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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report 2012 T: 020 7055 6500 F: 020 7055 6600
Energy Technique Plc47 Central AvenueWest MoleseySurreyKT8 2QZ
Tel: +44 (0)20 8783 0033
Annual Report & Financial Statements 2012
Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report 2012 T: 020 7055 6500 F: 020 7055 6600
Contents 1 Chairman’s statement 4 Directors 5 Advisers 6 Directors’ report 9 Corporate governance 10 Remuneration report 11 Independent auditors’ report 12 Consolidated statement of comprehensive
income
13 Consolidated statement of financial position 14 Consolidated statement of changes in equity 15 Consolidated cash flow statement 16 Notes to the consolidated financial statements 35 Accounts of the parent company
Energy Technique Plc 42 Notice of 2012 Annual General Meeting47 Financial calendar and corporate information48 Products and services
Heating for Marks & Spencer
Fan Coils Heathrow Terminal 2 Heating for Lancashire County Cricket Club
Fan Coils for The Shard Heating for Lincoln House Hotel Fan Coils for Leadenhall Building
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Chairman’s statement
Headlines• ReturntoprofitabilityarisingfromDiffusion’ssales23percentaheadoflastyearat£7.09million;
• Diffusiongeneratedanoperatingprofitof£343,000,representingaturnaroundinperformancefromthelossesof£137,000incurredinthepreviousyear;
• GroupprofitonContinuingOperationsbeforetaxof£173,000,representingasignificantturnaroundfromthelossesof£396,000incurredinthepreviousyear;
• Strongbalancesheetnetassetsof£1.41millionwithnetcashandcashequivalentsof£237,000;
• Diffusion’spremiumbrandedfancoilsandcommercialheatingproductsweresuppliedintomanylandmarkandprestigiouscommercialdevelopments;
• EnquirylevelsandorderintakesareatencouraginglevelsandtheBoardlooksforwardtoasuccessfulyearahead,despitethecontinuingchallengesfacingtheUKconstructionindustry.
IntroductionI ampleased to report theCompany’s return to profitability in the year ended 31March 2012 onDiffusion’ssales23percentaheadofthepreviousyearat£7.09million.ThecombinationofincreasedsalesandtightcostcontrolproducedaGroupprofitonContinuingOperationsbeforetaxof£173,000,afterchargingCentralcosts,representingaturnaroundfromthelossesof£396,000incurredinthepreviousyear.Thiswasapleasingtradingperformanceachievedinchallengingtradingconditions.
Diffusion’smarkets did not show any signs of growth during the year and selling price pressure remained amarketfeature.TheCompanyproduceditsprofitturnaroundthroughmaintainingDiffusion’spremiumbrandingandpursuingquality jobs likelytoreturntargetsellingmargins,combinedwithfocusedbusinessdevelopmentactivities.
Trading performance of Continuing OperationsSalesintheyearended31March2012roseby23percentto£7.09million(2011:£5.79million).Increasedsaleswereachievedforbothfancoilsandcommercialheatingproducts.Followingthepreviousyear’sdisappointmentwiththecollapseoftheCompany’slongestablisheddistributorintheRepublicofIreland,termswerenegotiatedwithanewdistributor,whichprovedtobeparticularlysuccessful,andledtosalesbeing166percenthigherthantheyearbefore.
The combination of increased sales and tight cost control resultedinDiffusiongeneratinganoperatingprofitof£343,000,representinga turnaround in financial performance from the losses of £137,000incurred in the previous year. Savings achieved through shop floorinvestment in new equipment and processes allowed Diffusion tocompeteverycompetitivelyinadifficultmarketoverthelasttwoyears.
Centralcostsweremuchlowerinthefinancialyearended31March2012 at £130,000 (2011: £218,000). After net interest costs of£40,000, Group profit before tax on Continuing Operations was£173,000,representingaturnaroundinfinancialperformancefromthelossesof£396,000incurredinthepreviousyear.
SALES £000
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DIFFUSION OPERATING PROFIT £000
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
About DiffusionWith over 50 years in the heating and ventilation industry (“HVAC”), Energy Technique’s operating subsidiaryDiffusion isoneof theoldestandmostestablishedmanufacturersofHVACproducts in theUK.Diffusion isamarket leader inthemanufactureofpremiumqualityfancoilsandcommercialheatingproducts.TheDiffusionandEnergyTechniquebrandnamesarerecognisedashighlyengineered,qualityproductsprovidingleadingedgeperformanceandenergyefficiency.
Over its long trading life, Diffusion has been involvedwithmany challenging and prestigious projects acrossaspectrumofsectors includinghotels,commercialoffices, retail, schools,hospitals,and residential.Diffusionhasestablishedexcellentworkingrelationshipswithmanybluechipclients includingLandSecurities,Marks&Spencer,Boots,CityInnHotels,StanhopePropertiesandmanymore.Allproductsaredesigned,developedandmanufacturedatDiffusion’s30,000sq.ft.manufacturingfacilityinWestMolesey,Surrey,offeringpremiumqualityproducts,designedspecificallytomeetcustomers’bespokerequirements.
Diffusion’s operating performanceDiffusion’s continued investment in sales andmarketing resources has reaped rewards in the currentmarketconditions.Sellingmarginswerecontinuallyunderpressurefromacombinationofmarketforcesandincreasedpurchasepricesarisingfromincreasedworldmetalprices.
Notwithstandingthesechallenges,totalsellingmarginsweremaintainedbymoreeffectivepurchasingandproductionefficiencies.Inparticular,theTrumpflasercutterhasproducedbetterqualityfinishedsteelwork,isenvironmentallyfriendlyandimportantlyhasimprovedproductivityandefficiencybyreducingsteelwastagedownfrom25percenttojust12percent.
During theyear, theR&D facilitieswerealsoupgraded.Thesededicated R & D test facilities produce accurate air volume, thermal and acousticperformance data for manufactured products. They allow the accuratesimulationof real-worldoperatingconditionsandconfigurations,providingcustomers with confidence in the performance of Diffusion’s products,howeverdemandingtheenvironment.
Fan coils were supplied into a number of prestigious projects in the UKincluding“TheShardBuilding”inLondon,HeathrowTerminal2,Clyde&CoofficesinLondon,GoldmanSachsofficesinLondonandthe“Cheesegrater”at 122 Leadenhall Street in London, together with the Google EuropeanheadquartersinDublin.
TheCommercialHeatingDivisionalsohadasuccessfulyearwinninganumberofnewcustomersincludingKrispyCrème,Forever21,Victoria’sSecretsandASDAlocalstores.Duringtheyear,Diffusion’scommercialheatingproductsweresuppliedintotheLincolnHotelinLondon,MoetHennessyinLondon,
HavantAcademy,LancashireCountyCricketClub,Marks&Spencer,TheSuperdryStoreandtheCornWallisAcademySchool.Otherend-usercustomerscontinuedtobebluechipretailersandshoppingcentersincludingNewLook,Next,GAP,BananaRepublic,HugoBoss,Tesco,HouseofFraser,TKMaxx,Primark,thenewWestfieldStratfordShoppingCentreandExcelHotelLondon.
Diffusion has always offered a spares and service facility and during the year spares stockswere physicallysegregatedandcontrolledfromproductionstockstoprovideanimprovedservicetocustomers.
Chairman’s statement(continued)
Trumpf laser cutter
R & D facility
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Chairman’s statement(continued)
Cash flow and net cashCashgeneratedbyoperationswas£182,000(2011:outflowof£377,000)andtheCompanyhadnetcashandcashequivalentsat31March2012of£237,000(2011:£228,000).TheCompanyremainssoundlyfinancedwiththislevelofliquidityandnetassetsat31March2012of£1.41million.Duringtheyear,£101,000wasappliedinrepayinghirepurchaseobligationsonthelasercuttingmachine.ThelastinstalmentonthismachinewaspaidinMay2012.
Capital expenditureCapital expenditureduring the yearwas£84,000, following theheavy investment inmanufacturingplant andprocesses intheprevioustwoyears.Capitalexpenditure intheyearrelatedtoupgradingtheIT infrastructure,vehiclefleetandtheR&Ddepartment.Inthecomingyearahead,therewillbefurtherimprovementstotheITinfrastructure,includingaCRMsystem.
DividendsTheBoarddoesnotrecommendpaymentofadividend(2011:£nil).TheBoardwillbeseekingapproval fromshareholdersinconnectionwithasharereorganisationandapplicationtotheCourtforacapitalreduction,soastoallowtheCompanytopaydividendsinthefuture.Furtherdetailsaboutthiswillbesetoutinaseparatecirculartobepostedtoshareholdersshortly.
Board changesMartinKirkham,whowaspreviouslythemanagingdirectorofSIASFM,resignedfromtheBoardon6April2011followingtheearlierdisposalofSIASFMon24March2011.
Business strategyFollowing the disposal of SIAS FM inMarch 2011, theBoard has focused on theCompany’s coreDiffusionsubsidiaryanditremainscommittedtothisstrategyintheyearahead.
Current trading and prospectsDiffusionhasanexcellentbrandnamewithahighqualityreputation.Whilstnosignificantimprovementinoveralldemand from theCompany’smarkets is expected during the current financial year, enquiry levels and orderprospectsforqualityprojectsremainencouraging.
AnumberofqualityexportfancoilprojectsarecurrentlybeingpursuedintheMiddleEastandDiffusionexpectstoenhanceitsproductofferingduringthecurrentfinancialyearwiththelaunchofanumberofnewenergyefficientproductsforbothfancoilsandcommercialheatingproducts.
TheexpectedtimetableforcompletionofthesharereorganisationandcapitalreductionisaroundOctober2012.Iftradingcontinuesatcurrentlevels,theBoardmayconsiderdeclaringadividendatthattime.
Walter K GoldsmithChairman
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Directors
Walter K GoldsmithNon-executive Chairman Aged 74WalterGoldsmithjoinedtheBoardinMay2007andwasappointedChairmaninMarch2010.Heisacharteredaccountantwithsubstantialboardlevelexperienceinpublicandprivatecompanies.AconsiderablepartofhiscareerwasspentatBlack&Decker,theglobalmanufacturerandmarketerofpowertools,wherehewaslatterlyCorporateVicePresidentandresponsibleforlaunchingBlack&Deckerinto22countries.HewassubsequentlyGroupPlanning andMarketingDirector at FortePlc, the hotel group andDirectorGeneral of the Institute ofDirectors for five years.Walter is currently chairman or director of a number of other private companies.HesupplieshisservicestotheCompanypursuanttoaletterofappointmentdatedMay2007.
Leigh A StimpsonExecutive Director Aged 52 and Diffusion’s Managing DirectorLeighStimpsonjoinedtheBoardon23February2010.HehasbeenanexecutivewithDiffusionsince1992andmanagingdirectorforthelast15years.LeighisaseasonedHVACindustryprofessional,withextensivemarketingskillsandproductknowledgeofthesector.Leighre-joinedDiffusion’sexecutivemanagementonafulltimebasisin2006andwasresponsiblefortheday-to-dayturnaroundsincethen.HeisemployedbyDiffusion’soperatingcompany,ETEnvironmentalLimited,underaletterofappointmentdatedApril2006.
Martin M ReidExecutive Director Aged 51 and Diffusion’s Operations DirectorMartinReidjoinedtheBoardon15September2010andhehasbeenwithDiffusionforover25years,wherehe iscurrently responsible forallday-to-dayoperations includingprocurement,manufacturingexcellenceandstockcontrol.Hehasindepthknowledgeoftheheatingandventilationsectorandisalsoheavilyinvolvedwithnewproductinnovationanddevelopment.HeisemployedbyDiffusion’soperatingcompany,ETEnvironmentalLimited,underthetermsofaserviceagreementwiththatCompany.
