Registered number: 03830608 Charity number: 1083812 SEVERN WYE ENERGY AGENCY LTD TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ? Bishop Fleming
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SEVERN WYE ENERGY AGENCY LTD REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2025 Trustees Mareike Schmidt. Chair Christopher Bierley (resigned 1 Dember 2024) Louise Cooke (resigned 21 May 2024} Vilislava Ivanova Rowena Kay Martin Smith Lomas (appointed 1 May 2023) Emma Voss {appointed 1 May 2023) Christopher Welby Jamie Abbott (appointed 1 May 2025) Catherine Cheetham (appoinled 2 May 2025) Amie Robinson {appointed 2 May 2025) Dapo Fakorede {appointed 3 May 2025) Company registered number 03830608 Charity regislered number 1083812 Registered office 3rd Floor Pillar & Lucy House Merchants Road Gloucester England GL2 5RG Chief Executive Officer Sandy Ruthven Independent auditors Bishop Fleming Audit Limited Chartered Accountants Statutory Auditors 10 North Place Cheltenham GL50 4DW Bankers HSBC The Cross Gloucester GL1 2AP Page 1
SEVERN WYE ENERGY AGENCY LTD CHAIRPERSON STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 As we celebrate our 26th year, l am pleased to report that Sevem Wye Energy Agency goes from strength to strength. As our impact report shows, we have achieved record levels of impact in 2024 - 2025 whilst at the same time improving our financial and delivery performance. All of this will provide a strong foundation for our work going forward. Against a backdrop of economic challenges and policy uncertainty, we were able to work with funders and partners to secure increased levels of grant funding to support vital services for the community. Our income increased by more than £3.2 million to £10.496,429. In part this is accounted for by the grant for our biochar project. However, projects and services in other areas also scaled up. Recent years also saw the move to a new office in the heart of Gloucester and several other changes to consolidate our operating systems. This helped invigorating staff and created a sense of excitement and renewed energy for the organisation. Sevem Wye Energy Agency's work is far reaching. During 2024125 we have delivered a range of retrofitting measures to hundreds of homes, often in rural and difficult to reach communities. Plans are under way to consolidate our energy services offer and to move towards an area-based approach longer tem. We are keen to deliver installations as part of the govemment's Energy Company Obligation Scheme and have been working on expanding our retrofit advice offer to new partners and clients. We were also able to expand our work with the business community and provide energy audits and advice to almost 500 businesses. We continue to deliver innovative work. For example, we built one of the first biochar plants in the country on behalf of the Department for Energy Security and Net Zero. The plant uses pyrolysis to convert biomass into biochar. a stable form of carbon, while also producing heat that we might be able to use locally. This project is part of a larger effort to demonstrate the viability of biochar technology for carbon capture and negative emissions. As with all innovative projects. the opportunity is assessed and progressed ensuring an appropriate balance beeen commerciality and the charity's besl interests. And we maintained our reputation as a "trusted providerf of fuel povety advice. Our advice line was as busy as ever and our community-based support to help individuals and families struggling with energy costs was in high demand. Sevem Wye will continue to support the most vulnerable members of our society at a very practical level. With almost 12,000 fuel poverty cases handled this year, we remain one of the leading organisations in this field and provided evidence and insight to government on how more integrated and aligned support structures can be developed including the combination of funds at the local level. Severn Wye Energy Agency plays a significant part in the life of our beneficiaries. I would like to thank Sandy, the senior team and all staff and trustees for their contributions and dedication during the last year which has delivered remarkable impact and has enabled us to build a strong reputation locally and nationally. It is a privilege to be a trusted and valued part of the community. Mareike Schmidt Chair of Trustees Page 2
SEVERN WYE ENERGY AGENCY LTD TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 The trustees, who are also the directors of Severn Wye Energy Agency Ltd (Severn Wye) for the purposes of company law. present their annual report and the audited financial statements for the year ended 31 March 2025. They confirm that the Trustees, report and financial statements comply with Charilies Act 2011, Companies Act 2006 and Severn Wye's memorandum and articles of association. They also conform to the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the United Kingdom and Republic of Ireland. Objectives and Activities Severn Wye's objects are:_ "The advancement of education for the public benefit in particular but not exclusively in relation to energy conservation, the efficient use of energy and the utilisation of renewable sources of energy" and 'The relief of poverty and the preservation and protection of health by promoting the efficienl use of energy (including energy for heating purposes) and the utilisation of renewable sources of energy" "To promote sustainable development for the benefit of the public by= 1. The preservation, conservation and the protection of the environment and the prudent use of resources. 2. The relief of poverty and the improvement of the conditions of life for those socially and economically disadvantaged. 3. The promotion of sustainable means of achieving economic grovrth and regeneration. Sustainable development means "development which meets the needs of the present without compromising the ability of future generations to meet their own needs.- The trustees confirm that they refer to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing Severn Wye's activities. To achieve the above objectives and public benefit Severn Wye has developed and implemented a range of projects which are noted within this report and further detailed in the annual Impact Report, which is published on Severn Wye's website at www.sevemwye.org.uk. Structure. Governance and Management Governing Documents Severn Wye is a company limited by guarantee, govemed by its memorandum and articles of association, incorporated on the 24th August 1999 and registered with the Charity Commission on the 27th November 2000. If Severn Wye is wound up. its members are liable to pay the sum £1 each. Method of Appointment or Election of Trustees The directors of Severn Wye are also trustees of Sevem Wye for the purposes of charity law and under the Article of Association are also members of the Council of Management. New trustees are appointed either by the members of Sevem Wye at a general meeting or by the Council of Management. One third of the members of the Council of Management retire each year by rotation and are eligible to be re-elected. The Council of Management is in effect anolher name for the Board of Trustees. Induction and Training of Trustees New Iruslees are provided with appropriate infomiation, induction and training. taking into account the nature of Severn Wye and their previous experien in the charity sector. Page 3
, ERGY AGENCY LTD )RT {CONTINUED) NDED 31 MARCH 2025 'ce Code of Practice resolved to comply with the Charity Commission's code of practice for good governance. rinciples which are considered to be necessary to qualify as a well governed charily. The ssed the evidence for performance of the Board of Trustees (the Board) against each of urpose risk and control ess ccountability ssment, the trustees concluded that the Board was broadly compliant with the principles. ode of practice is to promote continual improvement and to that end the sub-commillee .,for further improvement which have been addressed. The trustees have resolved to this cycle of review and improvement on an annual basis. ructure and Decision Making ters Sevem Wye. meets quarterly and is responsible for the strategic direction and policy .ininimum of three trustees is required for a meeting to be quorate. At present there are ten iety of professional backgrounds. There are two sub<ommittees responsible for Finance re.
