Focus on core strengths
entu ( uK) PLc
Annu AL r ePort A nd Accounts 2016
group this year has been challenging, 
but we have taken decisive action 
to deal with these short-term 
challenges and stabilise our business. 
We remain committed to our long-
term strategy and are confident 
that our shareholders will see  
a clear benefit from the actions 
we have taken.
View our website at www.entu.co.uk
Strategic Report
01 Entu at a Glance
02 Chairman’s Statement
04 Chief Executive’s Statement
08 Financial Review
1 2 Business Model and Strategy
16 Core Strengths
18 Principal Risks and Uncertainties
Governance
20 Board of Directors
22 Directors’ Report
26 Remuneration Committee Report
30 Independent Auditors’ Report
Financial Statements
32 Consolidated Income Statement
33 Consolidated Balance Sheet
34 Consolidated Statement of Changes in Equity
35 Consolidated Cash Flow Statement
36 Notes to the Consolidated Financial Statements
72 Independent Auditors’ Report to the Members of Entu (uk) plc
74 Company Balance Sheet
75 Company Statement of Changes in Equity
76 Company Cash Flow Statement
77 Notes to the Company Financial Statements
Corporate Information
82	 Registered	Office	and	the	Company	Advisers
contents Entu (UK) plc Annual Report 2016 01
Strategic report governance Financial StatementS
entu at a glance
Key Performance Indicators
Our business Our values Our visi On and strategy
Entu is one of the UK’s leading home 
improvement businesses providing 
energy	efficient	products	to	retail	
and commercial customers. 
The Group’s services include the 
supply and installation of energy 
efficient	glazing,	insulation,	heating	
and lighting products sold through 
established local brands including 
Weatherseal,	Penicuik	and	Zenith.	
The Group’s specialist installation 
business,	Job	Worth	Doing,	is	one	of	
the	few installers	to	have	achieved	
the coveted	Which? Trusted 
Trader status.	
Our values drive us to deliver 
excellence for our customers in 
a dynamic,	competitive	and	ever-
changing environment.
Pride in ourselves and our business. 
Drive to overcome all challenges. 
Performance in everything we do.
Success in delivering our customers 
the best service every time.
Our vision is to build the UK’s leading 
energy	efficient	group,	providing	
end to	end	services	and	products	
to retail	and	commercial	
customers nationwide.	
We will deliver our vision in three 
steps:
1. Focus on our core strengths
2. Leverage our core business
3 .	 	 B uil d 	 our 	 e ne r g y 	 e ffi cie nc y 	
o ff e r in g
Read more about our 
strategy in the Business 
Model and Strategy section.
underlying ebitda
2
: 
£2.4m
2015: £2.4m
r evenue
1
: 
£87.7m
2015: £89.6m
net cash: 
£0.8m
2015: £1.4m
underlying gross margin
2
: 
£31.3%
2015: £31.6%
ebitda
1
: 
£2.7m
2015: £7.6m
Operating (loss)/profit
3
: 
(£2.1m)
2015 profit: £6.7m
1	 Continuing	operations	before	exceptional	items,	prior	year	restated	for	discontinued	operations	and	prior	year	adjustments.
2	 	 Underlying	results	exclude	exceptional	and	other	non-recurring	items,	but	include	overheads	allocated	to	discontinued	businesses	which	have	been	or	
will be absorbed back into continuing operations. Underlying and reported revenues are the same. A reconciliation between underlying and reported 
results is set out in Note 31 to the Financial Statements.
3	 Continuing	operations	after	exceptional	items,	prior	year	restated	for	discontinued	operations	and	prior	year	adjustments. Entu (UK) plc Annual Report 2016 02
Strategic Report
chairman’s statement
r eview of the year
During	the	year,	we	have	taken	difficult,	but	necessary,	
actions to focus on improving returns and cash generation 
in our core Home Improvements business and to reduce 
risk across the Group. 
Shortly before the last year end we closed our Solar 
business because of the Government’s unexpected 
decision	to	reduce	substantially	the	feed-in-tariffs	for	solar	
energy,	rendering	that	business	uneconomic.	This	left	the	
Group with an overhead base that had been established 
for	a	larger	and	growing	business	which,	as	I	said	last	year,	
either had to be absorbed by acquisitions and growth 
in new	business	streams,	or	cut	back	to	fit	a	refocussed	
Home Improvements business. Our preference was 
to absorb	these	excess	overheads	through	growth,	 
but	we	did not	consider	any	of	the	available	acquisition	
opportunities	sufficiently	attractive	and	the	new	business	
streams	did not	produce	the	growth we	were	hoping	for.	
Consequently,	we	restructured	operations	and	cut	
overheads	aggressively	to	create	a robust	platform	
that was	fit	for	purpose	and	allow	the Group	to	make	
a sensible	return	in	due	course.
In	addition	to	closing	our	Solar	business	last	year,	we	
also sold	our	under-performing	Norwood	Interiors	
kitchens	business,	and	this	year,	as	part	of	a	wide-ranging	
restructure	of	our	operations,	we	closed	our	Europlas	
business to create greater focus and to improve returns 
across the Group. We also sold Astley Façades Limited  
(‘Astley’),	which	we	acquired	in	March	2015	and	grew	faster	
than	expected,	creating	an	increased	working	capital	
requirement	and	risk	profile	that	no	longer	matched the	
Group’s strategy going forward. 
Finally,	we	undertook	a	detailed	review	of	all	our	subsidiary	
company balance sheets to remove any remnants of those 
discontinued	businesses,	in	order	to	provide	a	stable	
platform from which to trade forward. This is discussed 
in more	detail	in	the	‘Financial	Review’.
r esults
Group revenue from continuing operations was £87.7m 
(2015:	£89.6m)	and	operating	profit	from	continuing	
operations before exceptional items was £2.5m  
(2015: £7.2m).
After	exceptional	items	of	£4.6m	(2015:	£0.5m),	the	Group	
made	an	operating	loss	of	£2.1m	(2015:	profit	£6.7m)	and	
with losses on discontinued operations of £3.8m (2015: 
£3.0m),	the	overall	loss	for	the	year	was	£5.6m	(2015:	profit	
of £2.7m). This provided a basic loss per share of 8.6p 
(2015: earnings per share of 4.2p). 
David M Forbes 
Independent	Non-Executive	Chairman Entu (UK) plc Annual Report 2016 03
Strategic report governance Financial StatementS
dividend
The Board declared and paid an interim dividend for 
the year	of	0.5p	per	share.	However,	in	the	light	of	the	
restructuring	of	the	Group	and	the	final	results	for	the	
year,	the	Board	has	reconsidered	the	dividend	policy	and,	
as	announced	on	7	February	2017,	determined	that	it	is	
not appropriate	to	recommend	a	final	dividend	for	the	
year ended	31	October	2016.	The	Board	intends	that	
Entu return	to	the	dividend	list	as	soon	as	possible	and	
the Directors	will	assess	future	dividends	as	the	Group’s	
balance sheet and distributable reserves strengthen.
board
There have been several changes to the Board during 
the year.	On	14	January	2016,	Geoff	Stevens	stepped	
down as	Chief	Financial	Officer	and	assumed	the	role	of	
Non-Executive	Director.	After	the	conclusion	of	last	year’s	
Annual	General	Meeting,	Geoff	was	appointed	Chairman	
of the	Audit	Committee	and	became	a	member	of	the	
Remuneration	Committee.	On	the	same	date,	and	
following	an	extensive	external	search,	it	was	announced	
that	Neill	Skinner	had	joined	the	Board	as	Chief	Financial	
Officer	on	a	full	time	basis.	
Following	the	restructuring	exercise,	the	Group	announced	
on	19	July	2016	that	Andrew	Corless	(appointed	14	January	
2016),	Chief Operating	Officer,	had	resigned	from	the	
Board	to pursue	new	opportunities.	
Darren	Cornwall	stood	down	from	the	Board	with	effect	
from	15	April	2016	to	work	on	a	more	flexible	basis.	Darren	
continues to work for the Group developing opportunities 
which have the scope to add value to the Group’s product 
and	service	offering	as	well	as	assisting	in	margin	
improvement plans for execution in the coming months. 
Darren	also	provided	project	support	in	the	corporate	
transactions described in the ‘Review of the Year’.
People
On	behalf	of	the	Board,	I	wish	to	thank	all	our	people	
for their	hard	work,	professionalism	and	commitment	
in delivering	the	restructuring	programme	and	putting	
in place	the	changes	necessary	to	improve	the	Group’s	
return and cash generation.
s trategy
Whilst the focus in the past year has been on disposals 
and closures,	the	immediate	focus	is	on	securing	gains	
from	operational	efficiencies	and	organic	growth	to	return	
the	Group	to	an	acceptable	level	of	profitability.
In the longer term it remains the Board’s strategy to 
make selective	acquisitions,	and	to	enter	commercial	
partnerships and distribution agreements in the product 
and	geographical	areas	in	which	we	currently	operate,	
providing	always	that	we	can	see	a	sensible	return	within	 	
modest timescale.
However,	the	core	strategy	in	the	medium	term	remains	
unchanged. Entu is one of the UK’s leading home energy 
efficiency	groups	providing	energy	efficiency	products	
and services	to	homeowners	and	businesses	nationwide.	
We are aiming to build a business that anticipates a 
broadening of its sales channels and is well placed to 
serve them,	with	an	increasing	range	of	products,	
through an	efficient	and	established	infrastructure.	
The Board intends to take advantage of these new 
opportunities	in	time,	but	in	the	short-term,	we	need	to	
focus	on	our	core	business,	improve	returns,	strengthen	
our balance sheet and ensure that the risks inherent in 
the Group	remain	properly	managed	and	controlled.
David M Forbes
Chairman
28 March 2017
during the year , we have taken difficult, but necessary , actions to 
focus on improving returns and cash generation in our core home 
Improvements business and to reduce risk across the group. Entu (UK) plc Annual Report 2016 04
Strategic Report
chief executive’s statement
Overview
This has been a challenging year for the Group. In 
September	2015,	the	Government	announced	a	surprise	
and	substantial	reduction	in	solar	feed-in-tariffs,	and	we	
were	forced	to	close	our	profitable	Solar	business,	a	major	
contributor	to our	Energy	Generation	and	Savings	Division.	
This,	along	with	the	sale	of	our	Norwood	kitchens	business	
earlier	in the	year,	resulted	in	a	significant	loss	of	revenue	
and	contribution,	and	left	us	with	£3.6m	of	central	
overheads designed for a larger business set on growth that 
would need to be absorbed by our continuing operations. 
We had planned for targeted acquisitions and organic 
growth	in	new,	commercial	business	streams,	mainly	
in the Energy	Generation	and	Savings	Division,	to	cover	
these	central	overheads.	However,	the	pipeline	of	
acquisition	targets	did	not	offer	any	sufficiently	attractive	
opportunities	and	growth	in	the	new,	commercial	business	
streams was slower than planned. 
Therefore,	in	May	we	acted	decisively	to	restructure	the	
Home	Improvements	Division,	scale	back	our	acquisition	
activity and close underperforming commercial business 
streams in the Energy Generation and Savings Division. 
These actions resulted in an exceptional charge of £1.9m 
in FY2016,	and	removed	£2.1m	of	cost	from	the	Group	
on an	annualised	basis.	Combined	with	the	actions	we	
have	taken	since	the	year	end,	which	are	discussed	under	
‘Short-Term	Priorities’	below,	we	are	targeting	a	total	of	
an overall	annualised	saving	of	£4.0m	by	the	end	of	FY2017.
We have also strengthened our Executive Team with senior 
appointments	in	operations,	finance,	compliance	and	
human resources.
Group revenues from continuing operations before 
exceptional items were down slightly at £87.7m (2015: 
£89.6m),	mainly	due	to	lower	finance	commissions	
following a	reduction	in	interest	rates	offered	on	consumer	
finance	products.	However,	despite	the	challenges	we	
faced	this	year,	underlying	gross	margins	were	relatively	
constant at 31.3% (2015: 31.6%) and underlying EBITDA was 
unchanged at £2.4m (2015: £2.4m). 
The	overall	loss	for	the	year,	after	exceptional	items	and	
losses	on	discontinued	operations,	was	£5.6m	(2015:	profit	
of £2.7m). The Group’s results are discussed in more detail 
in the ‘Financial Review’.
The decisive actions we have taken will allow us to focus 
on our	core	strengths,	improve	returns	in	our	core	Home	
Improvements Division and reposition the business for 
growth in 2018.
Ian Blackhurst
Chief	Executive	Officer Entu (UK) plc Annual Report 2016 05
Strategic report governance Financial StatementS
divisional r eview
Home Improvements
Our Home Improvements Division is one of the UK’s largest 
providers	of	replacement	windows,	doors,	conservatories	
and	other	home	improvement	products	and,	despite	the	
challenges	faced	by	the	Group,	remains	a	market	leader.	
The Division sells to retail customers directly through its 
own brands or indirectly through partnerships with other 
home improvement businesses. 
We	had	a	slow	start	to	the	financial	year	due	to	
management time being focussed on stabilising the Group 
after the rapid exit from our Solar business in September 
2015.	However,	in	the	first	two	months	of	2016,	we	enjoyed	
our	highest	ever	rise	in	new	orders,	which	reached	record	
levels	in	the	second	quarter	of	the	financial	year.	
Whilst	this	was	a	significant	achievement	for	the	sales	
teams	across	the	Division,	the	pressure	this	order	book	
growth	placed	on	our	installation	operations,	coupled	
with the	focus	brought	on	the	business	through	the	
restructuring	exercise,	exposed	weaknesses	in	the	
Division’s operations both in the planning and delivery of 
new installations and the clearing down of remedial works. 
This,	in	turn,	led	to	an	increase	in	our	debtor	position	in	
2016.	Since	May,	I	have	assumed	direct	responsibility	for	
installation	operations	and,	although	it	has	taken	more	
time	to	address	all	the	issues	than	expected	originally,	
significant	progress	has	been	made.
The transition to a single national sales and marketing 
function as part of the restructuring exercise resulted in an 
inevitable	dip	in	new	orders	in	the	third	quarter,	but	this	
allowed breathing space for our installation operations to 
bring	the order	book	back	into	balance	with	our	installation	
capacity	and,	by	the	end	of	the	fourth	quarter,	we	were	
back on track. 
The Division was also successful in securing FCA 
authorisation	as	a	credit	broker	for	consumer	finance	
products	provided	through	our	finance	partners.
Energy Generation and Saving
As	noted	above,	our	Energy	Generation	and	Saving	Division	
has	seen	significant	change	in	the	year	with	the	closure	
of new,	commercial	business	streams	that	were	under-
performing	and	the	sale	of	Astley.	At	the	year	end,	the	
Division comprised our insulation and new commercial LED 
lighting installation businesses.
Repairs and Renewals Service Agreements (‘RRSA’)
The	RRSA	Division	offers	customers	an	annual	cover	plan	
on many of its core products and the division performed 
in line	with	expectations.	
the firm and decisive actions we have taken in 2016  
leave us leaner and more focussed. Entu (UK) plc Annual Report 2016 06
Strategic Report
s hort term Priorities
We have restructured our business to focus on our core 
Home Improvements Division. The decisive actions taken 
in	2016	have	stabilised	the	business,	and	the	priorities	
for 2017	are	to	improve	returns,	increase	cash	generation,	
further	reduce	risk	and,	ultimately,	create	a	robust	
platform that will enable us to return to sustainable growth 
in	2018.	To deliver	this,	we	have	strengthened	our	
Executive	Team with	senior	appointments	in	operations,	
finance,	compliance	and	human	resources,	who	will	focus	
on the following priorities in 2017:
 > Deliver £4m annualised savings. We delivered £2.1m 
of annualised	savings	from	the	actions	we	took	in	2016.	
Through further actions in 2017 to centralise service 
teams	at	our	Head	Office	in	the	North	West,	focus	
installation	administration	in	three	major	hub	depots	
and	further	operational	efficiencies,	we	plan	to	deliver	
an annualised £4m of savings by the end of 2017.
 > Improve operational efficiency. As part of the 
restructure	in	2016,	we	identified	a	series	of	measures	
to improve	the	efficiency	of	our	service	and	installation	
teams	to	reduce	the	lead	times	from	sale	to	installation,	
which	will improve	returns	and	cash	collection.
 > Leverage supply chain. Through tighter quality 
control procedures	and	management	of	supply	
contracts,	we	can	reduce	wastage	further	and	reduce	
inefficiency in operations. We will also review our 
contractual arrangements with suppliers to obtain 
improved prices and payment terms where we can. 
 > Improve cash collection. We have undertaken a series 
of measures	to	improve	cash	collection,	including	the	
implementation	of	revised	terms	and	conditions,	tighter	
job	completion	procedures	and	the	strengthening	of	
the credit	control	function.	We	are	focussed	on	clearing	
the backlog of remedial work that arose during 2016. 
 > Strengthen controls and processes. With senior 
appointments	in	finance,	compliance	and	human	
resources,	we	will	strengthen	controls	and	processes	
across the Group to improve management information 
systems and reduce risk.
s trategy
Our overall vision to become the UK’s leading installer 
of energy	efficient	products	for	retail	and	commercial	
customers	remains	unchanged,	and	the	three	steps	
required to deliver this vision are as follows: 
 > Step 1 – Focus on Core Strengths.	As	noted	above,	our	
immediate priority is to focus on our core strengths and 
improve	returns,	generate	cash	and	reduce	risk	in	our	
Home Improvements Division. 
 > Step 2 – Leverage Our Core Business. Once we 
have delivered	a	robust	platform	for	growth	in	our	
core Home Improvements	Division,	we	will	look	for	
consolidation opportunities around strong national 
brands that will allow us to create sales and marketing 
leverage through higher sales conversion ratios and 
operational	leverage	driven	by	a	single,	national	
installation service. 
 > Step 3 – Build Our Energy Efficiency Offering. We 
will continue	to	invest	in	a	select	number	of	corporate	
relationships where we can build our portfolio of 
energy efficient	products	and	expand	our	services	into	
commercial	markets	in	2017,	initially	through	outsourced	
delivery.	Our	key	investment	criteria,	as	well	as	
producing returns at least equal to our core Home 
Improvements	business,	will	be	opportunities	where	
we can	influence	sales	directly	and,	eventually,	absorb	
delivery capability into our national installation platform. 
To provide greater clarity between our existing core retail 
markets	and	the	significant	growth	opportunities	open	
to us	in	commercial	markets	in	2017,	we	intend	to	simplify	
our internal segmental reporting of results in 2017 to 
‘Retail’ (i.e. B2C) and ‘Commercial’ (i.e. B2B) to align 
our segmental	analysis	more	closely	with	our	expected	
customer	base.	Longer	term,	we	also	envisage	reporting	
our	national	installation	service,	Job	Worth	Doing,	 
as	a	separate	profit centre. Entu (UK) plc Annual Report 2016 07
Strategic report governance Financial StatementS
Outlook
The	firm	and	decisive	actions	we	have	taken	in	2016	
leave us	leaner	and	more	focussed.	However,	there	is	
still much	work	to	do	to	improve	operational	efficiency,	
clear down our backlog of remedial work and strengthen 
our	controls	and	processes.	We	have	defined	plans	to	
reduce	costs	further,	but	it	remains	a	challenge	to	realise	
all the potential savings in 2017.
Nevertheless,	revenues	in	the	first	quarter	were	ahead	
of plan	and,	if	we	can	hold	this	level	of	performance	
and continue	to	make	the	progress	we	have	already	
made in	reducing	costs,	we	can	end	the	year	in	line	
with expectations	with	a	robust	platform	for	a	return	
to growth	in	2018.
Ian Blackhurst
Chief Executive
28 March 2017
Board Focus
s hort term Priorities
 > Deliver £4m annualised savings          
 > Improve operational efficiency
 > Leverage supply chain
 > Improve cash collection
 > Strengthen controls and processes.
s trategy
 > Step 1 – Focus on Core Strengths 
 > Step 2 – Leverage Our Core Business
 > Step 3 –  Build Our Energy 
Efficiency Offering Entu (UK) plc Annual Report 2016 08
Strategic Report
Financial r eview
group r esult
Continuing Operations Before Exceptional Items
Revenues were down slightly at £87.7m (2015: £89.6m) with 
nearly	all	the	reduction	due	to	lower	finance	commissions	
following a reduction in the interest rates charged on 
customer	finance	products.	
Reported	gross	profit	was	also	down	at	£27.5m	(2015:	
£29.9m),	but	this	year-on-year	comparison	does	not	reflect	
the underlying performance of the Group’s continuing 
operations. As part of a detailed review of subsidiary 
balance sheets following the restructuring of the Group 
(see	‘Exceptional	Items’	below)	we	identified	£1.6m	of	
exceptional items that reduce the underlying comparative 
to	£28.3m.	On	this	basis,	underlying	gross	margins	were	
steady at 31.3% (2015: 31.6%). 
As	expected,	EBITDA	was	£2.7m	(2015:	£7.6m),	but	again,	
a more	meaningful	year-on-year	comparison	needs	to	
reflect	the	£1.6m	of	exceptional	items	referred	to	above.	
Furthermore,	and	as	noted	in	the	Chief	Executive’s	
Statement,	the	closure	of	the	Solar	business	resulted	
in £3.6m	of	central	overheads	being	disclosed	as	part	
of discontinued	operations	in	2015	which	remained	part	
of the	continuing	business	in	2016.	Adjusting	for	both	these	
items	in	the	2015	comparative,	and	adjusting	the	2016	
result by £0.3m for central overheads allocated to 
discontinued	operations	in	respect	of	Europlas	and	Astley,	
results in underlying EBITDA remaining unchanged at £2.4m. 
Operating	profit	was	£2.5m	(2015:	£7.2m).
Overall Result
Exceptional	items	were	£4.6m	(2015:	£0.5m),	comprising	
of £1.9m	of	restructuring	costs	and	£2.7m	from	the	
balance sheet	review,	resulting	in	an	operating	loss	
after exceptional	items	of	£2.1m	(2015:	profit	£6.7m).
After	net	finance	costs	of	£0.2m	(2015:	£nil)	and	a	tax	credit	
of	£0.5m	(2015:	tax	charge	£1.0m),	the	loss	for	the	year	
from	continuing	operations	was	£1.8m	(2015:	profit	£5.7m).	
The	overall	loss	for	the	year	was	£5.6m	(2015:	profit	£2.7m)	
after losses from discontinued operations of £3.8m  
(2015: £3.0m).
Neill Skinner
Chief	Financial	Officer Entu (UK) plc Annual Report 2016 09
Strategic report governance Financial StatementS
divisional r esults
Home Improvements
Home Improvement revenues fell by 2.6% to £77.1m  
(2015:	£79.2m),	largely	due	to	lower	finance	commissions.	
Underlying gross margin was slightly down at 30.8%  
(2015:	31.6%),	again	due	to	lower	finance	commissions,	
and underlying	EBITDA	was	£0.1m	(2015:	£0.5m),	with	
lower gross	profit	partly	offset	by	overhead	savings.	
Operating loss from continuing operations and after 
exceptional	items	was	£3.9m	(2015:	profit	of	£3.7m).
Energy Generation and Saving
Revenues were up 4.3% to £8.0m (2015: £7.7m) 
due to growth	in	our	new	LED	installations	business.	
Underlying gross margin also was higher at 18.7%  
(2015:	15.4%),	again	due	to	the	higher	margin	LED	business,	
and underlying EBITDA was £0.1m (2015: loss of £0.2m). 
Operating loss from continuing operations and after 
exceptional	items	was	£0.4m	(2015:	profit	£0.9m).