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Advisers
Auditors RegistrarsMilstedLangdonLLP CapitaRegistrarsWinchesterHouse TheRegistryDeaneGateAvenue 34BeckenhamRoadTauntonTA12UH Beckenham KentBR34TU
Bankers SolicitorsLloydsTSBBankPlc SherrardsSolicitorsLLP39ThreadneedleStreet 7SwallowPlaceLondonEC2R8AU LondonW1B2AG
Stockbrokers Nominated AdviserfinnCapLtd finnCapLtd60NewBroadStreet 60NewBroadStreetLondonEC2M1JJ LondonEC2M1JJ
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
ThedirectorspresenttheirreportandtheGroupfinancialstatementsfortheyearended31March2012.
Principal activityTheprincipalactivityoftheGroupduringtheyearwasthemanufactureanddistributionofairconditioningandheatingsolutionsforretailandcommercialapplications,togetherwithrelatedmaintenanceservices.
Disposal of SIAS FMOn24March2011theCompanydisposedofitswholly-ownedbuildingmaintenancesubsidiaryforanetcashconsiderationof£23,000anditscomparativeresultsareincludedunderDiscontinuedOperations.
Review of businessTheGroup’soperationscomprisetheDiffusionbusinessbasedatWestMolesey,Surrey,whichisamanufactureroffancoilsandcommercialheatingproducts.AreviewoftheGroup’sperformanceandlikelyfuturedevelopmentsisgivenintheChairman’sStatement.
Results and dividendsTheGroupprofitbeforeandaftertaxamountedto£185,000(2011:loss£1.14million)and£160,000(2011:loss£1.14million)respectively.Thedirectorsdonotrecommendpaymentofadividend(2011:£nil).
Shares held in treasuryAtotalof185,000ordinarysharesof6.25penceeachwerepurchasedinthemarketintheyearended31March2009atatotalcostof£15,000.Thesesharesareheldintreasuryandrepresent0.56%ofthecalledupsharecapital.
Research and developmentOperatingprofitisstatedaftercharging£191,000(2011:£164,000)onresearchanddevelopmentinrespectofitsDiffusionoperations.
Directors and their interestsAcurrentlistofdirectorsisshownonpage4.Detailsofdirectors’interestsintheCompany’ssharesandoptionsaresetoutintheRemunerationReport.
MartinKirkham,theformermanagingdirectorofSIASFM,wasappointedtotheBoardon15September2010andresignedon6April2011followingthesaleofSIASFM.
Directors’ responsibilities for the financial statementsThedirectorsareresponsibleforpreparingtheAnnualReportandtheFinancialStatementsinaccordancewithapplicablelawandregulations.
Thedirectorsarerequiredundercompanylegislationtopreparefinancialstatementsforeachfinancialyear.Underthat lawthedirectorshaveelectedtopreparetheGroupfinancialstatements inaccordancewith InternationalFinancialReportingStandards(IFRSs)asadoptedbytheEuropeanUnion,whicharerequiredbylawtogiveatrueandfairviewofthestateofaffairsoftheGroupandofitsprofitorlossforthatperiod.ThefinancialstatementsfortheParentCompanyhavebeenpreparedinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice(UnitedKingdomAccountingStandardsandapplicablelaw).UndercompanylawthedirectorsmustnotapprovethefinancialstatementsunlesstheyaresatisfiedthattheygiveatrueandfairviewofthestateofaffairsoftheCompanyandtheGroupandoftheprofitorlossoftheGroupforthatperiod.
Inpreparingthosefinancialstatements,thedirectorsarerequiredto:
• selectsuitableaccountingpoliciesandapplythemconsistently;
Directors’ report
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Directors’ report(continued)
• makejudgmentsandestimatesthatarereasonableandprudent;
• statewhetherapplicableUnitedKingdomAccountingStandardshavebeenfollowedbytheParentCompanyandapplicableIFRSsasadoptedbytheEuropeanUnionhavebeenfollowedbytheGroup,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements;and
• preparethefinancialstatementsonthegoingconcernbasis,unlessit isinappropriatetopresumethattheGroupwillcontinueinbusiness.
ThedirectorsareresponsibleforkeepingadequateaccountingrecordsthataresufficienttoshowandexplaintheCompany’stransactionsanddisclosewithreasonableaccuracyatanytimethefinancialpositionoftheCompanyandGroupandenablethemtoensurethatthefinancialstatementscomplywiththeCompaniesAct2006.Theyarealsoresponsible forsafeguardingtheassetsof theCompanyandGroupandhence for takingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.
Thedirectorshave reasonableexpectation that theGrouphasadequate resources tocontinue inoperationalexistencefortheforeseeablefuture.Forthisreasontheycontinuetoadoptthegoingconcernbasisinpreparingthefinancialstatements.
ThemaintenanceandintegrityofthecorporateandfinancialinformationincludedontheGroup’swebsiteistheresponsibilityofthedirectors.LegislationintheUnitedKingdomgoverningthepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.
TheBoard’sstatementonCorporateGovernanceissetoutonpage9.
Substantial shareholdingsAt14June2012,theCompanywasawareofthefollowinginterestsof3%ormoreoftheissuedsharecapital:
Ordinary sharesof 6.25peach % No. Interest
ElsinaLimited 19,386,274 58.2
VentureInternationalFMLimited 3,999,960 12.0
MayfieldFulwoodLimited 1,250,000 3.8
WalterKGoldsmith 1,069,826 3.2
EnvironmentInanattempttoaddresstheenvironmentalandenergyissuessurroundingHVACproducts,particularemphasisisplacedintheproductdevelopmentprogrammeonenergyefficiencyandairquality.
CommunicationInvestorsTheCompanyconsidersthatcommunicationwithshareholdersisveryimportant.Inadditiontotheinterimandannualreports,theCompanykeepsitswebsiteuptodatewithnewsaffectingthebusiness.AllshareholdersareencouragedtoattendtheAnnualGeneralMeeting.
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Directors’ report(continued)
EmployeesEmployee consultation, participation and involvement in matters affecting their interests have continued tobedeveloped throughout theGroupduring theyear.TheGroupgivesequalconsideration toapplications foremployment from people regardless of their sex, ethnic origin, age or disability. It is Group policy, whereverpracticable, tocontinue toemploy, trainandpromote thecareerdevelopmentofexistingemployeeswith thesameequalconsideration.
CreditorsTheGroup’spolicyconcerningpaymentstosuppliersiseithertoagreetermsofpaymentatthestartofbusinesswitheachsupplierortoensurethesupplierismadeawareofourstandardtermsofpurchase,whichincorporatestandardtermsofpayment.IneithercasetheGroupaimstomakepaymentsinaccordancewithitscontractualorotherlegalobligations.Creditordaysat31March2012were68(2011:64).
Financial risk managementTheGroup’soperationsexposeittoavarietyoffinancialrisksthatincludetheeffectsofchangesinmarketpricesandcreditrisk.
Liquidity and cash flow riskTheGroupmonitorscashflowasapartofitsnormalactivities.CashpositionsaremonitoreddailyandforecastsarediscussedwiththeBoardonamonthlybasistoensurethatsufficientresourcesareavailabletosupporttheGroup.
Price riskTheGroupisexposedtocommoditypriceriskasaresultofitsoperations.However,giventhesizeoftheGroup’soperations,thecostofmanagingexposuretocommoditypriceriskexceedsanypotentialbenefits.ThedirectorswillrevisittheappropriatenessofthispolicyshouldtheGroup’soperationschangeinsizeornature.TheGrouphasnoexposuretoequitysecuritiespriceriskasitholdsnolistedorotherequityinvestments.
Credit riskTheGrouphas implementedpolicies that requireappropriatecreditchecksonpotentialsignificantcustomersbeforesalesaremadeanditseekstoobtaincreditinsuranceonallthemajortradeaccountsreceivable.
Market riskTheGroup’sperformance isdirectly impactedby theeconomicenvironmentand inparticularanyfluctuationsinthecommercialpropertymarket. InordertomanagethisrisktheGroupstrivestodeliverqualitygoodsandservicesatcompetitiveprices.TheGroupiscontinuallystrivingtoimproveefficiencyandreducecosts.
AuditorsAresolutionistobeproposedattheAnnualGeneralMeetingforthereappointmentofMilstedLangdonLLPasauditorsoftheCompany.
Thereisnorelevantauditinformation(thatis,informationneededbytheCompany’sauditorsinconnectionwithpreparingtheirreport)ofwhichtheCompany’sauditorsarenotaware.Thedirectorshavetakenallthestepsthattheyoughttohavetakenasdirectorsinordertomakethemselvesawareofanyrelevantauditinformationandtoestablishthattheauditorsareawareofthatinformation.
Annual general meetingNoticeofthe2012AnnualGeneralMeetingissetoutonpage42.
ByorderoftheBoard
R M UnsworthCompany Secretary
14June2012
So faras ispossible,given theGroup’ssizeand theconstitutionof theBoard, thedirectorscomplywith theprinciplesofbestpracticeassetoutintheCombinedCodeonCorporateGovernance.
The Audit CommitteeTheBoard has appointed anAuditCommittee, consisting ofWalterGoldsmith (CommitteeChairman), LeighStimpsonandMartinReid.ThisCommitteemeetsatleasttwiceannuallyandisresponsibleforensuringthatthefinancialperformanceoftheGroupisproperlyreportedandmonitoredandformeetingtheauditorsandreviewingtheirreportsinrelationtothefinancialstatementsandinternalcontrolsystems.
TheAuditCommittee reviews theservicesprovidedby theexternalauditorsat leastonanannualbasis.Thisreview includesconsiderationof theconfirmationof independencewhich theexternal auditorsprovide to theGrouponanannualbasisandof theserviceswhich theyprovide to theGroup, inorder toensure that theirindependenceisnotcompromised.
The Remuneration CommitteeTheBoardhasappointedaRemunerationCommittee,whichconsistsofWalterGoldsmith(CommitteeChairman),LeighStimpsonandMartinReid.TheRemunerationCommitteeisresponsibleforreviewingtheperformanceoftheexecutivedirectorswithin theGroupand forsetting thescaleandstructureof their remunerationand thebasisoftheirservicecontracts.GiventhesizeoftheCompany,theRemunerationCommitteewillalsoactastheNominationCommitteeresponsibleforconsideringandrecommendingtotheBoardanychangesintheBoard’scompositionandmembership.
Going concernAftermakingenquiries,thedirectorshaveareasonableexpectationthattheGrouphasadequateresourcestocontinue inoperationalexistence for the foreseeable future.For this reason, theycontinue toadopt thegoingconcernbasisinpreparingthefinancialstatements.
Internal auditDuetotheGroup’ssmallsizeandtheactiveinvolvementoftheoperationaldirectorsinitsday-to-dayactivities,theBoarddoesnotconsiderthereisaneedforaninternalauditfunction.Thisdecisionisreviewedannually.
Health and safetyDiffusionhasitsownHealthandSafetyOfficer,whoadvisesastoitscomplianceandresponsibility.TheBoardensuresthatallrecommendationsareimplementedinareasonabletimeperiodandfullsupervisionandguidanceisgiven.TheGroupprovidestrainingforrelevantstaffonstatutoryhealthandsafetyrequirementsandwrittenguidanceisgivenintheCompany’shealthandsafetymanual.
