Energetix Group plc
Group financial statements
for the year ended 31 December 2007
new energy
new power
delivering value Energetix Group is a leading developer of low cost products
for alternative and sustainable energy markets.
www.energetixgroup.com
The Group’s products are targeted at the key sectors of:
distributed generation;
power quality and reliability;
load shifting;
renewables and energy efficiency.
Page
Highlights 01
Group Overview 02
Chairman’s Statement 06
Pnu Power Case Study 08
Chief Executive’s Review 09
Genlec Case Study 10
Financial Review 11
Board of Directors 12
Senior Management 13
Group Directors’ Report 14
Report of the Independent Auditors 18
Group Income Statement 19
Group Statement of Changes in Equity 20
Group Balance Sheet 21
Group Cash Flow Statement 22
Notes to the Group Financial Statements 23
Company Balance Sheet 40
Notes to the Company Balance Sheet 41
Notice of Annual General Meeting 49
Form of Proxy 51
Directors, Secretary and Advisers to the Group 53
Genlec Pnu Power VPhase Energetix Group plc 01
Stock code: EGX
Financial highlights
August 2007 placing of 10 million shares at
120 pence per share raising £12m before expenses;
September 2007 reversal of Energetix Voltage Control
Limited into AIM shell, £12.2m unrealised gain (mid
market price) at 31 December 2007;
First sales of prototype Genlec units in November
2007;
First sale of a Pnu Power TC1 product
November 2007;
Cash utilisation lower than internally forecast.
Operational highlights
Genlec micro CHP installed and operated in a test
house for 12 months;
Genlec partnership agreements entered into with
two boiler manufacturers;
Genlec partnership agreement awarded by E.ON to
develop and deploy Genlec micro CHP enabled
appliances;
Second generation Genlec designed, built and
delivered to partners;
Genlec units now operating in three different types of
boiler with OEM partners in two different countries;
Pnu Power launched first product (TC1) at Intelec in
October 2007;
Pnu Power first order received, delivered and installed
with Eskom, S. Africa;
VPhase plc’s voltage control device showing c.10%
energy savings in laboratory tests.
2008 activities
Appointment of Dr L Juby as CEO of
VPhase plc, who started in January 2008;
Dr H Cialone joins Group board in
March 2008;
A Genlec enabled Daalderop boiler
was exhibited at VSK in Holland in
February 2008;
Continued commercialisation of existing
three businesses;
Further opportunities identified in
key sectors;
Head of new projects appointed.
Commenting on the results, Adrian Hutchings,
Chief Executive Officer, said:
“Our first full year as a publicly quoted
company has been extremely
successful. We achieved or exceeded
our goals in 2007 and I look forward
to repeating this success in 2008.
I would like to thank our dedicated
team who have enabled us to
achieve so much in such a short
period of time.”
Highlights
Milestones achieved in
January
CEO of Genlec
appointed
Genlec field trial starts
March
Energetix Group CEO
presents to the LSE
Environmental Industries
Capital Markets Day
April
Energetix Group tenth
in the CNBC European
Business Top 50 Low
Carbon Pioneers List
CEO Pnu Power
Appointed
July
Genlec field trial
successfully completed,
overall energy efficiency
of 90 to 95%
demonstrated Group financial statements 2007 02 Energetix Group plc
Energetix at a glance
Energetix Group is a leading developer of new
energy products, focusing on using robust
proven technologies to deliver fast to market
low cost product solutions.
Group Overview
Who we are
Energetix Group was established in 1997 to specialise in
developing cost-effective products to meet the growing global
demand for alternative energy technologies. The Group has a
dedicated team of alternative energy experts with many years
of experience in developing new products and businesses.
The business was admitted to AIM in August 2006 raising
£6m gross and subsequently raised a further £12m gross in
August 2007 at three times the original subscription price of
40 pence.
What we do
Energetix Group looks for major opportunities in the energy
sector and develops innovative low cost solutions through
smart engineering, utilisation of existing components and
strong intellectual property. Our focus is on:
— Distributed Generation — small-scale, deeply embedded
generation and Combined Heat and Power (CHP),
delivering enhanced efficiency, reducing carbon
emissions, costs and providing greater security of supply
to the end user;
— Power Security and Quality — the storage of energy to
provide high quality, reliable and secure energy supply;
— Load Management — products to “buffer” the end user
and power provider from supply and demand variations
and peak costs associated with network loads;
— Renewable, Sustainable and Efficient Energy —
technologies and products to generate or facilitate
renewable and sustainable energy, or systems to make
existing energy production and usage more efficient.
August
Genlec announces HoA
with two European
boiler partners
£12m placing
£0.2m NWDA Grant
award
October
Pnu Power launches
TC1 product at Intelec
November
Genlec delivers micro
CHP modules to major
OEM partners
September
VPhase plc admission
to AIM
Pnu Power wins utility
order Energetix Group plc 03
Stock code: EGX
Genlec has developed a module that fits into a traditional
heating and hot water boiler that enables the boiler to
produce electricity for use in the home at the same time as
producing the hot water/heating.
The company currently has units on trial with boiler partners,
is working with a utility company and plans to launch product
in H2 2008. Daalderop BV, a Genlec boiler partner, exhibited
their CombiVolt, a Genlec enabled Daalderop boiler, at the
VSK 2008 International Trade Fair in February 2008.
There is increasing pressure to generate electricity cleanly and
in a sustainable manner, driven by the Kyoto protocol and
concerns over the depletion of the world’s fossil fuels. It has
been demonstrated that a micro CHP unit such as Genlec can
deliver in excess of 90% efficiency in the production of heat
and electricity as compared to circa 40% efficiency in electrical
production via central generation.
European governments are keen to see micro CHP systems
deployed in order to meet international and domestic targets
on carbon emissions. The UK Government has reduced VAT
from 17.5% to 5% for micro CHP installations. In Holland the
Government is also backing micro CHP deployment with
similar incentives and is stipulating that it wants 10,000 micro
CHP units installed during 2009. Genlec is working closely
with two boiler manufacturers, one of which is the Dutch
boiler manufacturer Daalderop, to ensure its involvement in
this programme.
In May 2007 the UK Government’s planning white paper set
up a beneficial planning framework for CHP with the UK
Government setting a target of doubling the UK CHP capacity
to 10,000 MW by 2010.
Research from COGEN Europe, the pan-European trade
association promoting CHP, highlights that across the
European Union there is the potential for up to 50 million
micro CHP installations. The key markets for micro CHP
deployment are initially the Netherlands, Germany and
the UK, followed by Italy and France.
When compared to competing technologies Genlec offers a
low cost approach that is compatible with the prevailing EU
market for boilers where the vast majority are wall hung. By
becoming a component supplier to boiler manufacturers
Genlec will be able to capitalise on existing routes to market,
thus simplifying the supply chain when compared to
competitors and further reducing barriers to entry for Genlec
based products. This strategy is underpinned by
the fact that the unit can be readily incorporated by a
boiler manufacturer in their own boiler to make a wall hung
unit that acts as, and is installed in the same way as, an existing
boiler.
With Genlec’s recently announced trials with E.ON and our
existing agreements with Daalderop and another major
European boiler manufacturer, we remain on track to have
commercially available product in H2 2008.
Genlec is led by William (Bill) Fortescue who joined Genlec
as CEO in January 2007. Bill was formerly CEO of RWE
Solutions UK Limited. Further details on Bill’s career and
background are contained on page 13.
Energetix Genlec
Limited
(“Genlec”) Group financial statements 2007 04 Energetix Group plc
Group Overview
Energetix (Pnu)
Power Limited
(“Pnu Power”)
Pnu Power uses compressed air as the energy store to
generate power in uninterruptible power supply (UPS) and
back-up power applications.
The increasing use, worldwide, of electrical and electronic
equipment particularly in mission critical areas of industry,
telecommunications, commerce, education and healthcare has
made power quality a critical issue for the providers and
operators of these systems.
This growth has not been matched by the quality of power
supplied by utilities in terms of availability and reliability, posing
a serious risk to business continuity and critical public
infrastructure. UPS systems are increasingly used to counter
disruptions, voltage sags and outages suffered by all consumers
of electric power.
A UPS system provides energy during a disturbance in the
power supply. These outages can last from fractions of a
second to many hours, particularly in remote areas with
several hours of back-up being demanded for some
applications. The incumbent energy storage system for UPS
and back-up power is Valve Regulated Lead Acid (VRLA)
batteries. VRLA batteries are a well-established technology
but with product life, reliability and performance problems.
Pnu Power is a new type of battery for UPS and back-up
power supplies based on compressed air. Pnu Power exceeds
conventional batteries both in terms of product life,
performance and reliability and is expected to have 
lifetime costs substantially less than those of battery 
based systems.
During the year, the company received and delivered its first
order for its TC1 compressed air UPS from South African
electricity utility Eskom, one of the largest electricity utilities in
the world. The newly launched TC series product provides
instantaneous power delivered by a unique system of power
delivery that is supported by patented technology. The product
range is focused on delivering high quality power to protect
critical loads (base stations, power distribution and data centres,
etc.) and maintaining operational performance.
The reliability of the Pnu Power system is not compromised
by extreme temperatures (-20 to +50ºC) and can provide
back-up power for long periods (days if required) with scalable
energy storage. Further opportunities for Pnu Power’s cost-
effective, safe and low maintenance systems exist on the
Eskom network in South Africa’s harsh and remote
environments.
In April 2007 the company appointed Neil Bright (previously
President of Exide Industrial Energy, a $800m turnover
subsidiary of Exide Inc.) as the CEO of Pnu Power. Following
his appointment a significant number of additional applications
have been identified for the Pnu Power product, in particular:
•
Telecoms support for remote locations where the use of
fibre networks and remote wireless base stations has led
to the need for back-up power in environments that are
detrimental to the operation of traditional lead acid
batteries, further impacting their reliability and
performance. This is mainly due to heat, something that
does not affect Pnu Power.
•
Demand response opportunities, predominantly in the
USA, driven by the need for peak power in metropolitan
areas without generating polluting emissions. Pnu Power is
investigating the potential to extend the existing
technology platform to address this market opportunity.
Further details on Neil’s background and career are included
on page 13.
During October 2007 the company demonstrated its TC1
product at Intelec in Rome, the international conference for
back-up power for the telecommunications industry from
which significant interest was generated in the product which
the company is currently following up. Energetix Group plc 05
Stock code: EGX
VPhase plc
(“VPhase”)
VPhase is a leading developer of energy saving devices for the
home and small commercial/retail applications using voltage
control technology where incoming voltage to a property is
held to a set point. Whilst electricity is provided by generators
and distributors to a nominal specification, in the UK this is
230 volts, in North America 120 volts, the actual voltage
received can vary significantly. In the UK it is legally permissible
for domestic electricity to be delivered anywhere between
207 volts and 253 volts and in North America between 114
volts and 126 volts, with resulting effects on device
performance and reliability. 
The majority of electrical devices do not get any benefits from
the excess voltage; instead they convert the additional energy
into wasted heat and in some cases, such as light bulbs, the
excess voltage can result in a shortened operational life.
The company’s voltage control device has consistently
demonstrated savings of 10% or greater of the electricity used
by products such as fridges/freezers, televisions, computers,
vacuum cleaners, lights and central heating pumps by ensuring
that they run closer to the voltage for which they were
designed.
The device is either a stand-alone unit or fits in other devices
such as the consumer unit. It controls the incoming voltage to
a set point slightly higher than the minimum design point for
household electrical items in Europe thereby ensuring that
these appliances operate closer to the voltage condition for
which they were designed. The initial product is aimed at the
new-build and refurbishment markets although a retrofit
device together with a version for the North American market
will be introduced in the near future.
The company is in discussions with manufacturers of
consumer units, meters and electrical appliances as well as
utility companies. It is expected that commercial sales will
commence in the second half of 2008.
The company is pleased to announce that Dr Lee Juby joined
as CEO of VPhase on 1 January 2008. Further details on Lee’s
background and career are contained on page 13. Group financial statements 2007 06  Energetix Group plc
Chairman’s Statement
I am pleased to report another successful year for the Group
with further excellent progress on all aspects of the business:
technical, commercial and financial. 
In Genlec, the new smaller and lighter weight micro CHP
module has been undergoing field trials which have
demonstrated that a Genlec enabled device can be operated
at an overall efficiency of up to 95%. Genlec signed
agreements with two boiler manufacturers and in addition, we
concluded an agreement with E.ON to develop and deploy
our technology with the intention of Genlec boilers becoming
part of E.ON’s highly regarded microgeneration portfolio. In
November, we delivered our first prototype product sales to
our boiler partners in mainland Europe. These devices are
now installed and operating in their premises and a Genlec
enabled Daalderop micro CHP boiler was exhibited at the
VSK 2008 International Trade Fair in February 2008.