the CEO who manages the day to day operations of Severn Wye. a risk management strategy that comprises. evern Wye's risk register at least once a year: 3neral risk report and register at each quartedy Council of Management meeting" j policies, systems and procedures to mitigate risks identified in the register. and Jcedures designed to minimise the potential impact should those risks materialise. ie they have adequate procedures in Pla to mitigate the risks to which Sevem Wye is tified are- Biochar project- remains a significant issue for Sevem Wye at all levels of the organisation. g managed by the following actions" cured the services of a consultant to provide additional development and construction his significantly reduces the risk to the project as Severn Wye now has overall control of ent. wing our existing recruitment processes as well as reviewing the reasons why staff leave We will be carying out a staff survey in the summer that will hopefully identify areas aff experience can be improved. t receive any remuneration from Sevem Wye, but can claim reasonable costs for travel, ining (see Note 19). I remuneration policy to ensure fair pay and to retain suitably qualified staff to lead, Id deliver its aims. A revised pay structure was introduced from April 2023. The People & oversees the implementation of the policy. Page 4
SEVERN WYE ENERGY AGENCY LTD TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Achievements and Performance Energy prices are still rising. and the effects of climate change are becoming ever more apparent, with flooding and heatwaves becoming regular features in the UK. According to the Grantham Research Institute at the London School of Economics, we will all bear the cost of adapting to climate change, currently estimated at 1.10/0 of UK GDP-and projected to rise to over 3 % by 2050 and 7°/0 by 2100 if no stronger action is taken. However, it is often those who can least afford it who get stuck with higher energy bills and suffer most from cost-of-living increases. We aim to tackle these twin problems of fuel poverty and climate change, helping those in immediate need at the same time as working for a more suslainable future Ihrough renewable and clean energy. We see more people than ever needing help and wanting to be more sustainable. and l am proud to say we are keeping pace with this change. Our work starts with Ihose in crisis. People who switch their heating off in winter because they cannot afford to pay their bills and whose health and livelihoods are deeply affected by the cold. Our energy advice team whether responding to calls to our adviceline or home visits to those in need - has handled nearly 12,000 cases this year. Residents have saved money and energy as a result, but most importantly their lives have been improved. Saving people money and energy now of course makes a dtfference but it does not guarantee they will not struggle again next winter. Our home retrofit programme tackles the problem at source. Instslling insulation. solar panels. heat pumps and batteries saves people money every year and helps us towards the UK climate change target of cutting home energy use by 30 %. This year we have enabled the retrofit of 519 inefficient homes, but there are slill some 19 million on the UK waiting list. I'm pleased to say too that we have expanded our business energy efficiency programme in England and Wales, supporting 461 businesses to reduce their energy use. with several of our successful projects having now been extended into next year. Finally, through our innovation programme, we have commissioned our carbon-capturing power station in Warrington. The Severn Wye Biochar unit, previously known as Mersey Biochar, has the capability to produce carbon-capturing biochar from local wood waste and generate heat and electricity. All of this is possible because of our caring and passionate colleagues. It has not always been an easy year, and I want to thank everyone at Sevem Wye for their dedication and willingness to go the extra mile. Our partner organisations too are key to our success - it's a long list of companies, governments, local authorities. charities and community groups we thank also for their continuing support. Sandy Ruthven MBE Page 5
SEVERN WYE ENERGY AGENCY LTD TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 A year in review This year, we leveraged £10 million in funding for home and business improvements and community support initiatives. resulting in potential lifetime savings of: 138 Million kwh of energy £15 Million of cost 34,000 tonnes of cart)on Advice & Support We have reached out in particular this year to people in communities that typically fall through the net of usual sources of support. Some struggle to understand English and are at a greater risk of falling into debt or are caught in a complicated tangle of expensive tariffs and payment demands from suppliers. Many do not have broadband or the digital skills to access bills and information online. We have found the power of partnerships make the biggest difference to communities such as refugees and asylum seekers, travellers and those in isolated rural areas. The trust that residents already have in front-line partner organisations is proving crucial for linking our expertise. and our multi-lingual advisers and resources ensure comprehensive support for all our clients, needs. Our work with Gloucestershire NHS is one such exarnple: NHS Retrofit, our £500,000 partnership with Gloucestershire NHS, the county council. and GIoUsterShIre Housing Partnership, is piloting pemianent energy efficiency solutions for people with chronic health issues to tackle cold, damp living conditions which are damaging their health. The scheme builds on the success of our ongoing 'Warmth on Prescription. initiative, which provides short-temi measures like electric blankets together with energy bill subsidies. In rural areas such as much of Wales, the absence of mains gas limits Ihe heating choices for residents. This challenge is compounded by typically older, poorly insulated housing, creating vulnerability to either crippling energy debts or the serious health consequences of living in cold, damp conditions. Home Energy Services Sevem Wye has been placed among the most effective delivery agents for Local Authority Delivery (LAD) and Home Upgrade Grant (HUG) schemes in the local area, responsible for approximately one third of all retrofits delivered across the West Midlands and South West regions. In Gloucestershire and South Gloucestershire. we delivered eXptIOnal results with 470 home retrofits through successive programmes, representing 35 % of the South West's total HUG delivery and establishing one of the region's most successful schemes. Our energy efficiency surveys and recommendations are impartial and bespoke to each home. Residents benefit from practical advice covering the spectrum of potential capital-COSt measures together with an action plan to upgrade their home. Our retrofit co-ordination services make sure all the conditions of any relevant grant funding are met, and we worked closely with funders and installers to ensure the right installations are made in every home. Typically, Severn Wye manages the whole retrofit process. from assessing a customer's eligibility for funding through to managing their installation joumey. Our energy services team oversee the installation of energy- efficient and low-carbon technologies and evaluate the perfomiance of new measures. Page 6
