026
Non-Executive
Directors
Richard Squires
28,050
Martin Edwards
24,000
Francesca Ecsery
20,910
-
-
-
-
-
-
-
-
-
28,050
28,050
24,000
24,000
20,910
33,456
Total
503,231
42,068
3,661
nil 548,960
889,644
*Stepped down as Group Financial Director on 30th April 2014
Directors and managers: 2015 bonus
No bonus was paid in 2015 to directors or managers
and therefore no cost was included in the 2015
financial results. However, as the company had
met its other non financial targets, it was agreed
by the Remuneration Committee that 50% of the
maximum bonus would be paid to directors and
managers contingent on the completion of a site
sale that commenced in 2015, but which could not
be recognised in the financial results for that year.
The profit on the site sales will be reported in the
financial results for 2016, together with these related
bonus costs but this site sale profit will be excluded
from the financial results in 2016 for the purposes of
calculating whether financial targets have been met
for 2016 bonus purposes.
Directors’ Report 21 – 34
Directors’ Report
33
Strategic ReportDirectors’ ReportFinancial Statements Directors’ share options (Audited)
Details of the Directors’ share options outstanding at 31 December 2015 are shown below.
Name
Date option granted Number of options
Option price
Exercised
Cancelled/
surrendered
Juliet Davenport
01/06/2004
35,000
£0.75
Juliet Davenport
13/02/2012
86,956
£1.15
Juliet Davenport
13/02/2012
17,390
£1.15
Juliet Davenport
18/09/2012
189,052
£0.50
Juliet Davenport
13/07/2013
144,000
£1.25
Juliet Davenport
07/07/2015
80,350
Total
-
552,748
Denise Cockrem
07/07/2015
21,822
£0
-
£0
Denise Cockrem
07/07/2015
200,000
£2.29
Total
-
221,822
-
Richard Squires
13/02/2012
75,000
£1.15
Overall Total
-
849,570
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
34
Independent
Auditors’
Report
To the members of Good Energy Group PLC
35–38
35
Independent Auditors’ Report to the
members of Good Energy Group PLC.
Report on the financial
statements
Our opinion
In our opinion:
•
Good Energy Group PLC’s group financial
statements and parent company financial
statements (the “financial statements”) give a
true and fair view of the state of the Group’s and
of the parent company’s affairs as at 31 December
2015 and of the Group’s loss and the Group’s and
the parent company’s cash flows for the year
then ended;
What we have audited
The financial statements, included within the
Annual Report & Financial Statements (the “Annual
Report”), comprise:
• the Consolidated and Parent Company
Statements of Financial Position as at 31
December 2015;
• the Consolidated Statement of Comprehensive
Income for the year then ended;
• the Group financial statements have been
• the Consolidated and Parent Company
properly prepared in accordance with International
Financial Reporting Standards (“IFRSs”) as
adopted by the European Union;
• the parent company financial statements have
been properly prepared in accordance with
IFRSs as adopted by the European Union and as
applied in accordance with the provisions of the
Companies Act 2006; and
• the financial statements have been prepared
in accordance with the requirements of the
Companies Act 2006.
Statements of Cash Flows for the year then ended;
• the Consolidated and Parent Company
Statements of Changes in Equity for the year then
ended; and
• the notes to the financial statements, which
include a summary of significant accounting
policies and other explanatory information.
Certain required disclosures have been presented
elsewhere in the Annual Report, rather than in the
notes to the financial statements. These are cross-
referenced from the financial statements and are
identified as audited.
The financial reporting framework that has
been applied in the preparation of the financial
statements is IFRSs as adopted by the European
Union, and applicable law and, as regards the
parent company financial statements, as applied in
accordance with the provisions of the Companies
Act 2006.
In applying the financial reporting framework,
the directors have made a number of subjective
judgements, for example in respect of significant
accounting estimates. In making such estimates,
they have made assumptions and considered
future events.
36
Opinion on other matter
prescribed by the
Companies Act 2006
Responsibilities for the
financial statements
and the audit
Our responsibilities and those of the
directors
As explained more fully in the Directors’
Responsibilities Statement set out on page 29, the
directors are responsible for the preparation of the
financial statements and for being satisfied that they
give a true and fair view.
Our responsibility is to audit and express an opinion
on the financial statements in accordance with
applicable law and International Standards on
Auditing (UK and Ireland) (“ISAs (UK & Ireland)”).
Those standards require us to comply with the
Auditing Practices Board’s Ethical Standards
for Auditors.
This report, including the opinions, has been
prepared for and only for the company’s members as
a body in accordance with Chapter 3 of Part 16 of the
Companies Act 2006 and for no other purpose. We
do not, in giving these opinions, accept or assume
responsibility for any other purpose or to any other
person to whom this report is shown or into whose
hands it may come save where expressly agreed by
our prior consent in writing.
In our opinion, 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.
Other matters on which
we are required to
report by exception
Adequacy of accounting records and
information and explanations received
Under the Companies Act 2006 we are required to
report to you if, in our opinion:
• we have not received all the information and
explanations we require for our audit; or
• adequate accounting records have not been kept
by the parent company, or returns adequate for our
audit have not been received from branches not
visited by us; or
• the parent company financial statements are not in
agreement with the accounting records and returns.
We have no exceptions to report arising from
this responsibility.
Directors’ remuneration
Under the Companies Act 2006 we are required to
report to you if, in our opinion, certain disclosures
of directors’ remuneration specified by law are not
made. We have no exceptions to report arising from
this responsibility.
Independent Auditors’ Report
37
Strategic ReportDirectors’ ReportFinancial Statements What an audit of financial statements
involves
We conducted our audit in accordance with ISAs
(UK & Ireland). An audit involves obtaining evidence
about the amounts and disclosures in the financial
statements sufficient to give reasonable assurance
that the financial statements are free from material
misstatement, whether caused by fraud or error. This
includes an assessment of:
• whether the accounting policies are appropriate
to the group’s and the parent company’s
circumstances and have been consistently applied
and adequately disclosed;
• the reasonableness of significant accounting
estimates made by the directors; and
• the overall presentation of the
financial statements.
We primarily focus our work in these areas by assessing
the directors’ judgements against available evidence,
forming our own judgements, and evaluating the
disclosures in the financial statements.
We test and examine information, using sampling and
other auditing techniques, to the extent we consider
necessary to provide a reasonable basis for us to draw
conclusions. We obtain audit evidence through testing
the effectiveness of controls, substantive procedures
or a combination of both.
In addition, we read all the financial and non-financial
information in the Annual Report to identify material
inconsistencies with the audited financial statements
and to identify any information that is apparently
materially incorrect based on, or materially inconsistent
with, the knowledge acquired by us in the course of
performing the audit. If we become aware of any
apparent material misstatements or inconsistencies
we consider the implications for our report.
Colin Bates (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Bristol
11 April 2016
38
Delabole wind farm in
Cornwall produces enough
renewable electricity to power
around 6,200 homes.
39
Strategic ReportDirectors’ ReportFinancial Statements Financial
Statements
Consolidated Statement of Comprehensive Income 41
Consolidated Statement of Financial Position 42
Parent Company Statement of Financial Position 43
Consolidated Statement of Changes in Equity 44
Parent Company Statement of Changes in Equity 45
Consolidated Statement of Cash Flows 46
Parent Company Statement of Cash Flows 47
Notes to the Financial Statements 48-90
Directors and Corporate Resources 91
40–91
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2015
REVENUE
Cost of Sales
GROSS PROFIT
Administrative Expenses
OPERATING PROFIT
Finance Income
Finance Costs (including exceptional items)
PROFIT BEFORE TAX AND EXCEPTIONAL FINANCE COSTS
Exceptional finance cost
PROFIT BEFORE TAX
Taxation
(LOSS)/PROFIT FOR THE YEAR
OTHER COMPREHENSIVE EXPENSE:
Items that may subsequently be reclassified to profit or loss
Loss on cash flow hedge
Other comprehensive expense for the year, net of tax
Note
5
5
6
6
10
11
11
12
2015
£000’s
64,281
(42,982)
21,299
(17,065)
4,234
23
2014
£000’s
57,618
(38,782)
18,836
(15,045)
3,791
87
(4,129)
(2,590)
128
-
128
(323)
(195)
-
-
2,169
(881)
1,288
520
1,808
(328)
(328)
TOTAL COMPREHENSIVE (EXPENSE)/INCOME FOR THE YEAR
ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY
(195)
1,480
(Loss)/earnings per share
- Basic
- Diluted
13
13
(1.4p)
(1.4p)
12.6p
11.9p
The notes on pages 48 to 90 form part of these Financial Statements.
41
Strategic ReportDirectors’ ReportFinancial Statements
Consolidated Statement of Financial Position
As at 31 December 2015
Company registered no: 04000623
Non-current assets
Property, plant and equipment
Intangible assets
Restricted deposit accounts
Available-for-sale financial assets
Total non- current assets
Current assets
Inventories
Trade and other receivables
Current tax receivable
Cash and cash equivalents
Total current assets
TOTAL ASSETS
Equity and Liabilities
Capital and reserves
Called up share capital
Share premium account
EBT shares
Retained Earnings
Total equity attributable to members of the parent company
Non- current liabilities
Deferred taxation
Borrowings
Total non- ‐current liabilities
Current liabilities
Borrowings
Trade and other payables
Total current liabilities
Total liabilities
TOTAL EQUITY AND LIABILITIES
Note
14
15
3
16b
2015
£000’s
60,984
3,317
2,803
500
2014
£000’s
44,729
3,530
-
500
67,604
48,759
17
18
12
19
20
20
20
21
22
22
23
9,482
11,598
126
4,751
25,957
93,561
748
9,786
(1,074)
7,483
16,943
567
55,911
56,478
5,626
14,514
20,140
76,618
93,561
6,466
10,281
109
13,703
30,559
79,318
733
9,077
(127)
8,260
17,943
15
39,676
39,691
6,608
15,076
21,684
61,375
79,318
The Financial Statements on pages 41 to 90 were approved by the Board of Directors on 11 April 2016 and
signed on its behalf by:
Juliet Davenport
Chief Executive
11 April 2016
The notes on pages 48 to 90 form part of these Financial Statements.
42
Parent Company Statement of Financial Position
As at 31 December 2015
Company registered no: 04000623
Non-current assets
Investments
Total non- current assets
Current assets
Trade and other receivables
Cash and cash equivalents
Total current assets
TOTAL ASSETS
Equity and Liabilities
Capital and reserves
Share capital
Share premium account
EBT shares
Retained Earnings
Total Equity
Non- current liabilities
Borrowings
Total non- current liabilities
Current liabilities
Borrowings
Trade and other payables
Total current liabilities
Total liabilities
TOTAL EQUITY AND LIABILITIES
Note
16a
18
19
20
20
20
22
22
23
2015
£000’s
35,206
35,206
22
234
256
35,462
748
9,786
(1,074)
4,713
14,173
14,646
14,646
6,511
132
6,643
21,289
35,462
2014
£000’s
29,941
29,941
365
509
874
30,815
733
9,077
(127)
4,071
13,754
14,695
14,695
2,272
94
2,366
17,061
30,815
The Financial Statements on pages 41 to 90 were approved by the Board of Directors on 11 April 2016 and
signed on its behalf by:
Juliet Davenport
Chief Executive
11 April 2016
The notes on pages 48 to 90 form part of these Financial Statements.