Pnu Power launched its first compressed air battery product
at Intelec (the International Telecommunications and Energy
Conference), Rome in October 2007 and has delivered its
first order to South African utility Eskom. This unit has
completed trials at Stellenbosch University and has been
installed in a live switch-room, on the Southern Cape of South
Africa. The appointment of Neil Bright as Chief Executive
Officer of Pnu Power has significantly increased the focus and
scope of opportunities available to the company using his 38
years’ experience from the battery industry.
In September 2007, the Group reversed one of its subsidiaries,
Energetix Voltage Control Limited, into VPhase plc (formerly
Flightstore Group plc) and this company was admitted to
trading on the AIM Market of the London Stock Exchange.
Energetix Group plc still holds 55.1% of the ordinary share
capital of VPhase plc. With the funds made available from this
transaction, the business has made substantial technical
progress and is in discussions with potential partners for routes
to market. In addition, the Group has begun establishing a
dedicated management team for VPhase plc and is pleased
that Dr Lee Juby has joined the board as Chief Executive
Officer with effect from 1 January 2008.
In March 2008, the Energetix Group Board was further
strengthened with the appointment of Dr Henry Cialone as a
Non-Executive Director. Henry’s world class experience,
having led Battelle Memorial Institute’s commercial energy
business, served on the governing board of the US National
Renewable Energy Laboratory (NREL) and being non-
executive director of a spinout company from Idaho National
Laboratory, brings Energetix access and understanding of both
additional markets and sources of intellectual property. Henry
is currently the President and CEO of the Edison Welding
Institute based in Columbus, Ohio. At the same time as
Henry’s appointment Bryan Gray stepped down from the
Board as a Non-Executive Director. I would like to thank
Bryan for his commitment and support to the Company and
I am pleased that he will continue to act as Genlec’s
representative on the Micropower Council.
During the year the North West Regional Development
Agency awarded Genlec a £0.2m grant to develop the next
generation Genlec product which will apply to combination
boilers. These boilers produce hot water on demand rather
than storing the hot water in a tank until required.
To develop the Group’s facilities we have taken a further lease
on an additional 8,000 square foot unit on the Capenhurst
Technology Park. This unit will house VPhase and Genlec. 
The Group delivered a robust financial performance in the
year with income of £1.16m (2006: £0.25m) of which interest
on cash balances provided £0.41 million (2006: £0.07m) and
the disposal of Energetix Voltage Control Limited provided
£0.69m (2006: £nil) of other income net of costs and product
sales of £0.06m.
The expansion of activities, with 2007 as the first full year since
the Group floated, has resulted in increased overheads before
amortisation or depreciation of £2.65m (2006: £1.01m) and
an increased charge for amortisation and depreciation of
£0.40m (2006: £0.21m).
The world’s primary energy needs are projected to grow by 55% between 2005 and 2030
(World Energy Outlook, International Energy Agency, 2007).
Electricity consumption is projected to double by 2030. Some $22 trillion of investment in
supply infrastructure is needed to meet projected global demand (World Energy Outlook,
International Energy Agency, 2007).
More than two-thirds of the world’s carbon dioxide emissions come from the way we
produce and use energy (Meeting the Energy Challenge, DTI white paper, May 2007).
New global investments in energy technologies have expanded 60% from $92.6bn in 2006
to $148.4bn in 2007 (Clean Energy Trends 2008, Clean Energy). Energetix Group plc 07
Stock code: EGX
Right: A Genlec module
Below: Pnu Power TC1 product
The loss for the year was higher than 2006 at £1.85m (2006:
£1.02m) reflecting a full year of operating as a quoted
company and also the increased drive towards
commercialisation of the Group’s subsidiaries as outlined at
the time of our float in August 2006 and our further placing
in August 2007. The basic adjusted loss per share increased
from 2.86 pence to 3.74 pence. Cash reserves remain very
healthy at £12.78m (2006: £4.45m) and the Group’s business
is fully funded.
Also during the year the Group completed the placing of 
10 million ordinary shares of 5 pence each at 120 pence per
share raising a further £12m gross (£11.3m net). Funds raised
are being used to enable Genlec to engage with more potential
partners, for Pnu Power to address the increasing number of
leads from across the world and to progress newly identified
markets outside uninterruptible power. 
In addition, the fund-raising has strengthened the Group’s
Balance Sheet allowing the Directors to continue to research
and source applicable technologies focused on 
the increasingly important sustainable alternative energy
sector. It also assists when in negotiations with partners 
and suppliers.
Investment in property, plant and equipment amounted to
£0.19m (2006: £0.08m) as the Group invested in facilities for
the expansion of activity and commercialisation of its
subsidiaries. Investment in the Group’s research and
development assets amounted to £1.02m (2006: £0.57m).
At this stage of the Group’s development the Board is 
not recommending a dividend in respect of the year to 
31 December 2007.
The success of our business is driven by the quality and
commitment of our people and I would like to thank all the
Group’s employees for their efforts, hard work and
commitment over the last year. I am confident that the coming
year will be another successful one as the Group continues
the commercialisation of its subsidiaries.
Alan Aubrey
Chairman
8 April 2008 Group financial statements 2007 08  Energetix Group plc
“We are delighted that Eskom chose to
test a Pnu Power system as part of the
important management of their
network. The fact that they have tested
other technologies and found them not
to fully meet their expectations, gives a
great opportunity for Pnu Power to
deliver a solution based on a simple
robust engineered product. We
understand that a number of additional
sites have been identified by Eskom
where Pnu Power could provide
significant benefits and we are confident
that successful on site testing of the Pnu
Power system could lead to further
deployment of our product on the
Eskom network.”
Neil Bright, CEO Energetix (Pnu) Power Ltd
South African 
Utilities 
Pnu Power
Eskom is a South African electricity
public utility, established in 1923 as
the Electricity Supply Commission
(ESCOM) by the government of
South Africa. The utility is the
largest producer of electricity in
Africa, is among the top seven
utilities in the world in terms of
generation capacity and among the
top nine in terms of sales.
Standby power systems are used in substations
and telecommunication repeater sites for the
provision of DC power to equipment during
primary power supply failure conditions. The
standby power system is critical due to the fact
that without it the protection, telecontrol and
telecommunication equipment cannot perform
their functions to protect and control plant and
to alarm personnel. The traditional standby
power system consists of power electronic
conversion equipment (battery charger /
rectifier) and a chemical energy storage device.
The energy storage devices that are employed in
South Africa’s electricity utility, Eskom, are Nickel
Cadmium batteries and Lead Acid batteries.
These conventional battery systems have
reliability and life-cycle problems and Eskom
have bought a first Pnu Power TC1 compressed
air energy store to evaluate the potential for Pnu
Power to alleviate these problems. In addition,
Eskom have been evaluating other alternatives
to batteries including flywheels and hydrogen-
powered fuel cells. Some of the disadvantages
of these alternative technologies compared to
compressed air are:
FUEL CYLINDERS 
•
present a safety hazard during fuel
replacement;
•
unable to deliver an autonomous solution
— need fuel recharge;
•
production, transportation, distribution
and storage of hydrogen present many
challenges;
•
if one cell in the stack is faulty, then the
whole stack must be replaced. Stack
replacement can be very costly;
•
fuel cell still requires an internal battery
(lead acid) to provide ride-through power
during start-up;
•
contamination of the proton exchange
membrane by pollutants in the air;
99.95% pure hydrogen is required;
•
there are many safety concerns around
the handling of hydrogen;
•
expensive components in PEM fuel cells
include the platinum electro-catalyst and
proton exchange membrane.
FLYWHEELS
•
short run time duration, 10’s of seconds
compared to the up to 10 hours
required;
•
susceptible to large vibrations;
•
specialist installation and maintenance
required.
The Pnu Power TC1 system has been
successfully tested by Stellenbosch University on
behalf of Eskom and the system is now being
deployed in a substation switching facility on the
Eskom network.
Case Study Energetix Group plc 09
Stock code: EGX
Chief Executive’s Review
The continuing and growing need to reduce energy costs,
reduce environmental emissions, and provide reliable quality
power is enhancing the already favourable market conditions
for Energetix products.
This demand is evidenced by a number of factors, such as the
heightened awareness and debate amongst consumers of
energy and environmental issues, the increased level of
legislation and incentives being introduced by governments
and other agencies on a global basis, and the growing
significance placed by corporate entities on these factors in
their branding and buying decisions.
Energetix’s strategy of focusing on robust, smart technologies
with strong intellectual property is a key enabler in delivering
these market needs in a timely fashion and in helping us to
meet our fast to market objectives. This strategy also enables
our businesses to focus on our core strengths of product
development and commercialisation whilst predominantly
outsourcing the capital intensive aspects of product assembly.
I am delighted with the calibre of the people we have been
able to attract to lead our subsidiary companies. Each of these
subsidiaries has developed its products based mainly on
utilising mass produced components. This again supports our
fast to market approach, enables us to produce products that
are already some way down the cost curve, and provides a
good understanding of the product life that can be achieved.
This pragmatic approach has enabled strong supply chain
arrangements to be developed, in many cases with multi-
sourcing opportunities to support competitive prices and
reduce risk.
Risk reduction has been a major element of the past year’s
achievements, technically, commercially and financially. Both
Genlec and Pnu Power have delivered products to partners
and customers respectively, and have built on the trials
initiated at the start of the year. 
The signing of agreements by Genlec with two boiler
companies, one of whom is the leading brand in its country,
and the agreement with E.ON where it is planned that Genlec
will become part of its well respected E.ON micro-generation
portfolio, has given Genlec a good initial base for dual routes
to market. Pnu Power has received an excellent response to
its first public demonstration at Intelec in Rome, achieving its
first commercial sale and generating significant interest from
very large players in the telecommunication power field.
The fund-raising in August 2007, to enable the Group to
accelerate these businesses, has delivered a very strong
Balance Sheet and given a high level of confidence both in
delivery of our objectives and in examining future
opportunities for the Group.
2007 was a very exciting and successful year for Energetix; I
look forward to 2008 being as successful. We have set
ourselves some challenging targets; however, I am confident
that the skill and dedication of the Energetix staff will enable
us to continue our track record of delivering or exceeding our
objectives. 
2007 was a year focused on creating businesses from
technology projects developed within the Group. 2008 is the
year that each of these businesses will establish the building
blocks that should enable them to deliver growing revenues
and contribution in 2009.
Particular priorities are:
•
Genlec:
– initial launch, with visibility on commercial sales, of the
Genlec product with our boiler partners;
– confirm the suitability of Genlec as part of the E.ON
micro-generation portfolio;
– increase the number of boiler and utility partners from
the three current participants; and
– select an assembly partner.
•
Pnu Power:
– continue to create sales opportunities in the
telecommunications back-up power field;
– develop and test a larger power system, up to 100kW
of electrical output; and
– growth in revenue.
•
VPhase:
– complete development of the initial product;
– appropriate testing to confirm performance and to
meet safety standards; and
– initiate early sales.
I look forward to our teams achieving these goals and
reporting back to you at the time of our interim results the
progress we have made in delivering them.
A C Hutchings
Chief Executive Officer
8 April 2008 Group financial statements 2007 10 Energetix Group plc
Genlec
First Commercial micro 
CHP Agreements
Energetix is delighted that Genlec has entered
into letters of intent with two European boiler
manufacturers to further the development of its
micro CHP boiler system.
Daalderop BV (‘Daalderop’), a supplier of
innovative heating equipment in the
Netherlands, and Energetix Genlec Limited have
signed a letter of intent to work together to
launch Genlec™ micro CHP enabled Daalderop
boiler appliances to the Dutch and Belgian
markets in the second half of 2008. Genlec has
delivered units to Daalderop who have
incorporated them into their boiler and are
currently testing this Genlec enabled boiler in
their test facility in Holland. The parties see this
arrangement as the start of a long term
partnership to grow micro CHP in these
countries.
This market is considered by the Directors to be
especially important as the Dutch Government
has already stated its intention to have 10,000
micro CHP units installed during 2009.
The Company also entered into a second letter
of intent with another major mainland European
boiler company to produce and test Genlec
enabled boilers. Confidentiality clauses do not
permit the Company to reveal further details at
this point in time.
The Genlec modules for each of the boiler
partners are designed along similar lines as the
successful unit field trialled by Energetix, in that
they will be lightweight, wall hung and make use
of mass manufactured standard components.
Furthermore, the boilers will be installer friendly
as it will easily connect into existing gas and
power supplies.
By working with the current boiler companies,
Genlec is looking to make use of existing
manufacturing facilities and supply chain routes,
both to the manufacturers and indeed to the
end consumer.
“The progress of the development of
Genlec from a technical and commercial
perspective is testament to the focus of
our teams.  The success of our initial
field trial Genlec system under
domestic conditions and the delivery of
prototype modules to our boiler
partners, have been major milestones
for us.