SEVERN WYE ENERGY AGENCY LTD TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Business Energy Services Since 2017 we have supported more than 1,000 businesses and community organisations to help them achieve a step change in their energy consumption, become more resilient to fluctuations in energy prices and reduce their carbon impact. We have been working with business owners across the region including Wiltshire, Worcestershire, Shropshire, Herefordshire, Gloucestershire, South Gloucestershire, Ceredigion and Powys. And we are showing that older buildings are just as capable of contributing to net zero as their newer counterparts, even those as old and individual as churches. Energy & Communities Food and fuel poverty in rural communities only adds to the challenges of living in such areas, which can lead to further physical and mental health issues. At the heart of our work with disadvantaged communities is the goal to empower people to develop their own solulions lo problems Ihey want to address. This means listening well, identifying and leveraging existing local assets, and giving people the skills, confidence and support to take projects forward and reap long-term benefits. Over the last 12 months, our Powys hub. The Hive. supported 4,230 families in Llandrindod Wells by providing school uniforms, clothes and equipmenl for under-2s. and a 'Library of Things, to local people, putting sustainability into action to support local people. We were proud lo celebrate the success of 14 Welsh communities at the conclusion of our seven-year Rural Futures project in June 2024. Groups were able to apply for up to £140,000 from The National Lottery Community Fund which in tum enabled an additional award of £1.35 million for capital improvements and other costs. Energised Communities Through our work on Rural Futures, we know that communities are interested in gaining equitable and reliable access lo clean energy, and that's one of the issues we have started to work towards through Energised Communities. Six of those Rural Futures participants are now taking part in this ambitious five-year programme funded by The National Loltery Community Fund which will support eight communities in Wales and two in England. We have increased our leam of skilled place co-ordinators who will build community resources and keep up momentum, ensuring that these projects will be developed, delivered and owned by the groups we are working with. The first four groups have mobilised this year. building relationships ahead of consultation events thal will start Iheirjourney, with Ihe remaining groups joining them over the next 12 months. Innovation Severn Wye Biochar is a carbon-capture and clean*nergy project. The inilial development. at Lingley Mere business park in Warrington, was funded by the UK'S Department for Energy Security and Net Zero (DESNZ) with a £5 million grant from the Direct Air Capture and Greenhouse Gas Removal innovation programme. which was finally commissioned in April 2025. The plant has been designed to process around 4,000 tons of wood-chip feed stock per year to produce 1,000 tons of high-quality biochar. Page 7
SEVERN WYE ENERGY AGENCY LTD TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Financial Review Results for the Year The decrease in the unrestricted funds in the year of £180,552 (2024: increase of £317,817). Overall, income has increased to £10.5m. excluding the Mersey Biochar project (2024: £5.03m), the income excluding grants & Mersey Biochar has also increased to £3.94m {2024.' £2.89m). On the expenditure side the grants allocated have increased along with the increased income, and expenditure elsewhere has increased to £3.99m. excluding Mersey Biochar £2.90m {2024: £3.79m). Funding Sources The main funding sources in the year are= Local Authorities (Cheltenham Borough, Cotswold District, Forest of Dean District, Gloucester City, Gloucester County, Herefordshire, South Gloucestershire, Stroud District, Tewkesbury Borough, Wiltshire and Worcestershire) for Warm & Well and other programmes; National Lottery Community Fund for CREATE Your Spa, Rural Futures, Working Together for Llandrindod Wells and Sustainable Steps Wales. Department for Energy Security and Net Zero (DESNZ) HUG 2,Mersey Biochar and SHDF funding, some via local authority. Clinical Commissioning Group for NHS Retrofit and Warmth on Prescription Energy Saving Trust for the Redress projects" UK SPF Funding for Boosting Ceredigion and Mid Wales BEEB projects Wiltshire Council for Wiltshire Business to Net Zero Private sector and small local bodies for one off services. The charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011. Reserves policy and going concern The purpose of the Reserves Policy is to ensure the stability of the ongoing operations of Severn Wye and to enable the ongoing future of Sevem Wye. Severn Wye's unrestricted funds on the 31st March 2025 amounted to £1,221,775 (2024: £1,041.223}. Severn Wye's free reserves on the 31st March 2025 were £1,221,775 (2024.. £995,960). The trustees expect to maintain or increase those reserves to try to achieve the target set in the Reserves Policy. The Reserves Policy target is to have sufficient reserves to meet three months running costs, plus meet all the liabilities of the organisation and to provide sufficient cash to fund the organisation's activities. The level of resources required has been assessed at £780,000. The charity is currently projected to increase the unrestricted funds in 2025126 by a further £200k. The position will be under regular review by the trustees. The trustees are of the opinion that, in the light of the level of reserves above. the revised budget and the current strategic plan, that Severn Wye is a going concern. Investment Policy Severn Wye is committed to maintaining sufficient funds in instant access or short notice period accounts to meet its ongoing expenditure and cashflow requirements. Any funds beyond this will be invested in low risk deposit accounts or fixed-term bonds, with notice periods not exceeding one year. The Trustees are satisfied with the investment retums in the cuent year, the policy will be reviewed annually. Page 8
SEVERN WYE ENERGY AGENCY LTD TRUSTEES, REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Future Developments The new strategic plan was approved by the trustees at their meeting in February and has been implemented from the start of April 2025. The budget based on that plan was agreed at the trustee meeting in May and it anticipates an increase in Unrestricted Funds of £248k and we are currently in line with that budgel. This year we aim to have confirmed funding of over £5.5m of which £1.5m are grants to be allocated,. Warm Homes Local Grants Gloucester to deliver energy performance and low carbon heating upgrades to low-income homes in England. Warm and Well Advice line, NHS Retrofit, relrofitting homes to prevent health issues Energised Communities- this project will support vulnerable households across Ceredigion who are in or at risk of fuel poverty. Provision of Information to the Auditor The trustees who held office at the date of approval of this trustees. report confirm that, so far as they are aware.. there is no relevant audit information of which Sevem Wye's auditor is unaware. and Ihey have taken all the steps that they ought to have taken. as trustees, to make themselves aware of any relevant audit information and lo establish that Severn Wye's auditor is aware of that information. The trustees are responsible for the Maintenan and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Auditor The auditor, Bishop Fleming Audit Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors al a meeting of the Trustees. The trustees have prepared this report in accordance with the provisions applicable to companies subject to the small companies regime. This report was approved by the trustees on and signed on their behalf by. Mareike Schmidt Trustee Date.. OIOJ lac& Page 9