ByorderoftheBoard
R M UnsworthCompany Secretary
14June2012
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Remuneration report
Remuneration policy and directors’ service agreementsWalterGoldsmith,Chairman,enteredintoaletterofappointmentwiththeCompanydated24May2007,pursuanttowhichhereceivesremunerationbywayoffeescurrentlyat£25,000perannum.Hedoesnotparticipateinanyincentiveorbenefitscheme,orreceiveanyotherbenefitsinkind.
LeighStimpson,executivedirector,hasacontractofemploymentwiththeCompany’ssubsidiaryETEnvironmentalLimited,pursuanttowhichhereceivesasalaryof£106,000perannumand10%personalpensioncontributions.Inaddition,heiseligibleforcommissionsbasedonsales,ofwhich£16,000waspaidintheyearended31March2012anddiscretionarybonuses.
MartinReid,executivedirector,hasacontractofemploymentwiththeCompany’ssubsidiary,ETEnvironmentalLimited,pursuanttowhichhereceivesasalaryof£80,000perannumand10%personalpensioncontributions,togetherwithdiscretionarybonuses.
Directors’ remunerationTheremunerationofthedirectorswasasfollows:
Salary 2012 Salary Lossof 2011 & fees Bonus Total Pensions &fees office Benefits Total Pensions £000 £000 £000 £000 £000 £000 £000 £000 £000
WalterGoldsmith(1) 15 – 15 – 12 – – 12 –
LeighStimpson 122 5 127 12 118 – – 118 11
MartinReid(2) 80 13 93 8 44 – – 44 4
Current directors 217 18 235 20 174 – – 174 15
MartinKirkham(2) – – – – 33 – 2 35 –
JamesLugg – – – – 23 30 – 53 –
Former directors – – – – 56 30 2 88 –
217 18 235 20 230 30 2 262 15
(1)WalterGoldsmith’sremunerationwasallfeespaidtoTheWalterGoldsmithConsultancy,apartnershipwherehehasa50%share. (2)Sincedateofappointmentin2011.
Directors’ interests in ordinary shares of 6.25p each 14 June 31 March 31March 2012 2012 2011 No. No. No.
WalterGoldsmith 1,069,826 1,069,826 1,069,826
LeighStimpson 36,120 36,120 36,120
MartinReid – – –
ByorderoftheBoard
R M UnsworthCompany Secretary
14June2012
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Wehaveaudited theGroupfinancialstatementsofEnergyTechniquePlc for theyearended31March2012whichcomprisetheConsolidatedStatementofComprehensiveIncome,theConsolidatedStatementofFinancialPosition, theConsolidated Statement of Changes in Equity, theConsolidatedCash FlowStatement and therelatednotes.ThefinancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawandInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEuropeanUnion.
ThisreportismadesolelytotheCompany’smembers,asabody,inaccordancewithChapter3ofPart16oftheCompaniesAct2006.OurauditworkhasbeenundertakensothatwemightstatetotheCompany’smembersthosemattersweare required tostate to them inanauditors’ reportand fornootherpurpose.To the fullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompany’smembersasabodyforourauditwork,forthisreportorfortheopinionswehaveformed.
Respective responsibilities of directors and auditorsAsexplainedmorefully inthedirectors’responsibilitiesstatementsetoutonpages6and7,thedirectorsareresponsibleforthepreparationoftheGroupfinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.OurresponsibilityistoauditandexpressanopinionontheGroupfinancialstatementsinaccordancewith applicable law and International Standards onAuditing (UK and Ireland). Those standards require us tocomplywiththeAuditingPracticesBoard’sEthicalStandardsforAuditors.
Scope of the audit of the financial statementsAnauditinvolvesobtainingevidenceabouttheamountsanddisclosuresinthefinancialstatementssufficienttogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorerror.This includesanassessmentof:whethertheaccountingpoliciesareappropriatetotheGroup’scircumstancesandhavebeenconsistentlyappliedandadequatelydisclosed;thereasonablenessofsignificantaccountingestimatesmadebythedirectors;andtheoverallpresentationofthefinancialstatements.Inaddition,wereadallthefinancialandnon-financialinformationinthedirectors’reporttoidentifymaterialinconsistencieswiththeauditedfinancialstatements.Ifwebecomeawareofanyapparentmaterialmisstatementsorinconsistenciesweconsidertheimplicationsforourreport.
Opinion on financial statementsInouropinionthefinancialstatements:
• giveatrueandfairviewofthestateoftheGroup’saffairsasat31March2012andoftheGroup’sprofitandtheGroup’scashflowsfortheyearthenended;
• havebeenproperlypreparedinaccordancewithIFRSsasadoptedbytheEuropeanUnion;and
• havebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct2006.
Opinion on other matter prescribed by the Companies Act 2006Inouropinion the informationgiven in thedirectors’ report for thefinancialyear forwhich theGroupfinancialstatementsarepreparedisconsistentwiththeGroupfinancialstatements.
Matters on which we are required to report by exceptionWehavenothingtoreportinrespectofthefollowing:
UndertheCompaniesAct2006wearerequiredtoreporttoyouif,inouropinion:
• certaindisclosuresofdirectors’remunerationspecifiedbylawarenotmade;or
• wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.
Other matterWehavereportedseparatelyontheparentcompanyfinancialstatementsofEnergyTechniquePlcfortheyearended31March2012.
Nigel Fry (Senior Statutory Auditor)For and on behalf of Milsted Langdon LLPChartered Accountants and Statutory AuditorsTaunton14June2012
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Independent auditors’ reporttothemembersofEnergyTechniquePlc
Energy Technique P
lc Annual R
eport & Financial S
tatements 2012
Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Consolidated statement of comprehensive incomefortheyearended31March2012
2012 2011 Asrestated Note £000 £000
CONTINUING OPERATIONSRevenue 5 7,093 5,786
Costofsales (5,102) (4,297)
Gross profit 1,991 1,489
Distributioncosts (1,383) (1,392)
Administrationexpenses (395) (452)
Operating profit/(loss)Beforeexceptionalitems 213 (247)
Exceptionalitems – (108)
6 213 (355)
Financerevenue 7 – 1
Financecosts 8 (40) (42)
Profit/(loss) before tax 173 (396)
Incometaxcharge 9 (25) –
Profit/(loss) for the year from continuing operations 148 (396)
DISCONTINUED OPERATIONSProfit/(loss)fortheyearattributabletodiscontinuedoperations 10 12 (740)
Total comprehensive income/(loss) for the year 11&24 160 (1,136)
Earnings/(losses) per share:Basicanddiluted 13 0.48p (3.43)p
Basicanddilutedfromcontinuingoperations 13 0.45p (1.20)p
There are no other recognised gains or losses other than as recorded in the consolidated statement ofcomprehensiveincomefortheyear.
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2012 2011 Asrestated Note £000 £000
ASSETSNon-current assetsIntangibleassets 14 25 25
Plantandequipment 15 336 325
Deferredtaxasset 9 280 305
Total non-current assets 641 655
Current assetsInventories 17 673 745
Tradeandotherreceivables 18 1,382 1,137
Cash 27 393 417
Total current assets 2,448 2,299
Total assets 3,089 2,954
LIABILITIESCurrent liabilitiesTradeandotherpayables 19 (1,205) (1,143)
Currenttaxliabilities (160) (150)
Obligationsunderhirepurchaseagreements 27 (27) (96)
Invoicediscounting 27 (156) (189)
Total current liabilities (1,548) (1,578)
Non-current liabilitiesObligationsunderhirepurchaseagreements 27 (22) (16)
Provisions 20 (110) (111)
Total liabilities (1,680) (1,705)
Net assets 1,409 1,249
EQUITYEquity attributable to equity holdersIssuedcapital 22 7,773 7,773
Reserves 23 7,449 7,449
Retainedearnings 24 (13,813) (13,973)
Total equity 1,409 1,249
ApprovedbytheBoardon14June2012andsignedonitsbehalfby:
W K Goldsmith L A Stimpson
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Consolidated statement of financial positionat31March2012Companynumber00013273
Energy Technique P
lc Annual R
eport & Financial S
tatements 2012
Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Consolidated statement of changes in equityfortheyearended31March2012
Share Share Retained capital premium Reserves earnings Total £000 £000 £000 £000 £000
At 1 April 2010 4,351 3,422 7,449 (12,726) 2,496
Priorperiodadjustment – – – (111) (111)Comprehensiveloss – – – (1,136) (1,136)
Total comprehensive loss – – – (1,247) (1,247)
At 31 March 2011 (as restated) 4,351 3,422 7,449 (13,973) 1,249
Comprehensiveincome – – – 160 160
Total comprehensive income – – – 160 160
At 31 March 2012 4,351 3,422 7,449 (13,813) 1,409
Prior period adjustmentThepriorperiodadjustmentat1April2010of£111,000istheestablishmentofaprovisionfortheonerousliabilitiesofemployers’nationalinsuranceandpensioncontributionsonannualpaymentsmadeunderapermanenthealthinsurancepolicy.Thesepaymentshavebeenmadesince2006andtheDirectorsconsideritwasmoreappropriatetoestablishaprovisionforsuchcostsratherthanthepreviouspracticeofexpensingthepaymentsasincurred,formerlychargedunderadministrationexpenses.
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2012 2011 Asrestated Note £000 £000
Cash flows from operating activitiesProfit/(loss)beforetax 185 (1,136)
Profit/(loss)ondisposalofSIASFM 10 (12) 416
Netfinancecosts 7&8 40 47
Depreciation(netofdisposalprofits) 11&15 71 92
Operating income/(loss) before changes in working capital 284 (581)
Reduction/(increase)ininventories 72 (29)
Increaseintradeandotherreceivables (245) (161)
Increaseintradeandotherpayables 71 394
Cash generated/(absorbed) by operations 182 (377)
Financecosts 8 (40) (48)
Net cash generated/(absorbed) by operating activities 10 142 (425)
Cash flows from investing activitiesPurchaseofplantandequipment 15 (84) (26)
Disposalofplantandequipment 11 2 –
Financeincome 7 – 1
DisposalofSIASFM:
Consideration 10 12 23
Costsofdisposal – (9)
Cashincompanyondisposal – (136)
Net cash used in investing activities (70) (147)
Financing activitiesReceiptsunderhirepurchaseagreements 38 –
Repaymentsunderhirepurchaseagreements (101) (91)
Net cash used in financing activities (63) (91)
Net increase/(reduction) in cash and cash equivalents 27 9 (663)
Cashandcashequivalentsatbeginningofyear 228 891
Cash and cash equivalents at end of year 237 228
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Consolidated cash flow statementfortheyearended31March2012
Energy Technique P
lc Annual R
eport & Financial S
tatements 2012
Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Notes to the consolidated financial statements
1. General informationEnergy TechniquePlc (the “Company”) is a public limited company incorporated in England andWales. TheCompanyisdomiciledintheUnitedKingdomanditsregisteredofficeandprincipalplaceofbusinessis47CentralAvenue,WestMolesey,SurreyKT82QZ.TheprincipalactivitiesoftheCompanyanditssubsidiary(the“Group”)aredescribed in note6. The financial statements arepresented in sterling andall values are rounded to thenearestthousandpounds(£000)exceptwhenotherwiseindicated.
2. Adoption of new and revised standardsStandards and Interpretations effective in the current periodTherewerenonewstandardsadoptedbytheGroupduringthecurrentperiod.
Standards and Interpretations in issue not early adoptedAtthedateofauthorisationofthesefinancialstatements,thefollowingStandards,InterpretationsandAmendmentstoexistingstandardswereinissuebutnotyeteffectiveforthereportingperiodoftheGroup:
• IFRS9 ‘FinancialInstruments’effective1January2013
• IFRS13 ‘Fairvaluemeasurement’effective1January2013
The directors anticipate that the adoption of these Standards, Interpretations and Amendments to existingstandardsinfutureperiodswillhavenomaterialimpactonthefinancialstatementsoftheGroup.