Repairs and Renewals Service Agreements (‘RRSA’)
Revenue	was	£2.6m	(2015:	£2.7m),	representing	a	steady	
proportion of Home Improvements revenues at 3.4% 
(2015:	3.4%).	Operating	profit	from	continuing	operations	
and after exceptional items increased by 8.5% to £2.2m 
(2015: £2.1m). 
Year Ended 31 October   
Home  
Improvements
Energy Generation 
and Saving
Repairs and Renewals 
Service Agreements Group
2016
£m
2015
£m
2016
£m
2015
£m
2016
£m
2015
£m
2016
£m
2015
£m
Underlying results
1
Revenue 77.1 79.2 8.0 7.7 2.6 2.7 87.7 89.6
Gross margin 30.8% 31.6% 18.7% 15.4% 85.5% 76.1% 31.3% 31.6%
EBITDA 0.1 0.5 0.1 (0.2) 2.2 2.1 2.4 2.4
Continuing Operations
EBITDA
2
0.4 4.6 0.1 0.9 2.2 2.1 2.7 7.6
Operating (loss)/profit
3
(3.9) 3.7 (0.4) 0.9 2.2 2.1 (2.1) 6.7
1	 	 Underlying	results	exclude	exceptional	and	other	non-recurring	items,	but	include	overheads	allocated	to	discontinued	businesses	which	have	been	or	
will be absorbed back into continuing operations. Underlying and reported revenues are the same. A reconciliation between underlying and reported 
results is set out in Note 31 to the Financial Statements.
2 Before exceptional items.
3 After exceptional items.
exceptional items
The	restructuring	of	the	Group’s	operations,	discussed	in	
the	Chief	Executive’s	Statement,	resulted	in	an	exceptional	
charge of £1.9m in 2016. This charge is made up of 
redundancy	and	other	employee	related	costs	of	£0.8m,	
full provision for onerous lease obligations for exited 
properties	and	dilapidation	costs	of	£1.0m,	and	other	
associated restructuring costs of £0.1m.
Following	the	restructuring	of	the	Group	in	the	year,	
we undertook	a	detailed	review	of	all	subsidiary	balance	
sheets	and	identified	£2.7m	of	additional	exceptional	
charges,	bringing	the	total	exceptional	items	in	respect	
of continuing	operations	to	£4.6m	(2015:	£0.5m).	 
A detailed breakdown of the exceptional items in 
respect of continuing	operations	is	set	out	in	Note	 
5	to	the	Financial Statements.
The balance sheet review also resulted in a further £2.5m 
of exceptional charges relating to discontinued operations. 
These	are	included	in	the	loss	on	discontinued	operations,	
and a detailed breakdown is set out in Note 10 to the 
Financial Statements. Entu (UK) plc Annual Report 2016 10
Strategic Report
interest and taxation
Net	finance	costs	were	£0.2m	(2015:	£nil)	and	the	trading	
losses in the year resulted in a tax credit of £0.9m (2015: 
tax	charge	of	£1.0m),	with	£0.5m	in	respect	of	continuing	
operations and £0.4m for discontinued operations. 
discontinued Operations
As part of the restructure of the Home Improvements 
Division,	we	closed	our	regional	head	offices	to	create	a	
national	sales,	marketing	and	operational	management	
structure,	closed	under-performing	depots	and	exited	our	
Europlas business which operated predominantly in the 
South West of England. Although Europlas turned a small 
profit,	results	were	declining	and	there	were	significant	
marketing and operational challenges that management 
were	unable	to	address.	We	decided,	therefore,	to	focus	
resources on improving performance in our larger 
operations in Home Improvements Division. The loss 
before	taxation	on	Europlas,	after	exceptional	costs,	
was £1.6m.
We also decided to sell Astley which we acquired on 
27 March	2015	primarily	as	a	platform	for	our	insulation	
business	to	expand	into	new,	commercial	markets.	In	the	
time	that	we	owned	Astley,	we	grew	the	orderbook	from	
£2m	to	£21m	and	secured	a	number	of	high-profile	
contracts.	However,	the	market	for	Astley’s	services	had	
moved	towards,	larger,	construction	contracts	and,	with	
the need to restructure the Group and focus on the core 
Home	Improvements	Division,	the	risk	profile	no	longer	
fitted	within	the	Group.	This	came	into	sharp	focus	when	
an unexpected contractual issue arose in the late stages of 
the	sale	process,	as	a	result	of	which,	we	took	the	difficult	
decision	to	sell	the	business	for	£1,	rather	than	fund	a	
lengthy dispute process. 
The	sale	completed	on	27	October	2016	and,	although	
this resulted	in	a	loss	on	sale	of	£1.7m,	and,	an	overall	loss	
before	taxation	for	the	year	of	£0.7m,	Entu	made	a	gross	
return	of	£2.7m	during	its	period	of	ownership,	and	a	net	
return of £0.9m after loss on sale and disposal costs. 
Finally,	the	Group	continued	to	incur	unanticipated	
costs in relation	to	the	discontinued	Solar	business	and	
identified	exceptional	items	as	part	of	the	balance	sheet	
review,	resulting	in	a	loss	before	taxation,	after	exceptional	
costs,	of	£1.9m.
A detailed breakdown of the Group’s discontinued 
operations is set out in Note 10 to the Financial Statements.
dividend 
As	noted	in	the	Chairman’s	Statement,	the	Board	declared	
and	paid	an	interim	dividend	of	0.5p	per	share,	but	in	light	
of	the	results	for	the	financial	year,	and	as	announced	on	
7 February	2017,	the	Board	has	determined	that	it	is	not	
appropriate	to	recommend	a	final	dividend	in	respect	of	
the	2016	financial	year.	The	Board	will	assess	its	future	
dividend policy for the Group once distributable reserves 
are strengthened.
a ccounting Policy r eview
We conducted a review of our accounting policies to ensure 
they were in line with best practice and appropriate to the 
business going forward. This resulted in the accounting for 
our	Repairs	and	Renewals	Service	Agreements	and	finance	
commissions	being	changed	to	reflect	more	appropriately	
the timing of revenue recognition as well as other 
adjustments	to	bring	accounting	policies	in	line	across	
the Group.	
The	impact	of	these	adjustments	on	the	results	for	both	
2016	and	2015	was	less	than	£0.1m,	but	resulted	in	a	
reduction in reserves of £1.6m after a tax credit of £0.4m.
A detailed analysis of the impact of the change in 
accounting policies is set out in Note 2 to the 
Financial Statements.
Financial r eview
continued Entu (UK) plc Annual Report 2016 11
Strategic report governance Financial StatementS
balance s heet
The Group’s only freehold site in Winsford was sold to 
Ian Blackhurst	at	the	end	of	October	2016.	The	sale	price	
of £0.5m,	and	the	future	rental	charge,	were	determined	
through independent valuers on an arm’s length basis and 
were	approved	by	the	Non-Executive	Directors	in	advance	
of	the	transaction.	This	allows	the	Group	more	flexibility	
in its	property	strategy	as	support	functions	become	
centred in the North West. Inventories reduced to £1.3m 
(2015: £1.8m) largely due to a £0.5m exceptional charge 
resulting	from	the	balance	sheet	review.	Similarly,	trade	
and other receivables fell to £8.1m (2015: £14.1m) largely 
due to exceptional charges resulting from the balance 
sheet review and sale of Astley.
Trade payables were £18.5m (2015: £17.5m) with decreases 
in	trade	creditors	and	accruals	being	offset	by	an	increase	
in deferred income and advanced payments resulting 
from the	accounting	policy	changes	and	leveraging	terms	
with suppliers.
Overall,	net	liabilities	were	£8.3m	(2015:	£0.6m)	with	
the reduction	due	to	losses	after	exceptional	items,	
discontinued operations and changes in accounting policies.
Capital structure
During	March	2017,	the	Group	extended	it	facilities	with	
Barclays	Bank	plc,	with	the	renewal	of	its	£4m	revolving	
credit	facility	for	12-months	alongside	the	Group’s	existing	
variable overdraft facility.
Cash Flow
Net cash generated from operations was £1.4m (2015: 
£1.2m).	Cash	outflows	in	relation	to	the	restructuring	
programme and losses on discontinued operations were 
offset	by	advanced	payments	of	finance	commissions	and	
improved terms from suppliers.
Cash	outflows	on	interest,	taxation	and	the	purchase	of	
plant	and	equipment	were	offset	by	the	receipt	from	the	
sale of our Winsford depot. After dividends paid of £2.1m 
(2015:	£2.7m),	of	which	£1.8m	related	to	the	final	dividend	
for	2015	and	£0.3m	to	the	2016	interim	dividend,	there	was	
net decrease in cash and cash equivalents of £0.7m (2015: 
net decrease £4.3m).
s hort-term Priorities
This	has	been	a	difficult,	but	necessary	year,	focussing	
on reducing	central	overheads	and	building	a	stable	
platform	for	future	growth.	The	short-term	focus	will	be	
on improving	returns,	generating	cash	and	strengthening	
controls and processes across the Group to reduce 
risk further.	
Neill Skinner
Chief	Financial	Officer
28 March 2017 Entu (UK) plc Annual Report 2016 12
Strategic Report
Business Model and strategy
Home improvements
This is our sales and marketing operation focussed on 
the retail	(B2C)	market.	It	focusses	on	glazing	and	heating	
products and markets to customers through established
local brands that have a distinct and recognised identity 
in their	local	market,	with	the	sales	and	marketing	
support functions	are	centralised	under	a	single	
management structure. 
o ur Business
energy generation and s aving
This	is	also	a	sales	and	marketing	operation,	but	more	
focussed on commercial (B2B) markets and managing 
partnerships with national businesses to provide services 
to retail customers through our partners’ own brands.
We	offer	a	full	range	of	energy	efficient	products	delivered	
through	our	in-house,	national	installation	service,	 
Job	Worth	Doing	or	through	carefully	selected	partners.
r epairs r enewals and s ervice a greements 
Our Repairs and Renewals Service Agreements (‘RRSA’) 
offering	gives	customers	the	option	of	an	all-inclusive	
annual	cover	plan	on	many	of	our	core	products,	and	
generates	substantial	profits	for	the	Group.
Furthermore,	our	installation	services	are	delivered	through	
Job	Worth	Doing	which	has	its	own	distinct	brand	identity	
built	upon	delivering	a	quality	service	to	customers.	Job	
Worth Doing is one of the few installers in our sector to 
have achieved	the	coveted	Which?	Trusted	Trader	status.	
It is	the	intention	for	Job	Worth	Doing	to	extend	its	service	
offering	outside	of	the	Group’s	marketing	businesses	
in the future.
Our business is structured into three main divisions.
divisions and branding
Home improvements energy generation and s aving
national installation s ervice
Glazing						Insulation						Heating						Lighting						Controls
Orders Orders Service fee Service fee Entu (UK) plc Annual Report 2016 13
Strategic report governance Financial StatementS
o ur Values
With	a	diverse	customer	base	and	a	young,	energetic	team,	our	simple	and	effective	values	bind	us	all	together	in	the	
dynamic,	competitive	and	constantly	changing	environment	we	operate	in.
o ur Values
Performance
Pride
s uccess drive
Pride
Most	of	our	people	operate	in	customer-facing	roles	
and we want our people to feel that working at Entu is 
more	than	just	a	job,	but	is	a	vocation	that	allows	them	
to	feel	proud	of	themselves,	their	achievements	and	
being	part	of small	business	with	ambitious	plans.
drive
Every customer is 
different	and	every	job	
presents	different	
challenges,	but	our	
customers expect us 
to deliver. We need our 
people	to	be	creative,	
resilient and driven to 
overcome any 
obstacle that stands in 
the	way	of us	
providing our 
customers with an 
excellent service.
Performance
Our brand and reputation is built on our people 
providing our	customers	with	a	first-class	service	every	
time. We want our people to recognise that there can 
be no	let-up	in	performance	and	they	must	do	their	very	
best	for	every	customer,	every	day	of	the	week.
s uccess
We want our people 
to enjoy	every	success,	
no	matter	how small,	
from a happy 
customer to changing 
what	we do to	improve	
our business. We also 
encourage our 
people to	share	every	
success with their 
colleagues and across 
the business 
to reinforce	our	value,	
which	takes	us back	
to Pride! Entu (UK) plc Annual Report 2016 14
Strategic Report
Business Model and strategy
continued
our Vision
Our	vision	is	to	build	the	UK’s	leading	energy	efficient	group,	providing	end	to	end	services	and	products	to	retail	
and commercial	customers	end-to	end.
our strategy
We plan to deliver our vision in three simple steps:
2016–2017 2017–2018 2018–2019
Focus on  
Core Strengths
 > Improve	returns,	generate	cash	and	
strengthen  controls in core Home 
Improvements business
Leverage Our  
Core Business
 > Consolidation opportunities
 > Marketing leverage = 
higher conversion	ratios
 > Operational leverage = 
national installation service
Build Our 
Energy Efficiency 
Offering
 > Build product 
portfolio
 > Partnering 
relationships
 > Influence sales 
directly
3.  
2.  
1.   Entu (UK) plc Annual Report 2016 15
Strategic report governance Financial StatementS
Focus on core strengths
Our	short-term	priority	is	to	focus	on	our	core	strengths	and improve	returns,	generate	cash	and	reduce	risk	
in our core business.	
This	will	build	a	robust	platform	for	growth,	both	in	our	core	business	and	as we	grow	our	product	offering	
and new markets.
Leverage o ur core Business
Once	we	have	delivered	a	robust	platform	for	growth,	we	will	look	for	consolidation	opportunities	around	
strong national	brands,	particularly	those	with	a	strong	digital	presence,	that	will	allow	us	to	create	sales	and	
marketing	leverage	through	higher	sales	conversion	ratios	and	operational	leverage	through	a	single,	national	
installation service.
Whilst	a	business	combination	would	be	the	quickest	way	to	achieve	this,	we	will	also	continue	to	invest	in	our	
own national	branding	and	digital	strategy.
Build o ur energy efficiency o ffering
We will continue to invest in a select number of corporate relationships where we can build our portfolio of energy 
efficient products	and	expand	our	services	in	to	commercial	markets,	initially	through	outsourced	delivery.	
Our	key	investment	criteria,	as	well	as	producing	returns	at	least equal	to	our core	Home	Improvements	business,	
will be opportunities	where	we	can	influence	sales	directly	and,	eventually,	absorb	delivery	capability	into	our	
national installation platform. Entu (UK) plc Annual Report 2016 16
Strategic Report
Strong Local Brands –  
National Installation Network
We have a portfolio of strong local 
brands which allow us to tailor our 
marketing messages to the local 
needs of regional markets 
supported by a national network 
of 12 installation depots which give 
good	national	coverage,	
guaranteeing a consistent 
professional service.
Energy Efficiency
We	are	differentiated	from	other	
home improvement business by 
focussing on the energy saving   
properties of our products which 
will become an increasingly 
important factor in our customers’ 
buying decisions.
Sales and Marketing
With years of experience in the 
sector,	our	sales	and	marketing	
team	are	one	of	the	most	dynamic,	
creative and driven teams in the 
industry	and,	with	a	high	level	of	
repeat	business,	our	customer	
database is an important asset.
strong  
Local Brands
core s trengths Entu (UK) plc Annual Report 2016 17
Strategic report governance Financial StatementS
Professional Installation
By operating as a specialist installer 
across	multiple	brands,	our	Job	
Worth Doing operation is not only 
unique	within	our	sector,	but	
provides a platform for growth as 
we	develop	our	energy	efficient	
product	offering.
Training and Compliance
We have a comprehensive training 
and compliance programme for 
all customer-facing	staff	and	sales	
agents which is delivered by 
qualified	staff	and	overseen	by	
experienced compliance managers. 
In an industry that is becoming 
more	heavily	regulated,	our	
compliance function will become 
a distinct	competitive	advantage.
Customer Services
As well as ensuring our customers 
enjoy	the	best	experience	
throughout	the	service,	our	
customer service teams perform 
an important compliance function 
making sure that we identify 
vulnerable customers. 
national  
Installation network Entu (UK) plc Annual Report 2016 18
Strategic Report
Principal risks and u ncertainties
Key r isk r isk description Mitigating a ctions
s ector
The Group’s activities are currently weighted 
towards the home improvements sector which 
is cyclical. If the government was to introduce 
tighter regulation around the Group’s direct 
sales	activities,	then	this	could	increase	
significantly	the	competitive	pressures	on	
the Group	and	impose	additional	costs	upon	
the business.
The Group’s strategy is to diversify its business 
by	broadening	its	offering	across	energy	
efficient	products	and	expanding	its	customer	
base through partnerships with national 
branded	chains.	In	parallel	to	this,	the	Group	
maintains a variable cost operating model 
and regularly	reviews	the	structure	and	cost	
of its	operations.
r egulatory
The market in which the Group operates is 
highly regulated and the Group needs to 
maintain	FCA	authorisations	to	be	able	to	offer	
customers	finance	products	from	carefully	
selected partners. The risk to the Group of not 
managing rules and laws associated with this 
risk	can	result	in	fines,	penalties	or	loss	of	
licences. The bodies that have authority in the 
sector	include	the	FCA,	local	trading	standards,	
ICO,	ASA	and	HSE.
The Group has a comprehensive training and 
compliance	programme	for	all	customer-facing	
staff	and	sales	agents	which	is	delivered	by	
qualified	staff	and	overseen	by	experienced	
compliance managers. The Group maintains 
a number	of	FCA	licences	to	allow	it	to	continue	
to	offer	finance	to	customers	in	the	unlikely	
event that it loses one of its licences. The Group 
also has a dedicated data management team 
to the	data	associated	with	its	sales	activities.
Political  
s upport
The Group operates in sectors that periodically 
receive Government support to promote energy 
efficiency	savings.	If	financial	incentives	reduce	
materially,	then	associated	business	streams	
may no longer be viable.
Activities that rely on Government support 
represent a small part of the Group’s activities. 
The Group monitors the changing political 
climate to take proactive and timely decisions 
that will minimise the adverse impact of a 
reduction in such support.
a cquisitions 
and 
Commercial 
Partnerships
The Group’s long term strategy is based upon 
complementary acquisitions and commercial 
partnerships to enhance the Group’s service 
offering.	Lack	of	suitable	opportunities	or	failure	
to integrate acquired businesses properly may 
limit the Group’s growth potential.
The Group’s strategy can be achieved through 
organic	growth,	even	if	the	timescales	are	
longer. The Group also employs people 
experienced in this area and has demonstrated 
the ability to identify and integrate acquisitions 
as well as develop commercial partnerships. 
r etention and 
r ecruitment  
of s taff
The Group relies on the retention of a 
relatively small	number	of	senior	executives	
and managers	to	run	its	operations.	There	is	
a short-term	risk	of	disruption	should	any	of	
the senior	executives	or	managers	leave.	Whilst	
the	Group	has	successfully	attracted	senior,	
experienced	managers,	the	market	for	talent	
is highly	competitive.
The	Group	is	implementing	enhanced	training,	
review	and	on-going	development	initiatives.	
The Group has also put in place various bonus 
arrangements and intends to revisit its share 
incentive schemes to reward and retain its 
senior managers and employees. The Group’s 
listed	status	is	also	a	differentiator	in	the	
recruitment process. Entu (UK) plc Annual Report 2016 19
Strategic report governance Financial StatementS
Key r isk r isk description Mitigating a ctions
s elf-employed 
individuals
The	Group	engages	the	services	of	self-
employed individuals	in	its	sales,	surveying	and	
installation operations who are paid through 
flexible	commission-based	remuneration	
schemes. This provides the Group with low 
operational gearing. There is a risk that 
legislation	may	require	self-employed	individuals	
to be treated as employees which could increase 
fixed	costs	and	operational	gearing.	
The Group monitors the legislative 
environment closely and undertakes regular 
reviews of the contractual terms under which 
self-employed	individuals	are	engaged,	with	
the	support	of	its	professional	advisers,	to	
ensure that it is compliant with the relevant 
laws and regulations. 
r eliance on  
Key s uppliers
The	Group	relies	on	two	key	suppliers,	one	for	
the supply of its core home improvement 
products,	and	another	for	consumer	finance	
products for customers. Alternative suppliers for 
both	supplies	are	readily	available,	but	a	
disruption	to	supply	may	have	a	significant	
impact	on	the	Group’s	short-term	performance.
The	Group	has	long-term	contracts	in	place	
with its two key suppliers and seeks to maintain 
strong working relationships to ensure supplier 
performance is in line with agreed contractual 
terms.	However,	the	Group	also	maintains	
dialogue with alternative suppliers and 
maintains contingency plans to cover 
a material disruption.
it s ystems
A failure of the Group’s operating IT systems 
would	result	in	significant	disruption.
The Group maintains two independent systems 
and is able to switch all operations to one 
platform if necessary. The Group is reviewing 
its long-term	IT	strategy.		
Health 
and safety
There is a need to continually access and 
manage the	health	and	safety	risks	across	the	
Group to ensure a safe working environment 
for customers,	employees	and	self–employed	
individuals. A failure to manage this risk properly 
could	lead	to	significant	potential	liabilities.
The Group employs experienced health and 
safety professionals who maintain detailed 
health	and	safety	procedures,	undertake	regular	
site checks and organise toolbox talks and 
continuous learning. The Board monitors health 
and safety management regularly. 
Working Capital  
Facilities
The	Group	maintains	bank	facilities	sufficient	
to meet	its	ongoing	working	capital	and	
development needs. If existing arrangements 
were	withdrawn,	then	alternative	sources	would	
need to be sourced and there is a risk that such 
alternatives could not be secured.
The Group maintains relationships with several 
bank	and	finance	providers	to	minimise	this	risk.	
The Group also ensures funds are only lodged 
with	UK-based	financial	institutions	with	an	
‘A-’ rating	or	better.
This	Strategic	Report	has	been	approved	by	Neill	Skinner,	Chief	Financial	Officer,	on	behalf	of	the	Board	of	Directors.
Neill Skinner
Chief	Financial	Officer
28 March 2017 Entu (UK) plc Annual Report 2016 20
Governance
Board of directors
David M Forbes
Chairman
Ian Blackhurst
Chief Executive Officer
Neill Skinner
Chief Financial Officer
David	qualified	as	a	chartered	
accountant	in	1984	and	has	significant	
experience in Corporate Finance 
advisory	services,	including	22	years	
in the Investment Banking division 
of N	M	Rothschild.	He	is	currently	
a Non-Executive	Director	at	Renew	
Holdings PLC and boohoo.com PLC 
and Addo Food Group Ltd. David is 
a member	of	the	Audit	Committee	
and the	Remuneration	Committee.
Ian	is	the	Chief	Executive	Officer	of	
the Group.	He	has	driven	the	Group	
over several years and taken a lead 
role in the acquisition and integration 
of	Zenith	Staybrite	Limited,	Penicuik	
Home Improvements Limited and  
St Andrew’s Home Improvements 
Limited.	Ian	also established	Group	
companies	including	Job	Worth	Doing	
Limited. Ian’s previous roles include 
Group Managing Director of Genesis 
Communications,	Managing	Director	
of Scotplas Limited and Operations 
Director of Weatherseal Home 
Improvements Limited.