The fact that Genlec has now come to
a number of material agreements with
partners who have the ability to assist
in the commercialisation of this system
demonstrates the progress we have
made. We are delighted to be working
with these partners and look forward
to developing a highly competitive
product which will give major savings to
the consumer and significant
environmental benefits.”
Bill Fortescue, CEO Energetix Genlec Ltd
First Commercial 
micro CHP Agreements
Case Study Energetix Group plc 11
Stock code: EGX
Financial Review
The Group’s financial performance in the year and the loss
was in line with internal projections and with our focus on
strong cash management our year end cash balance at
£12.78m is better than expected.
Our operating loss for the year was £3.01m (2006: £1.20m),
which, as set out at the time of Admission and in our interim
results published on 17 September 2007, is in line with the
Group’s internal forecast to increase the level and speed of
commercialisation activity, through the recruitment of
additional staff and in particular the recruitment of senior
management teams for Genlec and Pnu Power.
Product sales income of £0.06m (2006: £nil) was earned as
the first Pnu Power and Genlec units were sold. Clarity on
the sales adoption process in each of the businesses has
improved in the year with the Eskom sale for Pnu Power
providing a good example, where single units are taken for
internal testing, followed by live testing and, once successful,
small-scale orders will be received leading to greater sales in
subsequent years. For Genlec product sales, we expect to see
initially a small number of units sold for in house partner
testing followed by larger batch sizes, as field trials are carried
out and the products are CE marked. This will be followed
by additional volumes as the product roll-out commences.
There was no consultancy in 2007 (2006: £0.07m) as the
Group is focused on the commercialisation of its own
subsidiaries and the generation of revenue by product sales in
these businesses.
Our loss before tax for the year was £1.85m (2006: £1.02m
loss), an increase over last year in line with the Group’s plans
outlined at the time of our admission to AIM in August 2006
and our further placing in August 2007.
On 3 September 2007, the Group sold 25% of Energetix
Voltage Control Limited to Ora Capital Partners and certain
Ora Capital employees for £0.6m by issuing new shares in
Energetix Voltage Control Limited. At the time of the disposal,
the subsidiary had net liabilities of £0.06m. This has resulted
in a gain disclosed in the accounts of £0.43m being the
Group’s share of the cash consideration after adjusting for
minority interests. On 25 September 2007, the Group
reversed Energetix Voltage Control Limited into VPhase plc
(formerly Flightstore Group plc) which placed a value on the
shares issued of £2.4m of which £1.6m related to the Group’s
equity stake. This was settled by VPhase issuing 343,855,008
new ordinary shares of 0.25 pence to the Group representing
55.1% of VPhase plc’s total issued share capital. This has
resulted in a further gain disclosed in the accounts of £0.25m
and both transactions have resulted in a minority interest in
the Group of £0.26m as set out in note 23 to the Group
financial statements. Subsequent to the sale, VPhase plc was
admitted to trading on the AIM Market of the London Stock
Exchange and the Group has made a further unrealised gain
of £12.15m on its holding (based on a VPhase plc share price
of 4 pence as at 31 December 2007). In accordance with IFRS,
no benefit from this unrealised gain has been taken to these
financial statements.
Interest income from money held on bank accounts and
short-term deposits totalled £0.41m (2006: £0.07m).
Cash utilised by the business during the year on operating
activities was £2.44m (2006: £0.80m) and on investing
activities £0.17m (2006: £0.58m). The placing generated a net
£11.29m (2006: £5.60m) and long-term liabilities were
reduced by £0.35m (2006: £nil). The resultant cash inflow
during the year was £8.33m (2006: £4.23m).
Cash has been managed so that funds not immediately
required by the business have been held on the money
market or on deposit with UK banks in line with our strategy
of maximising interest earnings whilst maintaining sufficient
funds for operating requirements.
The Board has not recommended a dividend given the stage
of development of the Group and no dividends were paid
during the year.
During the year, the fees of our joint broker have been settled
by the issue of 45,454 new ordinary shares of 
5 pence each and the Group has a commitment to issue a
further 45,454 shares for services provided up until 
22 March 2008. Accordingly, these share based payments
have been recognised in the Income Statement.
In addition, our subsidiary VPhase plc has entered into a
commitment to pay fees to our joint broker for services
provided from 25 September 2007 to 24 September 2008
by the issue of 4,992,961 new ordinary shares of 0.25 pence
each. As at 31 December 2007, no shares had been issued
and a further 4,992,961 shares are to be issued. No other
share-based payments have been made to other third parties.
In addition, 303,707 share options were granted in the year to
senior employees of the Group’s subsidiaries. Details are
contained in note 9 to the Group financial statements.
Subsequent to the year end, the Group has had confirmation
from HM Revenue and Customs that the disposal of a business
by Energetix (Europe) Limited in 2004 has been correctly
treated and that substantial shareholder exemption did apply.
This concludes the dispute referred to in previous years and
reduces any liability for tax on this transaction to £nil.
R H Smith
Chief Financial Officer
8 April 2008 12  Energetix Group plc Group financial statements 2007
A C Elsborg 
Non-Executive Director
Following roles in finance and general management
with Lucas Aerospace Limited, Anton joined David
Brown Group plc as Finance Director after a £46m
MBI in January 1990. David Brown Group later
floated (in April 1997) at a valuation of £90m on
the London Stock Exchange. Continued growth
through new products and international expansion
led to the purchase by Textron Inc of the David
Brown Group in 1998 for approximately £260m.
Anton remained with Textron as President of the
Power Transmission Division until July 2001 and
joined Energetix Group Limited in 2002. Anton
graduated in Chemical Engineering, gained a Masters
in Industrial Management and is a Chartered
Management Accountant. Anton has also been
appointed as a Non-Executive of Coe Group plc.
Dr H J Cialone
Non-Executive Director
Dr Henry Cialone is President and CEO of the
Edison Welding Institute (EWI), North America’s
leading independent materials joining technology
organisation and an Ohio Edison Centre member.
Henry became a Non-Executive Director on 
14 March 2008. Prior to joining EWI in 2005, Henry
was an executive at Battelle Memorial Institute,
where he led the commercial energy business and
served on the governing board of the National
Renewable Energy Laboratory. Henry is a member
of the National Coal Council and the Miami
University Research Advisory Council; a Trustee of
the Midwest Research Institute in Kansas City; and
a Non-Executive Director of the NanoSteel
Company, a venture-backed spinout from Idaho
National Laboratory. Henry received his BS degree
in materials engineering from Brown University, and
his MS and PhD degrees in materials science, also
from Brown, where his area of specialisation was
hydrogen enhanced fracture.
A J Aubrey
Non-Executive Chairman
Alan is the CEO of IP Group plc, a FTSE 500
company that specialises in investing in and building
technology businesses based on intellectual
property originating from Universities and other
research intensive institutions. He is the Non-
Executive Chairman in Proactis Group Limited, an
AIM listed software company, based in York. He is
a Non-Executive Director and investor in Syntopix
Group plc, a Bradford based, AIM listed company
that is developing new therapeutics for dermatology
markets and a Non-Executive Director and investor
in Avacta Group plc, a York based AIM listed
company that has developed a number of products
in the area of chemical and biological detection.
Previously, Alan was the founder and CEO of
Techtran Group Limited, a business that was sold
to IP Group plc in 2005. From 1995 to 2000, Alan
was a partner in KPMG where he specialised in
providing corporate finance advice to and raising
money for fast growing technology businesses. Alan
holds a BA in Economics and an MBA with
Distinction from the University of Bradford and is a
fellow of the Institute of Chartered Accountants of
England and Wales. In addition, Alan has recently
been appointed as a Non-Executive Board member 
of the Department for Innovation, Universities 
and Skills.
A C Hutchings 
Chief Executive Officer
Prior to founding Energetix Group in 1997, Adrian
was the Managing Director of International Energy
Systems Ltd (IES), a subsidiary of BNFL which
developed, manufactured, and marketed a high
technology flywheel for storing electrical energy, for
the UPS and distributed generation markets.
Before this, Adrian was a Commercial Manager with
BNFL New Business Ventures. His role was
identifying technologies and business opportunities
based on internal intellectual property, for non-
nuclear applications, as part of a diversification
programme. Prior to this he was the Project
manager for a £50m capital, £500m life cycle, design
and construction project for a major facility at the
Sellafield site. Adrian has a degree in Chemical
Engineering.
R H Smith
Chief Financial Officer
A Fellow of the Chartered Institute of Management
Accountants with an MBA from Warwick University,
he was previously Finance Director for Ultraframe
(UK) Limited (2001 to 2004), and Finance Director
for Norcros Adhesives Limited (1997 to 2001) which
comprised subsidiary, joint venture and licensee
operations in the UK, Europe, the Middle East and
India. From 1995 to 1997, Rick worked with Adrian
Hutchings as the Finance Director for IES and prior
to this was the Financial Controller for Robinson
Healthcare, a division of Robinson Limited that
manufactured consumables for the healthcare
industry.
Board of Directors and Senior Management
Board
B M Gray
Non-Executive Director
(resigned 14 March 2008)
Bryan is Chairman of the Northwest Regional
Development Agency. Previously he was Chairman
of Baxi Technologies, now part of Baxi Group
Limited. He is Vice-President of the Micropower
Council, promoting new energy technologies.
He is Non-Executive Chairman of Westmorland
Limited and Pro-Chancellor of Lancaster University.
PICTURED FROM LEFT TO
RIGHT:
Richard Smith
Anton Elsborg 
Alan Aubrey
Dr Henry Cialone
Adrian Hutchings W F Fortescue
CEO Energetix Genlec Limited
Before joining Energetix Genlec in January last year,
Bill was CEO of RWE Solutions UK Limited and was
responsible for establishing RWE’s Energy Service
business in UK and Ireland and for rolling out the
energy services business model throughout Europe.
Prior to his 9 years as CEO within RWE, he spent
more than 20 years in the energy sector, with more
than 10 years at director level developing capital
projects on a worldwide basis for major companies
such as Babcock, ENI and Davy McKee. Bill
graduated as a chemist, is a Chartered Engineer,
Fellow of the Energy Institute and President of The
Energy Industries Club.
N S Bright
CEO Energetix (Pnu) Power Limited
Neil Bright joined the Energetix Group from Exide
Technologies, one of the world’s largest producers
of lead-acid batteries, where he was the President
of the Group’s global Industrial Energy Division from
2000 to 2006. He was responsible for an $800m
turnover division, managing industrial battery sales,
manufacturing and logistics operations throughout
Europe, the Middle East & Asia Pacific within a
global telecommunications, UPS, and materials
handling market worth $3bn.  Neil has lived and
worked in Singapore, Cairo, Paris and Madrid in this
industry, and is an acknowledged global expert on
industrial batteries and stored power systems and
their applications.
Neil has an honours degree in Economics from the
University of Manchester and a post graduate
Diploma in Marketing.
Dr L Juby
CEO VPhase plc
A Chartered Engineer with a doctorate in
electronics and over ten years’ experience in the
development and commercialisation of advanced
technology gained within a variety of different roles.
Lee joined VPhase from Rolls-Royce Distributed
Generation Systems (RRDGS) where he had been
Head of Product Planning and where he
transitioned the RRDGS business unit from a
capability provider to a product provider. Other
recent positions include Commercialisation
Manager at Energetix Group Limited, where he
developed the original VPhase technology, Director
of Energetix Pnu Power Limited, where he
developed the initial technology and Senior
Consultant at EA Technology where among other
roles he acted as Lead Technical Expert for a
number of banking clients for investment Due
Diligence activities.
Energetix Group Plc 13
Stock code: EGX
Senior Management
PICTURED FROM
LEFT TO RIGHT:
William Fortesque
Neil Bright
Dr Lee Juby Group financial statements 2007 14 Energetix Group plc
Group Directors’ Report 
for the year ended 31 December 2007
The Directors present their report and the audited financial
statements for the year ended 31 December 2007.
Placing of shares and basis of preparation of the
financial statements 
On 1 August 2007, the Company issued 10,000,000 new
ordinary shares of 5 pence each at 120 pence per share. 
On 21 August 2007, the Company issued 22,727 new
ordinary shares of 5 pence each at 55 pence per share to Bank
Ora Limited in settlement of fees.
On 8 October 2007, the Company issued 22,727 new
ordinary shares of 5 pence each at 55 pence per share to Bank
Ora Limited in settlement of fees.
The financial statements have been prepared in accordance
with International Financial Reporting Standards (IFRS) as
adopted by the European Union. In accordance with IFRS, the
financial statements reflect the results of Energetix Group plc
and its subsidiaries for the year ended 31 December 2007 and
for the corresponding period in 2006. Further details are
provided in Note 2 to the financial statements.
Principal activities
Energetix Group plc is focused on the commercialisation of
intellectual property and technical product development of
alternative energy products for global markets.