43
Strategic ReportDirectors’ ReportFinancial Statements
Consolidated Statement of Changes in Equity
For the year ended 31 December 2015
Note
Share
Share
EBT
Retained
Total
Capital
Premium
Shares
Earnings
Equity
Account
£000’s
£000’s
£000’s
£000’s £000’s
733
9,077
(236)
6,890
16,464
At 1 January 2014
Profit for the year
Other comprehensive expense for the year
Total comprehensive income for the year
Share based payments
Tax credit relating to share option scheme
Sale of shares by EBT
Dividend Paid
26
21
20
24
Total contributions by and distributions
to owners of the parent, recognised
directly in equity
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
109
-
1,808
1,808
(328)
(328)
1,480
1,480
30
311
21
30
311
130
(472)
(472)
109
(110)
(1)
At 31 December 2014
733
9,077
(127)
8,260
17,943
At 1 January 2015
Loss for the year
Other comprehensive income for
the year
Total comprehensive expense for the year
Share based payments
Tax charge relating to share option scheme
Issue of ordinary shares
Purchase of shares by EBT
Sale of shares by EBT
Dividend Paid
Total contributions by and distributions
to owners of the parent, recognised
directly in equity
At 31 December 2015
733
9,077
(127)
8,260
17,943
-
-
-
-
-
15
-
-
-
-
-
-
-
-
709
-
-
-
-
-
-
-
-
-
(1,150)
203
-
(195)
(195)
-
-
(195)
(195)
51
(151)
-
-
51
(151)
724
(1,150)
(4)
199
(478)
(478)
26
21
20
20
20
24
15
748
709
(947)
(582)
(805)
9,786
(1,074)
7,483
16,943
The notes on pages 48 to 90 form part of these Financial Statements.
44
Parent Company Statement of Changes in Equity
For the year ended 31 December 2015
Note
Share
Share
EBT
Retained
Total
Capital
Premium
Shares
Earnings
Equity
Account
£000’s
£000’s
£000’s
£000’s £000’s
At 1 January 2014
733
9,077
(236)
1,602
11,176
Profit for the year and total
comprehensive income
Sale of shares by EBT
Dividend Paid
20
24
Total contributions by and
distributions to owners of the parent,
recognised directly in equity
-
-
-
-
-
-
-
-
At 31 December 2014
733
9,077
-
2,920
2,920
109
-
21
130
(472)
(472)
109
(127)
(451)
(342)
4,071
13,754
At 1 January 2015
733
9,077
(127)
4,071
13,754
Profit for the year and total
comprehensive income
Issue of ordinary shares
Purchase of shares by EBT
Sale of shares by EBT
Dividend Paid
Total contributions by and
distributions to owners of the parent,
recognised directly in equity
At 31 December 2015
20
20
20
24
-
15
-
-
-
15
748
-
709
-
-
-
-
-
(1,150)
203
-
1,124
1,124
-
-
724
(1,150)
(4)
199
(478)
(478)
709
(947)
(482)
(705)
9,786
(1,074)
4,713
14,173
The notes on pages 48 to 90 form part of these Financial Statements.
45
Strategic ReportDirectors’ ReportFinancial Statements Consolidated Statement of Cash Flows
For the year ended 31 December 2015
Cash flows from operating activities
Cash generated from operations
Finance income
Finance cost
Income tax received/(paid)
Note
25
2015
£000’s
1,590
23
(3,277)
59
2014
£000’s
3,697
87
(2,644)
(500)
Net cash flows (used in)/generated from operating
activities
(1,605)
640
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible fixed assets
Deposit into restricted accounts
Acquisition of unquoted investment
Net cash flows used in investing activities
Cash flows from financing activities
Payments of dividends
Proceeds from borrowings
Repayment of borrowings
Capital repayments of finance leases
Purchase of own shares
Sale of own shares
15
24
(17,748)
(492)
(2,803)
-
(18,316)
(619)
-
(500)
(21,043)
(19,435)
(451)
24,749
(10,348)
-
(453)
199
(472)
25,983
(11,035)
(83)
-
130
Net cash flows generated from financing activities
13,696
14,523
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
(8,952)
13,703
4,751
(4,272)
17,975
13,703
The notes on pages 48 to 90 form part of these Financial Statements.
46
Parent Company Statement of Cash Flows
For the year ended 31 December 2015
Cash flows from operating activities
Cash generated from operations
Finance income
Finance cost
Income tax paid
Net cash (used in)/generated from operating
activities
Cash flows from financing activities
Payment of dividends
Repayment of borrowings
Intercompany loans movement
Purchase of own shares
Sale of own shares
Net cash generated from/(used in)financing
activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Note
25
24
2015
£000’s
(1,204)
786
(1,195)
(20)
2014
£000’s
1,424
-
(1,087)
-
(1,633)
337
(451)
(35)
2,098
(453)
199
(472)
-
135
-
130
1,358
(207)
(275)
509
234
130
379
509
The notes on pages 48 to 90 form part of these Financial Statements.
47
Strategic ReportDirectors’ ReportFinancial Statements Notes to the Financial Statements
For the year ended 31 December 2015
1. General Information
Good Energy Group PLC is listed on the Alternative Investment Market of the London Stock Exchange and is
incorporated and domiciled in the United Kingdom.
The principal activities of Good Energy Group PLC are those of a holding and management company to the
Group and a lender to, and seller of, generation development sites.
The principal activities of its subsidiaries are: the purchase, generation and sale of electricity from renewable
sources; the sale of gas; services relating to micro-renewable generation and the development of new
electricity generation sites.
The purpose of the Annual Report and financial statements is to provide information to members of the
company. It contains certain forward looking statements relating to the operations, performance and
financial condition of the Group. By their nature these statements involve uncertainty since future events
and circumstances can differ from those anticipated. Nothing in the Annual Report and financial statements
should be construed as a profit forecast.
These financial statements are presented in pounds sterling because that is the currency of the primary
economic environment in which the Group operates.
The principal accounting policies applied in preparation of these consolidated financial statements are set out
below. These policies have been consistently applied to all the years presented unless otherwise stated.
2. Summary of Significant Accounting Policies
2.1 Basis of preparation of financial statements
These financial statements have been prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the European Union and IFRS Interpretations Committee (IFRSIC) and with
those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
The financial statements have been prepared on a going concern basis and under the historical cost
convention or historic cost modified by revaluation of financial assets and financial liabilities held at fair value
through profit or loss.
The preparation of financial statements in conformity with IFRSs requires the use of estimates and
assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the financial year.
Although these estimates are based on management’s reasonable knowledge of the amount, event or actions,
actual results ultimately may differ from those estimates. The critical accounting judgements, estimates
and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year are discussed in note 4 and the following accounting policy
notes: revenue recognition (2.5), property, plant and equipment (2.7), inventories (2.11) including generation
development sites (2.11.3) and credit risk (3.1.3).
48
Notes to the Financial Statements
For the year ended 31 December 2015
2. Summary of Significant Accounting Policies (continued)
2.2 Going concern
The Group meets its day to day capital requirements through positive cash balances held on deposit
or through its bank facilities. The current economic conditions continue to create opportunities and
uncertainties which can impact the level of demand for the Group’s products and the availability of bank
finance for the foreseeable future. The Group’s forecasts and projections , taking account of the possible
changes in trading performance, show that the Group should be able to operate within the level of its
current facilities.
After making enquires, the Directors have a reasonable expectation that the Group has adequate resources
to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the
going concern basis in preparing its consolidated financial statements. Further information on the Group’s
borrowings can be found in note 22.
2.3 Change in accounting policies and disclosures
There have been a number of new standards and interpretations issued in 2015, none of which are yet
effective. At this stage, management have not applied these new standards in the preparation of these
consolidated financial statements. Management has yet to fully assess the impact of IFRS 9 Financial
Instruments and IFRS 15 Revenue from Contracts with Customers which are both effective for the Group for
its 2018 financial statements.
There are no other standards or interpretations that are not yet effective, that are expected to have a material
effect on the Group’s net assets or results.
2.4 Basis of consolidation
The Group financial statements incorporate the financial statements of the company and its subsidiaries
and enterprises controlled by the company (and its subsidiaries) made up to 31 December each year. Control
is achieved where the company has the power to govern the financial and operating policies of an investee
enterprise so as to obtain benefits from its activities.
The acquisition of subsidiaries is accounted for using the purchase method. On acquisition, the identifiable
assets, liabilities and contingent liabilities of a subsidiary are measured at their fair values on the date of
acquisition. Consideration payable on acquisition is measured at fair value.
For business combinations made after 1 July 2009, costs directly attributable to the business
combination are not included in the measurement of cost, but expensed in the income statement in line
with IFRS 3 (revised).
The results of subsidiaries acquired or disposed of during the year are included in the Consolidated
Statement of Comprehensive Income from the effective date of acquisition or up to the effective date of
disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting
policies used into line with those used by other members of the Group.
Inter-company transactions and balances between Group enterprises are eliminated on consolidation.
49
Strategic ReportDirectors’ ReportFinancial Statements Notes to the Financial Statements
For the year ended 31 December 2015
2. Summary of Significant Accounting Policies (continued)
2.5 Revenue recognition
Revenue represents the fair value of the consideration received or receivable for the provision of goods and
services which fall within the Group’s ordinary activities, excluding transactions with or between subsidiaries.
All revenue and profit before tax arose within the United Kingdom.
Revenue represents amounts recoverable from customers for supply of electricity, gas, generation of power
and sale of generation development sites and is measured at the fair value of the consideration received or
receivable, stated net of discounts, returns and value added taxes. The Group recognises revenue when the
amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to
the Group; and when specific criteria have been met for each of the Group’s activities, as described below.
2.5.1 Power supply
Revenue for the supply of electricity is accrued based on industry data flows and national grid data. These
include an estimate of power used, based on the estimated annual consumption of each customer. Accrued
income is superseded when customer meter reads are received at which point estimates are adjusted to
actual usage.
For gas, revenue is accrued based on information received from the Group’s gas shipper, which includes
details of all the sites held, their estimated annual quantities of gas used adjusted by a pre-determined
weather correction factor. This information is subsequently adjusted and invoiced based on customer and
industry meter reads.
For electricity and gas supply, payment is collected either as a direct debit or paid on receipt of bill in arrears.
Overdue amounts are reviewed regularly for impairment and provision made as necessary.
2.5.2 Feed-in Tariff (FIT) administration services
Good Energy provides FIT administration services to micro-generators who are signed up to the FIT scheme.
For FIT services, revenue is earned from Ofgem for administering the scheme. For FIT services, revenue is
recognised in two parts; there is an initial fee paid by Ofgem for taking on a generator, and then an ongoing
amount that is received annually for provision of FIT services. The initial fee is spread over the ‘take on’ period
for a new customer and the ongoing fee that is received is spread over the 12 month compliance period.
2.5.3 Renewable Obligation Certificates (ROCs) revenue recognition
ROCs are awarded to the Group from Ofgem based on generation of power. These ROCs are sold on receipt
of certificate from Ofgem allowing transfer of title.
The amount of revenue recognised on sale is in accordance with a contractual agreement where the pricing is
based on Ofgem’s minimum ROC value (the buy-out) and a prudent estimate of the re-cycle element of the
final value of a ROC once all energy suppliers have complied or paid the penalty for non-compliance with the
renewables obligation (the recycle). A final adjustment to ROC revenue and profit is recognised once Ofgem
have announced the final out-turn ROC price.
50
Notes to the Financial Statements
For the year ended 31 December 2015
2. Summary of Significant Accounting Policies (continued)
2.5.4 Generation development site revenue recognition
Revenue is recognised on the completion date of the sale and purchase agreement pertaining to each site
sold. Where there is contingent revenue included in the sale and purchase agreement, revenue is recognised
based on management’s assessment of the likelihood of the contingent revenue being received based on
latest information available.
2.6 Goodwill, intangible assets and amortisation
Goodwill represents the excess of the cost of acquisition of a business combination over the Group’s share
of the fair value of identifiable assets, liabilities and contingent liabilities of the business acquired at the
date of acquisition and is carried as an indefinite life asset. Goodwill is initially recognised at cost. After initial
recognition, goodwill is measured at cost less any accumulated impairment losses. Gains and losses on
disposal of a business include the carrying amount of goodwill relating to the business sold.