Neill is an experienced CFO most 
recently at AIM listed Clean Air Power 
Limited.	Previously,	he	held	a	number	
of	senior	finance	roles	at	British	
Nuclear	Fuels	PLC,	including	Finance	
Director of the UK Nuclear Estate and 
Finance Director of the international 
decommissioning business. He was 
also previously Strategy Director and 
International Development Director 
at Speedy	Hire	PLC,	where	he	set	up	
commercial	partnerships	and	major	
outsourcing contracts. Entu (UK) plc Annual Report 2016 21
Strategic report governance Financial StatementS
Geoff 	 S tev e n s
Non-Executive Director 
Chair of the Audit Committee
Lorraine Clinton
Non-Executive Director 
Chair of the Remuneration 
Committee
Nancy Kelsall
Company Secretary
Geoff	has	extensive	experience	as	
a CFO	in	a	variety	of	listed	and	private	
equity-backed	companies,	most	
recently	John	Brown	Media	Group	
and Protocol	Group.	His	first	Group	
Finance Director role was with 
home care	provider	Goldsborough	
Healthcare	PLC,	and	he	subsequently	
held the Finance Director role at 
ISA International	PLC	and	Healthcare	
Group	PLC.	Geoff	began	his	career	
at Coopers	Lybrand,	where	he	became	
a General	Practice	Partner.
Lorraine has held UK and European 
blue-chip	executive	Board	roles,	along	
with	multi-industry,	public	and	private	
Non-Executive	Director	experience.	
Lorraine has spent over two decades 
as	a	senior	executive	at	Pilkington	PLC,	
in key roles such as Director of 
Architecture	and	Glazing.	Lorraine	
has experience	of	chairing	Board	
remuneration,	nomination	and	audit	
committees and she chairs a pension 
fund.	She	is	currently,	and	has	
previously	been,	a	Non-Executive	
Director for a number of leading 
organisations.
Nancy is a practising solicitor who 
worked	as	a	corporate	finance	solicitor	
for over 15 years. She was a partner 
at Addleshaw	Goddard	LLP	until	2009	
and a partner at DWF LLP until 2011. Entu (UK) plc Annual Report 2016 22
Governance
directors’ r eport
directors
The Directors present their Annual Report and 
Consolidated Financial Statements for the year ended 
31 October	2016.	
Principal a ctivities
The principal activities of the Group are the sale 
and installation	of	home	efficiency	products,	home	
improvement products and Eco funded measures. 
The subsidiary	undertakings	principally	affecting	
the profits,	liabilities	or	assets	of	the	Group	are	listed	
in note 28	of	the	Consolidated	Financial	Statements.	
r esults 
A summary of the Group’s results for the year is set out 
in the	Chairman’s	Statement	and	the	Chief	Executive’s	
Statement in the Annual Report. 
directors 
The Directors who served during the year and up to the 
date of approval of this report are set out below: 
David	Forbes,	Chairman,	Ian	Blackhurst,	Chief	Executive,	
and	Lorraine	Clinton,	Chair	of	the	Remuneration	
Committee	all	served	throughout	the	financial	year	ended	
31 October 2016.
During	the	year	Darren	Cornwall,	former	Chief	Financial	
Officer	resigned	from	his	post	as	Corporate	Development	
Officer	and	Statutory	Director	on	15	April	2016.
Geoff	Stevens,	appointed	1	June	2015,	resigned	on	
14 January	2016	as	part	time	Chief	Financial	Officer,	and	
became	a	Non-Executive	Director	on	the	same	day.	He	was	
appointed the Chair of the Audit Committee after the AGM 
on 29 March 2016.
Andrew	Corless	was	appointed	on	14	January	2016	as	
Chief Operating	Officer	and	left	the	Group	to	pursue	other	
opportunities	on	19	July	2016.
Neill	Skinner	was	appointed	as	Chief	Financial	Officer	from	
14	January	2016.	
Directors	serving	at	the	end	of	the	year,	and	their	immediate	
families,	had	interests	in	the	share	capital	of	the	Company	
at 31	October	2016	and	31	October	2015	as	follows:
Ordinary shares of 0.05p each
2016 2015
Ian Blackhurst
*
9,840,000 9,840,000
Neill Skinner – –
Geoff Stevens – –
David Forbes 50,000 –
Lorraine Clinton – –
*		 Included	in	Ian	Blackhurst’	director’s	interest	above	are	4,920,000	shares	
held	by	his	spouse,	Belinda	Blackhurst.	 
There has been no change in the Directors’ interest in 
the Company	between	the	year-	end	date	and	the	date	
of the	approval	of	this	report.
Former	Director,	Darren	Cornwall	still	has	a	shareholding	
of	3,820,000	(31	October	2015:	3,820,000)	and	Andrew	
Corless,	also	a	former	Director,	held	a	shareholding	of	
20,000	as	at	31	October	2015.
Other s ubstantial interests 
The register maintained by the Company under section 
808 of the Companies Act 2006 disclosed the following 
interests in the shares of the Company held at 28 February 
2017 are:
Shareholder Ordinary shares %
Christine Kennedy 19,680,000 30.00
Kestrel Partners LLP 13,068,510 19.92
Milton Asset Management Limited 6,030,676 9.19
Premier Fund Managers Limited 4,690,000 7.15
Political and Charitable Contributions
No political or charitable donations were made in the 
year or	prior	year	by	the	Group.	
disabled Persons
The Group gives full and fair consideration to applications 
from disabled persons wherever it is practicable and 
endeavours	to	ensure	disabled	employees	benefit	from	
training and career development programmes in common 
with all other employees.  Entu (UK) plc Annual Report 2016 23
Strategic report governance Financial StatementS
employee information
The	Group	recognises	the	benefits	of	keeping	employees	
informed of the progress of the business and of involving 
them in their Company’s performance. The methods of 
achieving	such	involvement	are	different	in	each	subsidiary	
and have been developed over the years by management 
working with employees in ways which suit their particular 
needs	and	environment,	with	the	active	encouragement	
of the	Parent	Company.
disclosure of information to a uditors
The	Directors	who	held	office	at	the	date	of	approval	
of this Directors	Report	confirm	that,	so	far	as	they	are	
aware,	there	is	no	relevant	audit	information	of	which	
the Group	and	Company	auditors	are	unaware	and	
each Director	has	taken	all	steps	that	he	or	she	ought	
to have	taken	as	a	Director	to	make	himself	or	herself	
aware	of	any relevant	audit	information	and	to	establish	
that	the Group	and	Company	auditors	are	aware	of	
that information.
This information is given and should be interpreted 
in accordance	with	the	provision	of	section	418	(2)	
of Companies	Act	2006.	
independent a uditor
PricewaterhouseCoopers	LLP	has	signified	its	willingness	
to	continue	in	office	as	Auditor	to	the	Company	and	Group	
and,	in	accordance	with	section	485	of	the	Companies	Act	
2006,	a resolution	for	its	appointment	will	be	proposed	
at the	forthcoming	Annual	General	Meeting.
Principal r isks and uncertainties Facing 
the group
A	variety	of	risks	or	uncertainties	could	affect	the	Group’s	
business	activities,	financial	condition	and	results	of	
operations. These are summarised in the principal risks 
and uncertainties section.
Financial instruments
Details	of	the	Group’s	financial	risk	management	
policies and	objectives	and	its	exposure	to	financial	
risks have	been	included	in	note	3	to	the	Consolidated	
Financial Statements.
events a fter the r eporting date
During	March	2017,	the	Group	extended	it	facilities	with	
Barclays	Bank	plc,	with	the	renewal	of	its	£4m	revolving	
credit facility for 12 months alongside the Group’s existing 
variable overdraft facility. The Directors have no reason to 
believe that the facilities will not be renewed upon expiry.
going Concern
The Financial Statements have been prepared on a going 
concern basis. For the purpose of considering going 
concern the Directors have considered a period of at least 
12 months from the date of approving these Financial 
Statements and have made the following assumptions 
around future trading: (i) revenues over the next 12 
months are at similar levels to 2016 reported revenues; 
(ii) margins	show	a	modest	increase	over	2016	following	
actions	taken	to	improve	operational	efficiency	and	reduce	
costs in 2016; (iii) there is no material change to the Group’s 
operating model or existing supply relationships; (iv) the 
Group	is	able	to	retain	the	benefit	of	the	cost	savings	
realised in 2016 following the actions taken to restructure 
the	Group,	as	discussed	in	the	‘Chief	Executive’s	Statement’;	
and (v) the key risks set out in the ‘Principal Risks and 
Uncertainties’ section of the ‘Strategic Review’ will not 
crystallise or have a material impact upon the Group within 
the next 12 months. The Directors have modelled a series 
of sensitivities around these assumptions taking into 
account	reasonable,	possible	changes	in	trading	
performance	and	determined	that	there	is	sufficient	
headroom in the Group’s facilities and/or mitigating actions 
available. The Directors have no reason to believe that 
the facilities	will	not	be	renewed	upon	expiry.
Meetings of the board
The	Board,	which	meets	regularly,	at	least	10	times	per	
year,	has	overall	responsibility	for	the	strategic	direction	
and management of the business. All key decisions 
affecting	the	Group	are	considered	by	the	Board	as	
a whole.	The	annual	Group	budget	and	business	plan,	
trading	and	cash	forecasts,	major	items	of	capital	
expenditure	and	any	other	significant	strategic	actions	
all require	Board	approval.	Board	meetings	are	subject	
to a formal	agenda,	a	Group	finance	pack	including	Group	
management accounts and forecasts compared to budget 
and a broader strategic update from all of the Executive 
Directors.	All	reports	are	subject	to	detailed	review.	
Decisions taken by the Board are communicated down 
to management	in	a	timely	manner	to	allow	immediate	
operational implementation. Entu (UK) plc Annual Report 2016 24
Governance
directors’ r eport
continued
a udit Committee
The members of the Audit Committee as at 31 October 
2016	were	Geoff	Stevens	(Chair),	David	Forbes	and	Lorraine	
Clinton. Executive Directors are permitted to attend 
meetings at the discretion of the Chairman of the 
Committee. The Committee meets at least twice a year 
and there	is	an	opportunity	for	any	meeting	to	be	in	private	
between	the	Non-Executive	Directors	and	the	Group’s	
Auditor to consider any matter they wish to bring to the 
attention of the Committee. The terms of reference and 
areas of delegated responsibility of the Audit Committee 
are in consideration and approval of the following matters: 
 > monitoring the quality and effectiveness of the internal 
control	environment,	including	the	risk	management	
procedures followed by the Group; 
 > reviewing the Group’s accounting policies and ensuring 
compliance with relevant accounting standards;
 > reviewing the Group’s reporting and accounting 
procedures;
 > ensuring that the financial performance of the business 
is properly measured and reported on;
 > recommending the reappointment of the auditor and the 
level of their remuneration; 
 > considering reports from the auditor on the outcome 
of the	audit	process	and	ensuring	that	any	
recommendations arising are communicated to the 
Board and implemented on a timely basis;
 > reviewing the Board’s statement on internal control in 
the Annual Report; and 
 > ensuring compliance with the relevant requirements 
of the	AIM	rules.
internal Control
The Board has overall responsibility for ensuring that the 
Group maintains a system of internal control to provide 
it with	reasonable	assurance	regarding	the	reliability	of	
financial	information	used	within	the	business	and	for	
publication. The Board is also responsible for ensuring 
that assets	are	safeguarded	and	risk	is	identified	as	early	
as	practicably	possible.	As	noted,	the	Audit	Committee	
has a	significant	role	in	this	area.	The	internal	control	
systems established are designed to manage rather than 
completely eliminate risk and can only provide reasonable 
but not absolute assurance against misstatement or loss. 
The Group does not currently have an internal audit 
function and this will be kept under review. 
The	Board	reviews	the	effectiveness	of	the	systems	
of internal	control	and	its	reporting	procedures	and	
augments and develops these procedures as required 
to ensure	that	an	appropriate	control	framework	is	
maintained at all times. The principal control mechanisms 
deployed by the Group are: 
 > Board approval for all strategic and commercially 
significant transactions;
 > detailed scrutiny of the monthly management accounts 
with all material variances investigated; 
 > executive	review	and	monitoring	of	key	decision-making	
processes at subsidiary board level 
 > Board reports on business performance and commercial 
developments; 
 > periodic risk assessments at each business involving 
senior executive management; 
 > standard accounting controls and reporting procedures; 
and 
 > regularly liaising with the Group’s auditor and other 
professionals as required.
During the year ended 31 October 2016 the Group has 
undertaken a thorough and detailed internal review 
of the balance	sheets	of	the	non-trading	and	trading	
subsidiaries of the Group. As a consequence of this 
review the	Group	will	be	further	strengthening	internal	
controls going forwards. 
Key Performance indicators 
The Group’s continuing operations key performance 
indicators	are	revenue,	underlying	gross	profit,	earnings	
before	interest,	depreciation	and	exceptional	items	from	
continuing	operations,	operating	profit	and	the	net	cash	
position on balance sheet. These are disclosed in the 
Strategic Report.
a nnual general Meeting
The board is fully committed to constructive dialogue 
with its	shareholders.	The	Company	uses	the	Annual	
General Meeting as an opportunity to communicate with 
its shareholders. The Company’s 2016 Annual General 
Meeting	will	be	held	at	Bow	Chambers,	8	Tib	Lane,	
Manchester,	M2	4JB.	The resolutions	which	will	be	
proposed at the 2016 Annual General Meeting are set out 
in the separate Notice of Annual General Meeting which 
accompanies	this Annual Report	and	Accounts.
s hare Capital
As	at	31	October	2016,	the	Company’s	issued	share	capital	
consisted	of	65,600,000	ordinary	shares	of	£0.0005	each	
and	34,400,000	deferred	shares	of	£0.0005	each.	Deferred	
shares carry no voting right and no rights to dividends 
or the	assets	of	the	Group. Entu (UK) plc Annual Report 2016 25
Strategic report governance Financial StatementS
r ights and Obligations attaching 
to s hares
Subject	to	applicable	statutes	and	other	shareholders’	
rights,	shares	may	be	issued	with	such	rights	and	
restrictions as the Company may by ordinary resolution 
decide,	or,	if	there	is	no	such	resolution	or	so	far	as	it	does	
not	make	specific	provision,	as	the	Board	may	decide.	
r estrictions on voting
Unless	the	Board	decides	otherwise,	no	member	shall	be	
entitled to vote at any meeting in respect of any shares 
held by that member if any call or other sum which is 
then payable	by	that	member	in	respect	of	that	share	
remains unpaid. 
Purchase of Own s hares 
The Company has not sought approval to purchase its 
own shares.
r estrictions on the transfer of s ecurities 
There are no restrictions on the transfer of securities  
in the Company except that certain restrictions may 
from time	to	time	be	imposed	by	laws	and	regulations	
(for example,	insider trading).	
r equired disclosures incorporated by 
r eference 
Details of the Group’s performance and future 
developments	that	may	affect	the	Group	along	with	details	
in relation to dividends have been included in the 
Chairman’s and Chief Executive’s Statements.
s tatement of directors’ r esponsibilities
The Directors are responsible for preparing the Annual 
Report	and	Accounts,	and	the	Financial	Statements	in	
accordance with applicable law and regulations. 
Company	law	requires	the	Directors	to prepare	financial	
statements	for	each	financial	year.	Under	that	law the	
Directors	have	prepared	the	Group	financial	statements	
in accordance	with	International	Financial	Reporting	
Standards	(‘IFRSs’)	as	adopted	by	the European	Union	
and Company	financial	statements	in	accordance	with	
International Financial Reporting Standards (IFRSs). Under 
company	law	the	Directors	must	not	approve	the	financial	
statements	unless	they	are satisfied	that	they	give	a	true	
and	fair	view	of	the state	of	affairs	of	the	Group	and	
Company	and	of the	profit	or	loss	of	the	Group	and	
Company	for	that period.	In	preparing	these	financial	
statements,	the	Directors	are	required	to:
 > select suitable accounting policies and then apply 
them consistently;	
 > state whether applicable IFRSs as adopted by the 
European	Union	have	been	followed,	subject	to	any	
material departures disclosed and explained in the 
financial statements;
 > make	judgements	and	accounting	estimates	that	
are reasonable	and	prudent;	
 > prepare the financial statements on the going concern 
basis unless it is inappropriate to presume that the 
Company will continue in business.
The Directors are responsible for keeping adequate 
accounting	records	that	are	sufficient	to	show	and	explain	
the Company’s transactions and disclose with reasonable 
accuracy	at any	time	the	financial	position	of	the	Company	
and	the Group	and	enable	them	to	ensure	that	the	financial	
statements	comply	with	the	Companies	Act	2006	and,	as	
regards	the	Group	Financial	Statements,	Article	4	of	the	IAS	
Regulation.	The	Directors are	also	responsible	for	
safeguarding	the	assets	of the	Company	and	the	Group	and	
hence for taking reasonable steps for the prevention and 
detection	of fraud and	other	irregularities.	
The Directors are responsible for the maintenance and 
integrity of the Company’s website. Legislation in the 
United Kingdom governing the preparation and 
dissemination	of	financial statements	may	differ	from	
legislation	in	other	jurisdictions.	
Each	of the	Directors,	whose	names	and	functions	are	
listed	in	the	Annual	Report	and	Accounts	confirm	that,	
to the	best	of	their knowledge:
 > the	Company	Financial	Statements,	which	have	been	
prepared in accordance with IFRSs as adopted by the 
European	Union,	give	a	true	and	fair	view	of	the	assets,	
liabilities,	financial	position	and	loss	of	the	Company;	
 > the	Group	Financial	Statements,	which	have	been	
prepared in accordance with IFRSs as adopted by the 
EU, give	a	true	and	fair	view	of	the	assets,	liabilities,	
financial position and loss of the Group; and 
 > the Strategic Report contains a fair review of the 
development and performance of the business and 
the position	of	the	Group,	together	with	a	description	
of the	principal	risks	and	uncertainties	that	it	faces.
On behalf of the Board of Directors:
Ian Blackhurst
Chief Executive
28 March 2017
Entu (UK) plc  
08957339 Entu (UK) plc Annual Report 2016 26
Governance
The Directors present their Directors’ Remuneration 
Report	(the	‘Remuneration	Report’)	for	the	financial	year	
ended 31 October 2016. 
As	an	AIM	quoted	company,	Entu	(UK)	plc	is	not	required	to	
prepare this Remuneration Report in accordance with the 
Directors’	Remuneration	Report	Regulations	2002,	the	
Large	and	Medium-sized	Companies	and	Groups	(Accounts	
and Reports) (Amendment) Regulations 2013 and/or the 
Investment Association’s principles of Remuneration. 
However,	the	Directors	recognise	the	importance,	and	
support	the	principles,	of	the	above	sources	and	seek	to	
follow them to the extent considered relevant for an AIM 
quoted company. 
The Remuneration Committee continues to monitor 
market practice to ensure that this report includes 
disclosures at least as good as market practice for AIM 
companies. The Auditor is not required to report to the 
shareholders on the Directors’ Remuneration Report. 
No matters were raised by shareholders relating to 
Directors’ remuneration throughout the year.
a ppointments and r esignations 
On	14	January	2016,	the	Group	announced	that	Geoff	
Stevens	had	stepped	down	as	Chief	Financial	Officer	(CFO)	
and	assumed	the	role	of	Non-Executive	Director.	The	
Board	was	delighted	to	retain	Geoff’s	knowledge	and	
experience and he was appointed Chair of the Audit 
Committee	after	the	AGM	on	29	March,	2016.
Simultaneously,	the	Group	announced	that	Neill	Skinner	
was	joining	the	Board	as	full-time	CFO.	Neill	has	had	
extensive	experience	of	financial	leadership	roles,	having	
previously	been	CFO	at	AIM-listed	Clean	Air	Power	and	has	
also	held	senior	financial	roles	at	British	Nuclear	Fuels	plc.	
Andrew	Corless,	Managing	Director	of	Entu	Energy	
Services,	 which	comprised	the	Group’s	installation	
business,	Job	Worth	Doing	(JWD),	and	Astley	Facades	
(‘Astley’),	concurrently	joined	the	Executive	Board	as	
Chief Operating Officer	(COO).	Andrew	had	been	with	
Entu since September 2014.
On	15	April	2016,	Darren	Cornwall,	Corporate	Development	
Director	(CDD),	stepped	down	from	the	Board	to	work	on	
a flexible	basis	as	the	Company	scaled	back	on	acquisition	
activity to focus on the core business. 
On	19	July	2016,	Andrew	Corless	left	the	Group	to	pursue	
new opportunities. 
r emuneration Committee
The	Remuneration	Committee	comprises	Lorraine	Clinton,	
Non-Executive	Director	as	Chair,	David	Forbes,	Non-
Executive	Chairman	and	Geoff	Stevens,	Non-Executive	
Director who was appointed to the committee after the 
Annual	General	Meeting	on	29	March,	2016.
The responsibilities of the Remuneration Committee can 
be reviewed on the Company website: http://www.entu.
org/investor-relations/corporate-governance-code.
The	Non-Executive	Directors	do	not	have	any	personal	
interest	in	the	matters	to	be	decided	by	the	Committee,	
nor	any	potential	conflicts	of	interest	arising	from	cross	
Directorships	or	day	to-day	involvement	in	the	running	of	
the Company. The Executive Directors and other senior 
personnel are invited to attend meetings when appropriate 
to	provide	advice.	However,	no	Executive	Director	is	
present or takes part in any discussions concerning their 
own remuneration.
r emuneration Policy 
The Company’s policy is that the remuneration package of 
the	Executive	Directors	should	be	sufficiently	competitive	to	
attract,	retain	and	motivate	those	Directors	to	achieve	the	
Company’s	objectives,	without	making	excessive	payments.	
The remuneration and employment terms of the Executive 
Directors will be determined by the Committee referring to 
published	survey	data,	comparison	with	salaries	paid	and	
terms agreed in similar companies in the same sector and 
companies	of	a	similar	size,	and	after	a	review	of	the	
performance of the individuals.
The Board determines the terms and conditions of the 
Non-Executive	Directors.	
There are two principal elements to the remuneration 
packages	of	the	Executive	Directors,	being	base	salary	
and benefits,	and	annual	bonus	awards.
r emuneration committee r eport 
(unaudited)  Entu (UK) plc Annual Report 2016 27
Strategic report governance Financial StatementS
Basic Salary and Benefits
Base salaries are reviewed annually by the Remuneration 
Committee,	and	adjusted	where	appropriate	to	reflect	
performance,	changed	responsibilities	and/or	
market conditions.
Other	benefits	for	Executive	Directors	include	car	
allowances,	pension	contributions	and	certain	medical	
cover for the Director and their immediate family. 
The Company	also	has	a	permanent	health/life	insurance	
policy to provide cover for the Executive Directors. 
Annual Bonus Awards
The annual bonus awards for the Executive Directors 
are directly	linked	to	the	performance	of	the	Group,	all	
criteria	are	subject	to	approval	by	the	Remuneration	
Committee and payments are only made when approved 
by the Committee. 
Incentive Plans
It is the Company’s policy to grant options or awards 
under the	Company’s	share	incentive	plans	at	the	
Remuneration	Committee’s	discretion,	as	and	when	
considered appropriate. 
The	Company	offers	a	‘Long	Term	Incentive	Plan’	(LTIP)	
and a	‘Management	Incentive	Plan’	(MIP)	for	a	small	
senior management	cohort,	a	‘Company	Share	Option	Plan’	
(CSOP) for a wider management group and an all employee 
‘Save As You Earn’ scheme (SAYE). 
Ian	Blackhurst,	Chief	Executive	Officer	(CEO)	is	a	significant	
shareholder	and,	therefore,	is	not	party	to	any	of	the	share	
schemes	currently	offered	to	wider	management	and	staff.
The Board recognises the importance of ensuring that 
senior	management	are	highly	motivated,	and	closely	
identify with the future success of the Company. 