Results and dividends
The loss for the year, after taxation, amounted to £1,847,000
(2006: £1,021,000). The Directors do not recommend the
payment of a dividend.
Review of business and future developments
The business has continued to develop its core products and
the Directors are pleased to report that development
progress to date has been in line with or ahead of targets.
A more detailed appraisal of business developments is given
in the Chairman’s Statement, Chief Executive’s Review and
Financial Review on pages 6 to 11 and future developments
as set out in the highlights on page 1 and in the Chief
Executive’s Review.
Risk review 
The Directors have monitored the progress of the overall
Group strategy and a more detailed appraisal of its three key
operating subsidiaries Energetix Genlec Limited Energetix
(Pnu) Power Limited and VPhase plc. 
A review of the Key Performance Indicators (KPIs) is
contained in the Chairman’s Statement, the Chief Executive’s
Review and the Financial Review on pages 6 to 11. The
Directors believe that, given the Group’s current early stage
of development, the relevant KPIs are: creation of shareholder
value, progress towards income, research and development
costs, administrative expenses, capital expenditure and cash
management.
The key business risks affecting the Group are set out below:
Value creation
The Group’s success will depend on its ability to develop a
portfolio of products and services which address identified
market needs, establish appropriate assembly and supply chain
capabilities and capture value from business opportunities.
The Group’s business model involves focusing development
on identified market needs and seeking revenue generation
from project sales, product sales and licensing and the building
of a supply chain around multiple suppliers. These activities
are all undertaken within appropriate commercial
arrangements.
Once a subsidiary business is established around a particular
product or service the Group will keep under review the
optimum strategy for creating value which may involve
continuing to operate the subsidiary or other strategies,
including but not limited to, demerging the subsidiary, floating
the subsidiary independently or trade sale of the business.
Attraction and retention of key employees
The Group depends on its Directors and other key
employees and whilst it has entered into contractual
arrangements with these individuals with the aim of securing
the services of each of them, retention of these services
cannot be guaranteed.
The Group has attempted to reduce this risk by offering
competitive remuneration packages including the opportunity
to participate in a share option scheme and investment in
training, development and succession planning.
Intellectual property
A significant part of the Group’s future depends on its
intellectual property for future development and growth. If
intellectual property is inadequately protected, the Group’s
future success could become adversely affected.
The Group continues to invest in the protection and
expansion of its intellectual property portfolio. In addition, the
Group has established internal procedures and controls to
capture new intellectual property, to prevent unauthorised
disclosure to third parties and protect the Group’s rights when
dealing with supply chain partners.
Market Acceptance
The Group’s technologies are incorporated into the products
or processes of third parties. There can be no assurance that
such products or processes will achieve commercial success or
be an attractive alternative to conventional products or
processes. If a mass market for any product or process fails to
develop or develops more slowly than anticipated, the Group
may fail to achieve profitability in respect of the technology
associated with such product or process.
The Group’s strategy of producing products from existing
components enabling lower costs for early products plus seeking
specific channel partnerships which cover defined market
applications and geographical focus is designed to facilitate adoption
of the products and to drive mass market uptake. 
Research & development 
The business undertakes a significant amount of research and
development to address opportunities in the alternative
energy market. In 2007, the Group incurred research and
development costs of £1,118,000 (2006: £591,000), of which
£1,020,000 (2006: £565,000) has been capitalised in
accordance with IAS 38 “Intangible Assets”. Energetix Group plc 15
Stock code: EGX
The fair value charge recognised in the Group Income
Statement in respect of share options granted to Directors
was £19,950 (2006: £43,890).
The middle market price of ordinary shares on 
31 December 2007 was 105.0 pence. The high and low
market prices during the year were 147.5 pence and 41.5
pence respectively.
Employees
Throughout the year, Directors of the Group provide relevant
information to employees and engage in consultation with
them to ensure that their views are considered. 
Applications for employment by disabled persons are given
full and fair consideration for all vacancies in accordance with
their particular aptitudes and abilities. In the event of
employees becoming disabled every effort is given to retrain
them in order that their employment with the Group may
continue.
It is the policy of the Group that training, career development
and promotion opportunities should be available to all
employees.
Financial risk management objectives and
policies
Other than the proceeds from the issue of shares, the Group
uses various financial instruments that include loans, cash and
various items, such as trade receivables and trade payables
arising directly from its operations. The main purpose of these
financial instruments is to finance the Group’s operations.
The existence of these financial instruments exposes the
Group to a number of financial risks, which are described in
more detail below. 
The main risks arising from the Group’s financial instruments
are credit risk and liquidity risk. The Directors review and
agree policies for managing risk and these risk management
policies have remained unchanged from previous years. 
Directors’ interests in ordinary shares
The Directors who held office in the year and their beneficial interests in ordinary shares of the Company are shown below.
Each Director served throughout the period unless otherwise indicated:
Shares held as at Shares held as at
31 December 31 December
2007 2006
A J Aubrey (Non-Executive Chairman) 1,074,486 1,074,486
A C Hutchings (Chief Executive Officer) 11,267,965 11,267,965
R H Smith (Chief Financial Officer) 1,740,377 1,740,377
A C Elsborg (Non-Executive Director) 1,162,884 1,162,884
Dr H J Cialone (Non-Executive Director) (Appointed 14 March 2008) — —
B M Gray (Non-Executive Director) (Resigned 14 March 2008) — —
A J Aubrey is also a Director and Shareholder in Axiomlab Group plc which holds 7,400,069 shares in the Company (as at 
31 December 2007).
Prior to A J Aubrey’s appointment as Non-Executive Chairman he fulfilled the role of nominee Director on behalf of Axiomlab
Group plc and resigned this position on 5 May 2006.
Directors’ options
The Directors who have held office during the year have the following interests in options over the shares of the Company
under the Group’s unapproved share option scheme.
At 1 Granted At 31 Exercise Earliest
Date of January during December price exercise Expiry
grant 2007 the year 2007 (p) date date
B M Gray 15.08.06 337,500 — 337,500 40 15.08.06 14.08.16 Group financial statements 2007 16 Energetix Group plc
Group Directors’ Report continued
for the year ended 31 December 2007
Corporate Governance Statement
The Directors are committed to maintaining high standards
of Corporate Governance. This statement sets out how the
Board has applied the principles of good corporate
governance in its management of the business in the period
ended 31 December 2007 relevant to the Group’s size and
complexity.
Board of Directors
During the period under review the Board comprised two
Executive and three Non-Executive Directors. Biographies of
the Directors are provided on page 12 and set out the broad
range of commercial, technical and financial expertise
possessed by Board members. The combination of skills and
talents ensures that strategic focus and sound commercial
stewardship is available to the Group. The Non-Executive
Directors are highly experienced, exercise independent
judgements on issues arising and are able to challenge
constructively the decisions of the Executive Directors.
The roles of Chairman and Chief Executive are separate,
ensuring an appropriate division of responsibilities at the head
of the Group.
All Directors are subject to election by shareholders and re-
election thereafter is by rotation at intervals of not more than
three years.
All Directors are offered an opportunity to request
information and training relevant to their legal and other duties
as a Director. They are also given written rules and guidelines
setting out their responsibilities within an AIM listed company.
All Directors are able to take independent legal and
professional advice, if required, at the expense of the
Company. Directors have access at all times to the services of
the Company Secretary who is responsible to the Board for
ensuring that all agreed policies and procedures are followed
and all relevant rules and guidelines are complied with. 
Meetings of the Board
The Board, which meets regularly, at least ten 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 flow
forecasts, major items of capital expenditure and any other
significant strategic actions all require Board approval. 
Board meetings are subject to a formal agenda and receive
reports on the performance of each of the Group’s
businesses. Monthly management accounts, that compare
actual results with budget, are subject to detailed review.
Other strategic and commercial issues are considered as
required. Board decisions are communicated on a timely basis
to management to ensure that operational implementation
occurs without delay. 
Audit Committee
The members of the Audit Committee as at 
31 December 2007 are A C Elsborg (Chairman), A J Aubrey
and B M Gray. As noted in the Chairman’s statement B M
Gray resigned and was replaced by Dr H J Cialone on 
14 March 2008. 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 Company’s auditors 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 the 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 auditors and the
level of their remuneration;
•
considering reports from the auditors 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 accounts; and
•
ensuring compliance with the relevant requirements of the
AIM Rules for Companies. 
Remuneration Committee
The members of the Remuneration Committee as at 
31 December 2007 are A C Elsborg (Chairman), A J Aubrey
and B M Gray. As noted in the Chairman’s statement B M
Gray resigned and was replaced by Dr H J Cialone on 
14 March 2008. The Committee meets at least once a year
and at such other times as its Chairman shall require and its
terms of reference and areas of delegated responsibility are:
•
determining the terms and conditions of service of all
Directors including their remuneration and the granting of
share options;
•
seeking professional advice, as required, in order to ensure
that the Group’s remuneration arrangements are both
competitive and appropriate to its scale and complexity
by reference to other similar businesses; and
•
ensuring that the Group complies with the relevant
requirements of the AIM Rules for Companies.
Members of the Committee are not involved in any decisions
in meetings at which their own remuneration is discussed. Energetix Group plc 17
Stock code: EGX
Communication with Shareholders
The Board is committed to constructive dialogue with its
shareholders. The Company uses the AGM as an opportunity
to communicate with its shareholders. The AGM will be held
at 10.00 am on 21 May 2008 at the Company’s registered
offices, Steam Packet House, 76 Cross Street, Manchester, 
M2 4JU.
The Group’s website (www.energetixgroup.com) is the
primary source of information on the Group. This includes an
overview of the activities of the Group, information on the
Group’s subsidiaries and details of all recent Group
announcements. 
Internal Control
The Board has overall responsibility for ensuring that the
Group maintains a system of internal control to provide them
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 practically 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 have an internal audit function and this
is kept under review as the Group progresses from the
technology development phase to the commercial supply
phase.
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
•
regular liaison with the Group’s auditors and other
professionals as required.
Statement of Directors’ responsibilities
The Directors are responsible for preparing the Annual
Report and the financial statements in accordance with
applicable law and regulations.
Company law requires the Directors to prepare financial
statements for each financial year which give a true and fair
view of the state of affairs of the parent company and of the
Group as at the end if the financial year and of the profit or
loss of the Group for the financial year. Under that law the
Directors are required to prepare the Group financial
statements in accordance with International Financial
Reporting Standards as adopted by the European Union
(IFRS). 
The Directors have elected to prepare the parent Company
financial statements in accordance with United Kingdom
Generally Accepted Accounting Practice (UK GAAP). In
preparing these financial statements, the Directors are
required to:
•
select suitable accounting policies and then apply them
consistently;
•
make judgements and estimates that are reasonable and
prudent;
•
for the Group and Parent Company financial statements,
state whether applicable IFRSs have been followed, subject
to any material departures disclosed and explained in the
financial statements;
•
for the Parent Company financial statements, state
whether applicable UK Accounting Standards have been
followed, subject to any material departures disclosed and
explained in the financial statements; and
•
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 proper accounting
records that disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure
that the financial statements comply with the Companies Act
1985. They are also responsible for safeguarding the assets of
the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
In so far as the Directors are aware:
•
there is no relevant audit information of which the
Company’s auditors are unaware; and
•
the Directors have taken all steps that they ought to have
taken to make themselves aware of any relevant audit
information and to establish that the auditors are aware
of that information.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information included on
the Company’s website. 
Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
Auditors
A resolution to reappoint Grant Thornton UK LLP as auditor
for the ensuing year will be proposed at the Annual General
Meeting in accordance with section 385 of the Companies
Act 1985.
On behalf of the Board
Adrian Hutchings
Chief Executive Officer
8 April 2008 Group financial statements 2007 18 Energetix Group plc
Report of the Independent Auditors to the 
Members of Energetix Group plc
We have audited the Group and parent financial statements
(the “financial statements”) of Energetix Group plc for the
year ended 31 December 2007 which comprise the Group
Income Statement, the Group Statement of Changes in Equity,
the Group Balance Sheet, the Group Cash Flow Statement,
Notes to the Group financial statements, the Company
Balance Sheet and notes to the Company Balance Sheet.
These financial statements have been prepared under the
accounting policies set out therein. 
This report is made solely to the Company’s members, as a
body, in accordance with Section 235 of the Companies Act
1985. Our audit work has been undertaken so that we might
state to the Company’s members those matters we are
required to state to them in an auditors’ report and for no
other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
Company and the Company’s members, as a body, for our
audit work, for this report, or for the opinions we have
formed. 
Respective responsibilities of Directors and
Auditors
The Directors’ responsibilities for preparing the Annual Report
and the Group financial statements in accordance with United
Kingdom law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union and for preparing
the parent company financial statements in accordance with
United Kingdom law and Accounting Standards (United
Kingdom Generally Accepted Accounting Practice) are set out
in the statement of Directors’ Responsibilities.