SEVERN WYE ENERGY AGENCY LTD STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025 The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial Under company law, the Trustees must not approve the financial ststements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Truslees are required to: select suitable accounting policies and then apply them consistently. observe the methods and principles of the Charities SORP (FRS 102}', make judgements and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards (FRS 102) have been followed. subject to any material departures disclosed and explained in the financial ststements., prepare the financial statements on the going concem basis unless it is inappropriate lo presume that the Charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 10
SEVERN WYE ENERGY AGENCY LTD INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SEVERN WYE ENERGY AGENCY LTD OPINION We have audiled the financial statements of Sevem Wye Energy Agency Ltd (the 'charityl for the year ended 31 March 2025 which comprise the Slalement of Financial Activities, the Balance Sheet. the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a tnje and fair view of the state of the charitable companvs affairs as at 31 March 2025 and of its incoming resources and application of resources. including its income and expenditure for the year then ended,. have been properly prepared in accordan with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. BASIS FOR OPINION We conducted our audit in accordance with Intemalional Standards on Auditing (UK) IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibililies for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial statemenls, we have concluded that the Trustees. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating to events or conditions that, individually or colleclively, may cast significant doubt on the charitable companys ability to continue as a going concern for a period of at least hvelve months from when the financial ststements are authorised for issue. Our responsibilities and the responsibilities of the Trustees v4ith respect to going concern are described in the relevant sections of this report. OTHER INFORMATION The other infomiation comprises the information included in the Annual Report other than the financial statements and our Auditors, Report thereon. The Trustees are responsible for the other information contained within the Annual Reporl. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so. consider whether the other information is materially inconsistent with the financial statemenls or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detemiine vthether this gives rise to a material misstatement in the financial stalemenls themselves. If. based on the work we have performed, conclude that there is a material misstatement of this other infomiation. we are required to report thal facl. We have nothing lo report in this regard. Page11
SEVERN WYE ENERGY AGENCY LTD INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SEVERN WYE ENERGY AGENCY LTD (CONTINUED) OPINION ON OTHER MArrERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Trustees, Report for the financial year for which the financial statements are prepared is consistent with the financial statements. the Trustees, Report has been prepared in accordance with applicable legal requirements. MArrERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Report. We have nothing to reporl in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us- or the financial statements are not in agreement with the accounting records and retums" or certain disclosures of Trustees, remuneration specified by law are not made; or we have not received all the infomiation and explanations we require for our audit. RESPONSIBILITIES OF TRUSTEES As explained more fully in the Trustees, Responsibilities Ststement. the Trustees (who are also the directors of the charitable company for the purposes of company law) a responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or eOr. In preparing the financial statements, the Trustees are resF)onsible for assessing the charitable companys ability to continue as a going concem, disclosing. as applicable, matters related to going concem and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or lo cease operations, or have no realistic attemative but to do so. AUDITORS. RESPONSIBILrriES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objeclives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue an Auditors. Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect materia5 misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Page 12
SEVERN WYE ENERGY AGENCY LTD INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SEVERN WYE ENERGY AGENCY LTD (CONTINUED) In identifying and assessing risks of material misstatement in respect of irregularities. including fraud and noncompliance with laws and regulations, we considered the following= We have considered the nature of the industry and sector, control environment, and business performance., We have considered the results of enquiries with management and the directors in relation to their own identification and assessment of the risks of irregularities within the entity,. and We have reviewed the documentation of key processes and controls and performed walkthroughs of transactions to confimi that the systems are operaling effectively, in line with documentation. As a result of these procedures. we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition, with a particular risk in relation to year-end cul-off. In common with all audits under ISAS (UK) we are also required to perfomi specific procedures to respond to the risk of management override. We have also obtained an understanding of the legal and regulatory frameworks Ihat the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act. FRS 102 and UK tax legislation. In addition, we considered provisions of other laws and regulations thal do not have a direct effect on the financial slatements but compliance with which may be fundamental to the Company s ability to operate or avoid a material penalty. These included data protection legislation, health and safety regulations, and employment law. Our procedures to respond to risks identified included the following.. Reviewing the financial statement disclosures and lesting to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements- Enquiring of management in relation to actual and potential claims or litigation.. Performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. Reviewing board meeting minute5- Performing detailed transactional testing in relation to the recognition of revenue with a particular focus around the year-end cut off-, Performing walkthroughs to understand rnanagemenl's control environment.. and In addressing the risk of fraud through management override of controls, testing the appropriateness of joumal entries and other adjustments; assessing whether the judgments made in accounting estimates are indicative of potential bias: and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business. We also communicated identified laws and regulations and potential fraud risks to all members of the engagemenl team and remained alert to possible indicators of fraud or non-MplIance with laws and regulations throughout the audit. As a result of the inherent limilations of an audit, there is a risk that not all irregularities, including a material misstalemenl in the financial statements or non-compliance with regulation. will be detected by us. This risk increases the further removed compliance with a law and regulation is from the events and transactions reflecled in the financial statements. given we will be less likely to be aware of it, or should the irregularity occur as 2 result of fraud rather than a one off error. as this may involve intentional concealment. forgery, Gollusion, omission or misrepresentation. Page 13