As	such,	the	LTIP	and	MIP	were	designed	to	closely	align	
a material	part	of	senior	management’s	remuneration	
with shareholder’s	interests.	In	considering	the	design	of	
these	schemes	at	the	time	of	the	AIM	float	in	October	2014,	
it was decided that a growth share scheme was optimal 
considering the requirements of both employees and 
investors.	Therefore,	value	created	to	date	is	referenced	
in the	LTIP,	whilst	future	value	creation	is	the	target	of	the	
MIP.	A	total	of	a	maximum	of	960,000	Ordinary	shares	can	
be	allocated	under	the	LTIP,	and	4,448,399	Ordinary	shares	
can	be	allocated	under	the	MIP,	subject	to	the	achievement	
of	share	price,	EPS	performance	targets	and	a	three-year	
retention,	all	of	which	must	be	achieved	for	the	awards	
to crystallise.	The	CSOP	and	SAYE	schemes	are	also	subject	
to	minimum	three-year	vesting	periods.	
Given the performance of the Company and its share price 
since	the	options	were	granted	at	the	time	of	the	IPO,	it	is	
highly	unlikely	that	any	options	granted	under	the	LTIP,	 
MIP,	SAYE	scheme	or	CSOP	will	vest.
94% of the shares available for issue under the four 
schemes	over	the	10-year	period	from	admission	were	
allocated	at	the	time	of	the	IPO.	Therefore,	there	is	little	
opportunity for future share incentives to be awarded 
under the present schemes unless a share issue is 
undertaken.	As	such,	the	Remuneration	Committee	does	
not currently intend to grant any further options at this time. 
The need to retain and motivate management remains 
important and therefore the Remuneration Committee 
will review	these	incentive	schemes	over	the	next	six	
months with a view to putting in place a suitable share 
incentive plan going forward. It is expected that any such 
plan will include share incentives for senior managers 
who do	not	have	any	at	present.
Shareholdings held by Directors are disclosed in the 
Directors’ Report. 
r emuneration for the year ended 31 October 2016
Service Contracts and Letters of Appointment
The	service	contracts	of	the	Directors,	who	served	as	at	31 October	2016	include	the	following	terms:
Directors Executive/Non-executive Date of contract
Notice period
(months)
Ian Blackhurst Executive 25 March 2014 12
Neill Skinner Executive 14 January 2016 6
David Forbes Non-Executive 18 September 2014 3
Lorraine Clinton Non-Executive 18 September 2014 3
Geoff Stevens Non-Executive 14 January 2016 3 Entu (UK) plc Annual Report 2016 28
Governance
Notes
1.  The highest salaried Director for the year ended 
31 October	2016	was	Ian	Blackhurst	who	received	
emoluments	of	£235,000	(2015:	£285,000).	Given	his	
significant	shareholding	in	the	Company,	Ian	Blackhurst	
offered	to	reduce	his	basic	salary	of	£274,000	to	
£220,000 in	exchange	for	a	greater	proportion	of	
performance	related	pay.	This	offer	was	acceded	
and was effective	from	1	November	2015.	Due	to	
termination	payments,	the	highest	paid	director	in	
the year	ended	31 October	2016	was	the	former	COO,	
Andrew	Corless,	who	received	£261,000	of	emoluments,	
including	£45,000 of	termination	payments.
2.	 	 Neill	Skinner	joined	the	Board	with	effect	from	
14 January	2016	with	an	annual	salary	of	£150,000.	
The salary	and	benefits	in	kind	reflected	are	for	
the period	of	commencement	of	employment	to	
31 October	2016.
3.  The bonus criteria were not met for the executive 
Directors’	reward	scheme,	for	the	year	ended	
31 October	2016,	and	as	such	no	payments	were	
made under	this	scheme.
4.	 	 Benefits	include	pension	payment,	car	allowance	
and certain	medical/permanent	health	insurance	
cover for the	Director	and	their	immediate	family.
5.	 	 The	Chairman,	David	Forbes,	received	a	£4,000	fee	
for additional	services	supplied.
6.	 	 Geoff	Stevens,	when	CFO,	was	employed	on	a	part	
time basis	at	£86,000	per	annum	with	extra	days	paid	
at	a	rate	of	£850/day.	Geoff	Stevens	continued	as	part	
time	CFO	until	14	January,	2016,	and	then	received	
the differential	in	salary	between	his	former	CFO	role	
and his	Non-Executive	Director	role	for	the	period	
of his	three	month	notice	as	CFO,	after	which	he	was	
remunerated	at	the	Non-Executive	Director	annual	
salary	of	£30,900.
7.	 	 Besides	the	Executive	Directors	and	Non-Executive	
Director remuneration disclosed for Directors serving 
as	at	31	October	2016	above,	there	was	additional	
remuneration to two former Directors who served 
for part	of	the	period	ended	31	October	2016.	Andrew	
Corless	received	£261,000	and	Darren	Cornwall	
received	£79,000	in	total	emoluments.	These	
emoluments are included within the total Directors’ 
emoluments	figure	of	£882,000	in	Note	7	to	the	
Financial Statements.
r emuneration for the year ended 31 October 2016 (continued)
Directors’ Remuneration
Information is provided below for Directors who served as at 31 October 2016:
Executive Directors
Salary
£000’s
Bonus
£000’s
Benefits
£000’s
Total 
Emoluments 
2015/16
£000’s
Total 
Emoluments 
2014/15 
£000’s
Ian Blackhurst 220 (Note 1) – (Note 3) 15 (Note 4) 235 285
Neill Skinner
*
122 (Note 2) – (Note 3) 23 (Note 4) 145 –
Total 342 – 38 380 285
*	The	salary	above	is	for	part	of	the	year.	Appointment	date	for	Neill	Skinner	was	14	January	2016.
The	Board	determines	the	fees	of	the	Non-Executive	Directors.	The	Non-Executive	Directors	are	not	eligible	for bonuses,	
pension	benefits,	share	options	or	other	benefits.	All	Non-Executive	Directors	are	subject	to	re-election	every	3	years.
Non-Executive Directors
Salary 
£000’s
Bonus 
£000’s
Benefits 
£000’s
Total 
Emoluments
 2015/16 
£000’s
Total 
Emoluments
 2014/15 
£000’s
David Forbes 56 (Note 5) – – 56 52
Lorraine Clinton 31 – – 31 31
Geoff Stevens
*
70 (Note 6) – 5 75 49
Total 157 – 5 162 132
* Executive Director for part of the year.
r emuneration committee r eport 
(unaudited) continued Entu (UK) plc Annual Report 2016 29
Strategic report governance Financial StatementS
Annual Bonus Awards
For	the	year	ended	31	October	2016,	the	Company	
provided a bonus incentive scheme for the Executive 
Directors which was approved by the Remuneration 
Committee and was closely aligned to shareholder 
interests and linked to a target for earnings before interest 
and tax for the Group of £8.1m. 
Had	the	Company	met	this	target,	Ian	Blackhurst,	would	
have received an annual bonus of 60% of his base salary 
reflecting	that	given	his	significant	shareholding,	he	had	
offered,	and	the	Company	had	agreed,	to	reduce	his	base	
salary in exchange for a greater proportion of performance 
related	pay.	At	this	£8.1m	profit	before	interest	and	tax	
target,	Neill	Skinner	would	have	received	an	annual	bonus	
of 50% of base salary. 
Over or under performance would have resulted in the 
level	of	annual	bonus	for	both	to	vary	on	a	linear	scale,	
from a £nil payment for achievement of target less than 
25%,	through	to	a	maximum	bonus	of	100%	of	salary	
eligible,	had	the	performance	exceeded	the	target	 
by 25%. No payments were or will be made under these 
arrangements as the minimum targets were not met.
r emuneration for the year ending 
31 October 2017
Basic Salary and Benefits
There are no proposed changes to the basic salaries of any 
of	the	Executive	or	Non-Executive	Directors.	There	have	
been	no	material	changes	in	the	benefits	to	which	the	
Executive Directors are entitled to receive.
Annual Bonus Awards
The Company will provide a bonus incentive scheme for 
the	Executive	Directors,	which	will	be	closely	aligned	to	
shareholder interests. Targets have yet to be agreed but 
will	include	elements	relating	to	Group	profit	performance,	
supplemented by an element relating to cash collections 
or similar	measure.	
The target criteria will be approved by the Remuneration 
Committee and consequent performance at the year 
ending	31	October	2017	will	be	subject	to	further	approval	
by this Committee before any payment is made. These 
targets and subsequent performance will be published in 
the Remuneration Committees’ report for the year ending 
31	October	2017.	Should	any	material	adjustments	be	
made	to	the	corporate	structure	within	the	financial	
year ending	31	October	2017,	then,	at	the	Remuneration	
Committee’s	discretion,	a	corresponding	adjustment	may	
be made to any of the target or reward schemes referred 
to above.
Long Term Equity Incentive Plan 
As	detailed	above,	it	is	not	intended	that	any	additional	
grants will be made at this time. Instead the Company’s 
share	option	offering	across	the	LTIP,	MIP,	CSOP	and	SAYE	
schemes will be reviewed by the Remuneration Committee 
to consider what the future arrangements should be to 
retain,	reward	and	motivate	colleagues.	
Approval
The Directors’ Remuneration Report was approved by 
the Board	on	28	March	2017	and	signed	on	its	behalf	by:
Lorraine E Clinton 
Chair of the Remuneration Committee 
28 March 2017 Entu (UK) plc Annual Report 2016 30
Financial Statements
Independent Auditors’ Report  
to the Members of Entu (UK) plc
Report on the Group Financial Statements
Our Opinion
In our opinion, Entu (UK) plc’s Group Financial Statements 
(the ‘Financial Statements’):
 > give a true and fair view of the state of the Group’s 
affairs as at 31 October 2016 and of its loss and cash 
flows for the year then ended;
 > have been properly prepared in accordance with 
International Financial Reporting Standards (‘IFRSs’) 
as adopted by the European Union; and
 > have been prepared in accordance with the 
requirements of the Companies Act 2006.
What We Have Audited
The Financial Statements, included within the Annual 
Report and Accounts (the ‘Annual Report’), comprise:
 > the Consolidated Balance Sheet as at 31 October 2016;
 > the Consolidated Income Statement for the year then 
ended;
 > the Consolidated Cash Flow Statement for the year 
then ended;
 > the Consolidated Statement of Changes in Equity for 
the year then ended; and
 > the Notes to the Consolidated Financial Statements, 
which include a summary of significant accounting 
policies and other explanatory information.
The financial reporting framework that has been applied 
in the preparation of the Financial Statements is IFRSs 
as adopted by the European Union, and applicable law.
In applying the financial reporting framework, the 
Directors have made a number of subjective judgements, 
for example in respect of significant accounting estimates. 
In making such estimates, they have made assumptions 
and considered future events.
Opinion on Other Matter Prescribed 
by The Companies Act 2006
In our opinion, the information given in the Strategic 
Report and the Directors’ Report for the financial year for 
which the Financial Statements are prepared is consistent 
with the Financial Statements.
Other Matters on Which We Are 
Required to Report by Exception
Adequacy of Information and Explanations Received
Under the Companies Act 2006 we are required to 
report to you if, in our opinion, we have not received 
all the information and explanations we require for our 
audit. We have no exceptions to report arising from 
this responsibility. 
Directors’ Remuneration
Under the Companies Act 2006 we are required to report 
to you if, in our opinion, certain disclosures of Directors’ 
remuneration specified by law are not made. We have 
no exceptions to report arising from this responsibility. 
Responsibilities for the Financial 
Statements and the Audit
Our Responsibilities and Those of the Directors
As explained more fully in the Statement of Directors’ 
Responsibilities, the Directors are responsible for the 
preparation of the Financial Statements and for being 
satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on 
the Financial Statements in accordance with applicable law 
and International Standards on Auditing (UK and Ireland) 
(‘ISAs (UK and Ireland)’). Those standards require us to 
comply with the Auditing Practices Board’s Ethical 
Standards for Auditors.
This report, including the opinions, has been prepared 
for and only for the Company’s members as a body in 
accordance with Chapter 3 of Part 16 of the Companies Act 
2006 and for no other purpose. We do not, in giving these 
opinions, accept or assume responsibility for any other 
purpose or to any other person to whom this report is 
shown or into whose hands it may come save where 
expressly agreed by our prior consent in writing. Entu (UK) plc Annual Report 2016 31
Strategic report governance Financial StatementS
What an Audit of Financial Statements Involves
We conducted our audit in accordance with ISAs (UK and 
Ireland). An audit involves obtaining evidence about the 
amounts and disclosures in the Financial Statements 
sufficient to give reasonable assurance that the Financial 
Statements are free from material misstatement, whether 
caused by fraud or error. This includes an assessment of: 
 > whether the accounting policies are appropriate to the 
Group’s circumstances and have been consistently 
applied and adequately disclosed; 
 > the reasonableness of significant accounting estimates 
made by the Directors; and 
 > the overall presentation of the Financial Statements.
We primarily focus our work in these areas by assessing 
the Directors’ judgements against available evidence, 
forming our own judgements, and evaluating the 
disclosures in the Financial Statements. 
We test and examine information, using sampling and 
other auditing techniques, to the extent we consider 
necessary to provide a reasonable basis for us to draw 
conclusions. We obtain audit evidence through testing 
the effectiveness of controls, substantive procedures 
or a combination of both. 
In addition, we read all the financial and non-financial 
information in the Annual Report to identify material 
inconsistencies with the audited Financial Statements 
and to identify any information that is apparently 
materially incorrect based on, or materially inconsistent 
with, the knowledge acquired by us in the course of 
performing the audit. If we become aware of any apparent 
material misstatements or inconsistencies we consider 
the implications for our report.
Other Matter
We have reported separately on the Company 
Financial Statements of Entu (UK) plc for the year ended 
31 October 2016.
Hazel Macnamara (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP 
Chartered Accountants and Statutory Auditors 
Manchester 
28 March 2017
  Entu (UK) plc Annual Report 2016 32
Financial Statements
Consolidated Income Statement
Year Ended 31 October
Notes
2016
£000’s
2015
Restated
£000’s
Continuing operations
Revenue 4 87,745 89,563
Cost of sales (60,284) (59,645)
Gross profit 27,461 29,918
Administrative expenses (24,994) (22,658)
Operating profit before exceptional items 2,467 7,260
Exceptional items 5 (4,581) (518)
Operating (loss)/profit (2,114) 6,742
Finance income 8 – 4
Finance costs 8 (219) (27)
(Loss)/profit before taxation (2,333) 6,719
 
Taxation credit/(charge) 9 512 (973)
(Loss)/profit for the year from continuing operations 6 (1,821) 5,746
Discontinued operations:
Loss for the year from discontinued operations 10 (3,801) (3,032)
(Loss)/profit for the year 23 (5,622) 2,714
 
Continuing basic (loss)/earnings per share (pence) 12 (2.8) 8.8
Discontinued basic loss per share (pence) 12 (5.8) (4.6)
Total basic (loss)/earnings per share (pence) 12 (8.6) 4.2
Diluted (loss)/earnings per share – continuing operations (pence) 12 (2.8) 8.8
Adjusted earnings per share is shown in note 12 to the accounts.
The notes 1 to 31 are an integral part of these Consolidated Financial Statements.
There are no other items of comprehensive income for the year other than the (loss)/profit for the year attributable  
to the equity holders. Entu (UK) plc Annual Report 2016 33
Strategic report governance Financial StatementS
Consolidated Balance Sheet
At 31 October 2016
Notes
2016
£000’s
2015
Restated
£000’s
2014
Restated
£000’s
Assets
Non-current assets
Intangible assets 13 1,141 1,496 1,676
Property, plant and equipment 14 481 948 1,048
Deferred tax asset 19 418 – 19
2,040 2,444 2,743
Current assets
Inventories 15 1,267 1,839 1,751
Trade and other receivables 16 8,103 14,089 10,029
Cash and cash equivalents 17 768 1,435 5,768
10,138 17,363 17,548
Total assets 12,178 19,807 20,291
Equity 
Share capital 22 50 50 50
Accumulated losses (8,356) (655) (663)
Total shareholders’ deficit (8,306) (605) (613)
Liabilities
Non-current liabilities
Deferred taxation liabilities 19 – 60 40
Provisions 20 403 1,318 1,488
403 1,378 1,528
Current liabilities
Trade and other payables 18 18,465 17,477 17,149
Current taxation liabilities 9 54 532 1,798
Provisions 20 1,562 1,025 429
20,081 19,034 19,376
Total liabilities 20,484 20,412 20,904
Total shareholders’ deficit and liabilities 12,178 19,807 20,291
 
The Financial Statements were approved by the Board of Directors on 28th March 2017 and authorised for issue 
on 28 March 2017.
They were signed on its behalf by:
Neill Skinner
Chief Financial Officer
28 March 2017
Entu (UK) plc  
Registered number 08957339 Entu (UK) plc Annual Report 2016 34
Financial Statements
Consolidated Statement  
of Changes in Equity
Year Ended 31 October
Notes
Share
Capital
£000’s
Accumulated
Losses 
£000’s
Total
Shareholders’
 Deficit 
£000’s
At 1 November 2014 (restated) 50 (663) (613)
Profit for the financial year – 2,714 2,714
Transactions with owners:
Dividends 11 – (2,736) (2,736)
Share based payment charge 26 – 30 30
Total transactions with owners recognised directly in equity – (2,706) (2,706)
At 31 October and 1 November 2015 (restated) 50 (655) (605)
Loss for the financial year – (5,622) (5,622)
Transactions with owners:
Dividends 11 – (2,079) (2,079)
Total transactions with owners recognised directly in equity – (2,079) (2,079)
At 31 October 2016 50 (8,356) (8,306)
Share Capital 
The share capital account includes the nominal value for all shares issued and outstanding.
Accumulated Losses
The ‘Accumulated Losses’ column in the Statement of Changes in Equity includes the accumulated profits and losses 
arising from the Consolidated Income Statement and certain items from the Consolidated Statement of Changes in Equity 
attributable to equity shareholders, net of distributions to shareholders.
The notes 1 to 31 are an integral part of these Financial Statements. Entu (UK) plc Annual Report 2016 35
Strategic report governance Financial StatementS
Consolidated Cash  
Flow Statement
Year Ended 31 October
Notes
2016
£000’s
2015
£000’s
Cash flows from operating activities
Cash generated from operations 24 1,382 1,180 
Taxation paid (12) (2,216)
Interest received – 4
Interest paid (232) (27)
Net cash generated from/(used in) operating activities 1,138 (1,059)
Cash flows from investing activities
Purchase of property, plant and equipment 14 (189) (258)
Proceeds from disposal of property plant and equipment 27 463 –
IPO fees – (1,320)
Acquisition of subsidiary, net of cash acquired 10 – 1,040
Net cash generated from/(used) in investing activities 274 (538)
Cash flows from financing activities
Dividends paid to equity shareholders 11 (2,079) (2,736)
Net cash used in financing activities (2,079) (2,736)
Net decrease in cash and cash equivalents (667) (4,333)
Cash and cash equivalents at the beginning of the year 1,435 5,768
Cash and cash equivalents at the end of the year 17 768 1,435 Entu (UK) plc Annual Report 2016 36
Financial Statements
Notes to the Consolidated 
Financial Statements
General information
Entu (UK) plc (‘the Company’) and its subsidiaries (together 
‘the Group’) principal activity during the period was the 
sale of replacement windows, double glazing, entrance 
doors, patio doors and exterior improvement products 
within the United Kingdom. Other activities, included 
within discontinued operations were solar home 
improvement products and within the Astley Facades UK 
group of companies, the provision of façade facilities for 
both new build construction and refurbishment products.
The Company is incorporated and domiciled in the UK. 
The Company’s registered number is 08957339. The 
address of its registered office is 7 Road One, Winsford 
Industrial Estate, Winsford, Cheshire CW7 3PZ.
The Company is a public limited company and has its primary 
listing on the AIM division of the London Stock Exchange.
The Group Consolidated Financial Statements were 
authorised for issue by the Board on 28 March 2017.
Directors
The Directors of the Group during the year ended 
31 October 2016 were as follows:
Executive
Ian Blackhurst, Chief Executive Officer.
Neill Skinner, full time Chief Financial Officer appointed 
14 January 2016. 
Andrew Corless, Chief Operating Officer, appointed 
14 January 2016, resigned 19 July 2016.
Darren Cornwall, Corporate Development Officer, resigned 
15th April 2016, (see note 27 for services to the Group after 
he resigned as Director).
Geoff Stevens resigned as part time Chief Financial Officer 
14 January 2016.
Non-Executive
David Forbes, Chairman.
Geoff Stevens, appointed 14 January 2016 and appointed 
Chair of Audit Committee, 29 March 2016. 
Lorraine Clinton, Chair of Remuneration Committee.
1. Accounting policies
The principal accounting policies applied in the preparation 
of these Consolidated Financial Statements are set out in 
this note. These policies have been consistently applied to 
all the years presented, unless otherwise stated.
Basis of preparation 
The Consolidated Financial Statements of the Group have 
been prepared in accordance with International Financial 
Reporting Standards as adopted by the European Union 
(IFRS as adopted by the EU), IFRS Interpretations Committee 
(IFRS IC) Interpretations and the Companies Act 2006 
applicable to companies reporting under IFRS. The 
Consolidated Financial Statements have also been 
prepared under the historical cost convention. Where  
it is appropriate to modify the historical cost convention, 
for example to value derivatives at fair value through 
profit and loss, the Group has a policy to do so.
The Financial Statements have been prepared in GBP, 
being the Group’s presentational and functional currency 
and have been presented in thousands.
The preparation of Financial Statements in conformity 
with IFRS requires the use of certain critical accounting 
estimates. It also requires management to exercise 
its judgement in the process of applying the Group’s 
accounting policies. The areas involving a higher degree 
of critical complexity, or areas where assumptions and 
estimates are significant to the Consolidated Financial 
Statements are disclosed in note 2.
During the year ended 31 October 2016 various prior year 
adjustments were recorded in order to amend accounting 
policies, in order to ensure they were in line with best 
practice and appropriate to the business going forwards. 
See note 2 to the accounts.
Basis of consolidation
Subsidiaries are defined as entities over which the Group 
exercises control. The Group controls an entity when the 
Group has power over an entity, is exposed to, or has 
rights to, variable returns from its involvement with the 
entity and has the ability to affect these returns through 
its power over the entity. 
Subsidiaries are fully consolidated from the date on which 
control is transferred to the Group. They are deconsolidated 
from the date that control ceases. The Group has applied 
IFRS 10 retrospectively in accordance with transition 
provisions of IFRS 10.
The Group applies the acquisition method to account for 
business combinations. The cost of an acquisition is 
measured as the fair value of the assets given, equity 
interests issued and liabilities incurred or assumed at the 
date of exchange. 
The excess of the cost of an acquisition over the fair value 
of the Group’s share of the identifiable net assets of the 
subsidiary acquired is recorded as goodwill. If the cost of 
the acquisition is less than the Group’s share of net assets 
of the subsidiary acquired, the difference is recognised 
in the Consolidated Income Statement. Entu (UK) plc Annual Report 2016 37
Strategic report governance Financial StatementS
1. Accounting policies (continued)
Basis of consolidation (continued)
Acquisition costs are expensed as incurred and included 
within exceptional items. 
The accounting periods of the majority of subsidiary 
undertakings are coterminous with those of the Company. 
For subsidiaries with a different year end than the Parent 
Company, adjustments are made for material transactions 
or balances.