At the date of acquisition, the amount of goodwill is allocated to cash generating units for the purpose of
impairment testing and is tested annually for impairment, or more frequently if there is an indication that the
value of the goodwill may be impaired.
2.6.1 Definite life intangible assets
Definite life intangible assets comprise software licences and website development costs, which meet the
criteria of IAS 38 “Intangible assets”. The software licences and website development costs are carried at
cost less accumulated amortisation and impairment losses. Cost comprises purchase price from third parties
as well as directly attributable internally generated development costs where relevant.
2.6.2 Indefinite life intangible assets
The Power Supply Licence is held as an indefinite life intangible asset according to the criteria of IAS 38
“Intangible assets”. The Power Supply Licence is carried at cost less accumulated impairment losses. Cost
comprises purchase price from third parties as well as directly attributable internally generated development
costs where relevant.
2.6.3 Amortisation
Amortisation on definite life intangible assets is charged to the Consolidated Statement of Comprehensive
Income on a straight-line basis over the estimated useful lives of intangible assets. The estimated useful
lives for intangibles with definite lives are as follows:
Software Licenses
between 3 and 10 years
Website development costs
between 2 and 5 years
Amortisation of intangible assets is included in the Consolidated Statement of Comprehensive Income in
‘administrative expenses’.
51
Strategic ReportDirectors’ ReportFinancial Statements
Notes to the Financial Statements
For the year ended 31 December 2015
2. Summary of Significant Accounting Policies (continued)
2.6.4 Impairment
The Directors regularly review intangible assets for impairment and provision is made if necessary. Assets
with an indefinite useful life, eg goodwill and the Power Supply Licence are not subject to amortisation and
are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For
the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered an
impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
2.7 Property, plant and equipment
Property, plant and equipment is stated at cost less depreciation. Cost includes the original purchase price
of the asset and the costs attributable to bringing the asset to its working condition for its intended use.
Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual
value, over their expected useful lives on the following bases:
Fixtures, fittings and equipment
between 3 and 5 years
Leasehold improvements
over the life of the lease
Generation assets
between 24 and 29 years
Assets under construction
not depreciated
The useful economic lives of assets and their residual values are reviewed on an annual basis and revised
where considered appropriate. The carrying value of property, plant and equipment is reviewed for
impairment when events or changes in circumstance indicate that the carrying value may not be recoverable.
2.8 Investments
An undertaking is regarded as a subsidiary undertaking if the company has control over its operating and
financial policies. Investments in subsidiary undertakings that are directly owned by the company are stated
at cost less amounts written-off for any permanent diminution in value.
2.9 Leases
Assets financed by leasing agreements that give rights approximating to ownership (finance leases) are
capitalised at their fair value and depreciation or amortisation is provided over the lower of the useful life and
term of the lease. The capital elements of future obligations under finance leases are included as liabilities
in the Statement of Financial Position and the current year’s interest element, having been allocated to
financial periods to give a constant periodic rate of charge on the outstanding liability, is charged to the
Statement of Comprehensive Income.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain
with the lessor are charged to the Statement of Comprehensive Income on a straight-line basis over the term
of the lease.
52
Notes to the Financial Statements
For the year ended 31 December 2015
2. Summary of Significant Accounting Policies (continued)
2.10 Pensions
The Group operates a defined contribution pension scheme. Under this scheme the Group pays contributions
to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis.
The Group has no further payment obligations once the contributions have been paid. The contributions are
recognised as an employee benefit expense when they are due. The pension charge for the year represents
the amounts payable by the Group in respect of the year.
2.11 Inventories
2.11.1 Renewable Obligation Certificates (ROCs)
Under the provisions of the Utilities Act 2000, all electricity suppliers are required to procure a set
percentage of their supplies from accredited renewable electricity generators. This obligation can be fulfilled
by the purchase and surrender of ROCs originally issued to generators, or by making payments to Ofgem
who then recycle the payments to purchasers of ROCs. Notwithstanding that Good Energy Limited, a
subsidiary company, supplies electricity sourced entirely from renewable generation over a 12 month period,
its percentage obligation to submit ROCs is set by Ofgem. The cost obligation is recognised as electricity is
supplied and charged as a cost of sale in the Consolidated Statement of Comprehensive Income. Any gains
or losses on disposal of ROCs which are in excess of the Group’s compliance obligations are included as an
adjustment to the compliance cost included within cost of sales. ROCs are valued at the lower of purchase
cost and estimated realisable value.
2.11.2 Levy Exemption Certificates (LECs)
The removal of Levy Exemption Certificates was announced by the Government in 2015, starting 1 August
2015. Excess inventory of LECs had been purchased by the company in the years prior to this date. The
cost of this inventory was written back to the income statement in 2015, resulting in a non-recurring credit.
It will be utilised against the cost of Climate Change Levy for business customers until March 2018, with
costs charged through the income statement. LECs are valued at the lower of purchase cost and estimated
realisable value.
2.11.3 Generation development sites
The Group incurs costs in respect of generation development sites to secure development rights and
planning permission to establish power generation units on a number of different sites. These are recognised
as inventory at the lower of cost and net realisable value.
2.12 Current and deferred taxation
The tax credit represents the sum of the tax currently receivable and deferred tax. The tax currently
receivable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
Statement of Comprehensive Income 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 Group’s
liability for current tax is calculated by using tax rates that have been enacted or substantively enacted by the
end of each financial period.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount 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 Statement of Financial Position liability method. Deferred tax
liabilities are 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 (other than in a business combination) of other assets and liabilities
in a transaction which affects neither the tax profit nor the accounting profit. Deferred tax liabilities are
recognised for taxable temporary differences arising in investments in subsidiaries except where the Group is
able to control the reversal of the temporary difference and it is probable that the temporary difference will
not reverse in the foreseeable future.
53
Strategic ReportDirectors’ ReportFinancial Statements Notes to the Financial Statements
For the year ended 31 December 2015
2. Summary of Significant Accounting Policies (continued)
The carrying amount of deferred tax assets is reviewed at the end of each financial period 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 to the period
when the asset is realised or the liability is settled.
Deferred tax is charged or credited in the Statement of Comprehensive Income, except when it relates
to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority, and the Group intends to settle its current tax assets and liabilities on a net basis.
2.13 Available-for-sale financial assets
Equity instruments held by the Group and designated as available-for-sale are carried at fair value, with
movements in fair value recognised in other comprehensive income. Where fair value cannot be reliably
measured, the assets are approximated at cost. Cumulative fair value gains or losses on an asset are recycled
through the income statement when the asset is disposed or impaired. A significant or prolonged decline
in the fair value of a security below its cost is considered as an indicator that the securities are impaired.
Impairments are recognised in the income statement.
2.14 Financial instruments
The Group uses certain financial instruments in its operating and investing activities that are deemed
appropriate for its strategy and circumstances.
Financial instruments recognised on the Consolidated Statement of Financial Position include cash and
cash equivalents, trade receivables, trade payables and borrowings. Financial assets and liabilities are
recognised on the Consolidated Statement of Financial Position when the company has become a party to
the contractual provisions of the instrument.
2.14.1 Loans and receivables
The Group’s loans and receivables comprise trade and other receivables and cash and cash equivalents in
the Consolidated Statement of Financial Position. These assets are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active market. They arise principally through the
provision of goods and services to customers (e.g. trade receivables), but also incorporate other types of
contractual monetary asset. They are initially recognised at fair value plus transaction costs that are directly
attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective
interest rate method, less provision for impairment. Trade receivables are shown inclusive of unbilled
amounts to customers and of payments made in advance by customers, reflecting the underlying nature of
customer account balances.
Impairment provisions are recognised when there is objective evidence (such as significant financial
difficulties on the part of the counter-party or default or significant delay in payment) that the Group will be
unable to collect all of the amounts due under the terms receivable, the amount of such a provision being
the difference between the net carrying amount and the present value of the future expected cash flows
associated with the impaired receivable. For trade receivables, which are reported net, such provisions are
recorded in a separate allowance account with the loss being recognised within administrative expenses in
the Consolidated Statement of Comprehensive Income. On confirmation that the trade receivable will not be
collectable, the gross carrying value of the asset is written off against the associated provision.
Cash and cash equivalents comprise cash on hand and on demand 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 changes in value.
54
Notes to the Financial Statements
For the year ended 31 December 2015
2. Summary of Significant Accounting Policies (continued)
Restricted deposits are held by financing providers to cover debt service and maintenance expenses on
generation sites to which the funding relates.
Short-term security deposits are held by trading exchanges to cover short term electricity trades.
2.14.2 Financial liabilities and equity
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 Group after deducting all of its liabilities.
2.14.3 Trade and other payables
Trade payables are obligations to pay for goods or services that have been acquired in the course of ordinary
business from suppliers. Accounts 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 payables are recognised initially at fair value and subsequently held at amortised cost.
2.14.4 Borrowings
The Group expenses borrowing costs over the term of the loan facility. Where borrowing costs are
attributable to the acquisition, construction or production of a qualifying asset, such costs are capitalised as
part of the specific asset. Details of the Group’s borrowings are included in note 22.
2.15 Share based payments
The Group applies IFRS 2 to share based payments. The Group operates a share based payment
compensation plan, under which the entity grants key employees the option to purchase shares in the
company at a specified price maintained for a certain duration.
The Group operates an equity-settled, share-based compensation plan, under which the entity receives
services from employees as consideration for equity instruments (options) of the Group. The fair value of the
employee services received in exchange for the grant of the options is recognised as an expense. The total
amount to be expensed is determined by reference to the fair value of the options granted:
• including any market performance conditions; (for example, an entity’s share price)
• excluding the impact of any service and non-market performance vesting conditions (for example,
profitability, sales growth targets and remaining an employee of the entity over a specified time period) and
• including the impact of any non-vesting conditions (for example, the requirement for employees to save).
Non-market performance and service conditions are included in assumptions about the number of options
that are expected to vest. The total expense is recognised over the vesting period, which is the period over
which all of the specified vesting conditions are to be satisfied.
At the end of each financial period, the Group revises its estimates of the number of options that are
expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to
original estimates, if any, in the Consolidated Statement of Comprehensive Income, with a corresponding
adjustment to equity.
When the options are exercised, and the company issues new shares to meet that obligation, the proceeds
received net of any directly attributable transaction costs are credited to share capital (nominal value) and
share premium.
55
Strategic ReportDirectors’ ReportFinancial Statements Notes to the Financial Statements
For the year ended 31 December 2015
2. Summary of Significant Accounting Policies (continued)
2.16 Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker has been identified as the Board of Directors.
The Board of Directors review the Group’s internal reporting in order to assess performance and
allocate resources.
2.17 Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
2.18 Finance income
Finance income is received in respect of cash deposits and is recognised using the effective interest method.
When a loan and receivable is impaired, the Group reduces the carrying amount to its recoverable amount,
being the estimated future cash flow discounted at the original effective interest rate of the instrument, and
continues unwinding the discount as finance income. Finance income on impaired loan and receivables is
recognised using the original effective interest rates.
2.19 Exceptional items
Exceptional items are disclosed separately in the financial statements where it is necessary to do so to
provide further understanding of the financial performance of the Group. They are material items of income
or expense that have been shown separately due to the significance of their nature or amount.
2.20 Dividend distribution
Dividend distribution to the company’s shareholders is recognised as a liability in the Group’s financial
statements in the period in which the dividends are approved by the company’s shareholders.