SEVERN WYE ENERGY AGENCY LTD INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF SEVERN WYE ENERGY AGENCY LTD (CONTINUED) A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.or -uklauditorsres onsibilities. This description fomis part of our Auditors. Report. USE OF OUR REPORT This report is made solely to the charitable companls members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable companrfs members those matters we are required lo state to them in an Auditors, Report and for no other purpose. To the fullest extent permitted by law. we do nol accept or assume responsibility lo anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. David Butler FCA DChA (Senior Statutory Auditor) for and on behalf of Bishop Fleming Audit Limited Chartered Accountsnts Statutory Auditors 10 North Place Cheltenham GL50 4DW Date: Page 14
SEVERN WYE ENERGY AGENCY LTD STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2025 Restricted Unrestricted funds funds 2025 2025 Total funds 2025 Total funds 2024 Note Income from: Donations Charitable activities Other Income Investments 42,586 7.156,046 4,705 23,160 8,051,632 2.411,267 10,462,899 33.530 33,530 Total income 8.051,632 2,444,797 10,496,429 7,226,497 Expenditure on: Charitable activilies 8.013,642 2,302,835 10,316,477 5,683,150 Total expenditure 8,013.642 2,302,835 10,316.477 5,683,150 Net income Transfers between funds 37,990 (38,590) 141,962 38.590 179,952 1,543.347 14 Net movement in funds (600) 180.552 179,952 1,543,347 Reconciliation of funds: Tolal funds brought forward 2,454,033 1,041,223 3.495.256 1.951,909 Total funds carried forward 2,453.433 1.221,775 3,675,208 3,495,256 The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 18 to 37 form part of these financial statements. Page 15
SEVERN WYE ENERGY AGENCY LTD REGISTERED NUMBER:03830608 BALANCE SHEET AS AT 31 MARCH 2025 2025 2024 Note Fixed assets Tangible assets Investments 11 1.592,491 2,064,002 1,592.492 2,064,003 Current assets Debtors Cash at bank and in hand 12 1,271,300 2,083,685 1,207,876 2,087,947 3,354,985 3.295,823 Creditors: amounts falling due within one year 13 (1,272.269) (1.864,570) Net current assets 2.082,716 1,431,253 Total net assets 3,675,208 3,495,256 Charity funds Restricted funds Unrestricted funds.. 14 2,453,433 2,454,033 Designated funds General funds 14 14 45,263 995,960 1.221,775 Total unrestricted funds 14 1,221,775 1,041,223 Total funds 3.675,208 3,495,256 The Trustees acknowledge their responsibilities for complying with the requirements of the Ad with respect to accounting records and preparation of financial statements. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. Mareike Schmidt Trustee Date.. The notes on pages 18 to 37 fomi part of these financial statements. Page 16
SEVERN WYE ENERGY AGENCY LTD STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Note Cash flows from operating activities Nel cash used in operating activities 17 1,105.579 3,018,635 Cash flows from investing activlties Dividends, interests and rents from investments Purchase of tangible fixed assets 33,530 23,160 {1,143,372) (2,060.932) Net cash used in investing activities (1,109,842) {2,037,772) Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year (4,263> 2,087,948 980,863 1,107,085 Cash and cash equlvalents at the end of the year 18 2.083.685 2,087,948 The notes on pages 18 to 37 form part of these financial slatemenls Page 17
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 GENERAL INFORMATION The company was fomied on the 24th August 1999, is limited by guarantee (No 03830608) and is a registered charity {No 1083812). The company is registered in England and Wales and the registere(J office is 3rd Floor, Pillar & Lucy House. Merchants Road, Gloucester. GL2 5RG. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. ACCOUNTING POLICIES 2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The financial statements have been prepared in accordance with the Charities SORP (FRS 102) Accounting and ReF)Orting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance wtth the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effecttve 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Sevem Wye Energy Agency Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 2.2 GOING CONCERN The current budget for 2025126 anticipates a reasonable unrestricted surplus. Even if the unforeseen happens and a loss is incurred, Sevem Wye has the reserves and cash to be able to cover a loss and have enough reserves and cash to go securely into 2025126. A draft budget has drawn up for the succeeding year. The position here is much less certain but with prudent assumptions it is hoped to achieve a breakeven position for the year. The financial position will be under regular review by the trustees along with the progress made against the strategic plan. The trustees are of the opinion that, in the light of the level of reserves above, the new strategic plan, staff structure and budget put in place lo meet the future challenges, there are no material uncertainties about the charitys ability to continue as a going concern. Page 18
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES (contlnued) 2.3 INCOME Income is recognised when the charity has entitlement to the funds, any performance conditions attached lo the income have been met. it is probable that the income will be received and the amount can be measured reliably. Gran15 Income The charity receives two main types of grants= Service Delivery Grants - Unrestricted grants reiVed to enable Ihe delivery specific services are recognised as income over the period in which the related services are delivered. Where grants are received in advance of service delivery. the income is deferred and recognised in creditors as deferred income or until the perf0mlan conditions are met. Restricted service delivery grants received are recognised at the point of receipt and held in restricted reserves until the completion of the project. Capital Grants Grants - received for the purchase and installation of equipment at client premises are recognised as income when the funds have been received by the charity. This may occur either". • As an upfront lump sum payment, or Upon submission and approval of drawdown requests Income is recognised at the point of receipt regardless of whelher Ihe equipment has been purchased or installed. Timing of Recognition Income is included in the Statement of Financial Activities when receivable, subject to meeting the recognition criteria above Where income is received in advance of entiuement, recognition is deferred and the amount is included in creditors as deferred income • Where entitlement occurs before income is received. the income is accrued and included in debtors The balance of income received for specific purposes but not yet expended is shown in the relevant restricted funds on the Balan Sheet Measurement All grants are measured at the fair value of the consideration received or receivable. Government Grant Income: The company had the following grants from the Govemment which were obtained through a bid I tendering prOSS-. the Big Lottery Fund. (Landrindod Wells, Rural Futures, Create, Sustainable Steps Wales. Energised Communities), South Gloucestershire CC (SGC Grants. Household Support Fund, Step Up S. Glos, GEEG SGC Grants. South Glos Boiler Scheme). Clinical Commissioning Group {CCG Grants), Stroud District Council (HUG2), DESNZ (HUG2, Mersey Biochar), Willshire Council (Wiltshire Towns). Further details of these granls are given in the notes to the accounts. 2.4 EXPENDITURE Expenditure is recognised in the perii)d in which it is incurred. Expenditure includes attributable VAT where VAT cannot be recovered. Expenditure is allocated to the particular activity where the cost relates directly to that activity. However the costs of the overall direction and administration of each activity is apportioned on the basis of the staff time directly attributable to that activity. Grants paid are included in the Grant Making, in the period defined by the rules of the relevent scheme. Normally this is when the agreed work has been carried out, certified and paid for. Page 19