Intercompany transactions, balances and unrealised gains 
on transactions between Group companies are eliminated. 
Basis of preparation
When the Group ceases to have control any retained 
interest in the entity is re-measured to its fair value at 
the date when control is lost, with the change in carrying 
amount recognised in profit or loss. In addition, any 
amounts previously recognised in other comprehensive 
income in respect of that entity are accounted for as 
if the Group had directly disposed of the related assets 
or liabilities. This may mean that amounts previously 
recognised in other comprehensive income are reclassified 
to profit and loss. 
Adoption of new or amended standards and 
interpretations in the current year
Changes in accounting policy and disclosures
a) New standards, amendments and interpretations
No new standards, amendments or interpretations, 
effective for the first time for the financial year beginning 
on or after 1 November 2015 have had a material impact 
on the Group or Parent Company. No standards have been 
early adopted.
b) New standards, amendments and interpretations 
not yet adopted 
A number of new standards and amendments to 
standards and interpretations are effective for annual 
periods beginning after 1 November 2015 and have not 
been applied in preparing these Financial Statements. 
None of these are expected to have a significant effect on 
the Financial Statements of the Group or Parent Company, 
except the following, set out in the following sections 
relating to accounting standards.
Standards
IFRS 9
IFRS 9 ‘Financial Instruments’ addresses the classification, 
measurement and recognition of financial assets and 
financial liabilities. It replaces the guidance in IAS 39 that 
relates to the classification and measurement of financial 
instruments. IFRS 9 retains but simplifies the mixed 
measurement model and established three primary 
measurement categories for financial assets: amortised 
cost, fair value through OCI and fair value through the 
statement of comprehensive income. The basis of 
classification depends on the entity’s business model and 
contractual cash flow characteristics of the financial asset. 
Investment in equity instruments are required to be 
measured at fair value through the statement of 
comprehensive income. Investments in equity instruments 
are required to be measured at fair value through the 
statement of comprehensive income with the irrevocable 
option at inception to present changes in fair value in other 
comprehensive income not recycling.
There is now an expected credit losses model that 
replaces the incurred loss impairment model used in IAS 39. 
There were no changes to classification and measurement 
except for the recognition of changes in own credit risk, for 
liabilities designated at fair value through profit and loss, 
recognised in the statement of other comprehensive 
income. IFRS 9 relaxes the requirements for hedge 
effectiveness by replacing the bright line effectiveness 
tests. It requires an economic relationship between the 
hedged item and hedging instrument and for the ‘hedged 
ratio’ to be the same as the one management actually 
uses for risk management purposes. Contemporaneous 
documentation is still required but it is different from 
that currently prepared under IAS 39. The standard is 
effective for annual periods beginning on or after 
1 January 2019 and earlier application is permitted, 
subject to EU endorsement. The full impact of IFRS 9 has 
not yet been assessed.
IFRS 15
IFRS 15 ‘Revenue from Contracts with Customers’ deals 
with revenue recognition and establishes principles for 
reporting useful information to users of the Financial 
Statements about the nature, timing, and uncertainty of 
revenue and cash flows arising from the entity’s contracts 
with customers. Revenue is recognised when a customer 
obtains control of a good or service and thus has the ability 
to direct the use and obtain the benefits from that good 
or service. The standard replaces IAS 18 ‘Revenue’. The 
standard is effective for annual periods beginning on or 
after 1 January 2018 and earlier application is permitted. 
The full impact of IFRS 15 is in the process of being assessed.  Entu (UK) plc Annual Report 2016 38
Financial Statements
Notes to the Consolidated 
Financial Statements continued
1. Accounting policies (continued)
Standards (continued)
IFRS 16
IFRS 16 ‘Leases’ addresses the definition of a lease , 
recognition and measurement of leases and establishes 
principles for reporting useful information to the users 
of Financial Statements about the leasing activities of both 
lessees and lessors. A key change arising from IFRS 16 
is that most operating leases will be accounted for on 
balance sheet as lessees. The standard replaces IAS 17 
‘Leases’ and related interpretations. The standard 
is effective for annual periods beginning on or after 
1 January 2019 and earlier application is permitted, 
subject to EU endorsement and the entity adopting  
IFRS 15 ‘Revenue from contracts with customers’ at 
the same time. The full impact of IFRS 16 has not yet 
been assessed.
Amendments to accounting standards 
Annual improvements 2010–2012 (effective 1 July 2014 
and endorsed for 1 February 2015)
Annual improvements 2011–2013 (effective 1 July 2014 
and endorsed for 1 January 2015)
Amendment to IAS 19 ‘Employee Benefits’ on defined 
benefit plans (effective 1 July 2014 and endorsed for 
1 February 2015)
The adoption of amendments to these standards has not 
had a material impact for the year ended 31 October 2016.
Going concern
The Financial Statements have been prepared on a going 
concern basis. For the purpose of considering going 
concern the Directors have considered a period of at least 
12 months from the date of approving these Financial 
Statements and have made the following assumptions 
around future trading: (i) revenues over the next 12 months 
are at similar levels to 2016 reported revenues; (ii) margins 
show a modest increase over 2016 following actions taken 
to improve operational efficiency and reduce costs in 2016; 
(iii) there is no material change to the Group’s operating 
model or existing supply relationships; (iv) the Group is 
able to retain the benefit of the cost savings realised in 
2016 following the actions taken to restructure the Group, 
as discussed in the ‘Chief Executive’s Statement’; and (v) the 
key risks set out in the ‘Principal Risks and Uncertainties’ 
section of the ‘Strategic Review’ will not crystallise or 
have a material impact upon the Group within the next 
12 months. The Directors have modelled a series of 
sensitivities around these assumptions taking into account 
reasonable, possible changes in trading performance 
and determined that there is sufficient headroom in the 
Group’s facilities and/or mitigating actions available. The 
Directors have no reason to believe that the facilities will 
not be renewed upon expiry.
Revenue
The Group recognises revenue from the sale of goods and 
services when it has transferred significant risks 
and rewards of ownership to the buyer. For most of 
the Group’s products the recognition will be when the 
installation is substantially complete. Where installation is 
completed is in stages, revenue will be recognised by 
reference to the stage of completion of the transaction 
at the balance sheet date. 
The Group receives commissions for introducing finance 
products to customers as finance commission income. 
Finance commission income is recognised in line with 
the revenue recognition policy for the product to which the 
finance commission relates.
Repairs and Renewals Service Agreement (RRSA) income is 
spread over the life of the relevant agreement and 
amounts received in advance are treated as deferred 
income.
Revenue received in advance of the recognition criteria 
outlined above is accounted for as deferred income within 
trade and other payables in the Financial Statements. 
Where the revenue recognition criteria have been met, but 
revenue has not been invoiced, the revenue is accrued on 
the balance sheet within prepayments and accrued income 
or other receivables.
Revenue is recognised net of VAT and any sales discounts 
and rebates offered. 
Exceptional items
Exceptional items are considered by the Directors. The 
Directors apply judgement in assessing the particular 
items, which, by virtue of their scale and nature should be 
disclosed separately, as the Directors consider they are not 
representative of the underlying trading of the Group. 
Exceptional items may include restructuring expenses, 
onerous lease and dilapidation provisions, balance sheet 
impairments and other non-trading items.
Goodwill 
Goodwill represents the excess of the purchase price of a 
business combination over the Group’s interest in the fair 
value of identifiable net assets, liabilities and contingent 
liabilities acquired. The purchase price includes the fair 
value of contingent consideration where appropriate. 
Direct costs of acquisition are recognised immediately 
as an expense in profit or loss. 
Goodwill is capitalised as an intangible asset with any 
impairment in carrying value being charged to the 
Consolidated Income Statement.  Entu (UK) plc Annual Report 2016 39
Strategic report governance Financial StatementS
1. Accounting policies (continued)
Goodwill (continued)
Where the fair value of identifiable assets, liabilities and 
contingent liabilities exceeds the fair value of consideration 
paid, the excess is credited in full to the Consolidated 
Income Statement on the date of acquisition. 
Impairments
The carrying values of the Group’s assets are reviewed 
at each balance sheet date.
Goodwill is allocated to each of the Group’s cash 
generating units expected to benefit from the business 
combination. Cash generating units to which goodwill has 
been allocated are tested annually for impairment, or more 
frequently when there is an indication that the unit may be 
impaired. If the recoverable amount of the cash generating 
unit is less than the carrying amount of the unit, the 
impairment loss is allocated first to reduce the carrying 
amount of any goodwill allocated to the unit and then to 
the other assets of the unit pro rata on the basis of the 
carrying amount of each asset in the unit.
An impairment loss recognised for goodwill is not 
reversed in a subsequent period. On disposal of a 
subsidiary the attributable amount of goodwill is included 
in the determination of the profit or loss on disposal. 
Impairment charges are included in profit or loss.
Other assets are reviewed to see if an indication of 
impairment exists. If any such indication exists, the 
assets recoverable amount is estimated.
The Group assesses at the end of each reporting period 
whether there is objective evidence that a financial asset 
or group of assets is impaired. For example, evidence of 
impairment might include indications that the asset will 
fail to generate cash or other forms of cash benefit to 
the Group in the future.
Share capital 
Financial instruments issued by the Group are classified 
as equity only to the extent that they do not meet the 
definition of a financial liability or financial asset. 
The Group’s ordinary and deferred shares are classified 
as equity instruments.
Dividends
Final dividends are recognised when they are approved 
and become legally payable. Interim dividends are 
recognised when paid.
Dividends were paid out of Entu (UK) plc reserves, 
which had sufficient positive reserves at the date of 
the dividend distribution.
Taxation 
The tax expense for the period comprises current and 
deferred tax. Tax is recognised in the income statement, 
except to the extent that it relates to items recognised in 
other comprehensive income or directly in equity. In this 
case, the tax is also recognised on other comprehensive 
income or directly in equity, respectively. The current 
income tax charge is calculated on the basis of tax laws 
enacted or substantively enacted at the balance sheet 
date in the UK. Management periodically evaluates 
positions taken in tax returns with respect to situations in 
which applicable tax regulation is subject to interpretation. 
It establishes provisions where appropriate on the basis 
of amounts expected to be paid to the tax authorities. 
Deferred income tax is recognised on a temporary 
differences arising between the tax bases of assets and 
liabilities and their carrying amounts in the Consolidated 
Financial Statements. However deferred tax liabilities are 
not recognised if they arise from the initial recognition of 
goodwill, deferred income tax is not accounted for if it 
arises from the initial recognition of an asset or liability in 
a transaction other than a business combination that at the 
time of the transaction affects neither the accounting nor 
taxable profit nor loss. Deferred income tax is determined 
using tax rates (and laws) that have been enacted or 
substantively enacted by the balance sheet date and are 
expected to apply when the related deferred income 
tax asset is realised or the deferred income tax liability 
is settled. Deferred tax assets are recognised only to the 
extent that it is probable that future taxable profit will 
be available against which the temporary differences 
can be utilised.
Deferred tax income tax assets are recognised only 
to the extent that it is probable that future taxable 
profit will be available against which the temporary 
differences can be utilised. Deferred tax income assets 
are recognised on deductible temporary differences 
arising from the investment in subsidiaries, associates 
and joint arrangements only to the extent that it is 
probable that the temporary difference will reverse in 
the future and there is sufficient taxable profit available 
against which the temporary difference can be utilised. Entu (UK) plc Annual Report 2016 40
Financial Statements
Notes to the Consolidated 
Financial Statements continued
1. Accounting policies (continued)
Property plant and equipment
Assets are stated at historical cost less accumulated 
depreciation and accumulated impairment losses. 
Historical cost includes expenditure that is directly 
attributable to the acquisition of the item concerned.
Depreciation is charged so as to write off the cost or 
valuation of assets, other than land, over their estimated 
useful lives, using the straight-line method, on the 
following basis:
Freehold property 5% per annum
Plant and machinery 33% per annum 
Fixtures and fittings 33% per annum 
Equipment 33% per annum
Motor vehicles 33% per annum
Depreciation is included within administrative expenses 
in the income statement.
Residual values, remaining useful lives and depreciation 
methods are reviewed annually and adjusted if 
appropriate.
Profits or losses on disposal of property, plant and 
equipment are included in the profit or loss for the year 
within administrative costs.
Trade receivables
Trade receivables are amounts due from customers for 
merchandise sold or services performed in the ordinary 
course of business. If collection is expected in one year 
or less (or in the normal operating cycle if the business 
if longer) they are classified as current assets. If not, 
they are presented as non-current assets.
Trade receivables are initially recognised at fair value 
and subsequently measured at amortised cost using 
the effective interest rate method, less provision for 
impairment. A provision for impairment is made when 
there is objective evidence that the Group will not be able 
to collect all amounts due according to the original terms 
of the receivables, and is measured as the difference 
between the carrying value and the present value of 
estimated future cash flows. Additionally, management 
use their judgement to assess the recoverability of debt 
in the light of circumstances within individual subsidiaries. 
Subsequent recoveries of previously impaired trade 
receivables are recognised as a credit to profit as recorded.
Trade payables
Trade payables are obligations to pay for goods or services 
that have been acquired in the ordinary course of business 
from suppliers. Accounts payable are classified as current 
liabilities if payment is due within one year or less (or in 
the normal operating cycle of the business, if longer).  
If not they are presented as non-current liabilities. 
Trade payables are not interest bearing, and are stated 
at fair value.
Deferred income, payments on account and advance 
payments are included within the category of trade and 
other payables and are not interest bearing. 
Cash and cash equivalents
In the Consolidated Statement of Cash Flows, cash and 
cash equivalents include cash in hand, cash deposits held 
at call with banks and bank overdrafts. In the Consolidated 
Balance Sheet where there is a bank overdraft which is not 
subject to a bank offset arrangement, it is included within 
borrowings in current liabilities.
Financial instruments
The Group classifies financial instruments, or their 
component parts, on initial recognition as a financial asset, 
a financial liability or an equity instrument in accordance 
with the substance of the contractual arrangement.
Financial instruments are recognised on the balance sheet 
at fair value when the Group becomes a party to the 
contractual provisions of the instrument.
Borrowings
Interest-bearing bank loans and overdrafts are recorded 
at fair value, net of direct issue costs, where applicable. 
Finance charges, are accounted for on an accruals basis 
through the income statement.
Operating leases
Payments made under operating leases are recognised 
in profit and loss on a straight-line basis over the term 
of the lease. The aggregate benefit of lease incentives 
is recognised as a reduction of the rental expense over 
the lease term on a straight-line basis.  Entu (UK) plc Annual Report 2016 41
Strategic report governance Financial StatementS
1. Accounting policies (continued)
Finance income and costs
Finance income and costs are recognised in the income 
statement on an accruals basis.
Inventories 
Inventories are initially recognised at cost, and 
subsequently at the lower of cost and net realisable value. 
Cost comprises all costs of purchase, costs of conversion 
and other costs incurred in bringing the inventories to 
their present location and condition. It excludes borrowing 
costs. Weighted average cost is used to determine the cost 
of ordinarily interchangeable items. Net realisable value 
is the estimated selling price in the ordinary course of 
business, less applicable variable selling expenses. 
Discontinued operations
A discontinued operation is a component of the Group’s 
business that represents a separate major line of business 
or geographical area of operations that has been sold, 
closed, or operations have ceased.
Discontinued operations are presented in the Consolidated 
Income Statement as a single line which comprises the 
post-tax profit or loss of the discontinued operations 
concerned, together with the post-tax gain or loss 
recognised on sale or closure. 
Prior periods are restated for comparative purposes.
Segmental reporting 
Operating segments are reported in a manner consistent 
with the internal reporting provided to the chief operating 
decision maker. The Chief Operating Decision-Maker 
(CODM), who is responsible for allocating resources 
and assessing performance of the operating segments, 
has been identified as the Executive Board. 
Provisions 
A provision is recognised in the balance sheet date if, 
as a result of a past event, the Group has a present, 
legal or constructive obligation that can be estimated fairly, 
and it is probable that an outflow of economic benefits 
will be required to settle the obligation. Provisions are 
not recognised for future operating losses.
Provisions recognised are the best estimate of the 
net expenditure required to settle the obligation at 
the reporting date, taking into account the nature 
of the provision.
Employee benefits and share based payments
a) Pension schemes
The Group operates post- employment benefit schemes in 
the form of contributions to defined contribution schemes 
but does not operate a defined benefit pension scheme. 
A defined contribution plan is a pension plan under which 
the Group pays fixed contributions into a separate entity. 
The Group has no legal or constructive obligation to pay 
further contributions if the fund does not hold sufficient 
assets to pay all employees the benefits relating to 
employee service in the current period and prior periods. 
Contributions to defined contribution schemes are 
charged to the Consolidated Income Statement on 
an accruals basis.
b) Termination benefits
Termination benefits are payable when employment is 
terminated by the Group before the normal retirement 
date, or whenever an employee accepts voluntary 
redundancy in exchange for these benefits. The Group 
recognises termination benefits at the earlier of the 
following dates a) when the Group can no longer withdraw 
the offer of those benefits b) when the entity recognises 
costs for a restructuring that is within the scope of IAS 37 
and involves the payment of termination benefits. 
c) Share based payments
The Company offers a ‘Long Term lncentive Plan’ (‘LTIP’) 
and a Management Incentive Plan (‘MIP’) for a small senior 
management cohort, a ‘Company Share Option Plan’ for 
a wider management group and an all employee ‘Save As 
You Earn’ scheme (S.A.Y.E).
All schemes are subject to a three year vesting period 
and are designed to align employee interests with 
shareholder interests.
Under the terms of these share based compensation 
plans the entity receives services from employees as 
consideration for equity instruments (options) of the 
Group. The fair value of the employee services received 
in exchange for the grant of the options is recognised as an 
expense. The total amount to be expensed is determined 
by reference to the fair value of the options granted 
including any market performance conditions (for example 
share price) and excluding non market conditions (such as 
profitability) and including the impact of any non vesting 
conditions for example the requirement of employees 
to save or hold on to shares for a specific period of time. 
At the end of each reporting period, the Group adjusts 
the charge in the income statement in respect of revised 
estimates of the number of options that are expected 
to vest based on the non market vesting conditions and 
service conditions.  Entu (UK) plc Annual Report 2016 42
Financial Statements
Notes to the Consolidated 
Financial Statements continued
2. Prior year adjustments and critical accounting estimates and judgements 
The Group has disclosed certain prior year adjustments relating to changes to accounting policies or application of those 
accounting policies. This has had a material impact of revenue recognition and cost of sales within the income statement, 
as well as impacting the balance sheets and statement of changes in equity for the prior two accounting periods. See 
prior year adjustments.
The Group makes certain critical estimates and assumptions regarding the future. Estimates and judgements are 
continually evaluated based on historical experience and other factors, including expectations of future events that 
are believed to be reasonable under the circumstances. Future actual experience may differ from these estimates and 
assumptions. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying 
amounts of assets and liabilities within the next financial year are discussed in ‘Critical accounting estimates, judgments 
and key sources of estimation uncertainty’.
Prior year adjustments 
During the year the Directors undertook a review of the Group’s revenue recognition policies and the application 
of those policies. As a result of this review the Directors have taken the decision to change their accounting policy for 
certain revenue streams to better reflect industry practices and to align policies more consistently across the Group.
In accordance with IAS 8, the change in accounting policy has been applied retrospectively and the comparative financial 
information has been restated, as has the opening balance sheet as at 1 November 2014. The table below sets out the 
impact of the change in accounting policy on both the profit for the year ended 31 October 2016 and equity of the Group 
as at 1 November 2014 and 31 October 2015.
Impact of prior year adjustments on profit and equity of the Group 
For the Year 
Ended 
31 October
2015
£000’s
Profit after tax as previously reported 2,744
Change in RRSA revenue recognition (i) (76)
Change in other home improvements revenue recognition (ii) 380
Change in finance commission revenue recognition (iii) (84)
Change in application of deferred commission accounting policy (iv) (258)
Adjustment to tax in respect of changes to income recognition (v) 8
Restated profit after tax 2,714
At 
31 October
2015
£000’s
At 
1 November
2014
£000’s
Total equity as previously reported 959 921
Change in RRSA revenue recognition (i) (1,217) (1,141)
Change in other home improvement revenue recognition (ii) (545) (925)
Change in finance commissions revenue recognition (iii) 124 208
Change in application of deferred commission accounting policy (iv) (327) (69)
Adjustment to tax in respect of income recognition changes (v) 401 393
Restated deficit (605) (613) Entu (UK) plc Annual Report 2016 43
Strategic report governance Financial StatementS
(i) Historically the Group recognised revenue in relation to the RRSA programme on a cash received basis. However as 
the RRSA programme results in a 12 month commitment to customers the Directors have determined that it would 
be appropriate to spread the revenue over the 12 month contract period.
(ii) On review of recognition of revenue across the Group’s businesses it was concluded that for certain types of 
installations in certain subsidiaries, there was a different interpretation of the point of completion of installation.  
In some cases, revenue was being recognised prior to the substantial completion of the installations. The Directors have 
determined that the revenue should be recognised when the Group has substantially completed the installation and, the 
substantial risks and rewards of ownership are deemed to have transferred. 
(iii) Historically the Group recognised finance commissions on receipt from finance providers. There has been limited 
history of non–collection of commissions and therefore the Directors think it is more appropriate to recognise finance 
commissions in line with the revenue recognition policy to which the product the finance commission relates. 
(iv) The Group defers sales commissions costs incurred in a financial year which are considered to be directly related 
to revenue transactions which are not recognised until subsequent financial years. As part of the review of the Group’s 
revenue recognition policy the Group aligned policies on deferred commissions across the Group. This has resulted in 
certain costs being required to be recognised earlier than previously recognised. The current and prior years cost of 
sales numbers have been restated in this respect.
(v) Taxation charges have been adjusted in respected of changes to income recognition and deferred commissions.
The overall impact on the restated 2015 Consolidated Income Statement was to increase revenue by £176,000 and 
increase costs of sales by £214,000, thereby reducing operating profit by £38,000. The changes to revenue recognition 
and associated cost of sales led to a small tax reduction of £8,000 in the restated 2015 tax charge.
Changes (i)-(iv) impacted on revenue and cost of sales in the restatement of the 2015 comparative in the Consolidated 
Income Statement. Change (v) impacted on the tax charge. The overall impact on profit after tax for the restated 2015 
comparative was £30,000. The Consolidated Income Statement for 2015 was also restated in respect of discontinued 
operations (see note 10) which account for the remaining differences between originally reported numbers in 2015 and 
the restated numbers shown as a comparative for 2015 in the 2016 Consolidated Income Statement. Entu (UK) plc Annual Report 2016 44
Financial Statements
Notes to the Consolidated 
Financial Statements continued
2. Prior year adjustments and critical accounting estimates and judgements (continued)
Impact of prior year adjustments on the Consolidated Balance Sheets of the Group
At 31 October 2015 
As reported
 previously
£000’s
Change in 
RRSA
(i)
£000’s
Change 
other 
revenue 
recognition
(ii)
£000’s
Change 
finance 
commission
(iii)
£000’s
Change 
deferred
commissions
(iv)
£000’s
Change 
taxation
(v)
£000’s
Restated
£000’s
Assets
Non-current assets
Intangible assets 1,496 – – – – – 1,496
Property, plant equipment 948 – – – – – 948
Deferred taxation – – – – – – –
2,444 – – – – – 2,444
Current Assets
Inventories 1,839 – – – – 1,839
Trade and other receivables 15,078 – (786) 124 (327) – 14,089
Cash and cash equivalents 1,435 – – – – – 1,435
18,352 – (786) 124 (327) – 17,363
Total assets 20,796 (786) 124 (327) – 19,807
Equity
Share capital 50 – – – – 50
Retained earnings/
(accumulated losses) 909 (1,217) (545) 124 (327) 401 (655)
Total shareholders’  
equity/(deficit) 959 (1,217) (545) 124 (327) 401 (605)
Non current liabilities
Deferred taxation 60 – – – – – 60
Provisions 1,318 – – – – – 1,318
1,378 – – – – – 1,378
Current liabilities
Trade and other payables 16,501 1,217 (241) – – – 17,477
Taxation 933 – – – – (401) 532
Provisions 1,025 – – – – – 1,025
18,459 1,217 (241) – – (401) 19,034
Total liabilities 19,837 1,217 (241) – – – 20,412
Total shareholders’ equity/ 
(deficit) and liabilities 20,796 – (786) 124 (327) – 19,807
(i) Changes in accounting policies for RRSA resulted in increased deferred income, which is included in trade and other payables category of liabilities.