Our responsibility is to audit the financial statements in
accordance with relevant legal and regulatory requirements
and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial
statements give a true and fair view and whether the financial
statements have been properly prepared in accordance with
the Companies Act 1985. We also report to you whether in
our opinion the information given in the Group Directors’
Report is consistent with the financial statements. The
information given in the Group Directors’ Report includes that
specific information presented in the Highlights, Chairman’s
Statement, Chief Executive’s Review and Financial Review that
is cross referred from the Business Review section of the
Group Directors’ Report.
In addition we report to you if, in our opinion, the Company
has not kept proper accounting records, if we have not
received all the information and explanations we require for
our audit, or if information specified by law regarding
Directors’ Remuneration and other transactions is not
disclosed.
We read other information contained in the Annual Report
and consider whether it is consistent with the audited financial
statements. The other information comprises only the
Highlights, Chairman’s Statement, Chief Executive’s Review,
Financial Review, Group Directors’ Report, and the Board of
Directors and Senior Management. We consider the
implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the
financial statements. Our responsibilities do not extend to any
other information.
Basis of audit opinion
We conducted our audit in accordance with International
Standards on Auditing (UK and Ireland) issued by the Auditing
Practices Board. An audit includes examination, on a test basis,
of evidence relevant to the amounts and disclosures in the
financial statements. It also includes an assessment of the
significant estimates and judgements made by the Directors in
the preparation of the financial statements, and of whether
the accounting policies are appropriate to the Group’s and
Company’s circumstances, consistently applied and adequately
disclosed.
We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary
in order to provide us with sufficient evidence to give
reasonable assurance that the financial statements are free
from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated
the overall adequacy of the presentation of information in the
financial statements.
Opinion
In our opinion:
•
the Group financial statements give a true and fair view, in
accordance with IFRSs as adopted by the European Union,
of the state of the Group’s affairs as at 
31 December 2007 and of its loss for the year then ended;
•
the Group financial statements have been properly
prepared in accordance with the Companies Act 1985;
•
the parent company financial statements give a true and
fair view, in accordance with United Kingdom Generally
Accepted Accounting Practice, of the state of the parent
company’s affairs as at 31 December 2007;
•
the parent company financial statements have been
properly prepared in accordance with the Companies Act
1985; and
•
the information given in the Group Directors’ Report is
consistent with the financial statements.
Grant Thornton UK LLP
Registered Auditors
Chartered Accountants
Manchester
8 April 2008 Energetix Group plc 19
Stock code: EGX
Group Income Statement
for the year ended 31 December 2007
Year ended 31 December
2007 2006
Note £’000 £’000
Revenue 3 55 67
Cost of sales (24) (46)
Gross profit 31 21
Administrative expenses 4 (3,045) (1,220)
Operating loss (3,014) (1,199)
Finance income 5 488 68
Other gains 6 685 110
Loss before income tax 4 (1,841) (1,021)
Income tax expense 10 (6) —
Loss for the year (1,847) (1,021)
Attributable to:
Equity holders of the Company (1,842) (1,021)
Minority interest 25 (5) —
(1,847) (1,021)
Loss per share attributable to the equity holders of the Company during the year:
Total and continuing:
— Basic and diluted 12 (3.74)p (2.86)p
All revenue and costs originate from continuing activities.
The notes on pages 23 to 39 are an integral part of these Group financial statements. Group financial statements 2007 20  Energetix Group plc
Group Statement of Changes in Equity
for the year ended 31 December 2007
Attributable to equity holders of the Company
Total
Reverse share-
Share Share RetainedacquisitionWarrant Other holders’ Minority Total
capital premium earnings reserve reserve reserves equity interest equity
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
As previously reported in Energetix (Europe) Limited
as at 1 January 2006 — 179 2,708 —— — 2,887 (26) 2,861
Total recognised loss for the year —— (1,021) —— — (1,021) — (1,021)
Share based payments —— — — — 44 44 — 44
Provision against minority interest —— — — — —— 26 26
Shares issued:
Shares issued by legal subsidiary before reverse acquisition
— 8 August 2006 loan note conversion — 500 —— — — 500 — 500
Reallocation of reserves on reverse acquisition 1,500 (679) — (821) —— ———
Shares issued by legal parent after reverse acquisition
— Proceeds from EIS Placing — 15 August 2006 125 875 —— — — 1,000 — 1,000
— Proceeds from General Placing — 16 August 2006 625 4,375 —— — — 5,000 — 5,000
Share issue expenses — (403) —— — — (403) — (403)
Warrants issued — (256) —— 256 —— ——
Balance at 31 December 2006 2,250 4,591 1,687 (821) 256 44 8,007 — 8,007
Total recognised loss for the year —— (1,842) —— — (1,842) (5) (1,847)
Partial disposal of Energetix Voltage Control 
Limited (Note 23) —— — — — —— 256 256
Share based payments —— — — — 68 68 — 68 
Other share based payments —— — — — 32 32 — 32
Proceeds from placing — 1 August 2007 500 11,500 —— — — 12,000 — 12,000
Share issued
— 21 August 2007 1 11 —— — — 12 — 12
— 8 October 2007 1 11 —— — — 12 — 12
Share issue expenses — (737) —— — — (737) — (737)
Balance at 31 December 2007 2,752 15,376 (155) (821) 256 144 17,552 251 17,803
Total recognised income and expense recognised directly to equity amounts to £nil (2006: £nil).
Reverse acquisition reserve
As disclosed in note 2.4, the reverse acquisition reserve relates to the reverse acquisition between Energetix (Europe) Limited and Energetix Group plc on 
8 August 2006.
Warrant reserve
As disclosed in note 24.2. on 15 August 2006 the Company granted 1,350,000 warrants to its Broker and Nominated Adviser in relation to the prior year flotation.
The fair value of warrants is calculated using the Black–Scholes model at the time of grant and is charged to the share premium account.
Other reserves
Other reserves comprise share-based payments for the cost of options granted £112,000 (2006: £44,000). In addition, it includes £32,000 (2006: £nil) for other share
based payments issued to the joint brokers, as disclosed in note 28.
Minority interest
As at 31 December 2006, Energetix Laser Technologies Limited, a non-trading 60% owned subsidiary of Energetix (Europe) Limited, had net liabilities at 
31 December 2006 resulting in a debit minority interest. However, the Directors have made a provision against this balance on the basis that it is potentially irrecoverable
and hence there is no balance attributable to minority interests in the Group Balance Sheet.
In addition, a minority interest arose from the partial disposal of Energetix Voltage Control Limited to VPhase plc, as disclosed in note 23.
The notes on pages 23 to 39 are an integral part of these Group financial statements. Energetix Group plc 21
Stock code: EGX
Group Balance Sheet
as at 31 December 2007
As at 31 December
2007 2006
Note £’000 £’000
ASSETS
Non-current assets
Goodwill 13 311 —
Other intangible assets 14 7,144 6,457
Property, plant and equipment 15 205 77
7,660 6,534
Current assets
Inventories 16 58 —
Trade and other receivables 17 360 128
Corporation tax receivable — 6
Cash and cash equivalents 18 12,778 4,445
13,196 4,579
Total assets 20,856 11,113
LIABILITIES
Non-current liabilities
Financial liability — borrowings 19 2,245 2,559
2,245 2,559
Current liabilities
Financial liability — borrowings 19 89 200
Trade and other payables 20 719 347
808 547
Total liabilities 3,053 3,106
EQUITY
Capital and reserves attributable to equity holders of the Company
Share capital 24 2,752 2,250
Share premium 15,376 4,591
Retained earnings (155) 1,687
Reverse acquisition reserve (821) (821)
Warrant reserve 24 256 256
Other reserves 144 44
Total Shareholders’ equity 17,552 8,007
Minority interest 25 251 —
Total equity 17,803 8,007
Total equity and liabilities 20,856 11,113
The notes on pages 23 to 39 are an integral part of these Group financial statements.
These financial statements were approved by the Board of Directors on 8 April 2008 and were signed on its behalf by:
A C Hutchings R H Smith
Chief Executive Officer Chief Financial Officer Group financial statements 2007 22 Energetix Group plc
Group Cash Flow Statement
for the year ended 31 December 2007
Year ended 31 December
2007 2006
Note £’000 £’000
Cash flows from operating activities
Cash consumed by operations 26 (2,437) (797)
Cash flows from investing activities
Expenditure on intangible fixed assets 14 (1,020) (565)
Purchases of property, plant and equipment 15 (190) (78)
Proceeds from part disposal of business 23 600 —
Net cash acquired with subsidiaries 23 30 —
Interest received 5 413 68
(167) (575)
Cash flows from financing activities
Net proceeds from the issue of ordinary shares 11,287 5,598
Repayment of financial liabilities 19 (350) —
10,937 5,598
Net increase in cash and cash equivalents 8,333 4,226
Cash and cash equivalents at the beginning of the year 4,445 219
Cash and cash equivalents at the end of the year 18 12,778 4,445
The notes on pages 23 to 39 are an integral part of these Group financial statements. Energetix Group plc 23
Stock code: EGX
Notes to the Group financial statements
for the year ended 31 December 2007
1. General information
Energetix Group plc (“the Company”) and its subsidiaries (together “the Group”) develop products that provide solutions to certain identified problems in the
alternative energy market. The addresses of its registered office and principal place of business are disclosed on page 53 of the annual report.
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of these Group Financial Statements are set out below. 
2.1 Standards and Interpretations effective in the current period
Adoption of new accounting standards
In the current year, the Group has adopted IFRS 7 Financial Instruments: Disclosures which is effective for annual reporting periods beginning on or after 
1 January 2007.
The impact of the adoption of IFRS 7 has been to expand the disclosures provided in these financial statements regarding the Group’s financial instruments and
management of capital (see note 22).
Four interpretations issued by the International Financial Reporting Interpretations Committee are effective for the current period. These are IFRIC 7 Applying
the Restatement Approach under IAS 29, Financial Reporting in Hyperinflationary Economies; IFRIC 8 Scope of IFRS 2; IFRIC 9 Reassessment of Embedded
Derivatives; and IFRIC 10 Interim Financial Reporting and Impairment. The adoption of these interpretations has not led to any changes in the Group’s accounting
policies.
Early adoption of new accounting standards
The Group has adopted IFRIC 11 IFRS 2 Group and treasury share transactions. The adoption of this interpretation has resulted in the fair value charge for options
given to subsidiary employees being added to the Company’s investment in those subsidiaries and the resulting cost charged to the subsidiaries’ Income Statement.
2.2 Basis of preparation
The Group financial statements of Energetix Group plc have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by
the European Union. The Group financial statements have been prepared under the historical cost convention, except that they have been modified to include
the revaluation of certain non-current liabilities (see note 19).
2.3 Critical accounting estimates and judgements
The preparation of financial statements in conformity with IFRS as adopted by the European Union 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 judgement or
complexity, or areas where assumptions and estimates are significant to the Group financial statements are disclosed below.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the present circumstances. 
Research and development activities
Management have reviewed the Group’s research and development activities and have made estimates and judgements on the amount of development
expenditure it is appropriate to capitalise. The criteria which management have to make judgements about are set out in note 2.15.
Discount rate on future defined receivables and liabilities
Management have exercised judgement in selecting the appropriate discount rate for application against future deferred receivables and liabilities and have
selected 7.50% (2006: 6.75%) to represent the best estimate of the current cost of debt to the Group.
Admission and placing costs
Management have reviewed the expenditure related to the admission of Energetix Group plc and VPhase plc’s re-admission and Energetix Group plc’s placing
on AIM and, where appropriate, made judgements as to how much of the expenditure related to the placing of existing shares, and should therefore be charged
to the Group Income Statement, and how much related to the placing of new shares, and should therefore be charged against share premium.
Impairment of intangible assets
Management have conducted an impairment review of intangible assets and have to make judgements as to the likelihood of them generating future cash flow,
over what period those cash flows will be received and what costs are attributable against them. The recoverable amount is determined using the value in use
calculation. The use of this method requires the estimation of future cash flows and the selection of a suitable discount rate in order to calculate the present value
of these cash flows. In support of the assumptions used management uses a variety of sources including third party published reports and knowledge from
discussions with partners and potential partners in the both the supply and distribution channels.
Share based incentive arrangements
Share based incentive arrangements are provided to management and certain employees. These are valued at the date of grant using the Black–Scholes option
pricing model and management have to exercise judgement over the likely exercise period, interest rate and share price volatility. Management uses various sources
of information including its own share price performance, or where there is insufficient history the performance of comparable listed entities, experience from
the historical exercise of options and published data on bank base rates.