56
Notes to the Financial Statements
For the year ended 31 December 2015
3. Financial and Capital Risk Management
3.1 Financial risk factors
The Group’s activities expose it to a variety of financial risks: liquidity risk, market risk (including currency
risk, cash flow and fair value interest rate risk and commodity price risk) and credit risk. The Group’s overall
risk management programme focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the Group’s financial performance. The Group may use derivative financial
instruments to hedge certain risk exposures.
3.1.1 Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet cash flow commitments
associated with financial instruments. The Group has cash resources available to it and prepares, in the
operating entities of the Group, forecasts for the forthcoming year which indicate that in the Directors’
opinion it will have sufficient resources to fund the continuation of trade.
The Group monitors cash flow forecasts on a ‘rolling forecast’ basis to ensure it has sufficient cash to meet
operational needs while maintaining enough headroom on its undrawn committed borrowing facilities at all
times so as not to breach borrowing limits or covenants.
A liquidity analysis of financial instruments is provided below:
Parent Company
31 December 2015
Less than
Between
Between
Over 5 years
1 year
1 and 2 years
2 and 5 years
Corporate bond
Loan from group companies
Trade and other payables
Total
£000’s
1,110
6,389
132
7,631
£000’s
16,075
-
-
16,075
£000’s
£000’s
-
-
-
-
-
-
-
-
Parent Company
31 December 2014
Less than
Between
Between
Over 5 years
1 year
1 and 2 years
2 and 5 years
Corporate bond
Loan from group companies
Trade and other payables
Total
£000’s
1,088
2,272
94
3,454
£000’s
1,088
-
-
£000’s
16,189
-
-
1,088
16,189
£000’s
-
-
-
-
57
Strategic ReportDirectors’ ReportFinancial Statements Notes to the Financial Statements
For the year ended 31 December 2015
3. Financial and Capital Risk Management (continued)
Consolidated
31 December 2015
Less than
Between
Between
Over 5 years
1 year
1 and 2 years
2 and 5 years
£000’s
7,702
1,110
14,514
23,326
£000’s
4,220
16,075
-
20,295
£000’s
13,828
-
-
£000’s
55,311
-
-
13,828
55,311
Less than
Between
Between
Over 5 years
1 year
1 and 2 years
2 and 5 years
£000’s
8,874
1,088
15,076
25,038
£000’s
2,620
1,088
-
3,708
£000’s
8,333
16,189
-
£000’s
32,982
-
-
24,522
32,982
Borrowings
Corporate bond
Trade and other payables
Total
Consolidated
31 December 2014
Borrowings
Corporate bond
Trade and other payables
Total
3.1.2 Market Risk
3.1.2a Currency risk
The Group is exposed to foreign exchange risk arising from the purchase of capital equipment
items from European countries. The primary currency exposure is with respect to the Euro. Management
have set up a policy, that when it is deemed appropriate, the Group will forward buy euros against major
contracts to reduce foreign exchange exposure. As at 31 December 2015 no euros (2014: nil) were
purchased forward.
3.1.2b Cash flow and fair value interest rate risk
The financial risk is the risk to the Group’s earnings that arises from fluctuations in interest rates and the
degree of volatility of these rates. For short-term bank overdraft facilities, the Group does not use derivative
instruments to reduce its exposure to interest rate fluctuations as the policy of the Group is not to rely on
short-term borrowing facilities for any significant duration. The Directors use interest rate swaps if they
consider their exposure to interest rate risk to be material. For long term borrowings, the Group may use
interest rate swaps to fix the interest rate payable on these material balances in order to mitigate the risk of
any fluctuations in interest rates.
3.1.2c Commodity price risk
The Group’s operations results in exposure to fluctuations in energy prices. Management monitors energy
prices and analyses supply and demand volumes to manage exposure to these risks. The Group typically
buys power forwards in order to mitigate some of the risk of commodity price fluctuations.
If the wholesale market moves significantly upwards or downwards, the price risk to the Group will depend
upon a number of factors including the excess or deficiency of power being supplied by renewable power
purchase contracts in place at the time. The Group may be required to pass on the price risk to customers.
Retail prices can be amended with 30 days’ advance notification to customers. The Group closely monitors
movements in the wholesale market and assess trends so it is ready to take necessary action when required.
Vertical integration of the Group helps further mitigate exposure to to changes in power prices.
58
Notes to the Financial Statements
For the year ended 31 December 2015
3. Financial and Capital Risk Management (continued)
3.1.3 Credit risk
The Group’s exposure to credit risk arises from its receivables from customers. At 31 December 2015 and
2014, the Group’s trade and other receivables were classed as due within one year, details of which are
included in note 18. The Group’s policy is to undertake credit checks where appropriate on new customers
and to provide for doubtful debts based on estimated irrecoverable amounts determined by reference to
specific circumstances and past default experience. Credit risk is also in part mitigated by the policy to
offer direct debit as a preferred method of payment for customers. At the end of the reporting period the
Directors have provided for specific doubtful debts and believe that there is no further credit risk. Should
the level of bad debt increase by 0.25 per cent, this would have an impact of £44,000 on the Statement of
Comprehensive Income.
Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions.
The Directors monitor credit quality of the institutions used when considering which banks and financial
institutions funds should be placed with.
3.2 Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern in order to provide returns to shareholders, and to maintain an optimal capital structure.
The Group monitors capital on the basis of the gearing ratio calculated as net debt divided by total capital.
Net debt is calculated as total borrowings (including ‘current and non-current borrowings’ as shown in the
Consolidated Statement of Financial Position) less cash and cash equivalents. Total capital is calculated as
‘equity’ as shown in the consolidated statement of financial position plus net debt. The capital structure of
the Group is as follows:
Total borrowings
Less: cash in restricted deposit accounts
Less: cash and cash equivalents
Note
22
19
Net debt
Total equity
Total capital
Gearing ratio
2015
£000’s
61,537
(2,803)
(4,751)
53,983
16,943
70,926
76.1%
2014
£000’s
46,284
-
(13,703)
32,581
17,943
50,524
64.5%
During 2015, the Group’s strategy, which was unchanged from 2014, was to seek debt funding at appropriate
margins from lenders against long term power generation assets. These assets have highly predictable
revenue streams and are considered stable for long term borrowing. In future, in order to maintain or adjust
its capital structure, the Group may re-structure its debt, issue new shares or sell assets.
The Group’s borrowings are subject to maintaining covenants as defined by the debt funders. Throughout the
year ended 31 December 2015 the Group complied with all external borrowing covenants and management
monitors the continued compliance with these covenants on a monthly or quarterly basis.
59
Strategic ReportDirectors’ ReportFinancial Statements
Notes to the Financial Statements
For the year ended 31 December 2015
3. Financial and Capital Risk Management (continued)
3.3 Fair value estimation
The table below presents the Group’s financial assets that are measured at fair value, by valuation method at
31 December 2015. The different levels have been defined as follows:
-Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
-Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2);
-Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)
(Level 3);
If one or more of the significant inputs is not based on observable market data, the instrument is included
in Level 3. Specific valuation techniques used to value the unlisted securities included the assessment of
the current status of the project and a review of any changes to circumstances since the initial acquisition
of shares.
2015
Assets
Available for sale financial assets
Unlisted securities
Total assets
2014
Assets
Available for sale financial assets
Unlisted securities
Total assets
Level 1
£000’s
Level 2
£000’s
Level 3
£000’s
Total
£000’s
-
-
-
-
500
500
500
500
Level 1
£000’s
Level 2
£000’s
Level 3
£000’s
Total
£000’s
-
-
-
-
500
500
500
500
There were no changes in Level 3 instruments for the year ended 31 December 2015.
60
Notes to the Financial Statements
For the year ended 31 December 2015
4. Critical Accounting Estimates
In the process of applying the Group’s accounting policies, management has to make judgements and
estimates that have a significant effect on the amounts recognised in the financial statements. These
estimates and judgements are evaluated continually and are based on historical experience and other factors,
including expectations of future events. The most critical of these accounting judgements and estimates are
detailed below. Given the nature of the estimates and judgements made, unless explicitly stated otherwise, it
is not appropriate to provide a sensitivity analysis of the judgements and estimates noted.
4.1 Revenue recognition
Revenue calculated from energy sales includes an estimate of the value of electricity or gas supplied to
customers between the date of the last meter reading and the end of the reporting period. This will have been
estimated by using historical consumption patterns and data available, and takes into consideration industry
reconciliation processes, upon which the Group takes a prudent position until final reconciliation data is
available from the industry fourteen months after the supply date.
4.2 Power purchase costs
Power purchase costs can typically take 14 months from the date of supply to be finalised due to the
processes that the energy market has to complete in order to finalise generation and consumption data for
any one particular month. Therefore there is an element of power purchase costs that needs to be estimated
based on a combination of in-house and industry data that is available at any particular point in time.
4.3 Inventories
The Group carries ROCs as stock in its balance sheet. These are valued at the lower of cost or estimated
realisable value. Gains or losses made on ROCs which are subsequently sold, are only recognised in the
Statement of Comprehensive Income when they crystallise.
The final out-turn value of a ROC is only published by Ofgem in October following the compliance year (April
to March) which may require a final adjustment to gains or losses on the sale or purchase of ROCs previously
recognised in the Consolidated Statement of Comprehensive Income.
61
Strategic ReportDirectors’ ReportFinancial Statements Notes to the Financial Statements
For the year ended 31 December 2015
4. Critical Accounting Estimates (continued)
4.4 Provisions for bad and doubtful debt
The assessments undertaken in recognising provisions have been made in accordance with IAS 39. A
provision for impairment of trade receivables is established when there is objective evidence that the
group will not be able to collect all amounts due according to the original terms of the receivables.
Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial
reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered
indicators that the trade receivable is impaired.
The amount of any loss is recognised in the income statement within administrative expenses.
Subsequent recoveries of amounts previously written off are credited against administrative expenses in
the income statement.
4.5 Recoverability of capitalised generation project costs and generation assets
Generation project costs capitalised in inventory are reviewed by management on a monthly basis. Where
management deem that on the balance of probability, the likely planning outcome for a given generation
site will prevent it being constructed or sold, a write off provision is made for the full amount of the inventory
relating to that site after excluding an assessment of recoverable costs. Where possible, recoverable costs
will be estimated based on known market values.
The carrying value of the generating sites is considered in relation to the value in use and a provision will be
recognised for any excess. For the current year no provision was deemed necessary.
5. Segmental Analysis
The chief operating decision-maker has been identified as the Board of Directors (the ‘Board’). The Board
reviews the Group’s internal reporting in order to assess performance and allocate resources. Management
has determined the operating segments based on these reports. The Board considers the business from
a business class perspective, with each of the main trading subsidiaries accounting for each of the
business classes.
The main segments are:-
• Supply Companies (including electricity supply, FIT administration and gas supply);
• Electricity Generation Companies (including wind and solar generation companies);
• Generation Development (including early stage development companies)
• Holding companies, being the activity of Good Energy Group PLC.