(ii) Changes in accounting policies for other revenue recognition had the impact of reducing trade receivables, prepayments, accrued income and other 
receivables within the trade and other receivables category of asset.
(iii) Changes in accounting policies for finance commission had the impact of increasing the trade and other receivables category of asset.
(iv) Changes in the application of accounting policy for deferred commission had the impact of decreasing the trade and other receivables category of asset.
(v) The current taxation liability has been adjusted in respect of the reduction to tax charges as a consequence of changes to income recognition 
and deferred commissions. Entu (UK) plc Annual Report 2016 45
Strategic report governance Financial StatementS
2. Prior year adjustments and critical accounting estimates and judgements (continued)
Impact of prior year adjustments on the Consolidated Balance Sheets of the Group
At 31 October 2014 
and 1 November 2014
As reported
 previously
£000’s
Change in
 RRSA
(i)
£000’s
Change 
other 
revenue 
recognition
(ii)
£000’s
Change 
finance 
commission
(iii)
£000’s
Change 
deferred 
commissions
(iv)
£000’s
Change 
taxation
(v)
£000’s
Restated
£000’s
Assets
Non-current assets
Intangible assets 1,676 – – – – – 1,676
Property, plant equipment 1,048 – – – – – 1,048
Deferred taxation 19 – – – – – 19
2,743 – – – – 2,743
Current Assets
Inventories 1,751 – – – – – 1,751
Trade and other receivables 11,060 – (1,170) 208 (69) – 10,029
Cash and cash equivalents 5,768 – – – – – 5,768
18,579 (1,170) 208 (69) – 17,548
Total assets 21,322 – (1,170) 208 (69) – 20,291
Equity
Share capital 50 – – – – – 50
Retained earning/
(accumulated losses) 871 (1,141) (925) 208 (69) 393 (663)
Total shareholders’  
equity/(deficit) 921 (1,141) (925) 208 (69) 393 (613)
Non current liabilities
Deferred taxation 40 – – – – – 40
Provisions 1,488 – – – – – 1,488
1,528 – – – – – 1,528
Current liabilities
Trade and other payables 16,253 1,141 (245) – – – 17,149
Taxation 2,191 – – – – (393) 1,798
Provisions 429 – – – – – 429
18,873 1,141 (245) – – (393) 19,376
Total liabilities 20,401 1,141 (1,170) – – (393) 20,904
Total shareholders’ equity/
(deficit) and liabilities 21,322 – (1,170) 208 (69) – 20,291
(i) Changes in accounting policies for RRSA resulted in increased deferred income, which is included in trade and other payables category of 
liabilities.
(ii) Changes in accounting policies for other revenue recognition had the impact of reducing trade receivables, prepayments, accrued income and 
other receivables within the trade and other receivables category of asset. It also had the impact of increasing the trade and other payables 
category of liability.
(iii) Changes in accounting policies for finance commission had the impact of increasing the trade and other receivables category of asset.
(iv) Changes in the application of accounting policy for deferred commission had the impact of decreasing the trade and other receivables 
category of asset.
(v) The current taxation liability has been adjusted in respect of the reduction to tax charges as a consequence of changes to income recognition 
and deferred commissions. Entu (UK) plc Annual Report 2016 46
Financial Statements
Notes to the Consolidated 
Financial Statements continued
2. Prior year adjustments and critical accounting estimates  
and judgements (continued)
Critical accounting estimates, judgments and key sources of estimation uncertainty
Impairment of goodwill. The assessment of whether impairment charges are required against the carrying value 
of goodwill is made using value in use calculations. Although these calculations require the use of estimates including the 
discount rate, long term growth rate and forecasts (see note 13) the Directors do not believe there are any reasonably 
possible changes to the estimates made which would result in additional impairment charges. The changes in 
assumptions regarding future trading of discontinued operations resulted in the impairment charges made in the 
year which have been reflected within exceptional items within the Group’s discontinued operations results.
Recoverability of trade receivables. The assessment of whether trade receivables are recoverable requires judgement. 
An allowance for impairment is made where there is an identified loss event which, based on experience, is evidence of a 
reduction in the recoverability of cash flows. Additionally, management use their judgement to assess the recoverability 
of debt in the light of circumstances within individual subsidiaries.
Deferred income and advance payments. Certain payments made by customers, suppliers, and service providers 
are received in advance of when they are due and are accounted for as creditors within the category deferred income 
and advance payments. The Directors made the judgement that this best represented the form and substance of 
the deferred income and advance payments. 
Provisions. The Directors recognise a provision on the balance sheet where the Group has a known liability to transfer 
economic benefits but the liability is uncertain in timing or amount. Management uses judgement in estimating materially 
accurate outcomes based on estimates of a range of probabilities for each category of provision.
3. Financial risk management
(a) General objectives, policies and processes 
The Directors of Entu (UK) plc have overall responsibility for the determination of the Group’s risk management objectives 
and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating 
processes that ensure the effective implementation of the objectives and policies to the Group’s finance function. 
The overall objective of the Directors is to set policies that seek to reduce risk as far as possible without unduly affecting 
the Group’s competitiveness and flexibility. 
In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This 
note describes the Group’s objectives, policies and processes for managing those risks and the method used to measure 
them. Further quantitative information in respect of these risks is presented throughout these Financial Statements. 
Financial instruments include trade receivables, trade payables and cash and cash equivalents which are treated as loans 
and receivables or financial liabilities at amortised cost for IFRS 7 classification purposes. Entu (UK) plc Annual Report 2016 47
Strategic report governance Financial StatementS
3. Financial risk management (continued)
Credit risk 
Credit risk is the risk that financial loss arises from the failure of a customer or counterparty to meet its obligations 
under a contract. The Group has dedicated standards, policies and procedures to control and monitor all such risks. 
Although the Group is potentially exposed to credit loss in the event of non-performance by counterparties, such 
credit risk is managed through third party credit rating agencies (for corporate customers) and internal financial 
reviews of the counterparties involved, and by limiting the total amount of exposure to any one party.
The credit rating awarded to Barclays Bank from a variety of external agencies is in the range of A to A-.
The Group is also exposed to credit risk in respect of amounts due from trade receivables. Given the nature of the 
Group’s operations and customer base there is no concentration of credit risk to the Group. Therefore no additional 
disclosure has been provided in respect of the credit worthiness of counterparties given that they are largely 
individuals and not companies.
Liquidity risk
Group Finance prepares and monitors rolling forecasts of the Group’s liquidity requirements to ensure it has 
sufficient cash to meet operational needs while maintaining sufficient headroom through undrawn borrowing facilities. 
Such forecasting takes into account borrowing limits or covenant compliance. Liquidity risk arises from the Group’s 
management of working capital, being the risk that the Group will encounter difficulty in meeting its financial obligations 
as they fall due. The Group therefore monitors its risk to a shortage of funds through the regular forecasting of its 
cash position and cash management procedures. The Group’s objective is to maintain a balance in the continuity 
of its available funds to allow it to invest as necessary.
Capital risk management
The primary objective of the Group’s capital management process is to ensure that it maintains a strong credit rating 
and healthy capital ratios. The Group manages its capital structure and makes adjustments to suit economic conditions. 
The Group’s financing decisions are taken by the Board of Directors based on forecasts of the expected timing and level 
of capital and operating expenditure required to meet Group’s commitments and development plans. 
The Group sets the amount of capital required in proportion to risk. The Group manages the capital structure and makes 
adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In 
order to maintain or adjust the capital structure, the Group may adjust the dividends paid to shareholders, return capital 
to shareholders or issue new shares. The Group does not seek to maintain any particular capital ratio, but will consider 
opportunities on their merits and fund them in the most effective manner. 
Fair value and cash flow interest rate risk 
The Group had no outstanding loan balances other than short term overdrafts and revolving credit facilities during 
the year. Therefore a change in LIBOR of 1%, being the average change in the LIBOR rate seen over the last 12 months, 
would change the Group’s loss before tax by an insignificant amount of less than £0.1m. Entu (UK) plc Annual Report 2016 48
Financial Statements
Notes to the Consolidated 
Financial Statements continued
3. Financial risk management (continued)
(b) Financial instruments by category
At 31 October 2016
Loans and 
receivables
£000’s
Financial 
liabilities at 
amortised 
cost
£000’s
Assets
Trade receivables 4,074 –
Cash and cash equivalents 768 –
Total assets 4,842 –
Liabilities
Trade payables – (10,346)
Total liabilities – (10,346)
Net assets/(liabilities)
*
4,842 (10,346)
At 31 October 2015 
Restated
Loans and 
receivables
£000’s
Financial 
liabilities at 
amortised 
cost
£000’s
Assets
Trade receivables 4,500 –
Cash and cash equivalents 1,435 –
Total assets 5,935 –
Liabilities
Trade payables – (13,239)
Total liabilities – (13,239)
Net assets/(liabilities)* 5,935 (13,239)
*  This represents the net financial instrument balances included with in the Consolidated Balance Sheet net assets and liabilities. Entu (UK) plc Annual Report 2016 49
Strategic report governance Financial StatementS
4. Segmental analysis 
The Chief Operating Decision Maker (‘CODM’) has been identified as the Executive Board which comprises the 
two Executive Directors.
The CODM reviews the Group’s internal reporting in order to assess performance and allocate resources. 
Management has determined the operating segments based on these reports which include an allocation 
of central costs as appropriate.
The CODM considers the business from an operating perspective, with Home Improvements, Energy Generation 
and Saving, Repair and Renewal Service Agreements being the three reporting segments. The CODM assesses 
the performance based on operating profit before exceptional items. Other information provided to the CODM, 
except as noted below, is measured in a manner consistent with that of the Financial Statements.
All revenue, profit and assets of the Group and all segments arise in the Group’s country of domicile, being the 
United Kingdom. Entu (UK) plc Annual Report 2016 50
Financial Statements
Notes to the Consolidated 
Financial Statements continued
4. Segmental analysis (continued)
Business segments
Year Ended 31 October 2016
Home 
Improvements
£000’s
Energy 
Generation 
and Savings
£000’s
Repair and 
Renewal 
Service 
Agreements
£000’s
Total
£000’s
Revenue 77,113 8,017 2,615 87,745
Operating profit before exceptional items 193 38 2,236 2,467
Exceptional items (4,146) (435) – (4,581)
Operating (loss)/profit (3,953) (397) 2,236 (2,114) 
Finance costs (219) – – (219)
(Loss)/profit before tax continuing operations (4,172) (397) 2,236 (2,333)
Loss for the year from discontinued operations after tax (2,258) (1,543) – (3,801)
Loss before tax from discontinued operations was £4,196,000. A tax credit of £395,000 was utilised in arriving at the 
loss after tax of £3,801,000.
There was no material inter-segment revenue in the year ended 31 October 2016. The current year analysis is consistent 
with the prior year analysis, as restated for discontinued operations and prior year adjustments.
Year Ended 31 October 2015
Restated
Home
Improvements
£000’s
Energy 
Generation 
and Savings
£000’s
Repair and 
Renewal 
Service 
Agreements
£000’s
Restated
Total
£000’s
Revenue 79,168 7,685 2,710 89,563
Operating profit before exceptional items 4,312 887 2,061 7,260
Exceptional items (518) – – (518)
Operating profit 3,794 887 2,061 6,742
Finance income 4 – – 4
Finance costs (27) – – (27)
Profit before taxation – continuing operations 3,771 887 2,061 6,719
Profit/(loss) for the year from discontinued operations 107 (3,139) – (3,032)
There was no tax charge or credit in respect of discontinued operations in the year ended 31 October 2015.
There was no material inter-segment revenue in the year ended 31 October 2015. Entu (UK) plc Annual Report 2016 51
Strategic report governance Financial StatementS
5. Exceptional items
Year Ended 31 October 2016
£000’s
2015
£000’s
Restructuring and commercial
Restructuring 1,930 –
Other commercial 547 –
Aborted acquisition costs – 235
2,477 235
Other:
Dilapidations provisions 244 –
Inventory write down and provisioning 482 –
Other balance sheet items not deemed recoverable 1,378 –
Property costs – 115
Directors’ bonuses – 168
2,104 283
Total continuing operations 4,581 518
Restructuring and commercial
Restructuring costs relate to the restructuring of the Group announced as part of the Group’s Interim Results for 
the six months to April 2016, in July 2016. The costs include: redundancy/other employee related costs arising from a 
reduction in headcount (£781,000), provision for onerous lease obligations for exited properties/estimated dilapidation 
costs (£979,000), and other associated restructuring costs (£170,000). Other commercial costs (£547,000) relates to 
provisions for various commercial matters including associated legal and professional settlement costs. 
Other 
A detailed review of the Group’s subsidiary balance sheets identified £2,104,000 of further exceptional items relating 
to balances that were not deemed recoverable (with £1,652,000 originating in to 2015 and £452,000 originating in earlier 
years). These adjustments included a large number of relatively small items, principally prepayments and other 
receivables, which will have no impact on the future cash flows of the Group.
Exceptional costs in the year ended 31 October 2015
Exceptional costs in the prior year relate to costs associated with the acquisition of the Astley business in March 2015. 
Also included were certain costs relating to planned acquisitions which were subsequently aborted and certain other 
non-trading items. Discontinued operations also include costs that are classified as exceptional, which are further 
set out in note 10. Entu (UK) plc Annual Report 2016 52
Financial Statements
Notes to the Consolidated 
Financial Statements continued
6. (Loss)/profit for the year from continuing operations
Year Ended 31 October 2016
£000’s
2015
Restated
£000’s
(Loss)/profit for the year has been arrived at after charging/(crediting):
Depreciation of property, plant and equipment-continuing operations (i) 237 349
Profit on disposal of property, plant and equipment (note 27) (213) –
Cost of inventories purchased for resale (ii) 23,737 29,173
Cost of inventories written down 55 –
Employee costs (iii) 11,613 12,033
Operating lease costs 1,578 2,350
Auditors’ remuneration (see below) 320 86
(i) Additional depreciation charged relating to discontinued operations is included within the total depreciation 
charge in note 14.
(ii) Cost of inventories written off excludes further write off of inventories disclosed in exceptional items amounting 
to £482,000 (2015: £nil).
(iii)  Employee costs relate to continuing operations only. Total employee costs including discontinued operations 
are shown in note 7.
A more detailed analysis of auditors’ remuneration is provided below:
Year Ended 31 October 2016
£000’s
2015
£000’s
Fees payable to the Company’s auditors for the audit of the Company’s annual accounts 
and consolidation 20 15
Fees payable to the Company’s auditors and their associates for other services to the Group:
 – The audit of the Company’s subsidiaries 150 71
Total audit fees 170 86
Fees payable to the Company’s auditors and its associates for other services:
 – Corporate finance services 150 –
Total fees 320 86 Entu (UK) plc Annual Report 2016 53
Strategic report governance Financial StatementS
7. Directors and employees
Employee costs
The average number of employees (including Executive Directors) was as follows:
Year Ended 31 October 2016
Number
2015
Number
Depot staff 120 135
Administration, professional, supervisory and other staff 240 301
Total 360 436
The costs incurred in respect of the above were as follows:
Year Ended 31 October 2016
£000’s
2015
£000’s
Wages and salaries 11,567 10,793
Social security costs 1,145 1,561
Share based payments (note 26) – 30
Pension costs (note 21) defined contribution plans 385 290
13,097 12,674
Employee costs in the year include almost a full year of wages and salaries for the Astley business, whereas this was 
only included for six months in the prior year. The Astley business is included within discontinued operations (note 10).
Directors’ remuneration 
The costs incurred in respect of the Directors and former Directors were as follows:
Year Ended 31 October 2016
£000’s
2015
£000’s
Short term employee benefits 820 635
Compensation for loss of office 45 –
Other pension costs 17 14
882 649
Additional payments were made to a former Director, see note 27.
Employee costs
Emoluments by Director for all Directors who served during the year ended 31 October 2016, including former Directors 
Darren Cornwall and Andrew Corless, were as follows:
Year Ended 31 October 2016
Salary
£000’s
Bonus
£000’s
Benefits
£000’s
Compensation
for loss of office
 £000’s
Total
Emoluments
£000’s
Ian Blackhurst 220 – 15 – 235
Neill Skinner 122 – 23 – 145
Geoff Stevens 70 – 5 – 75
Lorraine Clinton 31 – – – 31
David Forbes 56 – – – 56
Darren Cornwall 74 – 5 – 79
Andrew Corless 148 55 13 45 261
721 55 61 45 882 Entu (UK) plc Annual Report 2016 54
Financial Statements
Notes to the Consolidated 
Financial Statements continued
7. Directors and employees (continued)
Benefits include contributions to defined contribution pension schemes of £17,000 in total for Neill Skinner, Ian Blackhurst 
and former director Andrew Corless. Other benefits include car allowances and healthcare insurance. Former Director 
Darren Cornwall received payments for services provided post his resignation date of 15 April 2016. See note 27 related 
party transactions for details of these payments of £53,000 which were made on an arm’s length basis.
For the year ended 31 October 2016 the highest paid Director received £261,000 of emoluments. In the prior year ended 
31 October 2015, the highest paid Director received total remuneration of £285,000 and pension contributions of £1,200.
Short term employment benefits include a bonus of £55,000. No share options, shares or other benefits were awarded 
to Directors in the year or upon commencement of employment. There are no pension benefits accruing to Directors, 
the only pension payments are made to defined contribution schemes. For further disclosures regarding Directors’ 
emoluments, see the Remuneration Report which contains information relating to Directors in office as at 31 October 2016.
8. Finance income and costs
Year Ended 31 October 2016
£000’s
2015
£000’s
Interest receivable – 4
Interest payable (219) (27)
Net finance costs (219) (23)
Interest payable includes bank loan and overdraft interest.
9. Taxation
Continuing operations taxation is shown separately on the income statement whereas the taxation relating to discontinued 
operations is shown within the loss on discontinued operations. See note 10 for analysis of discontinued operations.
Continuing operations
Year Ended 31 October 2016
£000’s
2015
Restated
£000’s
Current tax
UK corporation tax charge for the year – 925
Adjustments in respect of prior years (85) 24
Total current tax (credit)/charge (85) 949
Deferred tax (note 19)
Origination and reversal of temporary timing differences (41) 24
Losses expected to reverse in the foreseeable future (386) –
Total deferred tax (credit)/charge (427) 24
Total tax (credit)/charges (512) 973 Entu (UK) plc Annual Report 2016 55
Strategic report governance Financial StatementS
9. Taxation (continued)
Discontinued operations taxation
Year Ended 31 October 2016
£000’s
2015
£000’s
Current tax
UK corporation tax credit for the year (343) –
Total current tax credit (343) –
Deferred tax
Losses expected to reverse in the foreseeable future (52) –
Total deferred tax credit (52) –
Total tax credit-discontinued operations (395) –
Reconciliation of total taxation (credit)/charge:
Year Ended 31 October 2016
£000
2015
Restated
£000’s
(Loss )/profit before tax on continuing operations (2,333) 6,719
Loss before tax on discontinued operations (note 10) (4,196) (3,032)
(6,529) 3,687
Tax at the UK corporation tax rate of 20.0% (2015: 20.4%) (1,306) 752
Tax effect of expenses that are not deductible 211 197
Tax effect of losses not expected to be recoverable 257 –
Effect of tax rate changes 16 –
Adjustments in respect of prior periods (85) 24
Tax (credit)/charge for the year (907) 973
Reconciliation of total taxation:
Tax (credit)/charge for continuing operations (512) 973
Tax credit for discontinued operations (395) –
Total tax (credit)/ charge for the year (907) 973
The year ended 31 October 2016 tax credit relating to discontinued operations wholly arises from trading within 
discontinued operations. None of the tax credit relates to the loss on disposal of discontinued operations.  
The Group utilises group relief as appropriate amongst trading subsidiaries.
Factors that may affect future tax charges 
Changes to the UK corporation tax rates were substantially enacted as part of the Finance Bill 2015 (on 26 October 2015) 
and Finance Bill 2016 (on 7 September 2016). These include reductions to the main rate to reduce the rate to 19% from 
1 April 2017 and to 17% from 1 April 2020. Deferred taxes at the balance sheet date have been measured using those 
estimated tax rates and reflected in these Financial Statements (see note 19). Entu (UK) plc Annual Report 2016 56
Financial Statements
Notes to the Consolidated 
Financial Statements continued
10. Discontinued operations
During the year the Group took the strategic decision to sell the Astley Facades (UK) Limited business (Astley) as well 
as close its loss making Europlas operations in the South East of England. The Directors consider both businesses to 
be separate major lines of business and as such the results of both businesses have been presented in discontinued 
operations in the current year with the prior year financial information being restated in accordance with IFRS 5. 
In the year ended 31 October 2015 the Group also took the decision to close its Solar operations and the results 
were presented as discontinued operations in that year and have been treated consistently in the current financial year. 
The Norwood UK kitchen interiors business was also discontinued in the year ended 31 October 2015. 
The trading results and exceptional items relating to these discontinued operations together with the loss on disposal 
of Astley were as follows:
Year Ended 31 October 2016 Astley
£000’s
Europlas
£000’s
Solar
£000’s
Total
£000’s
Revenue 15,452 2,954 – 18,406
Cost of sales (13,221) (2,113) (452) (15,786)
Gross profit/(loss) 2,231 841 (452) 2,620
Administrative expenses (1,192) (1,200) (211) (2,603)
Operating profit/(loss) before exceptional costs 1,039 (359) (663) 17
Exceptional costs – (1,253) (1,207) (2,460)
Operating profit/(loss) 1,039 (1,612) (1,870) (2,443)
Loss on disposal of Astley (1,740) – – (1,740)
Finance costs (2) (7) (4) (13)
Loss before tax (703) (1,619) (1,874) (4,196)
Taxation credit 395
Loss after taxation (3,801)
Year Ended 31 October 2015
Restated
Astley
£000’s
Europlas
£000’s
Solar
£000’s
Norwood
£000’s
Total
£000’s
Revenue 6,625 3,021 14,521 3,342 27,509
Cost of sales (5,305) (2,134) (12,181) (2,666) (22,286)
Gross profit 1,320 887 2,340 676 5,223
Administrative expenses (726) (754) (5,179) (1,296) (7,955)
Operating profit/(loss) before exceptional costs 594 133 (2,839) (620) (2,732)
Exceptional costs – – (300) – (300)
Operating profit/(loss) 594 133 (3,139) (620) (3,032)
Finance costs – – – – –
Profit/(loss) before tax 594 133 (3,139) (620) (3,032)
Taxation –
Loss after taxation (3,032) Entu (UK) plc Annual Report 2016 57
Strategic report governance Financial StatementS
10. Discontinued operations (continued)
Analysis of discontinued exceptional items and loss on disposal of discontinued operations
Year Ended 31 October 2016 Astley
£000’s
Europlas
£000’s
Solar
£000’s
Total
£000’s
Restructuring costs – 474 417 891
Impairment of goodwill – 299 56 355
Other balance sheet items no longer deemed recoverable – 480 734 1,214
Discontinued exceptional – 1,253 1,207 2,460
Loss on disposal of Astley (1,740) – – (1,740)
Year ended 31 October 2015
Discontinued exceptional costs of £300,000 in the prior year related to restructuring in the Solar division.