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3. Significant accounting policiesStatement of complianceThefinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandardsasadoptedbytheEuropeanUnion.
Basis of preparationThefinancialstatementshavebeenpreparedonthehistoriccostbasis.
Basis of consolidationTheGroupfinancialstatementsconsolidate theaccountsof theCompanyandall itssubsidiaryundertakings,whichareallmadeupto31Marcheachyear.
GoodwillGoodwillrepresentstheexcessofthecostofacquisitionsoverthefairvalueoftheidentifiableassetsacquired(includingintangibleassetsoftheacquiredbusiness)atthedateofacquisition.Goodwillisrecognisedasanassetandassessed for impairmentat leastannually.Any impairment is recognised immediately in thestatementofcomprehensiveincome.Thedirectorsconsiderthatgoodwillhasaninfiniteusefullife.
InaccordancewiththetransitionalrulesofIFRSs,goodwillthathasbeenwrittenofftoreservescannotberestatedorrecycled,eitherontransitionoratanylaterdate.Onthesubsequentdisposalorterminationofapreviouslyacquiredbusiness,theprofitor lossondisposalortermination iscalculatedaftercharginggoodwillpreviouslytakentoreserves.
Revenue recognitionRevenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivable.Revenueisreducedforestimatedcustomerreturns,rebatesandsimilarallowances.
Revenuefromthesaleofgoodsandservicesisrecognisedwhenallofthefollowingconditionsaresatisfied:
• theGrouphastransferredtothebuyerthesignificantrisksandrewardsofownership;
• theGroupretainsneithercontinuingmanagementinvolvementtothedegreeusuallyassociatedwithownership,noreffectivecontroloverthegoodsandservicessold;
• theamountofrevenuecanbemeasuredreliably;
• itisprobablethattheeconomicbenefitsassociatedwiththetransactionwillflowtotheentity;and
• thecostsincurredortobeincurredinrespectofthetransactioncanbemeasuredreliably.
Interest revenueInterestrevenueisaccruedonatimebasis,byreferencetotheprincipaloutstandingandattheeffectiveinterestrateapplicable.
Operating leasesPaymentsunderoperatingleasesarechargedtoprofitsonastraight-linebasisoverthelifeofthelease.
Research and development expenditureResearch expenditure iswritten off as incurred. Development expenditure is generallywritten off as incurredunlessitmeetstherecognitioncriteriaofanintangibleasset,asdefinedinInternationalAccountingStandard38(IntangibleAssets),inwhichcaseitwouldberecognisedasanassetoftheGroup.
17
Notes to the consolidated financial statements(continued)
Energy Technique P
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eport & Financial S
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Notes to the consolidated financial statements(continued)
3. Significant accounting policies (continued)Foreign currenciesMonetaryassetsandliabilitiesdenominatedinforeigncurrenciesaretranslatedintosterlingattheclosingrateofexchangeanddifferencestakentothecomprehensiveincomestatement.Transactionsinforeigncurrenciesarerecordedusingtherateofexchangerulingatthedateofthetransaction.
Borrowing costsBorrowingcostsarerecognisedinthecomprehensiveincomestatementintheperiodinwhichtheyareincurred.
Retirement benefit costsA number of theGroup’s permanent employees aremembers of personal pension plans,which are definedcontributionschemes(moneypurchase).Contributionstotheseschemesarerecognisedasanexpensewhenemployeeshaverenderedservicesentitlingthemtothecontributions.
TaxationNocorporationtaxarisesontheresultsfortheyearbecauseoftheavailabilityoflossesbroughtforward.
Fullprovisionismadefordeferredtaxation,usingtheliabilitymethodwithoutdiscounting,totakeaccountofthetemporarydifferencesbetweentheincidenceofincomeandexpenditurefortaxationandaccountingpurposes.Deferredtaxassetsarerecognisedtotheextentthattheyareconsideredrecoverableintheforeseeablefuture.Anychangesinthedeferredtaxassetarerecognisedimmediatelyinthecomprehensiveincomestatement.
Plant and equipmentPlantandequipmentisstatedatcostlessaccumulateddepreciationandimpairmentcharges.
Depreciationisprovidedonthecostofplantandequipmentonastraight-linebasisinordertowritethemdowntoestimatedrealisablevalueovertheirestimatedusefullivesasfollows:
Rate Plantandequipment between10%and33%perannum
InventoriesInventorieshavebeenvaluedatthelowerofcostandnetrealisablevalue,usingtheFirstInFirstOut(FIFO)costbasis,withdueallowancemadeforobsoleteandslowmovingitems.Forworkinprogressandfinishedgoods,costconsistsofdirectmaterials,labourandappropriateworksoverheads.
Financial assetsTradereceivablesandotherreceivablesthathavefixedordeterminablepaymentsthatarenotquotedinanactivemarketareclassifiedasreceivables,whicharemeasuredatamortisedcostusingtheeffectiveinterestmethod,lessanyimpairment.Interestincomeisrecognisedbyapplyingtheeffectiveinterestrate,exceptforshort-termreceivableswhentherecognitionofinterestwouldbeimmaterial.
Financial liabilities and equity instruments issued by the GroupDebtandequityinstrumentsareclassifiedaseitherfinancialliabilitiesorasequityinstrumentsinaccordancewiththesubstanceofthecontractualarrangement.
Anequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsofanentityafterdeductingallofitsliabilities.EquityinstrumentsissuedbytheGrouparerecordedattheproceedsreceived,netofdirectissuecosts.
ProvisionsAprovisionhasbeenmadetocovertheonerousliabilitiesofemployers’nationalinsuranceandpensioncontributionsonannualpaymentstobemadeunderapermanenthealthinsurancepolicy.Theprovisionismeasuredatthepresentvalueoftheexpendituresexpectedtosettletheobligationusingpre-taxratesthatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheobligations.
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4. Critical accounting judgments and key sources of estimation uncertaintyIntheapplicationoftheGroup’saccountingpolicies,whicharedescribedinnote3,thedirectorsarerequiredtomake judgments, estimates andassumptions about the carrying amountsof assets and liabilities that arenot readily apparent from other sources. The estimates and associated assumptions are based on historicalexperienceandotherfactorsthatareconsideredtoberelevant.Actualresultsmaydifferfromtheseestimates.
Theestimatesandunderlyingassumptionsarereviewedonanon-goingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiodorintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.
ThedirectorsdonotconsiderthereareanycriticaljudgmentsorkeysourcesofestimationuncertaintymadeintheprocessofapplyingtheGroup’saccountingpoliciesandtheamountsrecognisedinthefinancialstatements.
5. Revenue 2012 2011 £000 £000
Continuing OperationsSaleofgoods 6,713 5,450
Renderingofservices 380 336
7,093 5,786
6. Business segments6.1. Products and services within each business segment Formanagementpurposes,theGroupisorganisedintotwooperatingactivities:theDiffusionbusinessand
Centralcosts.Theprincipalproductsandservicesoftheseactivitiesareasfollows:
Diffusion Manufacture anddistributionof fan coils andcommercial heatingproducts, togetherwithaftersalessparesandservicefromitsfacilityinWestMolesey,Surrey.
Centralcosts CostsassociatedwithbeingapubliccompanyandmaintainingtheAIMquotationontheLondonStockExchange.
SIAS FM, the Company’s former buildingmaintenance subsidiary, became non-core during the previousfinancial yearandwassoldon24March2011.Asaconsequence, its resultshavebeen includedunderDiscontinuedOperations.
19
Notes to the consolidated financial statements(continued)
Energy Technique P
lc Annual R
eport & Financial S
tatements 2012
Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Notes to the consolidated financial statements(continued)
6. Business segments (continued)6.2. Segment revenue and segment result Segmentrevenue Segmentresult
2012 2011 2012 2011 Asrestated £000 £000 £000 £000
CONTINUING OPERATIONS Diffusion Beforeexceptionalitems 7,093 5,786 343 (74)
Exceptionalitems – – – (63)
Afterexceptionalitems 7,093 5,786 343 (137)
Central costs Beforeexceptionalitems – – (130) (173)
Exceptionalitems – – – (45)
Afterexceptionalitems – – (130) (218)
Revenue and operating profit/(loss) 7,093 5,786 213 (355)
Netfinancecosts (40) (41)
Profit/(loss) before tax 173 (396)
Incometaxcharge (25) –
Profit/(loss) for the year from Continuing Operations 148 (396)
DISCONTINUED OPERATIONS SIASFM – 1,709 12 (734)
Revenue and operating profit/(loss) – 1,709 12 (734)
Finance costs – (6)
Profit/(loss) before tax 12 (740)
Incometaxcharge – –
Profit/(loss) for the year from Discontinued Operations 12 (740)
Consolidated revenue and result for the year 7,093 7,495 160 (1,136)
Revenuereportedaboverepresentsrevenuegeneratedfromexternalcustomers.Inter-segmentsalesintheyearamountedto£nil(2011:£nil).Diffusionhadonecustomer(2011:nil)withrevenueinexcessof10%.
ThenetfinancecostsunderContinuingOperationsof£40,000(2011:£41,000)comprisesfinancerevenueof£nil(2011:£1,000)andfinancecostsof£40,000(2011:£42,000)byDiffusion.
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6. Business segments (continued)6.3. Segment assets and liabilities Assets Liabilities
2012 2011 2012 2011 Asrestated £000 £000 £000 £000
Diffusion 3,087 2,929 1,658 1,651
Centralcosts 2 25 22 54
3,089 2,954 1,680 1,705
6.4. Other segment information Additionsto Depreciation non-currentassets
2012 2011 2012 2011 £000 £000 £000 £000
Diffusion 73 68 83 9
Centralcosts – 2 1 –
Discontinued – 22 – 17
73 92 84 26
6.5. Geographical segments Acquisitionof Revenue Segmentassets segmentassets
2012 2011 2012 2011 2012 2011 £000 £000 £000 £000 £000 £000
UnitedKingdom 6,248 6,666 3,089 2,954 84 26
Europe 792 297 – – – –
MiddleEast 53 532 – – – –
7,093 7,495 3,089 2,954 84 26
7. Finance revenue 2012 2011 £000 £000
Interestreceivedonbankbalances – 1
21
Notes to the consolidated financial statements(continued)
Energy Technique P
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eport & Financial S
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Notes to the consolidated financial statements(continued)
8. Finance costs 2012 2011 Asrestated £000 £000
Invoicediscounting 22 26
Obligationsunderhirepurchaseagreements 4 8
Notionalinterestonprovisions 14 14
40 48
Attributableto:
ContinuingOperations 40 42
DiscontinuedOperations – 6
40 48
The weighted average capitalisation rate, excluding service charges, on funds borrowed generally wasapproximately7.4%perannum(2011:6.4%).
9. Taxation9.1. Taxation charge 2012 2011 £000 £000
Currenttax
–UKcorporationtaxonprofit/(loss)fortheyear – –
Deferredtax(Note9.2)
–Chargeinrelationtoutilisationoftaxlosses 25 –
Total tax charge for the year 25 –
Attributableto:
ContinuingOperations 25 –
DiscontinuedOperations – –
25 –
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9. Taxation (continued)9.1. Taxation charge (continued) The tax assessed for the year is lower than the standard rate of corporation tax in the UK of 26%
(2011:28%).Thedifferencesareexplainedbelow:
2012 2011 £000 £000
Profit/(loss)fromContinuingOperations 173 (396)
Profit/(loss)fromDiscontinuedOperations 12 (740)
Profit/(loss)fromOperations 185 (1,136)
UKcorporationtaxat26%(2011:28%) 48 (318)
Adjustedfor:
(Income)/expensesnot(taxable)/deductiblefortaxpurposes (1) 217
Taxlosses(utilised)/generated (6) 104
Capitalallowancesinexcessofdepreciation (16) (3)
Total tax charge for the year 25 –
9.2. Deferred tax asset Deferredtaxiscalculatedinfullontemporarydifferencesundertheliabilitymethodusingataxrateof23%
(2011:25%).