The Board assesses the performance of the operating segments based primarily on summary financial
information, extracts of which are reproduced below. An analysis of profit and loss, assets and liabilities and
additions to non-current asset, by class of business, with a reconciliation of segmental analysis to reported
results follows:
62
Notes to the Financial Statements
For the year ended 31 December 2015
5. Segmental Analysis (continued)
Year ended 31
Electricity
FIT
Gas
Total
Electricity
Generation
Holding
Total
December 2015
Supply
admin-
Supply
Supply
Generation
Development
Companies/
istration
Companies
Consolidation
Adjustments
£000’s
£000’s
£000’s
£000’s
£000’s
£000’s
£000’s
£000’s
Revenue
Revenue
from external
customers
40,192
3,902
16,411
60,505
3,576
200
-
64,281
Inter-segment
revenue
-
-
-
-
Total revenue
40,192
3,902
16,411
60,505
3,882
7,458
-
200
(3,882)
-
(3,882) 64,281
Expenditure
Cost of sales
(24,542)
(1,655)
(12,987)
(39,184)
(3,440)
(358)
-
(42,982)
Inter-segment
cost of sales
(3,882)
-
-
(3,882)
-
-
3,882
-
Gross profit
11,768
2,247
3,424
17,439
4,018
(158)
-
21,299
Administrative
expenses
Depreciation &
amortisation
Operating
profit/(loss)
Net finance
income/(costs)
Profit/(loss)
before tax
Segments assets & liabilities
Segment
assets
Segment
liabilities
Net assets/
(liabilities)
Additions to
non- current
assets
(12,877)
(353)
(1,448)
(1,408) (16,086)
(975)
-
(3)
(1)
(979)
3,587
3,665
(1,609)
(1,409)
4,234
136
(4,301)
(494)
553
(4,106)
3,723
(636)
(2,103)
(856)
128
34,628
96,091
6,778
(43,936)
93,561
29,040
94,239
12,414
(59,075)
76,618
5,588
1,852
(5,636)
15,139
16,943
755
18,090
-
-
18,845
63
Strategic ReportDirectors’ ReportFinancial Statements
Notes to the Financial Statements
For the year ended 31 December 2015
5. Segmental Analysis (continued)
Year ended 31
Electricity
FIT
Gas
Total
Electricity
Generation
Holding
Total
December 2014
Supply
admin-
Supply
Supply
Generation
Development
Companies/
istration
Companies
consolidation
adjustments
£000’s
£000’s £000’s
£000’s
£000’s
£000’s
£000’s
£000’s
Revenue
Revenue from
external
customers
Inter-segment
revenue
31,593
2,544
11,568
45,705
1,754
10,159
-
57,618
Total Revenue
31,593
2,544
11,568
45,705
-
-
-
-
2,106
3,860
-
(2,106)
-
10,159
(2,106)
57,618
Expenditure
Cost of sales
(19,789)
(1,619) (9,064)
(30,472)
(1,840)
(6,470)
-
(38,782)
Inter-segment cost
of sales
(2,106)
-
-
(2,106)
-
-
2,106
-
Gross Profit
9,698
925
2,504
13,127
2,020
3,689
-
18,836
Administrative
expenses
Depreciation &
amortisation
Operating profit/
(loss)
Net finance
(costs)/income
Profit/(loss)
before tax
(11,812)
(271)
(1,251)
(895)
(14,229)
(808)
-
(4)
(4)
(816)
507
1,749
2,434
(899)
3,791
(13)
(2,346)
(430)
286
(2,503)
494
(597)
2,004
(613)
1,288
Segments assets & liabilities
Segment assets
21,910
63,214
13,626
(19,432)
79,318
Segment liabilities
(15,000)
(58,518)
(16,889)
29,032
(61,375)
Net assets/
(liabilities)
Additions to
non- ‐current
assets
6,910
4,696
(3,263)
9,600
17,943
247
25,208
-
-
25,455
All turnover arose within the United Kingdom.
Consolidation adjustments relate to inter-company sales of generated electricity and the elimination of
inter-company balances.
64
Notes to the Financial Statements
For the year ended 31 December 2015
6. Operating Profit and Administrative Expenses
The operating profit is stated after charging:
Depreciation of property, plant and equipment
Amortisation of intangible assets
Operating lease rentals
Auditors’ Remuneration
Audit of parent and consolidated financial statements
Audit of subsidiaries
Subtotal (audit)
Other services - financial statement preparation
Other services
Tax services
Subtotal (non-audit)
The administrative expenses comprise the following:
Staff costs
Rent and office costs
Marketing costs
Professional fees and bank charges
Bad Debts
Depreciation and amortisation
Total
7. Profit of the Parent Company
Note
14
15
2015
£000’s
2,351
705
676
27
108
135
25
34
60
119
7,345
3,573
1,776
2,152
1,240
979
17,065
2014
£000’s
1,347
567
329
27
95
122
22
-
20
42
6,640
3,759
1,619
1,528
633
866
15,045
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the
parent company is not presented as part of these financial statements.
The parent company’s profit for the financial year was £1,123,794 (2014: profit £2,919,980).
The profit for the parent company in 2014 included part of the proceeds from the sale of West Raynham solar
site. In the segmental analysis 100% of the proceeds from West Raynham were shown within Generation
Development reflecting the operational performance of the segment.
65
Strategic ReportDirectors’ ReportFinancial Statements
Notes to the Financial Statements
For the year ended 31 December 2015
8. Staff Costs
Staff costs, including Directors’ remuneration, were as follows:
Wages and salaries
Social security costs
Share based payments
Other pension costs
Total staff costs
Capitalised staff costs
Total expensed staff costs
2015
2014
£000’s
£000’s
8,741
7,651
866
51
343
798
30
334
10,001
8,813
(729)
(1,233)
9,272
7,580
Details of share based payments can be found in note 26
The average monthly number of employees, including the Directors, during the year was as follows:
Operations
Business services
Total management and administration
9. Directors’ and Key Management Remuneration
Directors’ and Key Management emoluments
Aggregate emoluments
Contributions to money purchase pension schemes
2015
2014
Number
Number
135
141
276
101
127
228
2015
2014
£000’s
£000’s
922
69
1,208
57
Key management are considered to be the directors of Good Energy Group PLC and the executive team. The
emoluments relating to these teams are included in the table above.
During the year retirement benefits were accruing to 2 Directors of the Group (2014: 3) in respect of money
purchase pension schemes.
In respect of the highest paid Director, the Group paid remuneration of £222,740 (2014: £252,183), including
contributions to the money purchase pension scheme of £23,868 (2014: £22,950).
Individual remuneration for the Directors is set by the Remuneration Committee of the Board which consists
entirely of Non-Executive Directors. Appropriate keyman insurance policies are in place.
During the year, no share options were exercised by Directors or key management (2014: 117,616). The
aggregate amount of gains made by directors or key management on the exercise of share options was nil
(2014: £187,077).
Details of Directors’ emoluments are given in the Directors’ Remuneration Report on page 31.
66
Notes to the Financial Statements
For the year ended 31 December 2015
10. Finance Income
Bank and other interest receivables
11. Finance Costs
On bank loans and overdrafts
On corporate bond
Other interest payable
Amortisation of debt issue costs
Exceptional finance cost on repayment of borrowings
Total finance costs
Less: amounts capitalised on qualifying assets
Total
12. Taxation
Analysis of tax charge in year
Current tax (see note below)
Current Tax
Adjustments in respect of prior years
Total current tax
Deferred tax
2015
2014
£000’s
£000’s
23
87
2015
2014
£000’s
£000’s
3,192
1,110
1
327
-
4,630
(501)
4,129
1,467
929
56
196
881
3,529
(939)
2,590
2015
2014
£000’s
£000’s
165
(243)
(78)
-
(108)
(108)
Origination and reversal of temporary differences
(132)
(420)
Adjustments in respect of prior years
Total deferred tax (see note 21)
Tax on profit on ordinary activities
533
401
323
8
(412)
(520)
Adjustments in respect of prior years’ deferred tax amounts are from updated assumptions used in the
treatment of Group relieved losses and capital allowances and also relate to the reduction arising due to carry
back of losses to previous years.
67
Strategic ReportDirectors’ ReportFinancial Statements Notes to the Financial Statements
For the year ended 31 December 2015
12. Taxation (continued)
Factors affecting the tax credit for the year
The tax assessed for the year is higher (2014: lower) than the standard weighted average rate of corporation
tax in the UK of 20.25% (2014: 21.50%). The differences are explained as follows:
Profit before tax
Profit before tax multiplied by the weighted average rate of
2015
2014
£000’s
£000’s
128
1,288
Corporation Tax in the UK of 20.25% (2014: 21.50%)
26
277
Tax effects of:
Expenses not deductible for tax purposes
Non-taxable gain on sale of investment
Effects of changes in tax rate
Prior year adjustment - current tax
Prior year adjustment - deferred tax
Total tax charge/(cedit) for year
Factors that may affect future tax charges
(9)
-
16
(243)
533
323
(2)
(728)
33
(108)
8
(520)
The main corporation tax rate was reduced from 21% to 20% from 1 April 2015 under the Finance Act 2013.
Accordingly the company’s profits are taxed at an effective rate of 20.25%. The July 2015 Budget Statement
announced changes to the UK Corporation tax rate which will reduce the main rate of corporation tax to 19%
from 1 April 2017 and to 18% from 1 April 2020. These changes were substantively enacted on 26 October
2015 and accordingly the deferred tax balance has been calculated using a rate of 18%. On 17 March 2016 the
Government announced that on 1 April 2010 the rate of corporation tax will reduce to 17%.
Corporation tax payable/(recoverable) as per Statement of Financial Position
UK Corporation Tax on profits for the year
-
-
(126)
(109)
Parent Company
Consolidated
2015
2014
2015
2014
£000’s
£000’s
£000’s
£000’s
68
Notes to the Financial Statements
For the year ended 31 December 2015
13. (Loss)/Earnings Per Ordinary Share
Basic
Basic (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to owners of the
company by the weighted average number of ordinary shares during the year after excluding 521,989 (2014:
208,863) shares held by Clarke Willmott Trust Corporation Limited in trust for the Good Energy Group
Employee Benefit Trust.
(Loss)/profit attributable to owners of the Company (£000’s)
Basic weighted average number of ordinary shares (000’s)
Basic (loss)/earnings per share
Diluted
Consolidated
2015
(195)
14,455
(1.4p)
2014
1,808
14,322
12.6p
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares to
assume conversion of all potentially dilutive ordinary shares. Potentially dilutive ordinary shares arise
from awards made under the Group’s share-based incentive plans. Where the vesting of these awards is
contingent on satisfying a service or performance condition, the number of potentially dilutive ordinary
shares is calculated based on the status of the condition at the end of the year. Potentially dilutive ordinary
shares are actually dilutive only when the average market price of the company’s ordinary shares during the
year exceeds their exercise price (options) or issue price (other awards). The greater any such excess, the
greater the dilutive effect. In accordance with IAS 33 ‘Earnings per share’, for the purposes of calculating
diluted loss per share, the effect of potentially dilutive ordinary shares has not been taken into account
for the year ended 31 December 2015 due to there being a loss for the year. The average market price of
the company’s ordinary shares during the year was 222p (2014: 243p). The dilutive effect of share-based
incentives was nil (2014: 863,326 shares).
(Loss)/profit attributable to owners of the Company (£000’s)
Weighted average number of diluted ordinary shares (000’s)
Diluted (loss)/earnings per share
Consolidated
2015
(195)
14,455
(1.4p)
2014
1,808
15,185
11.9p
69
Strategic ReportDirectors’ ReportFinancial Statements Notes to the Financial Statements
For the year ended 31 December 2015
14. Property, Plant and Equipment
Consolidated
Year ended 31
December 2015
Cost
At 1 January 2015
Transfer of Assets under
construction to Generation assets
Reclassification of assets
Additions
Disposals
At 31 December 2015
Accumulated depreciation
At 1 January 2015
Charge for the year
Disposals
Leasehold
Furniture,
Generation
Assets under
Total
improvements
fittings &
assets
construction
equipment
£000’s
£000’s
£000’s
£000’s
£000’s
247
-
45
137
-
429
(156)
(118)
-
1,193
-
(45)
120
(393)
35,239
11,659
-
18,349
-
875
65,247
(861)
(157)
393
(2,592)
(2,076)
-
11,659
48,338
(11,659)
-
-
-
-
-
-
-
-
-
-
18,606
(393)
66,551
(3,609)
(2,351)
393
(5,567)
At 31 December 2015
(274)
(625)
(4,668)
Net book value
At 1 January 2015
At 31 December 2015
91
155
332
250
32,647
60,579
11,659
44,729
- 60,984
Consolidated
Leasehold
Furniture,
Generation
Assets under
Total
Year ended 31 December 2014
improvements
fittings &
assets
construction
equipment
£000’s
£000’s
£000’s
£000’s
£000’s
Cost
At 1 January 2014
Transfer of Assets under
construction to Generation assets
Additions
At 31 December 2014
Accumulated depreciation
At 1 January 2014
Charge for the year
At 31 December 2014
Net book value
At 1 January 2014
At 31 December 2014
212
980
11,733
9,449
9,449
22,374
(9,449)
-
35
247
(103)
(53)
(156)
109
91
213
1,193
14,057
35,239
11,659
25,964
11,659
48,338
(672)
(189)
(861)
(1,487)
(1,105)
(2,592)
-
-
-
(2,262)
(1,347)
(3,609)
308
332
10,246
32,647
9,449
20,112
11,659
44,729
The Generation assets relate to electricity generating assets (wind turbines, solar panels and ancillaries).