Discontinued exceptional costs
Restructuring costs in relation to Europlas and Solar include people, property, and other costs associated with the exit 
of the business. The goodwill in relation to Europlas, £299,000, and KBC Energy Limited goodwill, £56,000, have been 
impaired in the year. KBC Energy Limited was the holding company with investments in a large number of the Group’s 
Solar subsidiaries. See note 13.
The detailed review of the Group’s subsidiary balance identified £1,214,000 of exceptional items relating balances 
deemed not recoverable, (with £725,000 originating in 2015 and £114,000 originating 2014). These adjustments included 
a large number of relatively small items, principally prepayments and other receivables, which will have no impact on the 
future cash flows of the Group.
Loss on disposal of Astley
Astley was sold by the business on 28 October 2016 to Duality Group Ltd. The business was valued at £200,000. This 
price was based on the financial position of Astley as at 31 August 2016, (and future trading prospects and cost funding 
requirements), to be adjusted for subsequent net working capital adjustments before completion. These net working 
capital movements totalled an outflow of £200,000 to Entu, resulting in a net nominal disposal price of £1.
Year Ended 31 October 2016
£000’s
Purchase price 200
Less working capital adjustment  (200)
Cash inflow to the Group in respect of purchase price –
Net assets disposed of, including impaired intercompany balances (1,540)
Professional fees associated with the disposal (200)
Loss on disposal of Astley (1,740) Entu (UK) plc Annual Report 2016 58
Financial Statements
Notes to the Consolidated 
Financial Statements continued
10. Discontinued Operations (continued)
Statement of cash flows 
The statement of cash flows includes the following amounts relating to discontinued operations:
Year Ended 31 October 2016
£000’s
2015
Restated
£000’s
Net cash operating outflows from discontinued operations (all operating cash flows) (1,742) (5,606)
The above operating cash flows include the cash impacts of restructuring activity in the year ended 31 October 2016 
and the prior year ended 31 October 2015. In terms of investing and financing activities, the proceeds on sale of Astley, 
(excluding professional fees) in the year ended 31 October 2016 were £1 after adjustment for working capital movements. 
Similarly, the nominal purchase price for Astley in the year ended 31 October 2015 was £200,000, but after adjustments 
in respect of net assets, the final purchase price was £1. 
Prior year acquisition of Astley (now included within discontinued operations)
Upon acquisition of Astley in the year ended 31 October 2015 the net impact of the cash inflow was £1,040,000. 
11. Dividends
Year Ended 31 October 2016
£000’s
2015
£000’s
Dividends paid 2,079 2,736
2016 Dividends
Year Ended 31 October
£000’s
Pence per 
share
Final dividend 1,750 2.67
Interim dividend 329 0.50
2,079 3.17
2015 Dividends
Year Ended 31 October
£000’s
Pence per 
share
Special dividend 984 1.50
Interim dividend 1,752 2.67
2,736 4.17
In the light of the changes in the financial position of the Group, the Directors have concluded that no final dividend 
will be declared for the year. 
The final dividend for the prior year ended 31 October 2015 of £1,750,000 was not recognised as a liability in the 
prior year Financial Statements but has been recognised in the movements for the year ended 31 October 2016 
in the Consolidated Statement of Changes in Equity. Entu (UK) plc Annual Report 2016 59
Strategic report governance Financial StatementS
12. Earnings per share
Basic earnings per share and diluted earnings per share are calculated by dividing profit for the period attributable to equity 
holders by the weighted average number of shares in issue.
Year Ended 31 October 2016
Number
2015
Number
Basic weighted average 65,600,000 65,600,000
Diluted weighted average 65,600,000 65,663,777
The weighted average number of shares used to calculate earnings per share has been set consistent with the number 
of ordinary shares in issue as at 31 October 2016 and this has been applied consistently for all periods reported within 
these Financial Statements. As a result of the formation of the Group and the Company’s capital structure the application 
of the closing number of ordinary shares has been deemed to give the most relevant and comparable calculation of 
earnings per share in the financial years reported.
Deferred shares have been excluded from the basic and diluted number of shares as deferred shares carry no voting 
right and no rights to any distributions to be made by the Group.
Year Ended 31 October 2016
pence
2015
Restated
pence
Basic(loss)/earnings per share (8.6) 4.2
Exceptional items 7.0 0.7
Discontinued operations 5.8 4.6
Adjusted basic earnings per share 4.2 9.5
Adjusted diluted earnings per share 4.2 9.5
Adjusted earnings per share
Adjusted basic and diluted earnings per share figures are calculated by dividing adjusted profit after tax for the year by 
the weighted average number of shares in issue (as above). The adjusted profit after tax for the year is as follows:
Year Ended 31 October 2016
£000’s
2015
Restated
£000’s
(Loss)/profit attributable to owners of the Parent Company (5,622) 2,714
Exceptional items 4,581 518
Discontinued operations 3,801 3,032
Adjusted profit after tax 2,760 6,264
Year Ended 31 October 2016
pence
2015
Restated
pence
Continuing operations (loss)/earnings per share (2.8) 8.8
Discontinued operations loss earnings per share (5.8) (4.6)
Total basic (loss)/earnings per share (8.6) 4.2 Entu (UK) plc Annual Report 2016 60
Financial Statements
Notes to the Consolidated 
Financial Statements continued
12. Earnings per share (continued)
Diluted earnings per share
Year Ended 31 October 2016
pence
2015
Restated
pence
Continuing operations (loss)/earnings per share (2.8) 8.8
Discontinued operations loss per share (5.8) (4.6)
There is no material difference between diluted earnings per share and basic earnings per share for continuing and 
discontinued operations.
13. Intangible Assets 
At 31 October Goodwill
£000’s
Cost
At 1 November 2014 1,749
Disposal of a subsidiary (180)
At 31 October 2015 and 31 October 2016 1,569
Accumulated impairment losses
At 1 November 2014 and 1 November 2015 (73)
Impairment charge during the year ended 31 October 2016 (355)
At 31 October 2016  (428)
Carrying value of goodwill as at 31 October 2016 1,141
Carrying value of goodwill as at 31 October 2015 1,496
Carrying value of goodwill as at 31 October 2014 1,676
Goodwill has arisen as follows:
 > the purchase of 100% of the share capital of Weatherseal Holdings Limited whose trade is now held within 
Weatherseal Home Improvements Limited;
 > the acquisition of the trade and assets held within Zenith Staybrite Limited;
 > the acquisition of the trade and assets of a business which now sits in Penicuik Home Improvements Limited;
 > the acquisition of 100% of the share capital of Soltrac Limited, Energy Hypermarket Limited and The Essex Solar 
Company Limited. This was reflected on a consolidated basis in KBC goodwill which has been impaired during the 
year ended 31 October 2016;
 > the acquisition of the trade and assets of Europlas, a division of Specialist Building Products Limited, which has now 
been impaired in the year ended 31 October 2016. Entu (UK) plc Annual Report 2016 61
Strategic report governance Financial StatementS
13. Intangible assets (continued)
Impairment testing of goodwill
The allocation of the carrying value of goodwill after impairment to Cash-Generating Units (CGU) is as follows:
At 31 October 2016
£000’s
2015
£000’s
Weatherseal Holdings Limited 876 876
Zenith Staybrite Limited 200 200
Penicuik Home Improvements Limited 65 65
KBC Energy Limited Group – 56
Europlas Limited – 299
Total 1,141 1,496
The recoverable amount of a CGU is determined based on ‘value-in-use’ calculations. These calculations use pre-tax 
cash flow projections based on financial budgets, covering three years that are approved by the Board. Income and costs 
within the budgets are derived on a detailed, ‘bottom up’ basis. All income streams and cost lines are considered and 
appropriate growth or decline, rates are assumed for each based on historical experience, all of which are then reviewed 
and challenged, firstly by senior management and ultimately by the Board. Income and cost growth forecasts are risk 
adjusted to reflect the specific risks facing each CGU and take account of the markets in which they operate. Cash flows 
beyond the budgeted period are extrapolated using the estimated growth rate stated below. The growth rate does not 
exceed the long term average growth rate for the markets in which the CGUs operate. Further, it is assumed that there 
are no material adverse changes in legislation that would affect the forecast cash flows. The key assumptions used in 
the ‘value-in-use’ calculations for each CGU are as follows:
 > Long term growth rate: 2.0%
 > Market risk premium: 5.75%
The pre-tax discount rate used within the recoverable amount calculations was 10.0% (2015: 10.0%) and is based upon 
the weighted average cost of capital reflecting the specific principal risks and uncertainties applicable to each CGU. 
The discount rate takes into account, amongst other things, the risk free rate of return, the cost of equity and the market 
risk premium, which is used in deriving the cost of equity. The same discount rate has been used for each CGU as the 
principal risks and uncertainties associated with the Group, as highlighted earlier in this report as being those risks with 
the highest likelihood or impact, would also impact each CGU in a similar manner. The Board acknowledge that there 
are additional factors that could impact the risk profile of each CGU given the difference in operations, customer base 
and trading performance over recent years. These additional factors were considered by way of a sensitivity analysis 
performed as part of the annual impairment tests. A sensitivity analysis has been performed around the base 
assumptions with the conclusion that no reasonable possible changes in key assumptions would cause the recoverable 
amount of the goodwill assets to be less than the carrying value.
The Directors bear in mind past experience and also use forecasts amended for restructuring of the business 
when assessing the likely future cash flows of the cash generating units.
Having completed the 2016 annual impairment review, the Group has recognised an impairment charge of £299,000 
in respect of Europlas goodwill and £56,000 in respect of KBC goodwill. These impairment charges were taken in the year, 
because the goodwill originally arose on businesses which have now been discontinued (see note 10). Entu (UK) plc Annual Report 2016 62
Financial Statements
Notes to the Consolidated 
Financial Statements continued
14. Property, plant and equipment
At 31 October Freehold
 property
£000’s
Plant and
machinery
£000’s
Fixtures and
fittings
£000’s
Motor
Vehicles
£000’s
Equipment
£000’s
Total
£000’s
Cost
At 1 November 2014 294 170 969 382 710 2,525
Additions – 17 88 – 153 258
Acquisition – 17 – – – 17
Disposals – – (76) – (4) (80)
At 31 October 2015 294 204 981 382 859 2,720
Additions – – 104 – 85 189
Disposals (294) – – – – (294)
Disposals of Astley business – (35) – – – (35)
Write downs – – (54) – – (54)
At 31 October 2016 – 169 1,031 382 944 2,526
Accumulated depreciation
At 1 November 2014 31 153 667 73 553 1,477
Charge for the year 13 13 160 64 102 352
Disposals – – (54) – (3) (57)
44 166 773 137 652 1,772
Charge for the year – 18 63 66 103 250
Disposals (44) – – – – (44)
Disposal of Astley business – (15) – – – (15)
Write downs – – 52 – 30 82
At 31 October 2016 – 169 888 203 785 2,045
Net book value:
At 31 October 2016 – – 143 179 159 481
At 31 October 2015 250 38 208 245 207 948
At 1 November 2014 263 17 302 309 157 1,048
At 31 October 2016, the Group had not entered into any commitments for the acquisition of property, plant 
and equipment. 
During the year the freehold property was sold to a related party at market value. See note 27 on related 
party transactions. Entu (UK) plc Annual Report 2016 63
Strategic report governance Financial StatementS
15. Inventories
At 31 October 2016
£000’s
2015
£000’s
Raw materials and consumables 932 789
Finished goods and goods for resale 335 1,050
1,267 1,839
During the year ended 31 October 2016 £55,000 (2015: £nil) was charged to operating profit and a further £482,000 
(2015: £nil) within exceptional items in the income statement for write down of inventories. The cost of inventories 
recognised as an expense and included in cost of sales amounts to £23,737,000 (2015: £29,173,000).
16. Trade and other receivables
At 31 October 2016
£000’s
2015
Restated
£000’s
Trade receivables 5,498 5,361
Less: provision for impairment of trade receivables (1,424) (861)
Net trade receivables 4,074 4,500
Other receivables 675 4,724
Prepayments and accrued income 3,354 4,865
8,103 14,089
The fair value of trade and other receivables has been considered to be consistent with the book value given their  
short term nature. 
Movements in the Group provision for impairment of trade receivables are as follows:
2016
£000’s
2015
£000’s
At 1 November (861) (725)
Provision for receivables (779) (708)
Receivables written off during the year 216 572
At 31 October (1,424) (861)
Provisions are estimated by management based on past default experience and their assessment of the current 
economic environment. The creation and release of provisions for receivables is charged/(credited) to administrative 
expenses in the Consolidated Income Statement. The credit risk of customers is assessed at a subsidiary and Group level, 
taking into account their financial positions, past experiences and other relevant factors. Individual customer credit limits 
are imposed based on these factors. Entu (UK) plc Annual Report 2016 64
Financial Statements
Notes to the Consolidated 
Financial Statements continued
16. Trade and other receivables (continued)
No other receivables have been deemed to be impaired. The following table shows trade receivables at the reporting 
date including those that are overdue (over 31 days) and for which no allowance for impairment has been recognised.
At 31 October 2016
£000’s
2015
£000’s
31–60 days 840 421
61–90 days 671 168
91 + days 226 589
1,737 1,178
Provisioning is based on debt over 31 days, with the bulk of the provision being applied to debt over 90 days.
17. Cash and cash equivalents
At 31 October 2016
£000’s
2015
£000’s
Cash at bank and in hand 768 1,435
Cash and cash equivalents 768 1,435
The Group‘s banking facility is operated and managed as an integrated facility both internally and externally. Although 
individual bank accounts may have positive or negative cash balances, the interest calculated is on the net position of 
the banking balances within the Group facility. The cash at bank and in hand position shown in the above table represent 
the net position of the Group. Bank overdrafts have been offset against cash at bank and in hand as the Group has an 
enforceable right to offset positive and negative individual bank account positions and receives or pays interest on the 
net cash position of the Group. As at 31 October 2016 bank overdrafts offset against cash at bank and in hand totalled 
£3,066,000, (2015: £904,000).
18. Trade and other payables
At 31 October 2016
£000’s
2015
£000’s
Trade payables 7,539 8,731
Payments on account 870 1,303
Other taxation and social security 1,875 1,781
Accruals 1,937 3,205
Deferred income and advance payments 6,244 2,457
18,465 17,477 Entu (UK) plc Annual Report 2016 65
Strategic report governance Financial StatementS
19. Deferred tax
Deferred tax liability
Accelerated
 tax 
depreciation
£000’s
Total
£000’s
At 31 October 2015 (60) (60)
Credit to income 22 22
At 31 October 2016 (38) (38)
Deferred tax asset
Losses
£000’s
Provisions
£000’s
Total
£000’s
At 31 October 2015 – – –
Movement in the year 437 19 456
At 31 October 2016 437 19 456
Deferred tax asset 
For the year ended 31 October 2016,certain deferred tax assets and liabilities have been offset in accordance with IAS 12 
‘Income taxes’. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
At 31 October 2016
£000’s
2015
£000’s
Deferred tax assets 456 –
Deferred tax liabilities (38) (60)
Net deferred tax asset (liability) 418 (60)
There are no amounts on which a deferred tax asset is not recognised. The net deferred tax asset of £418,000 
(31 October 2015: £nil) is expected to be recovered within one year.
20. Provisions
At 31 October 2016
£000’s
2015
£000’s
Onerous lease and dilapidations 1,189 –
Legal and commercial (including relating to discontinued operations) 570 –
Finance clawback 105 105
Warranty and contractual clauses 101 2,238
1,965 2,343
Current 1,562 1,025
Non-current 403 1,318
1,965 2,343 Entu (UK) plc Annual Report 2016 66
Financial Statements
Notes to the Consolidated 
Financial Statements continued
20. Provisions (continued)
Onerous lease and dilapidations 
Provision has been made for onerous lease obligations (properties which the Group is planning to exit prior to the 
lease expiry date) and has also provided for dilapidation costs where appropriate on leased properties.
Legal and commercial 
Provision has been made for certain legal and commercial matters (including those to discontinued operations) where 
a liability is considered to exist, but where the final amount and the timing of any payment in this respect is uncertain. 
Finance clawback
Subsidiaries of the Group offer a financing agreement to customers on the purchase of products. Such financing is 
provided by third parties from whom the Group receives a commission. In certain circumstances this may be clawed 
back within the first six months of the agreement, and therefore a provision is made based on historic clawback trends.
Warranty and contractual clauses 
The Home Installations business historically manufactured products and as a result a suitable warranty provision was 
maintained. In addition, Astley carried warranty provisions arising from its various contractual issues. The Group has 
ceased to manufacture its own products and Astley has been sold, resulting in a significant reduction in the level of 
warranty provisions required.
Onerous
 lease and
dilapidations
£000’s
Legal and 
commercial 
£000’s
 Finance 
clawback
£000’s
Warranty
 and 
 contractual 
 clauses
£000’s
Total
£000’s
Cost
At 1 November 2014 – – 107 1,810 1,917
Additional provisions – – 105 22 127
Acquisition – – – 1,270 1,270
Utilised in the year – – – (19) (19)
Released in the year – – (107) (845) (952)
At 31 October 2015 – – 105 2,238 2,343
Additional provisions 1,189 570 105 – 1,864
Utilised in the year – – (105) – (105)
Released in the year-continuing – – – (867) (867)
Released in the year-discontinued – – – (500) (500)
Disposals – – – (770) (770)
At 31 October 2016 1,189 570 105 101 1,965
The discontinued Astley business released £500,000 after closing out risks on a major project in the six months to 
31 October 2016. The disposals adjustment of £770,000 in the provisions movement disclosed above is also in respect 
of Astley, which has now been sold.  Entu (UK) plc Annual Report 2016 67
Strategic report governance Financial StatementS
21. Retirement benefits
The Group operates a defined contribution pension scheme. The assets of the scheme are administered by trustees 
in funds independent from those of the Company.
The total contributions paid in the year amounted to £385,000 (2015: £290,000) and at the balance sheet date pension 
contributions of £26,000 (2015: £nil) were outstanding.
22. Share capital
At 31 October 2016 2015
Number 
000’s
 Amount
£000’s
 Number
000’s
Amount
£000’s
Authorised:
Ordinary Shares of £0.0005 each 65,600 33 65,600 33
Deferred shares of £0.0005 each 34,400 17 34,400 17
100,000 50 100,000 50
Issued and fully paid:
Ordinary Shares of £0.0005 each 65,600 33 65,600 33
Deferred Shares of £0.0005 each 34,400 17 34,400 17
Total called up share capital 100,000 50 100,000 50
The Company was incorporated on 25 March 2014 at which time 100 ordinary shares of £0.01 were issued to the 
shareholders of the Company which were settled in full in cash.
On 7 July 2014 a further 10,020 £0.01 ordinary shares were issued by the Company. Consideration for the issue of these 
shares was in the form of the issued share capital of JWD Installations Limited, HI Sales Limited and KBC Energy Limited, 
which were entities controlled by common shareholders.
On 8 October 2014 a further 4,989,880 £0.01 ordinary shares were issued by the Company which were settled in full 
in cash.
On 8 October 2014 the Company’s issued share capital of 5,000,000 £0.01 ordinary shares were subdivided into 
100,000,000 £0.0005 ordinary shares.
On 8 October 2014 30,000,000 £0.0005 ordinary shares issued by the Company were converted into deferred shares 
in the Company.
On 8 October 2014 4,400,000 £0.0005 ordinary shares issued by the Company were converted into deferred shares  
in the Company.
Ordinary shares give holders the right to vote and participate in general meetings of the Group as well as the rights 
over distributions and the assets of the Group. All ordinary shareholders rank pari-passu. 
Deferred share carry no voting rights and no rights to distributions and the assets of the Group. Entu (UK) plc Annual Report 2016 68
Financial Statements
Notes to the Consolidated 
Financial Statements continued
23. Accumulated losses
Accumulated losses reserves are analysed in the Consolidated Statement of Changes in Equity and prior year reserves 
have been restated. See note 2 for details of and the reasons for the restatement.
24. Reconciliation of (loss)/profit before tax to cash generated from operations
Year Ended 31 October 2016
 
£000’s
2015
Restated
£000’s
(Loss)/profit before tax including discontinued operations (6,529) 3,687
Finance income – (4)
Finance costs 232 27
Depreciation of property, plant and equipment 250 352
Profit on disposal of property (213) –
Goodwill impairment charge 355 –
Other non-cash movements including write downs of fixed assets 28 –
Loss on disposal of Norwood kitchen operation – 156
Loss on disposal of Astley group of companies 1,740 –
Share based payment charge – 30
Increase/(decrease) in provisions 392 (844)
Operating cash flows before movements in working capital (3,745) 3,404
Movements in working capital:
Decrease/(increase) in inventories 469 (34)
Decrease/(increase) in trade and other receivables 1,767 (1,833)
Increase/(decrease) in trade and other payables 2,891 (357)
Cash generated from operations 1,382 1,180
The impact of the disposal of Astley Facades group of companies is adjusted in the movements in working capital 
in the above note.
The profit on sale of freehold property of £213,000 relates to sales proceeds of £463,000 less net book value of 
£250,000 eliminated on disposal.
25. Operating lease commitments
Year Ended 31 October 2016
£000’s
2015
£000’s
Lease payments under operating leases recognised as an expense in the year 1,578 2,350
At the balance sheet date, the Group had outstanding commitments for future minimum lease payments under  
non-cancellable operating leases, which fall due as follows:
At 31 October 2016
£000’s
2015
£000’s
Within one year 261 1,897
In the second to fifth years inclusive 2,661 4,198
Over five years 2,031 902
4,953 6,997 Entu (UK) plc Annual Report 2016 69
Strategic report governance Financial StatementS
26. Share based payment incentive schemes 
The Company offers a ‘Long Term lncentive Plan’ (‘LTIP’) and a Management Incentive Plan (‘MIP’) for s small senior 
management cohort, a ‘Company Share Option Plan’ for a wider management group and an all employee ‘Save As You 
Earn’ scheme (S.A.Y.E).
All schemes are subject to a three year vesting period and are designed to align employee interests with shareholder 
interests.
At 31 October CSOP SAYE
Number of options granted 270,000 500,000
Share price at date of grant (per share) 100p–110p 100p
Exercise price (per share) 100p 80p
Vesting period 3 years 3 years
Option life 10 years 3.5 years
Expected life 3 years 3 years
Volatility 33.88% 33.77%
Dividend yield 6% 5.6%
Risk free rate 1.04% 1.07%
Expected leaver rate 25% 25%
Fair value of options granted 14.76p–20.1p 26.1p
A reconciliation of option movements is set out in the table below:
CSOP
Number
SAYE
Number
Outstanding at 1 November 2015 240,000 433,625
Granted – –
Forfeited / cancelled (60,000) (202,775)
Lapsed – (1,350)
Outstanding at 31 October 2016 180,000 229,500
As at 31 October 2016 there were no CSOP or SAYE options that were exercisable at the end of the year (2015: None). 