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES {continued) 2.4 EXPENDITURE (CONTINUED) Governan costs are those incurred in the govemance of the charity and are primarily associated with constitutional. regulatory and statuatory requirements and are included within administration. Administration include support and central functions and have been allocated to the activites on a basis consistent with the use of resources. Expenditure on Gharitable activities is incurred on directly undertaking the activities which further the Charitvs objectives. as well as any associated SUPF)Ort costs. 2.5 INTEREST RECEIVABLE Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity- this is nonnally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 2.6 TAXATION The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 2.7 TANGIBLE FIXED ASSETS AND DEPRECIATION Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are stated at cost less depreciation. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis: Computer equipment OfFice & General Equipment 33°/o Straight line 20Yo Straight line Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use and reclassified to Plant and Machinery. 2.8 DEBTORS Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.9 CASH AT BANK AND IN HAND Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Page 20
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES (continued) 2.10 LIABILITIES AND PROVISIONS Liabilities are recognised when there is an obligation at the Balance Sheet dale as a resull of a past evenl, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to seltle the debt or the amount il has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. 2.11 FINANCIAL INSTRUMENTS The Charily only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are Subsequently measured at amortised cost using the effective interest method. 2.12 OPERATING LEASES Rentals paid under operating leases are charged to the Statement of Financial Activilies on a straight-line basis over the lease term. 2.13 PENSIONS The Charity contributes to a group and individual stakeholder pension scheme for some of its employees. The amount charged in the SOFA represents the contributions payable to the scheme in respect of the year. 2.14 FUND ACCOUNTING Unrestricted funds are expendable at the discretion of trustees in furtherance of the objects or the administration of the charity. Restricted funds are to be used for specrfic purposes laid down by the donor. Expenditure which meets these criteria is charged to the fund. Further explanation of the nature and purpose of each fund in included in the notes to the financial statements. Page 21
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 INCOME FROM CHARITABLE ACTNITIES Restricted Unrestricted funds funds 2025 2025 Total funds 2025 Total funds 2024 Energy Advice Energy Services Domestic Energy Advocacy Energy Services Non Domestic Grant Making Wales Energy Innovation Administration and Govemance 10.840 1,037,867 338,117 390.500 264,223 426,491 485.183 401,340 1.302,090 764,608 485,183 5,047,734 1,187,094 1,238,631 36,219 356,304 726,624 350,104 530,186 2.163,656 669,890 2,359,282 5.047,734 498,987 1,118.087 688,107 120.544 36,219 8.051,632 2.411,267 10,462,899 7,156,046 TOTAL 2024 5.001,663 2.154.383 7,156,046 INVESTMENT INCOME Unrestricted funds 2025 Total funds 2025 Total funds 2024 Bank interest receivable 33,530 33,530 23,160 TOTAL 2024 23,160 23.160 Page 22
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTNITIES Summary by fund type Restricted Unrestricted funds funds 2025 2025 Total 2025 Total 2024 Energy Advice Energy Services Domestic Energy Advocacy Energy Services Non Domestic Grant Making Wales Energy Innovation Administration 14,727 886,750 351.931 237.107 251,834 886,750 628.342 452,541 4,556.892 876,107 1,762,162 901,849 398,365 674,125 440.547 600,208 2,604,557 649,730 290.932 24,686 276,411 452.541 4,556.892 441,180 1.762.162 434.927 901,849 8.013,642 2,302,835 10,316.477 5.683,150 TOTAL 2024 3.574,472 2,108,678 5,683.150 Expenditure is allocated to a particular projecl where the costs relate directly to that project. All other costs are allocated to each project on the basis of the staff time attributable lo the project. ANALYSIS OF EXPENDITURE BY ACTIVITIES Activities undertaken directly 2025 Support costs 2025 Total funds 2025 Total funds 2024 Energy Advice Energy Services Domestic Energy Advocacy Energy Services Non Domestic Grant Making Wales Energy Innovation Administration 154.388 676,107 448.041 319,296 4.556.892 662,090 1,748.894 1.750.769 97.446 210,643 180,301 133,245 251,834 886.750 628,342 452,541 4,556,892 876.107 1.762,162 901.849 398,365 674.125 440.547 600,208 2.604,557 649,730 290,932 24,686 214,017 13.268 1848,920) 10.316.477 10,316,477 5.683,150 TOTAL 2024 5,347.882 335.268 5,683,150 Page 23
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED) ANALYSIS OF DIRECT COSTS Total funds 2025 Total funds 2024 Staff costs Staff Development and Support Grants & Contracts Marketing Travel and Accomodation Insurance Impairment of Mersey Biochar Project 2,945,222 476,767 5,047.524 133,468 80,746 25,346 1,607,404 2.245,934 64,878 2,856,661 100.042 62,566 17,801 TOTAL 2025 10.316,477 5,347.882 ANALYSIS OF GRANTS PAID Total funds 2025 Total funds 2024 Grants paid 2025 To institutions by projects: Target 2030 Wiltshi Target 2030 Gloucestershire 2,052 56,197 TOTAL 58,249 Page 24
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Total funds 2025 Total funds 2024 Grants paid 2025 To individuals by projects: CCG 81,211 81,211 71.258 1.290 10,884 362,165 22,945 461,807 317,143 5,272 697 92.139 Deloitte Digital Connect GEEG SGC Gloucestershire Household Support Fund Herefordshire Winter Grants HUG2 Park Homes 202 Grants 19.268 198,776 39,222 3.262.829 19.268 198,776 39,222 3.262,829 Pay Warmth Forward National Grid Retrofit West Voucher Scheme South Gloucestershire Household Support Fund SME support Grants SWC HUG Grants SWC LAD Grants Warm Homes Fund 6 BEEB Grants Warmth on Prescriptions Grants Warmth on Prescriptions 2 Grants HSF Boiler Scheme Grants 4.383 263,051 74,462 13,927 4,383 263,051 74,462 13.927 660,981 365,540 5.636 448.867 2,916 47.218 100,762 448,867 2,916 47.218 100,762 168,551 TOTAL 4,556,892 4,556,892 2,546,308 The grants are paid out in respect of work done for individuals and institutions, who qualify under the criteria of each project. The reimbursement of part of the cost of work are paid to the contractor once the work has been approved, completed. certified and the recipient's contribution paid by the recipient. The support costs for the above are included in charitable activities expenditure. Please refer to the charity website for further details of grants awarded in the year. Examples of grant recipients can be found at https.'Iltarget2030.co.uklcase-studiesl. There were no material grants paid to any individual institution. Page 25
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 NET INCOMEI(EXPENDITURE) Net in¢omel{expenditure) for the year includes- 2025 2024 Operating lease payThents in respect of land & property Operating lease payments in respect of equipment Depreciation of tangible fixed assets Fees paid to auditors 45,650 3,505 7,479 17,500 144,558 30,227 2,931 16,975 TOTAL 74,134 194,691 STAFF COSTS 2025 2024 Wages and salaries Social security costs Contribution to defined contribution pension schemes 2,563,684 232,600 148,938 1,959,512 172,523 113,899 2,945,222 2,245,934 Redundancy and settlement costs for the year were £37,585 {2024: £24.903). The average number of persons employed by the Charity during the year was as follows: 2025 2024 Average head count 94 80 The average headcount expressed as full-time equivalents was: 2025 2024 Average full time equivalent 78.2 68.8 Page 26