Those assets held within the company’s subsidiaries: Good Energy Delabole Wind Farm Limited; Good Energy
Hampole Wind Farm Limited; Good Energy Woolbridge Solar Park Limited; Good Energy Creathorne Solar
Park Limited, Good Energy Rook Wood Solar Park Limited, Good Energy Carloggas Solar Park Limited, Good
Energy Lower End Solar Park Limited and Good Energy Cross Roads Solar Park Limited have been pledged as
security against bank and other loan liabilities. There is no charge against the assets held within Good Energy
Oaklands Plantation Solar Park Limited.
70
Notes to the Financial Statements
For the year ended 31 December 2015
15. Intangible Assets
Consolidated
Power supply
Software
Website
Goodwill
Total
Year ended 31 December 2015
Licences
Licences
development
£000’s
£000’s
£000’s
£000’s
£000’s
costs
Cost
At 1 January 2015
Additions
Disposals
At 31 December 2015
Accumulated amortisation
At 1 January 2015
Charge for the year
Disposals
At 31 December 2015
Net book value
At 1 January 2015
At 31 December 2015
180
-
-
180
-
-
-
-
3,868
492
(1,009)
3,351
(1,964)
(705)
1,009
(1,660)
132
-
(123)
9
(132)
123
(9)
1,446
-
-
5,626
492
(1,132)
1,446
4,986
-
-
-
-
(2,096)
(705)
1,132
(1,669)
180
180
1,904
1,691
-
-
1,446
1,446
3,530
3,317
Consolidated
Power
Software
Website
Goodwill
Total
Year ended 31 December 2014
supply
Licences
development
Licences
costs
£000’s
£000’s
£000’s
£000’s
£000’s
Cost
At 1 January 2014
Additions
At 31 December 2014
Accumulated amortisation
At 1 January 2014
Charge for the year
At 31 December 2014
Net book value
At 1 January 2014
At 31 December 2014
180
-
180
-
-
-
3,249
619
3,868
(1,400)
(564)
(1,964)
132
-
132
(129)
(3)
(132)
1,446
-
1,446
5,007
619
5,626
-
-
-
(1,529)
(567)
(2,096)
180
180
1,849
1,904
3
-
1,446
1,446
3,478
3,530
71
Strategic ReportDirectors’ ReportFinancial Statements Notes to the Financial Statements
For the year ended 31 December 2015
15. Intangible Assets (continued)
All amortisation amounts are included within administration expenses.
Goodwill of £1,446,453 (2014: £1,446,453) comprises £1,060,996 (2014: £1,060,996) arising from the original
acquisition of Good Energy Limited, and £385,457 (2014: £385,457) from the original acquisition of the wind
farm at Delabole.
The carrying values of indefinite life assets included in intangible assets are: goodwill of £1,446,453 (2014:
£1,446,453) and Power Supply Licence of £180,000 (2014: £180,000) which relates to the subsidiary, Good
Energy Limited. In arriving at the conclusion that these assets have an indefinite life, management considers the
fact that the Group is a profitable business and expects to hold and support these assets for an indefinite period.
An impairment review is undertaken annually or more frequently, using value in use calculations, based
on pre tax cash flow projections over a five year period approved by management and discounted at
appropriate rates.
The result of this review was that no impairment is required in respect of the carrying values of the indefinite
life assets. The key assumptions for value in use are as follows:
Value in use assumptions
Gross margin*
Growth rate beyond five year plan
Pre tax discount rate
2015
20%-30%
2%
11%
2014
26%
2%
11%
*annual margins have been modelled in the five year cashflow at varying levels.
Based on these assumptions the Directors consider there to be significant headroom and the assumptions
accordingly are not sensitive.
72
Notes to the Financial Statements
For the year ended 31 December 2015
16a. Investments and Subsidiaries
Parent Company
Shares in Group
Loans to Group
Year ended 31 December 2015
undertakings
undertakings
£000’s
£000’s
Cost and net book value
At 1 January 2015
Additions
Provisions
Repayments
4,646
-
-
-
Total
£000’s
29,941
56,555
25,295
56,555
(6,000)
(6,000)
(45,290)
(45,290)
At 31 December 2015
4,646
30,560
35,206
A provision has been recorded against the intercompany loan receivable from Good Energy Generation
Limited. This has no impact on the consolidated results of the Group.
Parent Company
Shares in Group
Loans to Group
Year ended 31 December 2014
undertakings
undertakings
£000’s
£000’s
Cost and Net book value
At 1 January 2014
Intra-group share transfers
Additions
Repayments
9,081
(4,435)
-
-
Total
£000’s
27,728
-
65,763
18,647
4,435
65,763
(63,550)
(63,550)
At 31 December 2014
4,646
25,295
29,941
73
Strategic ReportDirectors’ ReportFinancial Statements Notes to the Financial Statements
For the year ended 31 December 2015
16a. Investments and Subsidiaries (continued)
The Group had the following subsidiaries at 31 December 2015:
Name
Country of
Proportion of ordinary
Nature of business
incorporation and
shares directly held
place of business
by Parent
Good Energy Limited
Good Energy Gas Limited
UK
UK
Good Energy Generation Limited UK
Good Energy Generation Holding
Company No.1 Limited
Good Energy Generation Assets
No.1 Limited*
Good Energy Hampole Windfarm
Limited*
Good Energy Woolbridge Solar
Park Limited*
Good Energy Creathorne Solar
Park Limited*
Good Energy Rook Wood Solar
Park Limited*
Good Energy Carloggas Solar
Park Limited*
Good Energy Lower End Solar
Park Limited*
Good Energy Cross Roads
UK
UK
UK
UK
UK
UK
UK
UK
Plantation Solar Park Limited*
UK
Good Energy Delabole Wind
Farm Limited
Good Energy Cedar Windfarm
Limited
Good Energy Lanyon Solar Park
Limited
Good Energy Mapperton Solar
Park Limited
Good Energy Brynwhilach Solar
Park Limited
Good Energy Oaklands
Plantation Solar Park Limited
Good Energy Tidal Limited
UK
UK
UK
UK
UK
UK
UK
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
85%
100%
100%
100%
100%
100%
supply of renewably
sourced electricity and FIT
administration
supply of gas
an investor in potential new
generation sites
holding company for a
generating asset sub group
holding company for
generating assets
subsidiaries
generation of electric power
by wind turbine machinery
generation of electric power
by solar panels
generation of electric power
by solar panels
generation of electric power
by solar panels
generation of electric power
by solar panels
generation of electric power
by solar panels
generation of electric power
by solar panels
generation of electric power
by wind turbine machinery
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
investment holding company
74
Notes to the Financial Statements
For the year ended 31 December 2015
16a. Investments and Subsidiaries (continued)
Good Energy Development (No.1)
Limited
Good Energy Development
(No.2) Limited
Good Energy Development
(No.3) Limited
Good Energy Development
(No.4) Limited
Good Energy Development
(No.5) Limited
Good Energy Development
(No.6) Limited
Good Energy Development
(No.7) Limited
Good Energy Development
(No.8) Limited
Good Energy Development
(No.9) Limited
Good Energy Development
(No.10) Limited
Good Energy Development
(No.12) Limited
Good Energy Development
(No.14) Limited
Good Energy Development
(No.15) Limited
Good Energy Development
(No.16) Limited
Good Energy Development
(No.17) Limited
Llangyfelach Community Solar
Farm C.I.C
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
UK
Worminster Down Somerset
Community Solar Farm C.I.C
UK
Good Energy Development
(No.20) Limited
Good Energy Development
(No.21) Limited
Good Energy Development
(No.22) Limited
Good Energy Development
(No.23) Limited
UK
UK
UK
UK
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
75
Strategic ReportDirectors’ ReportFinancial Statements Notes to the Financial Statements
For the year ended 31 December 2015
16a. Investments and Subsidiaries (continued)
Good Energy Development
(No.24) Limited
Good Energy Development
(No.25) Limited
Good Energy Development
(No.26) Limited
Good Energy Development
(No.27) Limited
Good Energy Development
(No.28) Limited
Good Energy Development
(No.29) Limited
Good Energy Development
(No.30) Limited
UK
UK
UK
UK
UK
UK
UK
Homegrown Electricity Limited
UK
* Entities indirectly owned by Good Energy Group PLC.
100%
100%
100%
100%
100%
100%
100%
100%
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
development of an energy
generating asset
dormant
The subsidiaries above have all been included in the consolidated financial statements.
16b. Available-for-sale Financial Assets
Consolidated
Year ended 31 December 2015
Cost and Net book value
At 1 January 2015
Additions
At 31 December 2015
Available-for-sale
financial assets
£000’s
500
-
500
Available-for-sale financial assets comprise £500,000 (2014: £500,000) of unlisted securities denominated
in sterling.
76
Notes to the Financial Statements
For the year ended 31 December 2015
17. Inventories
Renewable Obligation Certificates
Levy Exemption Certificates
Generation development sites
Total
Parent Company
Consolidated
2015
2014
2015
2014
£000’s
£000’s
£000’s
£000’s
-
-
-
-
-
-
-
-
2,426
977
6,079
9,482
1,787
-
4,679
6,466
As at 31 December 2015 there were Renewable Obligation Certificates (ROCs) of £537,265 (2014: £896,223)
included in the above amount that were unissued for generation that had already taken place and therefore
these ROCs were not available for sale before the end of the financial year.
As at 31 December 2015 there were Levy Exemption Certificates (LECs) of £977,001 (2014: nil) included in the
above amount.
Costs shown in respect of Generation development sites are for on-going projects to secure development
rights and planning permission to establish power generation units on a number of different sites. The
cost of inventories recognised as an expense and included in ‘cost of sales’ amounted to £147,416 (2014:
£4,663,330). At 31 December 2015, an impairment of £1,041,077 (2014: £742,138) had been made against
these sites resulting in an expense of £298,939 (2014: net credit of £108,000) which is included in ‘cost
of sales’.
77
Strategic ReportDirectors’ ReportFinancial Statements
Notes to the Financial Statements
For the year ended 31 December 2015
18. Trade and Other Receivables
Gross trade receivables
Provision for impairment/non-payment of trade receivables
Net trade receivables
Prepayments
Inter-company receivables
Other taxation
Total
Parent Company
Consolidated
2015
2014
2015
2014
£000’s
£000’s
£000’s
£000’s
16
-
16
6
-
-
22
-
-
-
6
347
12
365
11,444
10,251
(2,131)
(1,424)
9,313
1,610
-
675
8,827
900
-
554
11,598
10,281
The Group has a provision in place to set aside an allowance to cover potential impairment and non-payment
of trade receivables. Those debts which are neither past due nor impaired are considered to be good and are
expected to be recoverable. Some trade receivables are with customers who do not have externally available
credit ratings.