Themovementonthedeferredtaxaccountisasshownbelow:
Opening Closing balance Movement balance £000 £000 £000
Acceleratedcapitalallowances (21) (1) (22) Short-termtimingdifferences 1 – 1
(20) (1) (21) Taxlosses 1,714 75 1,789
31 March 2011 1,694 74 1,768
Acceleratedcapitalallowances (22) (12) (34) Short-termtimingdifferences 1 25 26
(21) 13 (8) Taxlosses 1,789 (197) 1,592
31 March 2012 1,768 (184) 1,584
23
Notes to the consolidated financial statements(continued)
Energy Technique P
lc Annual R
eport & Financial S
tatements 2012
Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Notes to the consolidated financial statements(continued)
9. Taxation (continued)9.2. Deferred tax asset (continued) Deferredtaxassetsplit:
ET Energy Environmental Technique Ltd Plc Total £000 £000 £000
Acceleratedcapitalallowances (22) – (22) Short-termtimingdifferences 1 – 1 Losses 367 1,422 1,789
31 March 2011 346 1,422 1,768
Acceleratedcapitalallowances (34) – (34) Short-termtimingdifferences 26 – 26 Losses 288 1,304 1,592
31 March 2012 280 1,304 1,584
Thedeferred taxassethasbeen recognised forETEnvironmentalLimited, theGroup’s tradingsubsidiarybecauserecoveryisconsideredreasonablycertain.Thedirectorshavemadenofurtherprovisionduringtheyear.Adeferredtaxassethasnotbeenrecognised in respectof the lossesheld inEnergyTechniquePlcbecauserecoveryisnotconsideredreasonablycertain.
Deferredtaxassetrecognised:
2012 2011 £000 £000
Deferredtaxassettoberecoveredaftermorethan12months 280 305
Deferredtaxassettoberecoveredwithin12months – –
280 305
Therearenodeferredtaxliabilitiesandconsequentlynooffsetofdeferredtaxassetsandliabilities.
Inadditiontothetradinglossesshownabove,theGrouphascapitallossesof£3.8million(2011:£3.8million)andsurplusACTof£0.6million(2011:£0.6million).Neitherofthesehasbeenrecognisedasadeferredtaxassetbecauserecoveryisnotconsideredreasonablycertain.
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10. Discontinued Operations10.1. SIAS FM DiscontinuedOperationscomprisedSIASFMsoldon24March2011toStromaEvolutionLimited,aspecial
purposevehicleofStromaDevelopmentsLimited.
10.2. Analysis of profit/(loss) for the year from Discontinued Operations
2012 2011 £000 £000
Profit/(loss) for the year Revenue – 1,709
Expenses – (2,027)
Operatingloss – (318)
Finance costs – (6)
Profit/(loss)ondisposalofSIASFM 12 (416)
Profit/(loss)beforetax 12 (740)
Incometaxcharge – –
Profit/(loss)aftertax 12 (740)
Cash flows
Netcashabsorbedbyoperatingactivities – (460)
Netcashgenerated/(absorbed)byinvestingactivities 12 (122)
10.3. Analysis of loss on disposal of SIAS FM 2012 2011 £000 £000
Cashproceeds 12 23
Assetsdisposedof:
Goodwill – (359)
Fixedassets – (1)
Cash – (136)
Debtors – (452)
Creditors – 518
12 (407)
Expensesofdisposal – (9)
Loss on disposal before and after tax 12 (416)
25
Notes to the consolidated financial statements(continued)
Energy Technique P
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eport & Financial S
tatements 2012
Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Notes to the consolidated financial statements(continued)
11. Profit/(loss) for the year 2012 2011 £000 £000
Profit/(loss) for the year has been arrived at after charging/(crediting):Impairmentlossontradereceivables 32 93
Depreciationofplantandequipment 73 92
Profitondisposalofplantandequipment (2) –
Researchanddevelopmentcostsexpensedimmediately 191 164
Hireofplantandequipment 12 9
Auditors’remuneration 20 21
Operatinglease–landandbuildings 191 218
Operatinglease–plantandmachinery 118 192
Remunerationpaidtotheauditorsfornon-auditservicesamountedto£3,000(2011:£5,000)fortaxationservices.
DuringtheyeartheCompany’ssubsidiary,ETEnvironmentalLimited,purchasedsupportservicesof£nil(2011:£6,800) fromFolio (UK)Limited,acompanywhereMrJamesLugg,whowasadirectorof theCompanyuntilSeptember2010,hada50%shareholdinginterest.At31March2012,theoutstandingbalancepayabletoFolio(UK)Limitedwas£nil(2011:£169).
12. Employees 2012 2011 Asrestated No. No.
Theaveragenumberofpeople,includingdirectors,employedbytheGroupwas:
Operations 38 50
Salesandservice 20 21
Administration 4 13
62 84
£000 £000
Employee costs:
Wagesandsalaries 1,777 2,479
Social security charges 200 281
Pension costs 42 43
2,019 2,803
Thedirectors’remunerationisdisclosedwithintheRemunerationReportonpage10.
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13. Earnings/(losses) per share 2012 2011 Pence Pence
Basic and diluted earnings/(losses) per shareContinuingOperations 0.45 (1.20)
DiscontinuedOperations 0.03 (2.23)
0.48 (3.43)
Theearningsandweightedaveragenumberofordinarysharesusedinthecalculationofbasicanddilutedearningspershareareasfollows:
£000 £000
Profit/(loss)fromContinuingOperations 148 (396)
Profit/(loss)fromDiscontinuedOperations 12 (740)
Earnings/(losses)usedinthecalculationofbasicanddilutedearningspershare 160 (1,136)
No. No.
Weightedaveragenumberofordinarysharesinissue 33,120,160 33,120,160
Weightedaveragenumberofordinarysharesonadilutedbasis 33,120,160 33,120,160
14. Intangible assets 2012 2011 £000 £000
Cost:
Atbeginningofyear 25 –
Additions – 384
DisposalofSIASFM – (359)
At end of year 25 25
Theadditionsin2011comprisedgoodwillarisingontheBensonassetsacquiredinJuly2009andonSIASFMacquiredinAugust2009.
Goodwillisnotamortised,buttestedannuallyforimpairmentwiththerecoverableamountbeingdeterminedfromvalueinusecalculations.Thesehavebeenpreparedusingdiscountedcashflowforecastsforthenexttwoyearsandapre-taxdiscountrateof15%.
27
Notes to the consolidated financial statements(continued)
Energy Technique P
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eport & Financial S
tatements 2012
Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Notes to the consolidated financial statements(continued)
15. Plant and equipment 2012 2011 £000 £000
Cost:
Atbeginningofyear 1,623 1,616
Eliminatewritten-offassets (869) –
Additions 84 26
Externaldisposals (5) –
DisposalofSIASFM – (19)
At end of year 833 1,623
Depreciation:
Atbeginningofyear 1,298 1,224
Eliminatewritten-offassets (869) –
Providedintheyear 73 92
Disposals (5) –
DisposalofSIASFM – (18)
At end of year 497 1,298
Net book value:
At end of year 336 325
Atbeginningofyear 325 392
Includedinthetotalnetbookvalueoftangiblefixedassetsis£254,000(2011:£249,000)ofassetsheldunderhirepurchaseagreementsonwhichdepreciationof£33,000(2011:£31,000)hasbeenchargedintheyear.
16. SubsidiariesDetailsoftheCompany’soperatingsubsidiaryat31March2012isasfollows:
NameofGroup %shares %votingundertaking Incorporated held held Principalactivity
ETEnvironmental England 100% 100% Manufactureanddistributionof Limited(tradingas commercialairconditioningandDiffusionandEnergy heatingproducts Technique)
AllsharesheldareordinarysharesandareheldbyEnergyTechniquePlc.TheGroupundertakingoperatesintheUnitedKingdomandisengagedinmanufacturing,distributionandmaintenance.DormantGroupundertakingshavebeenexcludedbyvirtueofSection405(2)oftheCompaniesAct2006.
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17. Inventories 2012 2011 £000 £000
Rawmaterialsandconsumables 533 578
Workinprogress 5 5
Finishedgoods 135 162
673 745
Thecostofinventoriesrecognisedasanexpenseduringtheyear,inrespectofbothContinuingandDiscontinuedOperationswas£3.31million(2011:£3.38million).Thecostofinventoriesrecognisedasanexpensewas£52,000(2011:£nil)inrespectofwritedownsofinventoriestonetrealisablevalue.
18. Trade and other receivables 2012 2011 £000 £000
Tradereceivables 1,311 1,137
Allowancefordoubtfuldebts (41) (104)
1,270 1,033
Prepaymentsandaccruedincome 112 104
1,382 1,137
Theaverageperiodofcreditonsalesis50days(2011:46days).Interestisgenerallynotchargedonoverduedebts.TheGrouphasprovidedforalltradereceivablesbasedonestimatedirrecoverableamounts.
TheGroupaimstoobtaincreditinsuranceforallofthetradereceivablesofETEnvironmentalLimited,althoughinthecurrenteconomicenvironmentthishasbecomemoredifficult.Thetradereceivableduefromthelargestcustomerattheyearendwas£156,000(2011:£277,000).Inaddition,therewerefourothercustomers(2011:twocustomers)whoaccountedformorethan5%oftradereceivables.
Indeterminingtherecoverabilityofatradereceivable,theGroupconsidersanychangeinthequalityofthetradereceivablefromthedatecreditwasinitiallygranteduptothereportingdate.Withtheavailabilityofcreditinsuranceandthelimitedconcentrationofcreditriskduetothelargecustomerbase,thedirectorsbelievethereisnofurthercreditprovisionrequiredinexcessoftheallowancefordoubtfuldebts.
18.1. Ageing of past due date but not impaired 2012 2011 £000 £000
Morethan60days – 7
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Notes to the consolidated financial statements(continued)
18. Trade and other receivables (continued)18.2. Movement in the allowance for doubtful debts 2012 2011 £000 £000
Atbeginningofyear 104 36
Impairmentlossesrecognised 32 93
Amountswrittenoff (95) –
SIASFMdisposedof – (25)
At end of year 41 104
19. Trade and other payables 2012 2011 £000 £000
Tradecreditors 1,083 1,069
Othercreditorsandaccruals 122 74
1,205 1,143
Theaverageperiodofcreditonpurchasesis68days(2011:64days).TheGrouphasfinancialriskmanagementpoliciesinplacetoensurethatallpayablesarepaidwithinthecredittimeframe.Asaconsequence,interestisgenerallynotpayableontradepayables.
20. Provisions 2012 2011 £000 £000
Atbeginningofyear 111 –
Priorperiodadjustment – 111
Notional interest 14 14
Payments (15) (14)
At end of year 110 111
The provisions relate to the onerous liabilities of employers’ national insurance and pension contributions onannualpaymentstobemadeunderapermanenthealthinsurancepolicy.
TheannualpaymentsincludeaprovisionforanincreaseunderRPIwhichhasbeenestimatedat2%.Thepre-taxdiscountrateappliedtotheamountspayableis15%.