The Group has recognised a charge of £nil (2015: £30,000) in respect of the CSOP and SAYE schemes in the year. 
LTIP and MIP schemes
The number of options issued under the LTIP and MIP schemes was 960,000 and 4,448,399 respectively. There is 
currently no expectation that any options will vest under these schemes and no charges has been recognised in these 
Financial Statements. Entu (UK) plc Annual Report 2016 70
Financial Statements
Notes to the Consolidated 
Financial Statements continued
27. Related party transactions 
Sale of freehold property
At the end of October 2016, a freehold property was sold to the Chief Executive Officer. The sale price of £463,000, 
and the future rental charge, were determined by independent valuers on an arm’s length basis and were approved 
by the Non-Executive Directors in advance of the transaction. The Group generated a profit of £213,000 as a result of 
this transaction.
There were no balances outstanding as at 31 October 2016 in relation to this transaction. The purchase price was paid 
in full prior to the year-end date.
Key management personnel
After resignation as director Darren Cornwall provided some consultancy work for the Group. In addition to the 
emoluments of £79,000 included within note 7, former Director Darren Cornwall received £53,000 in pay for the year 
ended 31 October 2016 (2015: £nil) in the period post his resignation from the board of Directors on 15 April 2016 to 
31 October 2016. The payments made were on an arm’s length basis.
There are no other personnel which the Group defines as key management personnel, other than the Board of Directors.
28. Subsidiaries
Details of the Company’s subsidiaries at 31 October 2016 are as follows:
Company Operation
Country of 
incorporation
Parent
Company’s
interest 
Proportion 
of voting
interest
Entu (UK) Holdings Limited Holding Company United Kingdom *100% *100%
HI Sales Limited Holding Company United Kingdom *100% *100%
Weatherseal Home Improvements Limited Retail United Kingdom †100% †100%
Penicuik Home Improvements Limited Retail/Marketing United Kingdom †100% †100%
Zenith Staybrite Limited Manufacturing/Retail United Kingdom †100% †100%
Home Install Limited Retail/Marketing United Kingdom †100% †100%
Europlas Limited Retail United Kingdom †100% †100%
KBC Energy Limited Holding Company (Dormant) United Kingdom *100% *100%
Soltrac Limited Retail United Kingdom †100% †100%
Energy Hypermarket Limited Retail United Kingdom †100% †100%
Job Worth Doing Limited Retail/Services to Group United Kingdom †100% †100%
Window Care Limited Retail United Kingdom †100% †100%
Zenith Windows Limited Dormant United Kingdom †100% †100%
Staybrite Windows Limited Dormant United Kingdom †100% †100%
Entu Home Energy Services Limited Retail/Holding Company United Kingdom †100% †100%
JWD Installations Limited Holding Company United Kingdom †100% †100%
Quotes Near Me Limited Dormant United Kingdom †100% †100%
St Andrews Home Improvements Limited Retail United Kingdom †100% †100%
Entu Services Limited Dormant United Kingdom †100% †100%
* Shares held by the Company † Shares held by a subsidiary
All holdings represent ordinary share capital.
All subsidiary entities have a year end of 31 October except for JWD Installation Limited, KBC Energy Limited and Quotes 
Near Me Limited, which are not trading companies.
No subsidiaries of the Group other than dormant entities have taken the exemption from audit under Section 479A  
of CA 2006. Entu (UK) plc Annual Report 2016 71
Strategic report governance Financial StatementS
29. Ultimate controlling party 
The Directors consider there to be no ultimate controlling party of the Group. 
30. Events after the end of the reporting period.
During March 2017, the Group extended it facilities with Barclays Bank plc, with the renewal of its £4m revolving credit 
facility for 12 months alongside the Group’s existing variable overdraft facility. The Directors have no reason to believe 
that the facilities will not be renewed upon expiry. The terms include a renewal of the existing cross guarantee and 
debenture security across the Entu (UK) plc group of companies.
31. Reconciliation of results to non-statutory measures
A reconciliation of reported profit to underlying profit:
Year Ended 31 October Home
Improvements
Energy Generation 
and Savings
Repair and Renewal 
Service Agreements Total
Gross
profit
£’000s
EBITDA
£’000s
Gross
profit
£’000s
EBITDA
£’000s
Gross
profit
£’000s
EBITDA
£’000s
Gross
profit
£’000s
EBITDA
£’000s
Reported profit 23,727 414 1,498 54 2,236 2,236 27,461 2,704
Recurring central overheads 
charged to discontinued 
operations (i) – (350) – – – – – (350)
Underlying profit 23,727 64 1,498 54 2,236 2,236 27,461 2,354
Year Ended 31 October 2015 Home
Improvements
Energy Generation 
and Savings
Repair and Renewal 
Service Agreements Total
Gross
profit
£’000s
EBITDA
£’000s
Gross
profit
£’000s
EBITDA
£’000s
Gross
profit
£’000s
EBITDA
£’000s
Gross
profit
£’000s
EBITDA
£’000s
Reported profit 26,238 4,612 1,619 936 2,061 2,061 29,918 7,609
Recurring central overheads 
charged to discontinued 
operations (ii) – (2,904) – (676) – – – (3,580)
Exceptional items
originating in 2015 (iii) (1,217) (1,217) (435) (435) – – (1,652) (1,652)
Underlying profit 25,021 491 1,184 (175) 2,061 2,061 28,266 2,377
(i) In the year ended 31 October 2016, the recurring central overheads charged to discontinued operations related 
to Astley and Europlas.
(ii) In the year ended 31 October 2015, the recurring central overheads charged to discontinued operations related 
to Solar and Norwood.
(iii) See note 5. Entu (UK) plc Annual Report 2016 72
Financial Statements
Independent Auditors’ Report to the 
Members of Entu (UK) plc
Report on the Company 
Financial Statements 
Our Opinion
In our opinion, Entu (UK) plc’s Company Financial 
Statements (the ‘Financial Statements’):
 > give a true and fair view of the state of the Company’s 
affairs as at 31 October 2016 and of its cash flows for the 
year then ended;
 > have been properly prepared in accordance with 
International Financial Reporting Standards (‘IFRSs’) as 
adopted by the European Union and as applied in 
accordance with the provisions of the Companies Act 
2006; and
 > have been prepared in accordance with the 
requirements of the Companies Act 2006.
What We Have Audited
The Financial Statements, included within the Annual 
Report and Accounts (the ‘Annual Report’), comprise:
 > the Company Balance Sheet as at 31 October 2016;
 > the Company Cash Flow Statement for the year 
then ended;
 > the Company Statement of Changes in Equity for the 
year then ended; and
 > the Notes to the Company Financial Statements, which 
include a summary of significant accounting policies 
and other explanatory information.
The financial reporting framework that has been applied 
in the preparation of the Financial Statements is IFRSs 
as adopted by the European Union, and applicable law, 
and as applied in accordance with the provisions of 
the Companies Act 2006.
In applying the financial reporting framework, the 
Directors have made a number of subjective judgements, 
for example in respect of significant accounting estimates. 
In making such estimates, they have made assumptions 
and considered future events.
Opinion on Other Matter Prescribed 
by the Companies Act 2006
In our opinion, the information given in the Strategic 
Report and the Directors’ Report for the financial year for 
which the Financial Statements are prepared is consistent 
with the Financial Statements.
Other Matters on Which We Are 
Required to Report by Exception
Adequacy of Accounting Records and Information and 
Explanations Received 
Under the Companies Act 2006 we are required to report 
to you if, in our opinion: 
 > we have not received all the information and 
explanations we require for our audit; or
 > adequate accounting records have not been kept by 
the Company, or returns adequate for our audit have 
not been received from branches not visited by us; or 
 > the Financial Statements are not in agreement 
with the accounting records and returns.
We have no exceptions to report arising from 
this responsibility. 
Directors’ Remuneration 
Under the Companies Act 2006 we are required to report 
to you if, in our opinion, certain disclosures of Directors’ 
remuneration specified by law are not made. We have 
no exceptions to report arising from this responsibility.
Responsibilities for the Financial 
Statements and the Audit
Our Responsibilities and Those of the Directors
As explained more fully in the Statement of Directors’ 
Responsibilities, the Directors are responsible for the 
preparation of the Financial Statements and for being 
satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on 
the Financial Statements in accordance with applicable law 
and International Standards on Auditing (UK and Ireland) 
(‘ISAs (UK and Ireland)’). Those standards require us to 
comply with the Auditing Practices Board’s Ethical 
Standards for Auditors. Entu (UK) plc Annual Report 2016 73
Strategic report governance Financial StatementS
This report, including the opinions, has been prepared for 
and only for the Company’s members as a body in 
accordance with Chapter 3 of Part 16 of the Companies Act 
2006 and for no other purpose. We do not, in giving these 
opinions, accept or assume responsibility for any other 
purpose or to any other person to whom this report is 
shown or into whose hands it may come save where 
expressly agreed by our prior consent in writing.
What an Audit of Financial Statements Involves
We conducted our audit in accordance with ISAs (UK and 
Ireland). An audit involves obtaining evidence about 
the amounts and disclosures in the Financial Statements 
sufficient to give reasonable assurance that the Financial 
Statements are free from material misstatement, whether 
caused by fraud or error. This includes an assessment of:
 > whether the accounting policies are appropriate to the 
Company’s circumstances and have been consistently 
applied and adequately disclosed; 
 > the reasonableness of significant accounting estimates 
made by the Directors; and 
 > the overall presentation of the Financial Statements. 
We primarily focus our work in these areas by assessing 
the Directors’ judgements against available evidence, 
forming our own judgements, and evaluating the 
disclosures in the Financial Statements. 
We test and examine information, using sampling and 
other auditing techniques, to the extent we consider 
necessary to provide a reasonable basis for us to draw 
conclusions. We obtain audit evidence through testing 
the effectiveness of controls, substantive procedures  
or a combination of both. 
In addition, we read all the financial and non-financial 
information in the Annual Report to identify material 
inconsistencies with the audited Financial Statements and 
to identify any information that is apparently materially 
incorrect based on, or materially inconsistent with, the 
knowledge acquired by us in the course of performing 
the audit. If we become aware of any apparent material 
misstatements or inconsistencies we consider the 
implications for our report.
Other Matter
We have reported separately on the Group Financial 
Statements of Entu (UK) plc for the year ended  
31 October 2016.
Hazel Macnamara (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP 
Chartered Accountants and Statutory Auditors 
Manchester 
28 March 2017 Entu (UK) plc Annual Report 2016 74
Financial Statements
Company Balance Sheet
At 31 October
Notes
2016
£000’s
2015
£000’s
Assets
Non-current assets
Property, plant and equipment 3 38 22
38 22
Current assets
Trade and other receivables 4 14,906 5,210
Cash and cash equivalents 1,962 487
16,868 5,697
Total assets 16,906 5,719
Equity 
Share capital 7 50 50
Retained earnings 30 2,032
Total shareholders’ equity 80 2,082
Current liabilities
Trade and other payables 5 16,826 3,637
Total shareholders’ equity and liabilities 16,906 5,719
The Financial Statements were approved by the board of Directors and authorised for issue on 28 March 2017.
They were signed on its behalf by:
Neill Skinner
Chief Financial Officer
28 March 2017
Entu (UK) PLC
Registered number 08957339 Entu (UK) plc Annual Report 2016 75
Strategic report governance Financial StatementS
Company Statement  
of Changes in Equity
Year Ended 31 October
Equity attributable to the equity holders
Share
Capital
£000’s
Retained
Earnings
£000’s
Total
£000’s
At 1 November 2014 50 780 830
Profit for the year – 3,958 3,958
Transactions with owners:
Dividends – (2,736) (2,736)
Share based payment charge – 30 30
Total transactions with owners recognised directly in equity – (2,706) (2,706)
At 31 October 2015 and 1 November 2015 50 2,032 2,082
Profit for the year 77 77
Transactions with owners:
Dividends – (2,079) (2,079)
Total transactions with owners recognised directly in equity (2,079) (2,079)
At 31 October 2016 50 30 80
  Entu (UK) plc Annual Report 2016 76
Financial Statements
Company Cash Flow Statement
Year Ended 31 October
Notes
2016
£000’s
2015
£000’s
Cash flows from operating activities
Cash generated from operations 6 3,648 4,542
Net cash generated from operating activities 3,648 4,542
Cash flows from investing activities
Purchase of property, plant and equipment 3 (31) (23)
IPO fees – (1,320)
Interest paid (63) –
Net cash used in investing activities (94) (1,343)
Cash flows from financing activities
Dividends paid (2,079) (2,736)
Net cash used in financing activities (2,079) (2,736)
Net decrease in cash and cash equivalents 1,475 463
Cash and cash equivalents at the beginning of the year 487 24
Cash and cash equivalents at the end of the year 1,962 487 Entu (UK) plc Annual Report 2016 77
Strategic report governance Financial StatementS
1. Accounting policies
General information
Entu (UK) plc’s principal activity during the year was 
that of a holding company. The Company is incorporated 
and domiciled in the UK. The Company’s registered 
number is 08957339. The address of its registered office 
is 7 Road One, Winsford Industrial Estate, Winsford, 
Cheshire CW7 3PZ.
The Company is a public limited company and has its 
primary listing on the AIM division of the London Stock 
Exchange. The principal accounting policies adopted in 
the preparation of these Financial Statements are the same 
as those adopted in the Consolidated Financial Statements. 
The Company’s principal accounting policies have been 
summarised below:
Basis of preparation 
The Financial Statements of the Company have been 
prepared in accordance with International Financial 
Reporting Standards as adopted by the European Union 
(IFRS as adopted by the EU), IFRS Interpretations 
Committee (IFRS IC) Interpretations and the Companies 
Act 2006 applicable to companies reporting under IFRS. 
The Financial Statements have been prepared under the 
historical cost convention, as modified by the revaluation 
of certain financial assets and financial liabilities (including 
derivative instruments) at fair value through profit or loss. 
The Financial Statements have been prepared in GBP, 
being the Company’s presentational currency and have 
been presented in thousands. The preparation of Financial 
Statements in conformity with IFRS requires the use 
of certain critical accounting estimates. It also requires 
management to exercise its judgement in the process 
of applying the Company’s accounting policies.
Going concern
The Financial Statements have been prepared on a 
going concern basis. For the purpose of considering 
going concern the Directors have considered a period 
of at least 12 months from the date of approving these 
Financial Statements and have made the following 
assumptions around future trading: (i) revenues over 
the next 12 months are at similar levels to 2016 reported 
revenues; (ii) margins show a modest increase over 2016 
following actions taken to improve operational efficiency 
and reduce costs in 2016; (iii) there is no material change 
to the Group’s operating model or existing supply 
relationships; (iv) the Group is able to retain the benefit 
of the cost savings realised in 2016 following the actions 
taken to restructure the Group, as discussed in the 
‘Chief Executive’s Statement’; and (v) the key risks set out in 
the ‘Principal Risks and Uncertainties’ section of the 
‘Strategic Review’ will not crystallise or have a material 
impact upon the Group within the next 12 months. 
The Directors have modelled a series of sensitivities 
around these assumptions taking into account reasonable, 
possible changes in trading performance and determined 
that there is sufficient headroom in the Group’s facilities 
and/or mitigating actions available. The Directors have no 
reason to believe that the facilities will not be renewed 
upon expiry.
Share capital
Financial instruments issued by the Company are 
classified as equity only to the extent that they do not 
meet the definition of a financial liability or financial asset. 
The Company’s ordinary shares are classified as equity 
instruments.
Dividends 
Dividends are recognised when they become legally 
payable. In the case of interim dividends to equity 
shareholders, this is when they are declared to 
shareholders.
Cash and cash equivalents
Cash and cash equivalents include cash in hand and 
balances with banks including outstanding bank 
overdrafts, where there is a right of set-off.
Financial instruments 
The Company classifies financial instruments, or their 
component parts, on initial recognition as a financial asset, 
a financial liability or an equity instrument in accordance 
with the substance of the contractual arrangement. 
Financial instruments are recognised on the balance sheet 
at fair value when the Company becomes a party to the 
contractual provisions of the instrument. 
Property plant and equipment 
Assets are stated at historical cost less accumulated 
depreciation and accumulated impairment losses. 
Historical cost includes expenditure that is directly 
attributable to the acquisition of the item concerned. 
Depreciation is charged so as to write off the cost or 
valuation of assets, other than land, over their 
estimated useful lives, using the straight line method, 
on the following basis: 
per annum
Equipment 33%
Residual values, remaining useful lives and depreciation 
methods are reviewed annually and adjusted if appropriate. 
Gains or losses on disposal are included in the profit or loss 
for the year within administrative costs. 
Notes to the Company 
Financial Statements Entu (UK) plc Annual Report 2016 78
Financial Statements
1. Accounting policies (continued)
Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective 
interest rate method, less provision for impairment. A provision for impairment of trade receivables is established when 
there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of 
the receivables and is measured as the difference between carrying value and present value of estimated future cash 
flows. Subsequent recoveries of previously impaired trade receivables are recognised as a credit to profit as recorded. 
Trade payables 
Trade payables are not interest bearing and are stated at fair value and subsequently measured at amortised cost. 
Company’s income statement
Under section 408 of the Companies Act 2006, an income statement for the Company is not presented. Profit after tax 
for the year of £77,000 (2015: £3,958,000) is included in the Financial Statements of the Company. 
2. Investments in subsidiaries
Details of the Company’s direct subsidiaries at 31 October 2016 are as follows:
Subsidiary companies
Company Operation
Country of 
incorporation
Parent
company
interest 
Proportion 
of voting
interest
Entu (UK) Holdings Limited Holding Company United Kingdom 100% 100%
HI Sales Limited Holding Company United Kingdom 100% 100%
KBC Energy Limited Holding Company United Kingdom 100% 100%
All holdings represent ordinary share capital. A complete list of the investments held by the Company can be found in note 
28 of the Consolidated Financial Statements.
3. Property, plant and equipment
Equipment
£000’s
Total
£000’s
Cost
At 1 November 2014 22 22
Additions 1 1
At 1 November 2015 23 23
Additions 31 31
At 31 October 2016 54 54
Accumulated depreciation
At 1 November 2014 – –
Charge for the year 1 1
At 1 November 2015 1 1
Charge for the year 15 15
At 31 October 2016 16 16
Net book value:
At 31 October 2016 38 38
At 31 October 2015 22 22
At 1 November 2014 22 22
Notes to the Company 
Financial Statements continued Entu (UK) plc Annual Report 2016 79
Strategic report governance Financial StatementS
4 . Trade and other receivables
At 31 October 2016
£000’s
2015
£000’s
Amounts owed by Group companies 14,790 5,054
Prepayments 48 144
Other 68 12
14,906 5,210
Amounts owed by Group companies are unsecured, non-interest bearing and have no fixed date of repayment.
5. Trade and other payables 
At 31 October 2016
£000’s
2015
£000’s
Trade payables 237 70
Amounts owed by Group companies 16,184 3,473
Other taxation and social security 78 89
Accruals and deferred income 327 5
16,826 3,637
Amounts owed to Group companies are unsecured, non-interest bearing and have no fixed date of repayment.
6. Reconciliation of (loss)/profit before tax to cash generated from operations
Year Ended 31 October 2016 
£000’s
2015
Restated
£000’s
Profit before tax 72 3,958
Dividend income (100) (4,000)
Finance costs 63 –
Depreciation of property, plant and equipment 15 1
Share based payment charge – 30
Operating cash-flow before movement in working capital 50 (11)
Movements in working capital:
Decrease/(increase) in trade and other receivables (9,696) 1,196
Increase/(decrease) in trade and other payables 13,294 3,357
Cash generated from operations 3,648 4,542 Entu (UK) plc Annual Report 2016 80
Financial Statements
7. Share capital 
2016 2015
Number
000’s
Amount
£000’s
Number
000’s
Amount
£000’s
Authorised:
Ordinary Shares of £0.0005 each 65,600 33 65,600 33
Deferred shares of £0.0005 each 34,400 17 34,400 17
100,000 50 100,000 50
Issued and fully paid:
Ordinary Shares of £0.0005 each 65,600 33 65,600 33
Deferred Shares of £0.0005 each 34,400 17 34,400 17
Total called up share capital 100,000 50 100,000 50
Ordinary shares give holders the right to vote and participate in general meetings of the Company as well as the rights 
over distributions and the assets of the Company. All ordinary shareholders rank pari-passu. Deferred shares carry no 
voting rights and no rights to distributions and the assets of the Company.
8. Shareholders’ equity
The Company’s movement in share capital and reserves are analysed in the Company Statement of Changes in Equity.
Notes to the Company 
Financial Statements continued Entu (UK) plc Annual Report 2016 81
Strategic report governance Financial StatementS
9. Related party transactions
Amounts owed by Related Parties are analysed as follows:
At 31 October 2016
£000’s
2015
£000’s
Weatherseal Home Improvements Limited 2,614 1,265
Penicuik Home Improvements Limited 989 1,000
Zenith Staybrite Limited 4,924 2,780
Entu Home Energy Services Limited – 9
JWD Installations Limited 200 –
Job Worth Doing Limited 6,063 –
14,790 5,054
Amounts owed by Zenith Staybrite Limited at 31 October 2016 include a dividend receivable totalling £1.6m (2015: £1.5m). 
Amounts owed by Penicuik Home Improvements Limited at 31 October 2016 is a dividend receivable totalling £1.4m  
(2016: £1.4m). Amounts owed by Weatherseal Home Improvements Limited at 31 October 2016 is a dividend receivable 
totalling £1.1m (2015: £1.1m).
Certain costs which are paid by other Group subsidiaries are recharged at cost to Entu (UK) plc. Certain costs incurred by 
Entu (UK) plc on behalf of other Group entities are recharged at cost to those entities.
Amounts owed to Related Parties are analysed as follows:
At 31 October 2016
£000’s
2015
£000’s
St Andrews Home Improvements Limited 55 30
Home Install Limited 167 205
Europlas Limited 315 150
Energy Hypermarket Limited 311 347
Job Worth Doing Limited – 198
Windowcare Limited 10,624 388
Entu Home Energy Services Limited 4 –
Astley Facades Limited – 2,155
HI sales Limited 4,708 –
16,184 3,473
Zenith Staybrite Limited declared a dividend to Entu (UK) plc of £0.1m. This was the only related party transaction in the 
year ended 31 October 2016, other than cost recharges. Prior year related party transactions related to dividends 
receivables as disclosed in the intercompany balances. Entu (UK) plc Annual Report 2016 82
Financial Statements
Auditor 
PricewaterhouseCoopers LLP has signified its willingness to continue in office and a resolution for its appointment will 
be proposed at the forthcoming Annual General Meeting. 
Directors’ Report of Entu (UK) plc
For the purposes of section 234 of the Companies Act 2006, the report of the Directors of Entu (UK) plc for the year ended 
31 October 2016 comprises this page and the information contained in the Group Directors’ Report. 
Registered office 
The address of the registered office is 7 Road One, Winsford Industrial Estate, Winsford, Cheshire CW7 3PZ.
Registered number 
Company registered number 08957339 
Registrars
Capita Asset Services  
The Registry  
34 Beckenham Road 
Kent 
BR3 4TU
Company secretary 
N. Kelsall
Registered Office and the  
Company Advisers Entu (UK) plc Annual Report 2016 83
Notes  Entu (UK) plc Annual Report 2016 84
Notes This report is printed on paper which is  
FSC certified (the standards for well-managed  
forests, considering environment, social and 
economic issues).
Designed and produced by Instinctif Partners  
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