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 STAFF COSTS (CONTINUED) The number of employees whose employee benefits (excluding employer pension cosls) exceeded £60,000 was: 2025 2024 In the band £60,001- £70.000 In the band £70.001- £80,000 In the band £80,001 - £90,000 All Trustees and the Senior Management Team are considered to be key management personnel. The total amount of employee benefits {including employer pension conlributions and employer National Insurance contributions) received by key management personnel was £437,184 {2024.. £245,013). 10. TRUSTEES. REMUNERATION AND EXPENSES During the year, no Trustees received any remuneration or olher benefits {2024 - £NIL). During the year ended 31 March 2025, expenses tolalling £272 were reimbursed or paid directly to Iwo Trustees for travel and accomodation costs incurred (2024 £633 to one Trustee for travel and accomodation costs incurred). Page 27
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 11. TANGIBLE FIXED ASSETS Office & General Equipment Computer Assets Under equipment Construction Total COST OR VALUATION At 1 April 2024 Additions Disposals 8.697 32,194 24,205 2.060.932 1,111,178 2,093,834 1,143.372 (4,481> {4,481) At 31 March 2025 40,891 19,724 3,172,110 3,232,725 DEPRECIATION At 1 April 2024 Charge for the year On disposals Impaimient charge 6,176 6,930 23,656 549 {4,481) 29.832 7,479 (4,481) 1,607,404 1,607,404 At 31 March 2025 13,106 19.724 1,607,404 1,640,234 NET BOOK VALUE At 31 March 2025 27.785 1,564,706 1,592,491 At 31 March 2024 2,521 549 2,060,932 2,064,002 Assets Under Construction indude all costs incurred that are directly attributable to prepare the Mersey Biochar Plant for its intended use. The Mersey Biochar project is an innovattve and new approach to carbon sequestration and energy generation. As such, the future of the plant is difficult to predict as the market in biochar. carbon credits and specialised feedstock supply are still in their infancy and unpredictsble. Whilst this does mean there is uncertainty in relation to the potential commercial viability of the project, the board considers that the asset has the potential to be financially viable in the long term. The executive team are seeking to secure suitable supply and offtake contracts that would ensure that the plant would be able to produ an operating surplus. Based on the best information Currently available, the board has reviewed the commercial viability of the asset and now believes that the fair value of the asset is significantly lower than the historic cost. As such, the asset has been impaired to reflect the expected futu economic benefit of the asset. The board will continue to assess the asset for impaimient at each future financial reporting date and any further impairment will be reported in subsequent annual accounts. Page 28
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 PRINCIPAL SUBSIDIARIES The following was a subsidiary undertaking of the Charity: Name Company number Registered office or principal Holding place of business Mersey Biochar Limited 14785142 Unit 15 Newent Road, Highnam, Gloucester, GL2 8DN 1000/0 The financial results of the subsidiary for the year were.- Name Net assels Mersey Biochar Limited 12. DEBTORS 2025 2024 DUE WITHIN ONE YEAR Trade debtors Other debtors Prepayments and accrued income 1,014,380 11,107 245,813 862,756 3,640 341,480 1,271,300 1,207,876 Page 29
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2025 2024 Trade Creditors Other taxation and social security other creditors Accruals and deferred income 391,188 160,442 32,551 688,088 1,488,929 155,822 72,640 147,179 1,272,269 1,864.570 2025 2024 Balance at 1 April 2024 Amount deferred in the year Amounts released in the year 59,239 672.691 (59,239) 29,640 59,139 (29,540} Balance as at 31 March 2025 672,691 59,239 Page 30
SEVERN WfE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14. STATEMENT OF FUNDS STATEMENT OF FUNDS - CURRENT YEAR Balance at 1 April 2024 Balance at 31 March 2025 Transfers inlout Income Expenditure UNRESTRICTED FUNDS Designated Funds- all funds 45,263 30,621 {75,884) General Funds - all funds 995,960 2.414,176 (2,226,951) 38,590 1,221,775 TOTAL UNRESTRICTED FUNDS 1.041.223 2,444.797 {2,302.835) 38,590 1,221,775 RESTRICTED FUNDS Energy Advice Energy Services Domestic Energy Advocacy Grant Making Wales Energy Innovation 14.001 1,218 29,775 207.372 84,315 2,117.352 10.840 1,037.867 338,117 5,047.734 498,987 1,118.087 (14,727) (886,750 (351,931) {4,556,892) {441,180) {1,762,162) (10,114) (17,028) {8,461) 135,307 7,500 698,214 139.135 1,473,277 (2.987) 2,454,033 8,051,632 {8.013,642) (38,590) 2,453,433 TOTAL OF FUNDS 3,495.256 10,496.429 (10.316,477) 3,675.208 Page 31
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14. STATEMENT OF FUNDS (CONTINUED) Desi nated Funds The Hive Whilst the running costs of the Hive are covered by the Llandrindod Wells BLF project, the income generated by the utilisation of the building is being set aside to meet the future costs of running the Hive once the BLF funding ceases. Pu ose of restricted Funds Energy Advice Household Support Funds- see Grant Making section below. W&W Referral Fees - each year agreement is reached with the W&W funders as to how these fees are best utilised to help with our Affordable Warmth programme. W&W Support for Home Energy Advice to provide additional adviceline support to households in Gloucestershire. Energy Services Domestic SWC LAD & HUG Ancillary- funding to compliment the main project to fund small enabling works. Stonehouse Demonstrator to make recommendations for the improvement of the Stonehouse Pavilion. it will also assist with funded energy efficiency support to 10 example homes in the area. Summerfield Trust- to provide winter care packages for people living in Gloucestershire. HUG 2 - see Grant Making section below. Revolving Retrofit Guarantee Fund the fund was established by Stroud District Council for historic reasons, discussions are taking place to agree a future purpose. Energy Advocacy Step up South Gloucestershire project. Warmth on PsCrIPtion - see Grant Making section below. Community advocate support service and an infrared camera Energy Services Non Domestic Target 2030 Gloucestershire - see Grant Making section below. Target 2030 Wiltshire - see Grant Making seclion below. Retrofit in the Marches - to work in partnership with MEA and others to provide mainly retrofit surveys in Herefordshire and Powys. Grant Making GEEG SGC Grants these are funds received from South Gloucestershire Council (SGC) and Stroud District Council {SDC} for households meeting age and income criteria, with Sevem Wye acting as the principal for the scheme, to assist people with health Conditions with energy saving measures. CCG Grants these are funds received from the CCG through SDC for households in Gloucestershire meeting age and income criteria. with Sevem Wye acting as the principal for the scheme, to assist people with health conditions with energy saving measures. Household Support Funds - lo distribute grants to households in fuel poverty. Wami Home Funds Grants- are funded by SDC providing grants to private tenants, owner occupiers and social housing for ntral heating systems and insulation to improve energy efficiency. Rural Futures Grants micro grants made to communities supported through the Rural Futures project. Target 2030 Gloucestershire - offers up to 5 days energy efficiency consultation to small and medium enterprises in Gloucestershire and up to 35°/o financial assistance to help instsll energy saving measures. Target 2030 Wiltshire offers up to 5 days energy efficiency consultation to small and medium enterprises in Swindon & Wiltshire and up to 35Q/o financial assistance to help- install energy saving measures. Page 32