In addition, during the year the Group has issued shares to its joint broker for annual services rendered up to March 2008 and has entered into a commitment
to pay fees to its joint broker for services provided to VPhase plc, a subsidiary undertaking, up to September 2008. These services have been valued at their fair
value as they are received and are charged to the Group Income Statement with a corresponding credit to equity.
Part Disposal of Energetix Voltage Control Limited
Management consider the “parent company concept” to be the most appropriate basis of consolidation, as set out in note 2.4. Under this method where a disposal
of a subsidiary occurs and the relevant entity remains a subsidiary, the minority interest will increase by the carrying amount of the net identifiable assets that are
now attributable to the minority interest due to the decrease in the Group’s interest. Accordingly, any gain or loss is recognised as the difference between the
proceeds of the disposal and the portion of the carrying amount of the net assets that have been disposed of, including goodwill, see note 23. This accounting
policy differs from the “entity concept”, whereby any gain or loss recognised on the sale of the subsidiary would be reported within equity. In addition, minority
interest would not be deducted in arriving at the profit or loss for the financial year and would be shown as equity in accordance with IAS 1. Group financial statements 2007 24 Energetix Group plc
Notes to the Group financial statements continued
2. Summary of significant accounting policies continued
Taxation
Management have not provided for deferred tax in relation to unrelieved tax losses as the recoverability is currently uncertain.
2.4 Basis of consolidation
Reverse acquisition
The Company was incorporated on 17 May 2006 as Futurebay Limited. On 8 August 2006, the Company changed its name to Energetix Group plc and 
re-registered as a public limited company. On 8 August 2006, the Company became the legal holding company of Energetix (Europe) Limited via a share for share
exchange, see note 13.
The share for share exchange has been accounted for as a reverse acquisition. Although these Group financial statements have been issued in the name of the
legal parent, the Company it represents in substance is a continuation of the financial information of the legal subsidiary Energetix (Europe) Limited because after
the transaction former Energetix (Europe) Limited shareholders held 100% of the share capital of the legal parent. The following accounting treatment has been
applied in respect of the reverse acquisition:
a) the assets and liabilities of the legal subsidiary Energetix (Europe) Limited are recognised and measured in the Group financial statements at the pre-
combination carrying amounts, without reinstatement to fair value;
b) the retained (loss)/earnings and other equity balances recognised in the Group financial statements reflect the retained (loss)/earnings and other equity
balances of Energetix (Europe) Limited immediately before the business combination, and the results of the period from 1 January 2006 to the date of the
business combination are those of Energetix (Europe) Limited as the Company did not trade prior to the transaction. However, the equity structure
appearing in the Group financial statements reflects the equity structure of the legal parent, including the equity instruments issued under the share for share
exchange to effect the business combination; 
c) comparative numbers presented in the Group financial statements are those reported in the Group financial statements of the legal subsidiary Energetix
(Europe) Limited for the year ended 31 December 2006.
The Company had no significant assets, liabilities or contingent liabilities of its own at the time that the share for share exchange took effect and no cash
consideration was paid in respect of the business combination. Transaction costs of equity transactions relating to the issue and listing of the Company’s shares
are accounted for as a deduction from equity where it relates to the issue of new shares and listing costs are charged to the profit and loss account as an
administrative expense.
Consolidation model
The Group financial statements also incorporate the financial statement of the Company and entities controlled by the Company (its subsidiaries). Control is
achieved where the Company has power to govern the financial and operating policies of an entity so as to obtain benefits from its activities (“Parent Company
Concept”).
Subsidiaries
The results of subsidiaries acquired or disposed of during the year are included in the Group Income Statement from the effective date of acquisition or up to
the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members
of the Group.
Inter-company
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated on
consolidation but are also used as an indicator of any impairment to the related asset. Any permanent impairment in value of an asset is charged to the Income
Statement. Accounting policies of the subsidiaries have been established to ensure consistency with the policies adopted by the Group.
Transactions with minority interests
The Group applies a policy of treating transactions with minority interests as transactions with parties external to the Group. In accordance with IAS 27 losses
applicable to minority interests, whereby the minority does not have a binding obligation to cover the losses, have been included in the Group income statment.
Minority interests in the net assets (excluding goodwill) of consolidated subsidiaries are identified separately from the Group’s equity therein. Minority interests
consist of the amount of those interests at the date of the original business combination and the minority’s share of changes in equity since the date of the
combination.
2.5 Inventories
Inventories are stated at the lower of cost and net realisable value. Costs include an appropriate portion of fixed and variable overhead expenses, are assigned
to inventories by the method most appropriate to the particular class of inventory, with the majority being valued on a first-in-first-out basis. Net realisable value
represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.
2.6 Government grants
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants
will be received.
Government grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets are recognised as deferred
income in the Balance Sheet and transferred to profit or loss on a systematic and rational basis over the useful life of the related assets.
Other government grants are recognised as income over the periods necessary to match them with the costs for which they are intended to compensate, on a
systematic basis. Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial
support to the Group with no future related costs are recognised in profit or loss in the period for which they become receivable. 
2.7 Goodwill
Goodwill represents the difference between the cost of the business combination and the net fair value of identifiable assets and liabilities. Energetix Group plc 25
Stock code: EGX
2. Summary of significant accounting policies continued
2.8 Intangible assets
The carrying values of intangible assets are tested for impairment at least annually or when events or changes in circumstances indicate that the carrying amount
may not be recoverable.
Intellectual property costs are included at cost and amortised on a straight line basis over their useful economic lives from the date of acquisition over a period
not exceeding 20 years or the remaining life of the patent if shorter.
Development costs capitalised (see 2.15), which form part of the Group’s intangible assets, are amortised on a straight line basis over a period not exceeding 15
years starting from the point that those products resulting from the development activity commence mainstream sales. Sales of prototype product are deemed
to still be in the development phase.
An impairment loss is recognised in the Group Income Statement within administrative expenses for the amount by which the asset’s carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of fair value, reflecting market conditions less costs to sell, and value in use based on an internal
discounted cash flow evaluation. Intangible assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist.
2.9 Property, plant and equipment
Leasehold improvements are stated at historical cost less depreciation. Depreciation is calculated using the straight-line method and is charged over the remaining
period of the lease. 
— Leasehold improvements 4 years
Plant and equipment is stated at historical cost less depreciation. Depreciation of assets is calculated using the straight-line method to allocate their cost over their
estimated useful lives as follows:
— Plant and equipment 3 years
Material residual value estimates are updated as required, but at least annually, whether or not the asset is revalued. Gains and losses on disposal are determined
by comparing net proceeds with carrying amount. These are included in the Group Income Statement.
2.10 Financial assets
Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’ (FVTPL), ‘held to maturity’ investments,
‘available for sale’ (AFS) financial assets and ‘loans and receivables’. The classification depends on the nature and purpose of the financial assets and is determined
at the time of initial recognition. The Group currently has only loans and receivables recognised in these financial statements.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial asset/liability and of allocating interest income/expense over the relevant
period. The effective interest rate is the rate that exactly discounts estimated future cash receipts/payments though the expected life of the financial asset/liability,
or, where appropriate, a shorter period.
Income is recognised on an effective interest basis for debt instruments.
Loans and receivables
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and
receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest income is applied by applying
the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each Balance Sheet date. Financial assets are impaired where there is objective evidence that as a
result of one or more events that occurred after initial recognition of the financial asset, the estimated cash flows of the investment have been impacted.
For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are subsequently assessed for impairment
on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the Group’s past experience of collecting payments, an increase
in the number of delayed payments in the portfolio past the average credit period of 45 days, as well as observable changes in national or local economic
conditions that correlate with default on receivables.
For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of
estimated future cash flows, discounted at the financial asset’s original effective interest rate.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the
carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance
account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance
account are recognised in the profit and loss.
2.11 Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and demand deposits together with other short term highly liquid investments that are readily convertible into
known amounts of cash and which are subject to an insignificant risk of changes in value.
2.12 Trade Payables
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. 
2.13 Financial liabilities
Financial liabilities are obligations to pay cash or other financial assets and are recognised when the Group becomes a party to the contractual provisions of the
instrument. Financial liabilities categorised as at fair value through profit or loss are recorded initially at fair value, all transaction costs are recognised immediately
in the Group Income Statement.
Financial liabilities categorised as at fair value through profit or loss are remeasured at each reporting date at fair value, with changes in fair value being recognised
in the Group Income Statement.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the
Balance Sheet date.
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or they expire. Group financial statements 2007 26 Energetix Group plc
Notes to the Group financial statements continued
2. Summary of significant accounting policies continued
2.14 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Group’s activities
excluding VAT and trade discounts. Revenue is recognised as follows:
Sales of goods
Revenue from the sales of goods will be recognised when all the following conditions have been satisfied:
 the Group has transferred to the buyer the significant risks and rewards of ownership of the goods which is when the goods have been delivered to, or
collected by the buyer;
 the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold
which is when the goods have been delivered to, or collected by the buyer;
 the amount of revenue can be measured reliably;
 it is probable that the economic benefits associated with the transaction will flow to the Group; and
 the costs incurred or to be incurred in respect of the transaction can be measured reliably. 
Sales of services
The Group has historically provided services through the provision of consultancy to selected partners. When the outcome of a transaction involving the rendering
of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the Balance
Sheet date. The outcome of the transaction is deemed to be able to be estimated reliably when all the following conditions are satisfied:
 the amount of revenue can be measured reliably;
 it is probable that the economic benefits associated with the transaction will flow to the Group;
 the stage of completion of the transaction at the Balance Sheet date can be measured reliably and is estimated by reference to timesheets; and
 the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
Interest income
Interest is recognised using the effective interest method which calculates the amortised cost of a financial asset and allocates the interest income over the
relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the asset to the net
carrying amount of the financial asset.
Contingent income
Contingent income is only recognised when the contingent sale crystallises. Crystallisation will vary dependent on the specific terms of the sale to which it refers. 
2.15 Research and development
Research costs are charged against income as incurred. Certain development costs are capitalised as intangible assets, when it is probable that future economic
benefits will flow to the Group. Such intangible assets are amortised on a straight-line basis from the point at which the asset is ready for use over the period of
the expected benefit, and are reviewed for impairment at each Balance Sheet date. Other development costs are charged against income as incurred since the
criteria for their recognition as an asset are not met.
The criteria for recognising expenditure as an asset are:
 completion of the intangible asset is technically feasible so that it will be available for use or sale;
 the Group intends to complete the intangible asset and use or sell it;
 the Group has the ability to use or sell the intangible asset;
 the intangible asset will generate probable future economic benefits. Among other things, this requires that there is a market for the output from the
intangible asset or for the intangible asset itself, or, if it is to be used internally, the asset will be used in generating such benefits;
 that the Group has available to it adequate technical, financial and other resources to complete the development and to use or sell the intangible asset;
and
 that the Group can reliably measure the expenditure attributable to the intangible asset during its development.
The costs of an internally generated intangible asset comprise all directly attributable costs necessary to create, produce, and prepare the asset to be capable of
operating in the manner intended by management. Directly attributable costs include employee (other than Directors) costs incurred on technical development,
testing and certification, materials consumed and any relevant third party costs. The costs of internally generated developments are recognised as intangible assets
and are subsequently measured in the same way as externally acquired intangible assets. However, until completion of the development project, the assets are
subject to impairment testing only.
Careful judgement by the Directors is applied when deciding whether the recognition requirements for development costs have been met. This is necessary as
the economic success of any product development is uncertain and may be subject to future technical problems at the time of recognition. Judgements are based
on the information available at each Balance Sheet date which includes progress with field trials, testing and certification and progress on, for example, establishment
of commercial arrangements with third parties. In addition, all internal activities related to research and development of new products are continuously monitored
by the Directors.
2.16 Operating leases
The Group's building and fixtures and fittings leases are regarded as operating leases and the payments made under them are charged to the Income Statement
on a straight-line basis over the lease term. Lease incentives are spread over the term of the lease.
2.17 Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the Group Income Statement because it excludes
items of income and expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability
for current tax is calculated using tax rates that have been enacted or substantively enacted by the Balance Sheet date.
2.18 Deferred tax
Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference between the carrying
amounts of assets and liabilities and their tax bases. Deferred tax is not provided on the initial recognition of goodwill, or on the initial recognition of an asset or
liability unless the related transaction is a business combination or affects tax or accounting profit. Tax losses available to be carried forward as well as other income
tax credits to the Group are assessed for recognition as deferred tax assets.
Deferred tax liabilities that are recognised are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the
underlying deductible temporary differences will be able to be offset against future taxable income. Current and deferred tax assets and liabilities are calculated at
tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the Balance Sheet date. Energetix Group plc 27
Stock code: EGX
2. Summary of significant accounting policies continued
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the Income Statement, except where they relate to items that are
charged or credited directly to equity (such as the revaluation of land) in which case the related deferred tax is also charged or credited directly to equity.