The movements on the provision for impairment and non-payment of trade receivables is shown below:
Movement on the provision for impairment and non-payment of
trade receivables
Balance at 1 January
Increase in allowance for impairment/non-payment
Impairment/non-payment losses recognised
Balance at 31 December
Ageing analysis of trade receivables past due but not impaired
Current and not past due
1 to 2 months
2 to 3 months
Over 3 months
Total
2015
£000’s
1,424
1,135
(428)
2,131
2015
£000’s
6,636
71
793
1,813
9,313
2014
£000’s
864
624
(64)
1,424
2014
£000’s
7,117
243
267
1,200
8,827
Trade receivables past due but not impaired relate entirely to a number of independent customers for whom
there is no recent history of default.
Trade and other receivables are all financial assets designated as loans and receivables.
78
Notes to the Financial Statements
For the year ended 31 December 2015
19. Cash and Cash Equivalents
Cash at bank and in hand
Short-term bank deposits
Security deposits
Total
Parent Company
Consolidated
2015
2014
2015
2014
£000’s
£000’s
£000’s
£000’s
234
509
-
-
-
-
234
509
1,956
1,871
924
4,751
12,354
671
678
13,703
As part of the bank loan agreements, the lenders require a minimum cash balance to be held in separate
reserve accounts. At the end of the year the total amount was £1,722,653 (2014: £670,717), which is included
in short-term bank deposits in 2015. Included within cash at bank and in hand for both the parent company
and the consolidated position is £139,680 (2014: £415,434) in respect of monies held by the Good Energy
Employee Benefits Trust. The credit quality of cash and cash equivalents can be assessed by reference to
external credit ratings as follows:-
AA-
A+
A
A-
B
Total
Parent Company
Consolidated
2015
2014
2015
2014
£000’s
£000’s
£000’s
£000’s
140
415
-
-
-
94
234
-
-
-
94
509
140
-
415
103
3,568
12,162
450
593
4,751
-
1,023
13,703
Cash and cash equivalents are all financial assets designated as loans and receivables.
79
Strategic ReportDirectors’ ReportFinancial Statements
Notes to the Financial Statements
For the year ended 31 December 2015
20. Share Capital and Share Premium
Parent Company & Consolidated
Number of
authorised
shares
Number of
Share
shares issued
Share
Premium
and fully paid
Capital
Account
Total
At 1 January 2014
20,000,000
14,667,896
Proceeds from shares issued
-
-
At 31 December 2014
20,000,000
14,667,896
Proceeds from shares issued
-
302,784
At 31 December 2015
20,000,000
14,970,680
£000’s
£000’s
£000’s
733
-
733
15
748
9,077
9,810
-
9,077
709
-
9,810
724
9,786
10,534
In 2015, the company issued 302,784 ordinary shares of 5p each for total consideration of £724,282, resulting
in a share premium of £709,143. This included the issue of 291,137 (2014: nil) shares to the EBT and 2 scrip
dividend issues in lieu of full year and interim dividend cash payments (7,556 and 4,081 shares respectively).
There were no share issues in 2014.
Clarke Willmott Trust Corporation Limited holds in trust 521,989 (2014: 208,863) ordinary shares of the
company for the present and the future beneficiaries of the Good Energy Group Employee Share Option
Scheme. These are deducted from equity as shown in the Consolidated and Parent Company Statements of
Changes in Equity. During the year the Trust disposed of 197,000 (2014: 179,135) shares as a result of options
exercised and acquired 493,137 (2014: nil) shares.
The Directors recommend a final dividend of 2.3p per share (2014: 2.3p) subject to shareholder approval at
the Company’s AGM.
80
Notes to the Financial Statements
For the year ended 31 December 2015
21. Deferred Taxation
The provision for deferred taxation is made up as follows:
Consolidated
At 1 January
Credited to the Consolidated Statement of Comprehensive Income
Credited to equity
At 31 December
Deferred tax asset to be recovered after more than 12 months
Deferred tax asset to be recovered within 12 months
Sub total-deferred tax assets
Deferred tax liabilities to be settled after more than 12 months
Deferred tax liabilities to be settled within 12 months
Sub total- deferred tax liabilities
Total net deferred tax
Deferred tax assets
On short term timing differences
Losses
Total
Deferred tax liabilities
On accelerated capital allowances
2015
2014
£000’s
£000’s
15
401
151
567
738
(412)
(311)
15
2015
2014
£000’s
£000’s
(142)
(186)
(328)
895
-
895
567
(300)
(376)
(676)
691
-
691
15
2015
2014
£000’s
£000’s
186
142
328
376
300
676
2015
2014
£000’s
£000’s
895
691
Accelerated
Short-term
capital
timing
allowances
differences
Losses
Total
Deferred tax assets/(liabilities)
£000’s
£000’s
£000’s
£000’s
At 1 January 2014
Credited to income statement
Credited to equity
At 31 December 2014
Credited to the income statement
Credited to equity
At 31 December 2015
(830)
152
-
(678)
(217)
-
(895)
92
(40)
311
363
(26)
(151)
186
-
300
-
300
(158)
-
142
(738)
412
311
(15)
(401)
(151)
(567)
The Group and company has unutilised management charges of £19,261 (2014: £19,261) resulting in a
deferred tax asset which has not been recognised.
81
Strategic ReportDirectors’ ReportFinancial Statements Notes to the Financial Statements
For the year ended 31 December 2015
22. Borrowings and Other Financial Liabilities
Current:
Bank and other borrowings
Loans from Group companies
Total
Non current:
Bank and other borrowings
Bond
Total
Parent Company
Consolidated
2015
2014
2015
2014
£000’s
£000’s
£000’s
£000’s
122
6,389
6,511
-
5,626
6,608
2,272
2,272
-
-
5,626
6,608
Parent Company
Consolidated
2015
2014
2015
2014
£000’s
£000’s
£000’s
£000’s
-
-
41,265
14,646
14,646
14,695
14,695
14,646
55,911
39,676
24,981
14,695
The Group has undrawn bank overdraft facilities of £5,000,000 (2014 : £5,000,000) as at 31 December 2015
and undrawn revolving credit facilities of £2,882,140 (2014 : £6,500,000). Those facilities are secured by
guarantees from Good Energy Limited, Good Energy Gas Limited and other group entities.
At 31 December 2015, £7,681,950 (2014: £8,102,446) of the bank loans relate to the company’s subsidiary,
Good Energy Delabole Wind Farm Limited and is secured by a mortgage debenture on that company dated
16 January 2010 incorporating a fixed and floating charge over all current and future assets of that subsidiary.
The facility will be repaid from future cash flows arising from the wind farm of this company.
On 7 January 2011, the loan balance was transferred from the build phase to the repayment phase, with
repayments of capital and interest scheduled bi-annually over 15 years.
As part of the facility Good Energy Delabole Wind Farm Limited entered into a floating rate to fixed rate
interest swap. They were entered into at the same time and in contemplation of one another, have the same
counter-party, relate to the same risk and amortise concurrently. Given these circumstances and the fact that
there is no economic need or substantive business purpose for structuring the transactions separately that
could not also have been accomplished in a single transaction these instruments are treated as one fixed rate
loan instrument in accordance with IAS 39. The fixed rate interest is payable at an annual rate of 7.15%.
At 31 December 2015, £37,959,777, inclusive of £659,777 of accrued interest (2014: £18,799,264 inclusive of
£49,264 of accrued interest) of the bank loans relate to the company’s subsidiary, Good Energy Generation
Assets No. 1 Limited. The loan is secured by a mortgage debenture on that company and its subsidiaries
dated 17 December 2014 incorporating charges over the shares of that company and those of its subsidiaries.
The facility will be repaid from future cash flows arising from the subsidiaries of that company with
repayments of capital and interest scheduled quarterly over a period of 18 years commencing 17 December
2014. Interest is payable at 6.85% and the outstanding principal balance is partially exposed if annual RPI
inflation exceeds 3%. Costs incurred in raising finance were £2,627,109 (2014: £1,393,313) and are being
amortised over the life of the loan in accordance with IAS39. The company had drawndown £37,300,000 of
the £53,500,000 loan facility as at 31 December 2015.
82
Notes to the Financial Statements
For the year ended 31 December 2015
22. Borrowings and Other Financial Liabilities (continued)
On 2 October 2013 Good Energy Group launched a corporate bond which closed on 24 October 2013 with
subscriptions having reached the maximum target of £15,000,000. The bond was issued to bondholders on
22 November 2013 with interest scheduled bi-annually. The coupon rate is 7.25% or 7.50% for bondholders
that are customers of the Group. Capital repayment of the bond is payable following notice being received
from the bondholder no earlier than 4 years from inception. The total costs of issue were £770,879 which are
being amortised over the life of the bond. As at 31 December 2015 the amortisation recognised in ‘finance
costs’ totalled £165,982 (2014: £76,424).
Parent Company
31 December 2015
Due less than 1 year
Due between 1 and 5 years
Due more than 5 years
Total
Parent Company
31 December 2014
Due less than 1 year
Due between 1 and 5 years
Due more than 5 years
Total
Inter-company
loan
Bond
Total
£000’s
£000’s
£000’s
6,389
-
-
122
14,646
-
6,511
14,646
-
6,389
14,768
21,157
Inter-company
loan
Bond
Total
£000’s
£000’s
£000’s
2,272
-
-
-
14,695
-
2,272
14,695
-
2,272
14,695
16,967
83
Strategic ReportDirectors’ ReportFinancial Statements
Notes to the Financial Statements
For the year ended 31 December 2015
22. Borrowings and Other Financial Liabilities (continued)
Consolidated
31 December 2015
Due less than 1 year
Due between 1 and 5 years
Due more than 5 years
Total
Consolidated
31 December 2014
Due less than 1 year
Due between 1 and 5 years
Due more than 5 years
Total
Bank and
other
borrowings
Bond
Total
£000’s
£000’s
£000’s
-
14,646
-
14,646
5,626
23,448
32,463
61,537
5,626
8,802
32,463
46,891
Bank and
other
borrowings
Bond
Total
£000’s
£000’s
£000’s
6,608
8,287
16,694
31,589
-
14,695
-
14,695
6,608
22,982
16,694
46,284
The fair values of borrowings have been calculated taking into account the interest rate risk inherent in the
loans and the bond. The fair value estimates and carrying values of borrowings (excluding issue costs) in
place at 31 December 2015 are:
2015
2015
2014
2014
Carrying
Fair value
value
Fair value
£000s
£000s
£000s
Good Energy Delabole Wind farm Ltd
Good Energy Generation Assets No. 1 Limited
Corporate bond
7,759
37,553
15,114
7,682
37,300
14,965
8,102
18,784
14,725
Borrowings are designated as other financial liabilities held at amortised cost.
Carrying
value
£000s
8,102
18,750
15,000
84
Notes to the Financial Statements
For the year ended 31 December 2015
23. Trade and Other Payables
Trade payables
Accruals and deferred income
Social security and other taxes
Other payables
Total
Parent Company
Consolidated
2015
2014
2015
2014
£000’s
£000’s
£000’s
£000’s
68
64
-
-
132
34
60
-
-
94
3,439
10,655
351
69
14,514
4,669
8,302
238
1,867
15,076
Trade and other payables are designated as other financial liabilities held at amortised cost.
24. Dividends
Amounts recognised as distributions to shareholders in the year (based on the number of shares in issue at
the record date):
Consolidated
Final dividend prior year of 2.30p per share (2014: 2.30p)
Interim dividend current year of 1.00p per share (2014: 1.00p)
Sub-total
Dividends waived
Total
2015
2014
£000’s
£000’s
344
150
494
(16)
478
337
147
484
(12)
472
Dividends waived represent dividends that would accrue on shares held by the Good Energy Group Employee
Benefits Trust were they not held by the Trust.