21. BorrowingsTheGrouphasprovidedLloydsTSBBankPlcwithfixedandfloatingchargesoverallof theGroup’sassets,includingcrossguarantees,assecurityfortheinvoicediscountingfacilitiesprovided.TheGroupusestheinvoicediscountingfacilityforshort-termfluctuationsinworkingcapital.At31March2012,£156,000(2011:£189,000)hadbeendrawndownundertheinvoicediscountingfacility.
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22. Share capital Share capital Share premium 2012 2011 2012 2011 £000 £000 £000 £000
Authorised166,666,667OrdinarySharesof6.25penceeach 10,417 10,417 – –
350,789,120deferredsharesof0.75penceeach 2,631 2,631 – –
13,048 13,048 – –
Allotted, called up and fully paid33,305,160OrdinarySharesof6.25penceeach 2,082 2,082 3,422 3,422
302,628,016deferredsharesof0.75penceeach 2,269 2,269 – –
4,351 4,351 3,422 3,422
Thedeferredshareshavenovotingrightsanddonotcarryanyentitlementtoattendgeneralmeetingsof theCompany.Theycarryonlytherighttoparticipateinanyreturnofcapitaltotheextentof0.75ppershare,butonlyaftereachOrdinarySharehasreceivedinaggregatecapitalrepaymentsof£100pershare.
185,000OrdinarySharesof6.25penceeachareheldbytheCompanyintreasuryandrepresent0.56%ofthecalledupsharecapital.
23. Reserves 2012 2011 £000 £000
At beginning and end of year 7,449 7,449
Reservescompriseacapitalreductionreserveof£11.41millionandmergerreliefof£1.56million,lessgoodwillwrittenoffof£4.28millionandamergerreserveof£1.25million.
24. Retained earnings 2012 2011 £000 £000
Atbeginningofyear (13,973) (12,726)
Priorperiodadjustment – (111)
Profit/(loss)fortheyear 160 (1,136)
At end of year (13,813) (13,973)
25. Retirement benefit plansTheGroupcontributestodefinedcontributionretirementbenefitplansforcertainqualifyingemployees.TheassetsoftheplansareheldseparatelyfromthoseoftheGroupinfundsunderthecontroloftrustees.
Thetotalexpenserecognisedinthecomprehensive incomestatementof£42,000(2011:£43,000)representscontributions payable to these plans by theGroup at rates specified in the rules of the plans. At 31March2012,contributionsof£3,000(2011:£3,000)hadnotbeenpaidovertotheplans.Theamountswerepaidoversubsequenttothebalancesheetdate.
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Notes to the consolidated financial statements(continued)
26. Financial instruments26.1. Capital risk management
TheGroupmanagesitscapitaltoensureitwillbeabletocontinueasagoingconcernwhilemaximisingthereturnstostakeholders.ThecapitalstructureoftheGroupconsistsofcashandequityoftheparent,comprisingissuedcapital,reservesandretainedearnings.Inaddition,theGrouphasaninvoicediscountingfacilitytofundvariationsinworkingcapital.
26.2. Short-term trade payables and receivablesShort-termtradepayablesandreceivableshavebeenexcludedfromallofthefollowingdisclosures,apartfromforeignexchangerisk.
26.3. Gearing ratioTheGrouphadnonetborrowingsateither31March2011or31March2012.
26.4. Significant accounting policiesDetailsofthesignificantaccountingpoliciesandmethodsadopted,inrespectofeachclassoffinancialassetandfinancialliabilityaredisclosedinnote3tothefinancialstatements.
26.5. Categories of financial instrument 2012 2011 £000 £000
Cashandcashequivalents 393 417
Obligationsunderhirepurchaseagreements (49) (112)
Invoicediscounting (156) (189)
188 116
CashandcashequivalentsrepresentsamountsdepositedwithLloydsTSBBankPlc.
26.6. Financial risk managementThedirectorsdonotconsideranymaterialbenefitwouldaccruetotheGroupbyusingderivativeinstruments.
26.7. Foreign currency risk managementThedirectorsdonotconsiderthereisanymaterialexposuretoforeigncurrencyfluctuations.
26.8. Interest rate risk managementInterestonthecashdepositswithLloydsTSBBankPlcisvariableandbasedoncurrentratesavailable.Interestpayableontheinvoicediscountingfacility,whendrawndown,is2.50%overbaserate.
Ifinterestrateshadbeen50basispointshigherandallothervariableswereheldconstant,thentheprofitfortheyearandnetequityattheyearendwouldhavedecreasedbyapproximately£2,000(2011:£1,000).
26.9. Financing facilitiesTheGrouphadcashdepositsof£393,000at31March2012(2011:£417,000).Inaddition,theGrouphadaninvoicediscountingfacilitywithLloydsTSBBankPlcofupto50%ofapprovedeligibledebts.Theundrawncommittedinvoicediscountingfacilityisdependentonthelevelofapprovedeligibledebtsatanytimeandamountedto£364,000at31March2012(2011:£339,000).
TheLloydsTSBBankPlcinvoicediscountingfacilityisundatedastoitsdurationandincommonwithallsuchfacilitiesisrepayableondemand.
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26. Financial instruments (continued)26.10. Credit risk management
Creditriskreferstotheriskthatacounterpartywilldefaultonitscontractualobligationsresultinginfinancialloss to theGroup.Thecarryingamountoffinancialassets recorded in thefinancialstatements,netofimpairmentlosses,representstheGroup’smaximumexposuretocreditrisk.
ThecreditriskonliquidfundsdepositedwithLloydsTSBBankPlcwasinexcessof5%ofmonetaryassets,butthisislimitedbecausethecounterpartyisabankwithahighcreditratingassignedbyinternationalcreditratingagencies.
Thecreditriskontradereceivablesismanagedbysellingtoalargenumberofcustomersandobtainingcreditinsurancewhereverpossible.
26.11. Liquidity risk managementThe Group manages liquidity risk by maintaining adequate reserves and banking facilities, and bycontinuouslymonitoring forecast and actual cash flows andmatching thematurity profiles of financialassetsandliabilities.
26.12. Fair value of financial instrumentsThedirectorsconsiderthecarryingamountsoffinancialassetsandliabilitiesrecordedatamortisedcostsinthefinancialstatementsapproximatestofairvalue.
27. Cash and cash equivalents Beginning Cash Non-cash End ofyear flow changes of year £000 £000 £000 £000
Cashatbank 417 (24) – 393Invoicediscounting (189) 33 – (156)
228 9 – 237Obligationsunderhirepurchaseagreements (112) 63 – (49)
116 72 – 188
28. Operating leases28.1. Leasing arrangements
Operating leases relate to properties and certain company vehicles. The lease on theWest Moleseypropertyexpiresin2015andtherearenofurtherrentreviews.Carleasesaregenerallytakenoutforatermofthreeyears.
28.2. Payments recognised as an expense 2012 2011 £000 £000
Landandbuildings 191 218
Plantandmachinery 117 192
308 410
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Energy Technique P
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Notes to the consolidated financial statements(continued)
28. Operating leases (continued)28.3. Non-cancellable operating lease commitments Land&buildings Other 2012 2011 2012 2011 £000 £000 £000 £000
Totalfutureminimumleasepaymentsfallingdue:
Within one year 191 191 34 33
Betweentwoandfiveyears 382 573 62 68
573 764 96 101
28.4. Present value of hire purchase agreements Plant
2012 2011 £000 £000
Within one year 27 96
Betweentwoandfiveyears 22 16
49 112
29. Immediate parent companyTheimmediateparentcompanyisElsinaLimited,whichisincorporatedintheBritishVirginIslands.
30. Ultimate controlling partyInthedirectors’opinion,theultimatecontrollingpartyoftheCompanywastheTchenguizFamilyTrust.
31. Approval of financial statementsThefinancialstatementswereapprovedbytheboardofdirectorsandauthorisedforissueon14June2012.
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Accounts of the parent companyEnergy Technique Plc
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
WehaveauditedtheParentCompanyfinancialstatementsofEnergyTechniquePlcfortheyearended31March2012whichcomprisetheParentCompanyBalanceSheet,theParentCompanyStatementofChangesinEquityandtherelatednotes.ThefinancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawandUnitedKingdomAccountingStandards(UnitedKingdomGenerallyAcceptedAccountingPractice).
Thisreportismadesolelytothecompany’smembers,asabody,inaccordancewithChapter3ofPart16oftheCompaniesAct2006.OurauditworkhasbeenundertakensothatwemightstatetotheCompany’smembersthosemattersweare required tostate to them inanauditors’ reportand fornootherpurpose.To the fullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompany’smembersasabodyforourauditwork,forthisreport,orfortheopinionswehaveformed.
Respective responsibilities of directors and auditorsAsexplainedmorefully inthedirectors’responsibilitiesstatementsetoutonpages6and7,thedirectorsareresponsible for the preparation of the ParentCompany financial statements and for being satisfied that theygiveatrueandfairview.OurresponsibilityistoauditandexpressanopinionontheParentCompanyfinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’sEthicalStandardsforAuditors.
Scope of the audit of the financial statementsAnauditinvolvesobtainingevidenceabouttheamountsanddisclosuresinthefinancialstatementssufficienttogive reasonableassurance that thefinancial statementsare free frommaterialmisstatement,whethercausedbyfraudorerror.Thisincludesanassessmentof:whethertheaccountingpoliciesareappropriatetotheParentCompany’scircumstancesandhavebeenconsistentlyappliedandadequatelydisclosed;thereasonablenessofsignificantaccountingestimatesmadebythedirectors;andtheoverallpresentationofthefinancialstatements.In addition, we read all the financial and non-financial information in the directors’ report to identifymaterialinconsistencieswiththeauditedfinancialstatements.Ifwebecomeawareofanyapparentmaterialmisstatementsorinconsistenciesweconsidertheimplicationsforourreport.
Opinion on financial statementsInouropiniontheParentCompanyfinancialstatements:
• giveatrueandfairviewofthestateoftheCompany’saffairsasat31March2012fortheyearthenended;
• havebeenproperlypreparedinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice;and
• havebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct2006.
Opinion on other matter prescribed by the Companies Act 2006Inouropiniontheinformationgiveninthedirectors’reportforthefinancialyearforwhichtheParentCompanyfinancialstatementsarepreparedisconsistentwiththeParentCompanyfinancialstatements.
Matters on which we are required to report by exceptionWehavenothingtoreportinrespectofthefollowing:
UndertheCompaniesAct2006wearerequiredtoreporttoyouifinouropinion:
• adequateaccountingrecordshavenotbeenkeptbytheparentcompany,orreturnsadequateforouraudithavenotbeenreceivedfrombranchesnotvisitedbyus;or
• theParentCompanyfinancialstatementsarenotinagreementwiththeaccountingrecordsandreturns;or
• certaindisclosuresofdirectors’remunerationspecifiedbylawarenotmade;or
• wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.
Other matterWehavereportedseparatelyontheGroupfinancialstatementsofEnergyTechniquePlcfortheyearended31March2012.