2.19 Employee benefits
Pension costs and other post-retirement benefits
The Group operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the Group. The annual
contributions payable are charged to the Group Income Statement.
Share based payments
All share-based payment arrangements granted after 7 November 2002 that had not vested prior to 1 January 2005 are recognised in the Group financial statements.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values. Where employees are rewarded using share-
based payments, the fair values of employees’ services are determined indirectly by reference to the fair value of the instrument granted to the employee. This fair
valye is appraised at the grant date and excludes the impact of non-market vesting conditions (for example, profitability and sales growth targets).
Share options are valued at the date of grant using the Black–Scholes option pricing model and are charged to operating profit over the vesting period of the award
with a corresponding credit to “other reserves”.
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number
of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous
estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense recognised in prior periods if
share options ultimately exercised are different to that estimated on vesting.
Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital, and where appropriate share premium
account.
Bonus plans
The Group operates discretionary staff bonus schemes for its employees and Directors. The maximum annual bonus payable under the scheme is 100% of the
relevant employee’s basic annual salary (plus social security costs). Payments in excess of 10% of an employee’s annual basic salary can be settled by the allocation
of equity at the Company’s discretion.
2.20 Other share based payments
Warrants relating to the Company’s placing and admission to AIM have been provided to certain third parties. Warrants are valued at the date of grant using the
Black–Scholes option pricing model and are charged to share premium account with a corresponding credit to “warrant reserve”.
In addition, during the year the Group has issued shares to its joint broker for annual services rendered up to March 2008 and has entered into a commitment to
pay fees to its joint broker for services provided to VPhase plc, a subsidiary undertaking, up to September 2008. These services have been valued at their fair value
as they are received and are charged to the Group Income Statement with a corresponding credit to equity.
2.11 Adopted IFRSs not yet applied
The following IFRSs have been issued but have not yet been adopted by the Group in these financial statements as they are not yet effective:
 IFRS8 ‘Operating segments’ was issued in November 2006 and is effective for periods beginning on or after 1 January 2009. As the changes are presentational
only, the adoption will have no impact upon the results or net assets of the Group.
 IFRIC 12 ‘Service concession arrangements’ gives guidance on the accounting treatment relating to service arrangements over public infrastructure and is
effective for periods beginning on or after 1 January 2008. As the Group does not enter into such arrangements the adoption will have no impact upon the
results or net assets of the Group.
 IFRIC 13 ‘Customer loyalty programmes’ gives guidance on the treatment of the grant of award credits under a customer loyalty programme and is effective
for periods beginning on or after 1 July 2008. As the Group does not operate such schemes, the adoption will have no impact upon the results or net assets
of the Group.
 IFRIC 14 ‘IAS19 – the limit as a defined benefit asset, minimum funding requirements and their interaction’ gives guidance on accounting for a pension surplus
and is effective for periods beginning on or after 1 January 2008. As the Group only offers a stakeholder pension scheme and does no have a pension surplus,
the adoption will have no impact upon the results or net assets of the Group.
 IAS1 ‘Presentation of financial statements’ (revised 2007) effective 1 January 2009. As the changes are presentational only, the adoption will have no impact
upon the results or net assets of the Group.
 IAS23 ‘Borrowing costs’ (revised 2007) requires that borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are
capitalised as part of the cost of that asset. The standard must be applied for accounting periods beginning on or after 1 January 2009. As the Group does
not have any borrowing costs directly attributable to qualifying assets, the adoption will have no impact upon the results or net assets of the Group.
 Amendment to IFRS 2 ‘Share based payment’ — vesting conditions and cancellations’ effective 1 January 2009 and should be applied retrospectively. The
amendment to the standard may require the Group to re-estimate the grant date fair value of certain share based payments whereby non-vesting conditions
apply. As the Group currently has one share based payment arrangement the adoption of the standard may have an impact upon the results or net assets
of the Group.
 IFRS 3 ‘Business combinations’ (revised 2008) effective 1 July 2009 and IAS 27 ‘Group and separate financial statements’ (revised 2008) effective 1 July 2009.
The revised standard introduces changes to the accounting requirements for business combination, transactions with non-controlling interests and the loss
of control of a subsidiary. The Group has no plans to adopt the revised standard in advance of its mandatory implementation date and it is not possible to
quantify the effect of the standard on future business combinations until those combinations take place.
 Amendments to IAS 32 ‘Financial Instruments’: Disclosure and Presentation is effective for periods beginning on or after 1 January 2009. As changes are
presentational only, the adoption will have no impact upon the results or net assets of the Group.
The other standards and interpretations are not expected to have any significant impact on the Group’s financial statements, in their periods of initial application,
except for the additional disclosure requirements on operating segments when IFRS 8 Operating Segments comes into effect for periods commencing on or after
1 January 2009. Group financial statements 2007 28 Energetix Group plc
Notes to the Group financial statements continued
3. Segmental information
At 31 December 2007, the Group is organised into three main segments:
 products for distributed generation and load shifting, these are the micro CHP products from Genlec;
 products for power quality and reliability, these comprise the compressed air battery products of Pnu Power; and
 products for energy efficiency, these comprise the voltage control device of VPhase.
The segment results for the year ended 31 December 2007 are as follows:
Distributed Power
generation and quality and Energy
load shifting reliability efficiency Unallocated Group
£’000 £’000 £’000 £’000 £’000
Segment revenue 47 8— — 55
Operating loss (1,160) (757) (191) (906) (3,014)
Financial income 25 —3 460 488
Other income —— 685 — 685
(Loss)/profit before income tax (1,135) (757) 497 (446) (1,841)
Income tax expense —— — (6) (6)
Loss for the year (1,135) (757) 497 (452) (1,847)
Depreciation and amortisation expense (338) (35) — (22) (395)
Other non cash movements (174) 26 (6) (123) (277)
The segment results for the year ended 31 December 2006 are as follows:
Distributed Power
generation and quality and Energy
load shifting reliability efficiency Unallocated Group
£’000 £’000 £’000 £’000 £’000
Segment revenue 67 —— — 67
Operating loss (214) (12) (26) (947) (1,199)
Finance income —— — 68 68
Other gains —— — 110 110
Loss before income tax (214) (12) (26) (769) (1,021)
Income tax expense —— —— —
Loss for the year (214) (12) (26) (769) (1,021)
Depreciation and amortisation expense (205) (7) — (2) (214)
Other non cash movements 213 45 13 (379) (108)
The segment assets and liabilities at 31 December 2007 and capital expenditure for the year then ended are as follows: 
Distributed Power
generation and quality and Energy
load shifting reliability efficiency Unallocated Group
£’000 £’000 £’000 £’000 £’000
Assets 6,306 1,273 953 12,324 20,856
Liabilities (2,164) (99) (87) (703) (3,053)
Capital expenditure 
— Tangible 38 73 7 72 190
— Intangible 535 485 —— 1,020
The segment assets and liabilities at 31 December 2006 and capital expenditure for the year then ended are as follows:
Distributed Power
generation and quality and Energy
load shifting reliability efficiency Unallocated Group
£’000 £’000 £’000 £’000 £’000
Assets 5,877 610 1 4,625 11,113
Liabilities (2,559) (67) (13) (467) (3,106)
Capital expenditure 
— Tangible 2 64 1 11 78
— Intangible 6,060 292 —— 6,352 Energetix Group plc 29
Stock code: EGX
3. Segmental information continued
Revenue and loss before income tax are attributable to the principal activity of the Group. All revenue and costs originate from continuing operations. 
Revenue can be summarised as follows:
2007 2006
£’000 £’000
Consultancy services — 67
Sale of distributed generation and load shifting products 47 —
Sale of power quality and reliability products 8 —
55 67
Geographic analysis of revenue:
2007 2006
£’000 £’000
UK 39 67
Europe 8 —
Rest of world 8 —
55 67
4. Loss before income tax
2007 2006
£’000 £’000
Amortisation (Note 14) 333 205
Depreciation (Note 15) 62 9
Employee benefit expense (Note 8) 2,176 785
Other share based payments 32 —
Research costs 98 26
Grant income received 5 —
Operating lease rentals:
— buildings 46 24
Audit services:
— fees payable to Company Auditor for the audit of parent company and Group financial statements 16 15
Other fees to auditors:
— Statutory audit fees for subsidiaries 9 —
— Other services pursuant to legislation 42 73
— Tax services 14 10
Other services pursuant to legislation relate to Corporate Finance work in relation to the Group’s subsidiaries £41,500 (2006: £Nil) and the Company’s
flotation on AIM £Nil (2006: £73,000).
5. Finance income
2007 2006
£’000 £’000
Loans and receivables (including cash and bank balances) 413 68
Fair value adjustment of long term borrowings attributable to interest rate risk (Note 19) 75 —
488 68
6. Other gains
The Company disposed of 45% of its interest in Energetix Voltage Control Limited during the year resulting in a gain of £685,000 (see note 23). In the previous
year, following an agreement with Axiomlab Group plc to restructure amounts due to them, the Group made a gain of £110,000.
7. Directors’ remuneration
2007 2006
£’000 £’000
Directors’ emoluments
Aggregate emoluments 522 255
Share based payments 20 44
542 299
Highest paid Director
The above includes remuneration of the highest paid Director as follows:
2007 2006
£’000 £’000
Aggregate emoluments 254 121 Group financial statements 2007 30 Energetix Group plc
Notes to the Group financial statements continued
8. Employee benefit expense
2007 2006
£’000 £’000
Wages and salaries 1,774 665
Bonus shares in subsidiaries 95 —
Social security costs 237 74
Share based payments to Directors 20 44
Share based payments to employees 48 —
Pension costs — stakeholder schemes 2 2
2,176 785
Average number of persons employed
2007 2006
No. No.
Finance, administration and management 12 2
Research and development 20 8
32 10
Employee benefits capitalised in the development asset total £615,000 (2006: £397,000), see note 14.
9. Share-based payments
The Company established in June 2006 two share option schemes in relation to ordinary shares, namely the Energetix Unapproved Share Option Scheme 2006
and the Energetix Enterprise Management Incentive Scheme 2006. 
The Group grants options over the ordinary shares of the Company at not less than the market value of the Company’s ordinary shares on the date of grant.
The vesting period is generally three to four years. If the option remains unexercised after a period of 10 years from the date of grant, the options expire. The
Group has no legal or constructive obligation to repurchase or settle the options in cash. The movement in the number of share options is set out below:
2007 2006
No. No.
Number of outstanding share options at 1 January 337,500 —
Granted during the year 303,707 337,500
Number of outstanding share options at 31 December 641,207 337,500
As at 31 December 2007, 337,500 share options were capable of being exercised (2006: 337,500). The options outstanding at 31 December 2007 had a
weighted average exercise price of 48.1 pence (2006: 40 pence), and a weighted average remaining contractual life of eight years eleven months. The weighted
average exercise price of share options granted during the year was 60.1 pence (2006: 40 pence). No options were exercised during the year.
The Group uses the Black–Scholes model to fair value the Group’s share options which resulted in a fair value provision of £68,000 (2006: £44,000) charged to
the Group Income Statement and a corresponding credit to other reserves. 
Assumptions
The following assumptions are used to determine the fair value of share options at the respective date of grant:
Ordinary Share price
Exercise shares at date Life of 
price under of grant Expected Interest option Expected
Date of grant (p) option (p) volatility rate (years) dividends
15 August 2006 40.0 337,500 46.0 46% 5.00% 3 Nil
2 January 2007 49.0 45,000 49.0 46% 5.75% 3 Nil
22 January 2007 44.5 33,707 44.5 46% 5.75% 3 Nil
23 April 2007 67.0 225,000 67.0 46% 5.75% 3 Nil
The middle market price of ordinary shares on 31 December 2007 was 105.0 pence. The high and low market prices during the year were 147.5 pence and 41.5
pence respectively.
Expected volatility is derived from observation of the volatility of the Company’s shares. In 2006, as the Company did not have sufficient market history volatility
was derived from observation of the volatility of comparable shares. In 2007, the expected volatility is derived from the volatility of the Company’s shares.
The expected life used in the model has been adjusted based on management’s best estimate, for the effects of non-transferability, exercise restrictions and
behavioural conditions.
National insurance is payable on gains made by employees on exercise of share options granted to them. 
Other share-based payments
During the year, the Group has issued shares to its joint broker for annual services rendered up to March 2008 and has entered into a commitment to pay fees
of its joint broker for services provided to VPhase plc, a subsidiary undertaking up to September 2008. These services have been valued at their fair value as they
are received and are charged to the Group Income Statement with a corresponding credit to equity. Energetix Group plc 31
Stock code: EGX
10. Income tax expense
2007 2006
£’000 £’000
Current tax 6 —
The tax on the Group's loss before tax differs from the theoretical amount that would arise using the weighted average rate applicable to profits of the consolidated
entities as follows:
2007 2006
£’000 £’000
Loss before income tax (1,841) (1,021)
Loss before income tax multiplied by rate of corporation tax in the UK of 30% (2006: 30%) (552) (306)
Adjustment for tax rate differences 123 —
Adjustment for tax exempt income (129) —
Adjustment for non-deductible expenses 15 (54)
Movement in deferred tax not provided 543 360
Effect of current year events on prior year current tax (6) —
Current tax (6) —
Unrelieved tax losses of £6,111,000 (2006: £3,907,000) remain available to offset against future taxable trading profits. No deferred tax asset has been recognised
in respect of the losses as recoverability is uncertain.