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14. STATEMENT OF FUNDS (CONTINUED) Hereford Winter Grants - to support vulnerable residenls affected by Covid-19 by making small cash payments to assist with food and essential items, such as fuel bills. SW LAD & HUG Fund to provide energy efficient retrofit works to low income homes in Gloucestershire and South Gloucestershire. HUG 2 - to install clean heat and insulalion to off gas homes. SGC & Glos Household Support Fund - to provide winter care bags, vouchers for Pre Paid Meters, energy debt write off and top up energy credits in the respective counties. Warmth on Prescription to support vulnerable households with severe respiratory illness via grants to improve the dwelling or financial support with heating bills. Deloitte Digital Connect- This project explores how we can better connect with people in fuel povety through digital communications. Pay Warmlh Forward National Grid - to provide short-term warmth interventions for vulnerable people. Retrofit West Voucher Scheme - to help home owners with grants for home surveys. Wales Rural Futures - Big Lottery Fund grant to support rural communities to co-prodLtce sustainable local projects and help those communities hamess their potential and build a lasting future. Llandrindod Wells together for Wellbeing, working with families who are in employment, but struggling to make ends meet and balance the needs of their families. Through the project families will be enabled to co4esign and co-deliver projecls Ihat can improve the quality of their lives. Energy Advocates Powys - Energy Advocacy work across Powys. Innovation Three C to promote innovation and business development in the circular economy based on alternative carbon products. technologies and services. using local carbon feedstocks. The 3C project has been moved from Communities to the new Sustsinable Technologies theme as it is a more appropriate classification. Capcall Re-Direct- to build a timber framed, green roof and living wall community structure. Mersey Biochar - to cary out a feasibility study into using a pyrolysis plant to develop a community- owned, carbon-negative energy solution. Now commissioned to build a prototype planl to demonstrate feasibility. Transfer beeen Funds W&W Referral fees the funders agreed that £89,457 could be used to fund our business support services. SWC LAD & HUG - the loss on these projects will be met from General Reserves. Three C - There is matched funding for this project from Welsh Water and Gwent Green Grids in Unrestricted Income that more than covers most of the costs. the rest is met from General Reserves. Target 2030 Wills & Glos - the loss on these projects will be met from General Reserves. Wamth on Prescription - the loss on these projects will be met from General Reserves. Revolving Retrofit Guarantee Fund - the fund was set aside in previous periods Page 33 145
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14. STATEMENT OF FUNDS (CONTINUED) STATEMENT OF FUNDS - PRIOR YEAR Balance at 31 March 2024 Balance at 1 April 2023 Transfers inlout Income Expenditure UNRESTRICTED FUNDS Designated Funds 70,763 35,833 (439) (60,894) 45,263 General Funds 652.643 2.189.001 (2.108,239) 262,555 995,960 TOTAL UNRESTRICTED FUNDS 723,406 2.224,834 (2,108,678) 201,661 1,041,223 RESTRICTED FUNDS Energy Advice Energy Services Domestic Energy Advocacy Energy Services Non Domestic Grant Making Wales Energy Innovation 193.458 96.055 125.412 (179,457) {88,320) (2,520) 36,620 4,738 722 14,001 1,218 29,775 2.655 77.500 199.362 2,163,656 393.472 2.165,018 (9,172) (170,617) (235,982) (2.604,557) (463,472) {90,672) 643,535 153.593 16,450 207,372 84,315 2,117.352 26.556 1,228,503 5.001,663 (3,574.472) (201,661) 2,454,033 TOTAL OF FUNDS 1,951.909 7,226,497 (5,683,150) 3,495,256 Page 34
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 15. SUMMARY OF FUNDS SUMMARY OF FUNDS - CURRENT YEAR Balance at 31 March 2025 Balance at 1 April 2024 Transfers inlout Income Expenditure Designated funds General funds Restricted funds 45,263 995,960 2,454,033 30,621 (75.884) 2,414,176 (2,226,951) 8,051.632 {8,013,642) 38,590 (38,590) 1,221,775 2,453,433 3,495,256 10,496.429 {10.316,477) 3,675,208 SUMMARY OF FUNDS - PRIOR YEAR Balance al 31 March 2024 Balance at 1 April 2023 Transfers inlout Income Expenditure Designated funds General funds Restricted funds 70,763 652.643 1.228.503 35.833 2.189,001 5,001,663 (439) {2,108,239} (3,574.472) (60,894) 45,263 262,555 995,960 {201.661) 2,454,033 1.951.909 7.226.497 {5,683,150} 3,495,256 16. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR Restricted Unrestricted funds funds 2025 2025 Total funds 2025 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year 1,592,491 1,592,491 2,453,433 901,552 3,354.985 (1.272,269) (1,272,269) TOTAL 2,453,433 1,221.775 3.675,208 Page 35
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 16. ANALYSIS OF NET ASSETS BEfwEEN FUNDS {CONTINUED) ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR Unrestricted funds 2024 Total funds 2024 Restricted 2024 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year 2,064,002 2,064,002 2,454,033 841,790 3,295.823 (1.864,570) (1,864,570) 2.454,033 1,041,223 3,495,256 TOTAL RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 17. 2025 2024 Net income for the year (as per Statement of Financial Activities) 179,952 1,543,347 ADJUSTMENTS FOR: Depreciation charges Less interest received Decreasel(increase) in debtors In¢reasel(Decrease) in creditors 7,479 (33,530) (63,424) (592,302) 2,931 (23,160) 64.858 1.430,659 NET CASH PROVIDED BYI(USED IN) OPERATING ACTNITIES (501,825) 3,018,635 18. ANALYSIS OF CASH AND CASH EQUIVALENTS 2025 2024 Bank Deposits 2,083,685 2,087,948 TOTAL CASH AND CASH EQUIVALENTS 2,083,685 2,087,948 Page 36
SEVERN WYE ENERGY AGENCY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 19. ANALYSIS OF CHANGES IN NET DEBT At 1 April 2024 Cash flows At 31 March 2025 Cash al bank and in hand 2,087,947 {4,262) 2,083,685 2,087,947 (4,262} 2,083,685 20. PENSION COMMITMENTS The group operales a defined contribution pension sGheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represenls contributions payable by the charity to the fund and amounted to £148,938 {2024'. £113,899). There was a liability at the year end of £25,913 (2024= £21,086). 21. OPERATING LEASE COMMITMENTS At 31 March 2025 the Charity had commitments to make future minimum lease paymenls under non- cancellable operating leases as follows-. 2025 2024 Not later than 1 year Later Ihan 1 year and not later than 5 years 49,155 58.215 62,982 111.803 107,370 174,785 22. RELATED PARTY TRANSACTIONS During the prior year. one trustee. who was also a director of Severn Wye Biochar Limited (formally called Mersey Biochar Limited}, resigned from both positions to take up Ihe role as the lead project manager of the Mersey Biochar project. The 100¥o shareholding of Sevem Wye Biochar Limited was then transferred from the former trustee to the charity al nil consideration. This individual is now paid for freelance services by Ihe charity. No related party transactions occurred under this arrangement during the previous financial year. During the current year, a director of the charity was appointed a director of Severn Wye Biochar Limited. Sales were made during the year to a company of which a trustee is a director. These sales totalled £6.480 {2024: £Nil) and there were no amounts outstanding from this company al the year-end 12024.. £Nil). No other trustee or other person related to the charity had any other personal interest in any contract or transaction entered into by the charity in this year or the previous one. Page 37