Nigel Fry (Senior Statutory Auditor)For and on behalf of Milsted Langdon LLPChartered Accountants and Statutory AuditorsTaunton14June2012
Independent auditors’ reporttothemembersofEnergyTechniquePlc
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
2012 2011 Note £000 £000
ASSETSNon-current assetsComputerequipment 3 1 –
Investmentsingroupundertakings 4 2,127 2,127
Total non-current assets 2,128 2,127
Current assetsTradeandotherreceivables 5 416 400
Cash – 23
Total current assets 416 423
Total assets 2,544 2,550
LIABILITIESCurrent liabilitiesTradeandotherpayables 6 (27) (65)
Total current liabilities (27) (65)
Total liabilities (27) (65)
Net assets 2,517 2,485
EQUITYEquity attributable to equity holdersIssuedcapital 7 7,773 7,773
Reserves 8 2,336 2,336
Retainedearnings 9 (7,592) (7,624)
Total equity 2,517 2,485
ApprovedbytheBoardon14June2012andsignedonitsbehalfby:
W K Goldsmith L A Stimpson
Energy Technique Plc – Balance sheetat31March2012Companynumber00013273
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Share Share Retained capital premium Reserves earnings Total £000 £000 £000 £000 £000
At 1 April 2010 4,351 3,422 2,336 (6,837) 3,272
Lossfortheyear – – – (787) (787)
Total recognised income and expense – – – (787) (787)
At 31 March 2011 4,351 3,422 2,336 (7,624) 2,485
Profitfortheyear – – – 32 32
Total recognised income and expense – – – 32 32
At 31 March 2012 4,351 3,422 2,336 (7,592) 2,517
Energy Technique Plc – Changes in equityfortheyearended31March2012
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
1. Significant accounting policiesStatement of preparationThefinancialstatementshavebeenpreparedonthehistoriccostbasisandinaccordancewithUKGAAP.
DepreciationDepreciation is provided on the cost of fixed assets on a straight line basis in order towrite them down toestimatedrealisablevalueattherateof33%perannum.
Deferred taxationFullprovisionismadefordeferredtaxation,usingtheliabilitymethodwithoutdiscounting,totakeaccountofthetemporarydifferencesbetweentheincidenceofincomeandexpenditurefortaxationandaccountingpurposes.Deferredtaxassetsarerecognisedtotheextentthattheyareconsideredrecoverableintheforeseeablefuture.
Investments in subsidiary undertakingsInvestmentsinsubsidiaryundertakingsarestatedatcost,lessprovisionsforanyimpairmentlosses.
Financial assetsTradereceivablesandotherreceivablesthathavefixedordeterminablepaymentsthatarenotquotedinanactivemarketareclassifiedasreceivables,whicharemeasuredatamortisedcostusingtheeffectiveinterestmethod,lessanyimpairment.Interestincomeisrecognisedbyapplyingtheeffectiveinterestrate,exceptforshort-termreceivableswhentherecognitionofinterestwouldbeimmaterial.
Financial liabilities and equity instruments issued by the CompanyDebtandequityinstrumentsareclassifiedaseitherfinancialliabilitiesorasequityinstrumentsinaccordancewiththesubstanceofthecontractualarrangement.
Anequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsofanentityafterdeductingallofitsliabilities.EquityinstrumentsissuedbytheCompanyarerecordedattheproceedsreceived,netofdirectissuecosts.
2. Profit and loss account 2012 2011 £000 £000
Profit/(loss)fortheyeardealtwithintheaccountsoftheCompany 32 (787)
AspermittedbySection408oftheCompaniesAct2006,aseparateprofitandlossaccountoftheCompanyisnotpresented.
2012 2011 £000 £000
Auditors’remuneration 5 6
Remunerationpaidtotheauditorsfornon-auditservicesamountedto£1,000(2011:£2,000)fortaxationservices.
Energy Technique Plc – Notes to the financial statements
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
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Energy Technique Plc – Notes to the financial statements(continued)
3. Computer equipment 2012 2011 £000 £000
Cost:
Atbeginningofyear – 2
Additions 1 –
Disposals – (2)
At end of year 1 –
Depreciation:
Atbeginningofyear – –
Providedintheyear – 2
Disposals – (2)
At end of year – –
Net book value:
At end of year 1 –
Atbeginningofyear – 2
4. Investments in group undertakings Shares in groupundertakings
2012 2011 £000 £000
Cost:
At beginning and end of year 14,829 14,829
Provisions:
At beginning and end of year 12,702 12,702
Net book value:
At end of year 2,127 2,127
Atbeginningofyear 2,127 2,127
5. Trade and other receivables 2012 2011 £000 £000
Amountsowedbygroupundertakings 413 391
Currenttaxasset 2 7
Prepaymentsandaccruedincome 1 2
416 400
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Energy Technique Plc – Notes to the financial statements(continued)
6. Trade and other payables 2012 2011 £000 £000
Tradecreditors 7 51
Othercreditorsandaccruals 20 14
27 65
7. Share capital Share capital Share premium 2012 2011 2012 2011 £000 £000 £000 £000
Authorised166,666,667OrdinarySharesof6.25penceeach 10,417 10,417 – –
350,789,120deferredsharesof0.75penceeach 2,631 2,631 – –
13,048 13,048 – –
Allotted, called up and fully paid33,305,160OrdinarySharesof6.25penceeach 2,082 2,082 3,422 3,422
302,628,016deferredsharesof0.75penceeach 2,269 2,269 – –
4,351 4,351 3,422 3,422
Thedeferredshareshavenovotingrightsanddonotcarryanyentitlementtoattendgeneralmeetingsof theCompany.Theycarryonlytherighttoparticipateinanyreturnofcapitaltotheextentof0.75ppershare,butonlyaftereachOrdinarySharehasreceivedinaggregatecapitalrepaymentsof£100pershare.
185,000OrdinarySharesof6.25penceeachareheldbytheCompanyintreasuryandrepresent0.56%ofthecalledupsharecapital.
8. Reserves 2012 2011 £000 £000
At beginning and end of year 2,336 2,336
9. Retained earnings 2012 2011 £000 £000
Atbeginningofyear (7,624) (6,837)
Profit/(loss)fortheyear 32 (787)
At end of year (7,592) (7,624)
Notice of Annual General MeetingofEnergyTechniquePlc
Notice is hereby given that the 2012 Annual General Meeting (the “Meeting”) of the members of EnergyTechniquePlc(the“Company”)willbeheldat35ParkLane,LondonW1K1RBon19July2012at12.00Noonforthefollowingpurposes:
ORDINARY BUSINESS
1. Toreceiveandadoptthedirectors’reportandfinancialstatementsfortheyearended31March2012.
2. Toadopttheboard’sreportonremuneration.
3. Toconsiderand,ifthoughtfit,topassthefollowingresolution,whichwillbeproposedasanordinaryresolution:
“ItisresolvedthatMilstedLangdonLLPbeandareherebyreappointedauditorsoftheCompanytoholdofficefromtheconclusionofthismeetinguntiltheconclusionofthenextgeneralmeetingatwhichaccountsarelaidbeforetheCompanyataremunerationtobedeterminedbythedirectors.”
SPECIAL BUSINESS
4. Toconsiderand,ifthoughtfit,topassthefollowingresolution,whichwillbeproposedasanordinaryresolution:
“Insubstitution forallpreviousauthoritiesconferredon thedirectors inaccordancewithsection80of theCompaniesAct1985orsection551oftheCompaniesAct2006(the“Act”)andinaccordancewithsection551oftheAct,thedirectorsbeandaregenerallyandunconditionallyauthorisedtoexerciseallpowersoftheCompanytoallotshares intheCompanyortograntrightstosubscribeforortoconvertanysecurityintosharesintheCompanyuptoamaximumaggregatenominalamountof£7,000,000,providedthatthisauthorityshall(unlesspreviouslyrevoked,variedorrenewedbytheCompany)expireonthedatefallingontheearlierof15monthsfromthedatehereofortheconclusionoftheCompany’sannualgeneralmeetingtobeheldin2013,savethattheCompanymaymakepriortosuchexpiryanofferoragreementwhichwouldormightrequiresuchsharesorrightstobeallottedorgrantedaftertheexpiryofthesaidperiodandthedirectorsmayallotsuchsharesorgrantsuchrightsinpursuanceofanysuchofferoragreementnotwithstandingtheexpiryoftheauthoritygivenbythisresolution.”
5. Toconsiderand,ifthoughtfit,topassthefollowingresolution,whichwillbeproposedasaspecialresolution:
“Subject to the passing of the previous resolution, in substitution for all previous powers granted to thedirectorstoallotequitysecuritiesasifeithersection89(1)oftheCompaniesAct1985orsection561(1)oftheActdidnotapply,thedirectorsbeandaregenerallyempoweredinaccordancewithsection570oftheActtoallotequitysecurities(asdefinedinsection560oftheAct)forcash,pursuanttotheauthorityconferredonitbytheresolutionabove,asifsection561(1)oftheActdidnotapplytoanysuchallotment,providedthatthispowerislimitedto:
(1) theallotmentofequitysecuritiesuptoanaggregatenominalamountof£1,500,000;
(2) theallotment(otherwisethanpursuanttoparagraph5(1)above)ofequitysecuritiesuptoanaggregatenominalamountof£208,000representingnomorethan10%oftheissuedsharecapitalatthedateofthenoticeoftheAGMpursuanttotheexerciseofanyoptionsunderanyoptionarrangementsenteredintobytheCompanyforthebenefitoftheofficersandexecutivesoftheCompany;and
(3) thisauthorityshall,unlessrevoked,variedorrenewedbytheCompanypriortosuchtime,expireonthedatefalling15monthsafterthedateofthepassingofthisresolution,ortheconclusionofthenextAnnualGeneralMeetingoftheCompany,whicheveristheearlier,savethattheCompanymaymakepriortosuchexpiryanofferoragreementwhichwouldormightrequirerelevantsecuritiestobeallottedaftertheexpiryandthedirectorsmayallotequitysecuritiesinpursuanceofanysuchofferoragreementasifthepowerconferredherebyhadnotexpired.
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
43
Notice of Annual General Meeting(continued)
Energy Technique P
lc Annual R
eport & Financial S
tatements 2012
ThisresolutionrevokesandreplacesallunexercisedpowerspreviouslygrantedtotheDirectorstoallotequitysecuritiesasifsection561(1)ofthe2006Actdidnotapplybutwithoutprejudicetoanyallotmentofequitysecuritiesalreadymadeoragreedtobemadepursuanttosuchauthorities.”
6. Toconsiderand,ifthoughtfit,topassthefollowingresolution,whichwillbeproposedasaspecialresolution:
“THATtheCompany isherebygenerallyandunconditionallyauthorisedtomakemarketpurchases (withinthemeaningofSection693(4)of theAct)ofordinarysharesof6.25peach inthecapitalof theCompany(“OrdinaryShares”)providedthat:
(1) themaximumnumberofOrdinarySharesherebyauthorisedtobepurchasedis6,624,032(representing20%oftheissuedordinarysharecapitaloftheCompany,excludingOrdinarySharesheldintreasury,asatthedateofthisNotice);
(2) themaximumprice (exclusiveofexpenses)whichmaybepaid foreachOrdinaryShare isanamountequalto125%oftheaverageofthemiddlemarketquotationsofanOrdinarySharetakenfromtheAIMappendixtotheStockExchangeDailyListforthefivebusinessdaysimmediatelyprecedingthedayonwhichtheOrdinaryShareiscontractedtobepurchased;
(3) theminimumprice (exclusiveofexpenses)whichmaybepaidforeachOrdinaryShare isthe lowerof6.25pandanamountequalto75%oftheaverageofthemiddlemarketquotationsofanOrdinarySharetaken fromtheAIMappendix to theStockExchangeDailyList for thefivebusinessdays immediatelyprecedingthedayonwhichtheOrdinaryShareiscontractedtobepurchased;and
(4) thisauthorityshall,unlessrevoked,variedorrenewedbytheCompanypriortosuchtime,expireon:thedatefalling15monthsafterthedateofthepassingofthisresolution;ortheconclusionofthenextAnnualGeneralMeetingoftheCompany,whicheveristheearlier,savethattheCompanymayenterintocontractsofpurchasewhichwouldormightbecompletedaftertheexpiryandtheCompanymayacquiresharespursuanttosuchcontractsasiftheauthorityconferredherebyhadnotexpired.”