A final dividend of 2.3p per share was proposed on 18 March 2016, subject to shareholder approval at the
company’s AGM.
Of the total dividend distributed for the year, £27,009 (2014: nil) was paid in the form of scrip dividends with
the balance of £451,998 (2014: £471,782) settled in cash.
85
Strategic ReportDirectors’ ReportFinancial Statements
Notes to the Financial Statements
For the year ended 31 December 2015
25. Cash Generated from Operations
Reconciliation of net income to net cash provided by operating activities:
Profit before income tax
Adjustments for:
Depreciation
Amortisation
Share based payments
Parent Company
Consolidated
2015
2014
2015
£000’s
£000’s
£000’s
1,144
2,772
128
2014
£000’s
1,288
-
1
-
-
4
-
-
-
2,351
705
51
-
-
1,347
567
30
-
-
Provision against investments in and loans to
subsidiaries
Dividend income from subsidiaries
6,000
(8,000)
Finance (income)/costs - net
(552)
(208)
4,106
2,503
Changes in working capital (excluding the effects
of acquisition and exchange differences on
consolidation)
Inventories
Trade and other receivables
Trade and other payables
-
165
38
-
120
(1,264)
Cash (outflow)/inflow from operations
(1,204)
1,424
(3,872)
(1,318)
(561)
1,590
(1,908)
(2,329)
2,199
3,697
86
Notes to the Financial Statements
For the year ended 31 December 2015
26. Share Based Payments
In order to retain the services of key employees and to incentivise their performance, the Parent Company
operates the Good Energy Employee Share Option Scheme under which certain employees of the Group
are granted options to acquire Ordinary 5p Shares at future dates. Costs in respect of these options of
£51,428 (2014: £30,040) are recognised in the Consolidated Statement of Comprehensive Income. As at 31
December 2015, the following options had been issued:
Number of options
exercise price
Weighted average
Total exercise
consideration
2015
2014
2015
2014
2015
2014
(Number)
(Number)
(£)
(£)
£000’s
£000’s
Outstanding at beginning of year
1,494,898
2,048,514
Granted
Exercised
552,172
25,000
(197,000)
(179,135)
Cancelled/surrendered
(310,000)
(399,481)
Outstanding at the end of year
1,540,070 1,494,898
1.03
1.85
1.01
1.25
1.28
1.03
1.25
0.72
1.19
1.03
1,536
1,022
(199)
(388)
2,110
31
(130)
(475)
1,971
1,536
In order to partially fulfil the options granted, 521,989 (2014: 208,863) shares representing approximately
42% (2014: 18%) of the options outstanding have already been issued and held by Clarke Willmott Trust
Corporation Limited as the Trustee of the Good Energy Group Employee Benefits Trust. Dividends have been
waived on these shares.
The options expire at various dates up to September 2025. Share options outstanding at the end of the year
have the following expiry date and exercise price:
Grant-vest
Expiry year Exercise price in £ per
share options
Share options
(thousands)
2015
2014
2003-2006
2004-2007
2005-2008
2006-2009
2007-2010
2012-2015
2012-2015
2013-2016
2014-2017
2015-2018
2015-2018
2015-2018
2015-2018
2014
2019
2015
2016
2017
2022
2022
2023
2024
2025
2025
2025
2025
0.75
0.75
0.80
0.75
0.75
0.50
1.15
1.25
1.25
0
2.25
2.29
2.27
-
35
-
-
-
189
179
289
-
102
100
200
150
45
120
100
114
20
189
328
554
25
-
-
-
-
1,244
1,495
The weighted average fair value of options granted during the year determined using the Black-Scholes
valuation model was £0.48 per option. The significant inputs into the model were weighted average share
price of £2.24 at the grant date, exercise price shown above, volatility of 14%, dividend yield of 3%, an
expected option life of three years and an annual risk-free interest rate of 0.3%. The volatility measured at
the standard deviation of continuously compounded share returns is based on statistical analysis of daily
share prices over the last year. See note 8 for the total expense recognised in the income statement for share
options granted to Directors and employees.
87
Strategic ReportDirectors’ ReportFinancial Statements Notes to the Financial Statements
For the year ended 31 December 2015
27. Pensions
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately
from those of the Group in an independently administered fund. The pension cost represents contributions
payable by the Group to the fund and amounted to £343,294 (2014: £333,644).
Contributions totalling £42,060 (2014: £41,142) were payable to the fund at the end of the financial year and
are included in other payables.
The Group has no further pension liability either realised or contingent and in line with the Group’s
environmental position all employer contributions are invested within a suitable fund.
28. Commitments
28.1 Operating Lease Commitments
The future aggregate minimum lease payments are as follows:
Land and Buildings
Leases as lessee:
Less than one year
Between one and five years
More than five years
Total
Other operating leases
Leases as lessee:
Less than one year
Between one and five years
More than five years
Total
28.2 Capital Commitments
2015
2014
£000’s
£000’s
341
1,184
6,583
8,108
391
769
4,050
5,210
2015
2014
£000’s
£000’s
6
12
-
18
6
18
-
24
At 31 December 2015, the total capital commitments amount is £418,134 (2014: £2,978,206). Of this
£418,134 (2014: £2,978,206) related to contracts agreed on solar generation projects.
The figure for solar generation projects represents the maximum liability assuming sites continue
in development.
88
Notes to the Financial Statements
For the year ended 31 December 2015
29. Related Party Transactions
The Group maintains processes to identify related party transactions which include ensuring that all
meetings of the Board of Directors begin with a declaration of interest in the matters arising. When related
party transactions are identified, steps are taken to ensure they are transparent and contracted on an arm’s
length basis. Dependent on the perceived risk and materiality of the transaction, these steps may include
forming an independent sub-committee of the board to consider the transaction and requesting that the
Group’s nominated advisor reviews the contractual terms.
The company’s significant subsidiary undertakings, including the name and proportion of ownership interest
for each, are disclosed in note 16. Transactions between subsidiaries and between the company and its
subsidiaries are eliminated on consolidation. During the year the company had inter-company balances with
its subsidiaries. Interest is charged on these balances at either 2.5% above the Bank of England base rate
or at 8.85%. The higher rate is charged on inter-company loans drawing on the GCP loan which carries an
external rate of interest of 6.85%. Details of the amounts outstanding and received during the year on inter-
company loans are contained in note 16a.
In January 2010 Good Energy Delabole Wind Farm Limited, a subsidiary company, entered into an agreement
with Windelectric Management Limited, a company in which Martin Edwards (a director of the company) has
a controlling interest, to provide site management for the new wind farm at Delabole. The amount payable
each year is £75,000 index linked. The amount payable under this agreement during the current year was
£83,647 (2014: £82,729). No amounts were outstanding at the end of the financial year (2014: £nil).
In January 2010, Good Energy Delabole Wind Farm Limited entered into a 25 year lease with Martin Edwards
and other parties, in respect of the land which some of the new turbines occupy. For the first 10 years of
operation the rent will be the higher of an annual base rent of £50,240 or 3.25% of gross income from the
wind farm and from the 10th anniversary onwards it will be 4.5% of gross income from the wind farm.
The amount payable under this agreement during the current year was £76,649 (2014: £70,268). Of these
figures no amounts were outstanding at the end of the financial year (2014: £nil).
In 2012, the Group entered in to an agreement in connection with generation development activities
with Shire Oak Energy Limited, a company wholly owned by Mark Shorrock who is the husband of Juliet
Davenport. During 2015, a payment of £500,000 (2014: £1,806,211) was made to Shire Oak under the terms
of the contract. A final payment, capped at £150,000 is due on the successful energisation of one remaining
solar farm under the agreement.
In April 2014, Good Energy Tidal Lagoon Limited, a subsidiary of the Group, made a £500,000 investment
into Tidal Lagoon (Swansea Bay) plc. Mark Shorrock (the husband of Juliet Davenport) is employed as its
Chief Executive.
The investment is structured with an option to purchase up to 10% of the power output from the Tidal
Lagoon project at market rates once completed.
89
Strategic ReportDirectors’ ReportFinancial Statements Notes to the Financial Statements
For the year ended 31 December 2015
30. Subsequent Events
None.
31. Subsidiary Undertakings Exempt From Audit
Good Energy Group PLC has provided the necessary parental guarantees under section 479A of the
Companies Act 2006, to enable the following companies exemption from audit:
Good Energy Pengelly Cluster Solar Park (008)
Limited
Good Energy Lanyon Solar Park (011) Limited
Good Energy Development (No.1) Limited
Good Energy Development (No.3) Limited
Good Energy Development (No.4) Limited
Good Energy Development (No.5) Limited
Good Energy Development (No.6) Limited
Good Energy Development (No.8) Limited
Good Energy Development (No.9) Limited
Good Energy Development (No.10) Limited
Good Energy Development (No.12) Limited
Good Energy Development ( No.14) Limited
Good Energy Development ( No.15) Limited
Good Energy Development (No.16) Limited
Good Energy Development (No.17) Limited
Good Energy Development (No.18) Limited
Good Energy Development (No.19) Limited
Good Energy Development (No.20) Limited
Good Energy Development ( No.21) Limited
Good Energy Development (No.22) Limited
Good Energy Development (No.24) Limited
Good Energy Development (No.30) Limited
32. Generation assets – technical data
Wind farms
Solar farms (continued)
Hampole, South Yorkshire
Turbine manufacturer: Senvion
No. of turbines: 4
Installed capacity: 8.2MW
Turbine power output: 2.05 MW
Delabole, Cornwall
Turbine manufacturer: Enercon
No. of turbines: 4
Installed capacity: 9.2MW
Turbine power output: 2.3 MW
Solar farms
Woolbridge, Dorset
Solar modules: Yingli
Nominal capacity DC: 4,996 kWp
Creathorne, Cornwall
Solar modules: Yingli
Nominal capacity DC: 1,841 kWp
Rook Wood, Wiltshire
Solar modules: ReneSola
Nominal capacity DC: 4,981 kWp
Lower End, Wiltshire
Solar modules: Jinko Solar
Nominal capacity DC: 4,999 kWp
Crossroads, Dorset
Solar modules: Jinko Solar
Nominal capacity DC: 4,999 kWp
Carloggas, Cornwall
Solar modules: ReneSola
Nominal capacity DC: 8,304 kWp
Oaklands, Dorset
Solar modules: REC
Nominal capacity DC: 4,992 kWp
90
Directors and Corporate Resources
Directors
John Maltby (Non-Executive Chairman)
Juliet Davenport (Chief Executive)
Denise Cockrem (Chief Financial Officer)
Richard Squires (Non-Executive Director)
Martin Edwards (Non-Executive Director)
Francesca Ecsery (Non-Executive Director)
Company Secretary
and Registered Office
Stephen Rosser
Monkton Reach
Monkton Hill, Chippenham
Wiltshire SN15 1EE
Company Number
04000623
Principal place of business Monkton Reach
Independent Auditors
Monkton Hill, Chippenham
Wiltshire SN15 1EE
PricewaterhouseCoopers LLP
2 Glass Wharf
Bristol BS2 0FR
Financial Advisors
Arden Partners plc
125 Old Broad Street
London, EC2N 1AR
Bankers
Lloyds Bank
PO Box 112, Canons House, Canons Way
Bristol BS99 7LB
Legal Advisors
Registrars
The Co-operative Bank PLC
PO Box 101, 1 Balloon Street
Manchester M60 4EP
Norton Rose LLP
3 More London, Riverside
London, SE1 2AQ
Computershare Investor Services PLC
The Pavilions, Bridgwater Road
Bristol BS99 6ZY
91
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