ByorderoftheBoard
R M Unsworth Registered officeCompany Secretary 47CentralAvenue22June2012 WestMolesey SurreyRegisteredinEnglandNo.13273 KT82QZ
Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Notice of Annual General Meeting(continued)
NOTES TO THE NOTICE OF ANNUAL GENERAL MEETINGEntitlement to attend and vote1. PursuanttoRegulation41oftheUncertificatedSecuritiesRegulations2001,theCompanyspecifiesthatonly
thosemembersregisteredontheCompany’sregisterofmembersat:
• 6.00pmon17July2012;or
• ifthisMeetingisadjourned,at6.00pmonthedaytwodayspriortotheadjournedMeeting,
shallbeentitledtoattendandvoteattheMeeting.
Appointment of proxies2. IfyouareamemberoftheCompanyatthetimesetoutinnote1above,youareentitledtoappointaproxy
toexercisealloranyofyourrightstoattend,speakandvoteattheMeetingandyoushouldhavereceivedaproxyformwiththisnoticeofmeeting.Youcanonlyappointaproxyusingtheproceduressetoutinthesenotesandthenotestotheproxyform.
3. AproxydoesnotneedtobeamemberoftheCompanybutmustattendtheMeetingtorepresentyou.DetailsofhowtoappointtheChairmanoftheMeetingoranotherpersonasyourproxyusingtheproxyformaresetoutinthenotestotheproxyform.Ifyoureturntheproxyformwithnonameinsertedforyourproxy,theChairmanofthemeetingwillbedeemedtobeyourproxy.
4. Avotewithheldisnotavoteinlaw,whichmeansthatthevotewillnotbecountedinthecalculationofvotesfororagainsttheresolution.Ifnovotingindicationisgiven,yourproxywillvoteorabstainfromvotingathisorherdiscretion.Yourproxywillvote(orabstainfromvoting)asheorshethinksfitinrelationtoanyothermatterwhichisputbeforetheMeeting.Ifyouwantyourproxytomakeanycommentonyourbehalf,youwillneedtoappointsomeoneotherthantheChairmanoftheMeetingandgivethemtherelevantinstructionsdirectly.
Appointment of proxy using hard copy proxy form5. Thenotestotheproxyformexplainhowtodirectyourproxytovoteoneachresolutionorwithholdtheirvote.
Toappointaproxyusingtheproxyform,theformmustbe:
• completedandsigned;
• sentordeliveredtoCapitaRegistrars,PXS,34BeckenhamRoad,Beckenham,KentBR34TU;and
• received by Capita Registrars no later than 12.00 Noon on 17 July 2012 (being the time that is 48hoursbeforetheMeeting).
Inthecaseofamemberwhichisacompany,theproxyformmustbeexecutedunderitscommonsealorsignedonitsbehalfbyanofficerofthecompanyoranattorneyforthecompany.
Anypowerofattorneyoranyotherauthorityunderwhichtheproxyformissigned(oradulycertifiedcopyofsuchpowerorauthority)mustbeincludedwiththeproxyform.
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Notice of Annual General Meeting(continued)
Appointment of proxies through CREST6. CRESTmemberswhowishtoappointaproxyorproxiesbyutilisingtheCRESTelectronicproxyappointment
servicemaydosofortheMeetingandanyadjournment(s)thereofbyutilisingtheproceduresdescribedintheCRESTManual.CRESTPersonalMembers or otherCREST sponsoredmembers and thoseCRESTmemberswhohaveappointedavotingserviceprovider(s),should refer to theirCRESTsponsororvotingserviceprovider(s),whowillbeabletotaketheappropriateactionontheirbehalf.
InorderforaproxyappointmentmadebymeansofCRESTtobevalid,theappropriateCRESTmessage(aCRESTProxyInstruction)mustbeproperlyauthenticatedinaccordancewithEuroclearUK&IrelandLimited’s(EUI)specificationsandmustcontaintheinformationrequiredforsuchinstructions,asdescribedintheCRESTManual.Themessagemustbetransmittedsoastobereceivedbythe issuer’sagent(IDRA10)by12.00Noonon17July2012.Forthispurpose,thetimeofreceiptwillbetakentobethetime(asdeterminedbythetimestampappliedtothemessagebytheCRESTApplicationsHost)fromwhichtheissuer’sagentisabletoretrievethemessagebyenquirytoCRESTinthemannerprescribedbyCREST.
CRESTmembersand,whereapplicable,theirCRESTsponsorsorvotingserviceprovidersshouldnotethatEUIdoesnotmakeavailablespecialproceduresinCRESTforanyparticularmessages.NormalsystemtimingsandlimitationswillthereforeapplyinrelationtotheinputofCRESTProxyInstructions.ItistheresponsibilityoftheCRESTmemberconcernedtotake(or,iftheCRESTmemberisaCRESTpersonalmemberorsponsoredmemberorhasappointedavotingserviceprovider(s),toprocurethathisCRESTsponsororvotingserviceprovider(s)take(s))suchactionasshallbenecessarytoensurethatamessageistransmittedbymeansoftheCRESTsystembyanyparticulartime.Inthisconnection,CRESTmembersand,whereapplicable,theirCRESTsponsorsorvotingserviceprovidersarereferred,inparticular,tothosesectionsoftheCRESTManualconcerningpracticallimitationsoftheCRESTsystemandtimings.
TheCompanymaytreatasinvalidaCRESTProxyInstructioninthecircumstancessetoutinRegulation35(5)(a)oftheUncertificatedSecuritiesRegulations2001.
Changing proxy instructions7. Tochangeyourproxyinstructionssimplysubmitanewproxyappointmentusingthemethodssetoutabove.
Notethatthecut-off timeforreceiptofproxyappointments(seeabove)alsoapply inrelationtoamendedinstructions;anyamendedproxyappointmentreceivedaftertherelevantcut-offtimewillbedisregarded.Whereyouhaveappointedaproxyusingthehard-copyproxyformandwouldliketochangetheinstructionsusinganotherhard-copyproxyform,pleasecontactCapitaRegistrars,PXS,34BeckenhamRoad,Beckenham,KentBR34TU.Ifyousubmitmorethanonevalidproxyappointment,theappointmentreceivedlastbeforethelatesttimeforthereceiptofproxieswilltakeprecedence.
Termination of proxy appointments8. InordertorevokeaproxyinstructionyouwillneedtoinformtheCompanybysendingasignedhardcopynotice
clearlystatingyour intention to revokeyourproxyappointment toCapitaRegistrars,PXS,34BeckenhamRoad,Beckenham,KentBR34TUtobereceivedbynolaterthan12.00Noonon17July2012.Inthecaseofamemberwhichisacompany,therevocationnoticemustbeexecutedunderitscommonsealorsignedonitsbehalfbyanofficerofthecompanyoranattorneyforthecompany.Anypowerofattorneyoranyotherauthorityunderwhich the revocationnotice issigned (oradulycertifiedcopyofsuchpowerorauthority)mustbe includedwiththerevocationnotice. Ifyouattempttoterminateyourproxy’sappointmentbuttherevocationnoticeisreceivedafterthetimespecified,yourproxy’sappointmentwillremainvalid.
AppointmentofaproxydoesnotprecludeyoufromattendingtheMeetingandvotinginperson.IfyouhaveappointedaproxyandattendtheMeetinginperson,yourproxyappointmentwillautomaticallybeterminated.
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Notice of Annual General Meeting(continued)
Issued shares and total voting rights9. Asat17.00hourson21June2012, theCompany’s issuedsharecapitalcomprised33,305,160ordinary
sharesof6.25penceeach,ofwhich185,000ordinarysharesof6.25penceeachareheldintreasury.Eachordinarysharecarries theright toonevoteatageneralmeetingof theCompanyand, therefore, the totalnumberofvotingrightsintheCompanyasat17.00hourson21June2012is33,120,160.
Documents on display10.ThefollowingdocumentswillbeavailableforinspectionattheMeetingandforatleast15minutespriortothe
MeetingandduringtheMeeting:
• Copiesoftheletterofappointmentofthenon-executivedirectoroftheCompany.
Communication11.Exceptasprovidedabove,memberswhohavegeneralqueriesabouttheMeetingshouldcallourshareholder
helplineon08716640300(noothermethodsofcommunicationwillbeaccepted).Callscost10pperminuteplusnetworkextras.Linesareopenfrom8.30amto5.30pm,MondaytoFriday.
Youmaynotuseanyelectronicaddressprovidedeither:
• inthisnoticeofAnnualGeneralMeeting;or
• anyrelateddocuments(includingthechairman’sletterandproxyform),
tocommunicatewiththeCompanyforanypurposesotherthanthoseexpresslystated.
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
Key datesPreliminaryannouncementoftheresultsfortheyear 14June2012
2012AnnualReportandFinancialStatementspostedtoshareholdersby 22June2012
AnnualGeneralMeeting 19July2012
Half-yearresultsto30September2012announcedby 14December2012
Registered officeEnergy Technique Plc47CentralAvenueWestMoleseySurreyKT82QZ
Website addresswww.diffusion-group.co.uk
Financial calendar and corporate information
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Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report T: 020 7055 6500 F: 020 7055 6600
DIFFUSION
Fan coilsFan coils are traditionally fitted into ceiling voids, under floors or onwallsbehind decorative casings. Fan coils have heat exchangers, which whenfedwithhotwaterorchilledwaterdischargeheatedorcooledair intotheworkingenvironmentprovidingacomfortableandconstantcondition.
Over door heatersOver door heaters are fitted over the external doors of many retail andcommercialbuildings.Heatedbyeitherhotwaterorelectricity, theseunitsprovideabarrierofwarmairpreventingoutsideairfromenteringthebuilding.Inaddition,thehighvelocityjetofairhelpspreventtheingressofinsects.
Fan convectorsFanconvectors are traditionally fitted into ceiling voidsor onwalls and/orbehinddecorativecasings.Theyhaveheatexchangers,whichwhenfedwithhotwater,dischargeheatedairintotheworkingenvironment.
Air handling unitsAirhandlingunitsareusedtoconditionandcirculateairaspartofaheating,ventilating and air conditioning system. Air handling units usually connecttoductworkthatdistributestheconditionedairthroughabuildingandthenreturns it forextractoftenusingheat recoveryunits.Airhandlingunitsaregenerallymountedonbuildingrooftopsorinplantrooms.
Spares and serviceProductsupportandaftersalesservicepredominantlyforownbrandedproducts.
Products and services
Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report 2012 T: 020 7055 6500 F: 020 7055 6600
Contents 1 Chairman’s statement 4 Directors 5 Advisers 6 Directors’ report 9 Corporate governance 10 Remuneration report 11 Independent auditors’ report 12 Consolidated statement of comprehensive
income
13 Consolidated statement of financial position 14 Consolidated statement of changes in equity 15 Consolidated cash flow statement 16 Notes to the consolidated financial statements 35 Accounts of the parent company
Energy Technique Plc 42 Notice of 2012 Annual General Meeting47 Financial calendar and corporate information48 Products and services
Heating for Marks & Spencer
Fan Coils Heathrow Terminal 2 Heating for Lancashire County Cricket Club
Fan Coils for The Shard Heating for Lincoln House Hotel Fan Coils for Leadenhall Building
Job No.: 11435 Proof Event: 8 Park Communications Ltd Alpine Way London E6 6LACustomer: Energy Technique PLC Project Title: Annual Report 2012 T: 020 7055 6500 F: 020 7055 6600
Energy Technique Plc47 Central AvenueWest MoleseySurreyKT8 2QZ
Tel: +44 (0)20 8783 0033
Annual Report & Financial Statements 2012