During the year, as a result of the change in the UK Corporation Tax rates which will be effective from 1 April 2008, deferred tax balances have been remeasured.
Deferred tax relating to temporary differences expected to reverse after 1 April 2008 is measured at the tax rate of 28% as these are the tax rates that are likely
to apply on reversal.
The Company has received confirmation from HM Revenue and Customs on 11 March 2008 that they are no longer challenging a subsidiary company’s claim
for substantial shareholder exemption and that the subsidiary had correctly applied substantial shareholder exemption to the disposal of a business 
in 2004.
11. Deferred tax
The unprovided deferred taxation asset calculated at a tax rate of 28% (2006: 30%) is set out below:
2007 2006
£’000 £’000
Accelerated capital allowances (7) (3)
Share based payments (81) (10)
Trade losses (1,711) (1,172)
(1,799) (1,185)
12. Loss per share
The loss per share is based on the loss of £1,841,000 (2006: loss of £1,021,000) and 49,177,833 (2006: 35,718,812) ordinary shares of 5p each, being the
weighted average number of shares in issue during the period. The weighted average number of ordinary shares for the period ended 31 December 2006
assumes that the 29,998,580 ordinary shares issued in relation to the reverse acquisition of Energetix Group plc existed for the entire period. Energetix Group
plc shares have been included since 8 August 2006, the date of the reverse acquisition, and all shares have been included in the computation based on the weighted
average number of days since issue. 
2007 2006
Loss attributable to equity holders of the Group (£’000) (1,841) (1,021)
Weighted average number of ordinary shares in issue 49,177,833 35,718,812
Basic & diluted loss per share (pence) (3.74) (2.86)
The share options and warrants in issue are anti-dilutive in respect of the basic loss per share calculation and have therefore not been included. Group financial statements 2007 32 Energetix Group plc
Notes to the Group financial statements continued
13. Goodwill
Goodwill
£’000
Year ended 31 December 2006
Opening net book value —
Additions —
Amortisation charge —
Closing net book value —
Year ended 31 December 2007
Opening net book value —
Additions 311
Amortisation charge —
Closing net book value 311
At 31 December 2007
Cost 311
Accumulated depreciation —
Net book value 311
As disclosed in note 2.4, goodwill arising from the reverse acquisition in the year ended 31 December 2006 amounting to £7, being the difference between the
cost of the business combination and the fair value of Energetix Group plc’s identifiable assets and liabilities at the reverse acquisition date has been written off.
This is on the basis that Energetix Group plc, the legal parent, had no continuing business and the goodwill had no intrinsic value.
On 25 September 2007, there was goodwill arising from the reverse acquisition of Energetix Voltage Control Limited into VPhase plc (formerly Flightstore
Group plc) amounting to £311,000, being the difference between the cost of the business combination and the fair value of VPhase plc’s identifiable assets and
liabilities at the acquisition date. Given the current recoverable amount of VPhase plc the Directors have reviewed the carrying value and no impairment is
necessary.
14. Other intangible assets
Compressed 
Micro CHP air battery
Research and Research and
Intellectual development development
property asset Total asset Total
£’000 £’000 £’000 £’000 £’000
Year ended 31 December 2006
Cost or valuation —— — 310 310
Additions 5,787 273 6,060 292 6,352
Amortisation (205) — (205) — (205)
Closing net book value 5,582 273 5,855 602 6,457
Year ended 31 December 2007
Opening net book value 5,582 273 5,855 602 6,457
Additions — 535 535 485 1,020
Amortisation (333) — (333) — (333)
Closing net book value 5,249 808 6,057 1,087 7,144
At 31 December 2007
Cost or valuation 5,787 808 6,595 1,087 7,682
Accumulated amortisation (538) — (538) — (538)
Net book value 5,249 808 6,057 1,087 7,144
At 31 December 2006
Cost or valuation 5,787 273 6.060 602 6,662
Accumulated amortisation (205) — (205) — (205)
Net book value 5,582 273 5,855 602 6,457 Energetix Group plc 33
Stock code: EGX
14. Other intangible assets continued
Additions may be analysed as follows:
2007 2006
£’000 £’000
Non cash items — 5,787
Research and development capitalised during the year 1,020 565
1,020 6,352
Intangibles include internally generated capitalised product development costs in accordance with IAS 38. 
The Group currently has internally generated intangible assets from development of its mCHP module and compressed air battery. All other development work
has been written off as incurred as the criteria for recognition as an asset are not met. 
On 16 April 2004, the Group disposed of its 60% investment in Energetix Micropower Limited to a third party for an initial consideration of £1,031,400 on
completion of the transaction, deferred consideration of £4,200,000, of which £900,000 was due as at 16 April 2006, and contingent consideration of £600,000
(based upon the sale of 60,000 units by the acquirer). The deferred consideration was discounted at 6.75% from the date of disposal to the anticipated settlement
date. Initially the discount was recorded as financing costs of £846,000. 
On 16 April 2006, a third party indicated that they would not be paying the Group the deferred consideration for Energetix Micropower Limited that was
originally sold in April 2004. The terms of the original Sale and Purchase Agreement contained clauses that anticipated this eventuality and accordingly resulted
in the return of the intellectual property into a new subsidiary of the Group (Energyboost Limited (now Energetix Genlec Limited)) formed for the purpose.
The agreement also made provision for the original partner to Energetix Micropower Limited to participate in the new subsidiary with their original 40% equity
holding. 
The Group agreed that its original partner in this venture received a £3,000,000 preference debt in the new subsidiary in lieu of any entitlement to equity. The
preference debt has been discounted at 6.75% from the date of assuming until anticipated settlement date. This preference debt will be paid out of the future
earnings of the new subsidiary.
In accordance with IAS 38 the intellectual property has been capitalised at the discounted value of the deferred consideration forgone plus the value of debt
assumed by the Company.
£’000
Current receivable forgone as at 16 April 2006 900
Discounted value of deferred consideration forgone 2,378
Discounted value of preference debt given for 40% of the equity 2,509
Value of intellectual property to be included in intangible assets 5,787
The remaining amortisation period of the intellecutal property is 16 years.
15. Property, plant and equipment
Furniture
Leasehold Plant & fittings &
improvements machinery equipment Total
£’000 £’000 £’000 £’000
Year ended 31 December 2006
Opening net book value —6 28
Additions — 53 25 78
Depreciation charge — (6) (3) (9)
Closing net book value — 53 24 77
Year ended 31 December 2007
Opening net book value — 53 24 77
Additions 43 90 57 190
Depreciation charge (7) (37) (18) (62)
Closing net book value 36 106 63 205
At 31 December 2007
Cost or valuation 43 150 92 285
Accumulated depreciation (7) (44) (29) (80)
Net book value 36 106 63 205
At 31 December 2006
Cost or valuation — 59 27 86
Accumulated depreciation — (6) (3) (9)
— 53 24 77 Group financial statements 2007 34 Energetix Group plc
Notes to the Group financial statements continued
16. Inventory
2007 2006
£’000 £’000
Raw materials 58 —
The cost of inventories recognised as an expense during the period in respect of continuing operations was £58,000 (2006: £nil).
The cost of inventories recognised as an expense includes £nil (2006: £nil) in respect of write downs of inventory to net realisable value.
No impairment loss has been recognised on inventories.
17. Trade and other receivables
2007 2006
£’000 £’000
Trade receivables 25 —
Prepayments and accrued income 194 49
Loans to employees 8 1
Other receivables 133 78
Current portion 360 128
The average credit period on sales of goods is 45 days (2006: 35 days). No interest is charged on trade receivables.
Before accepting any new customer, the Group uses published credit information to assess the potential customer’s credit quality and defines credit limits by
customer.
Included in the Group’s trade receivable balance are receivables with a carrying amount of £nil (2006: £nil) which are past due at the reporting date for which
the Group has not provided, as there has not been a significant change in credit quality and the amounts are still considered recoverable. None of the debtors
are past due.
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade receivable from the date credit was initially
granted up to the reporting date. The concentration of credit risk is significant given the low numbers of customers that the Group has although the quantum is
not material. The Directors do not believe that any credit provision is required at present.
No impairment loss has been recognised on trade receivables and no other gains or losses have been recognised in respect of loans and other receivables. The
Group does not hold any collateral as security.
18. Cash and cash equivalents
2007 2006
£’000 £’000
Cash at bank and in hand 12,778 4,445 Energetix Group plc 35
Stock code: EGX
19. Financial liabilities — Borrowings
2007 2006
£’000 £’000
Current
Financial liabilities designated at fair value through profit and loss — debentures and other loans 89 200
89 200
Non-current
Financial liabilities designated at fair value through profit and loss — debentures and other loans 2,245 2,559
The maturity of non-current borrowings is as follows:
2007 2006
£’000 £’000
Between 1 and 2 years 576 100
Between 2 and 5 years 1,669 2,459
2,245 2,559
The Group agreed with Axiomlab Group plc, the holder of the loan notes, that £610,000 of the amount due to them was converted to £500,000 of equity on
the flotation of the Group on the AIM Market of the London Stock Exchange. Conversion was at the flotation price.
The remaining £250,000 of the loan notes due to Axiomlab Group plc was deferred for repayment within two to five years.
In July 2006, Energetix (Europe) Limited and Energetix Genlec Limited entered into an arrangement with Battelle Memorial Institute (Battelle) under which
Battelle agreed to waive all rights to subscribe for 40% of the share capital of Energetix Genlec Limited in exchange for a £3,000,000 preference debt in Energetix
Genlec Limited. The preference debt has been discounted at 7.50% (2006: 6.75%) from the date of assuming until anticipated settlement date giving rise to a
non current liability of £1,995,000 (2006: £2,309,000) and a current liability of £89,000 (2006: £200,000). The terms are that it is not interest bearing, that
£500,000 will be repaid over the two years ending August 2008 and that the balance will be repaid by (i) an amount equal to 10% of any licence fees paid to
Energetix Genlec Limited by any third party and (ii) 2% of amounts received by Energetix Genlec Limited in respect of all mainstream sales of the product. During
the year, £350,000 (2006: £nil) was repaid and the discounting of future repayments at 7.50% has resulted in an adjustment of £75,000 to the carrying value of
the liability (attributable to changes in interest rate risk).
Financial liabilities are recognised when the Group becomes a party to the contractual agreements of the instrument. All interest-related changes and changes in
an instruments fair value are reported in the Group Income Statement and are shown within finance income.
There are no other borrowing facilities or arrangements in place for the Group as at 31 December 2007 and 31 December 2006.
20. Trade and other payables
2007 2006
£’000 £’000
Trade payables 227 192
Social security & other taxes 193 62
Accrued expenses 299 93
719 347
21. Compensation of key management personnel
The remuneration of Directors and other members of key management during the year was as follows:
2007 2006
£’000 £’000
Short-term benefits 870 255
Share based payments 68 44
Bonus shares in subsidiaries 29 —
967 299
The remuneration of Directors is determined by the remuneration committee having regard to performance of individuals and market trends.
22. Financial instruments
22.1 Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to stakeholders. The
Group’s overall strategy remains unchanged from 2006 to minimise costs and liquidity risk.
The capital structure of the Group consists of debt, which includes borrowings disclosed in note 19, cash and cash equivalents and equity attributable to equity
holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in note 24 and in the Group Statement of Changes in Equity.
22.2 Significant accounting policies
Details of significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income
and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2 to the financial statements. Group financial statements 2007 36 Energetix Group plc
Notes to the Group financial statements continued
22. Financial instruments continued
22.3 Categories of financial instrument
2007 2006
£’000 £’000
Financial assets
Loans and receivable (including cash and cash equivalents) 12,778 4,445
Financial liabilities
Designated at fair value through profit or loss 2,334 2,759
Amortised cost 227 192
The carrying amount reflected above represents the Group’s maximum exposure to credit risk for such loans and receivables.
Currently the Group does not undertake transactions denominated in foreign currencies.
For commentary on market risk, interest rate risk, credit risk, and liquidity risk please see note 2 and the financial risk management objectives and policies disclosed
in the Group Directors’ Report on page 15.
22.4 Interest rate sensitivity
The following table illustrates sensitivity of the loss for the year and equity to a reasonably possible change in interest rates of 1% with effect from the beginning
of the year. These changes are considered to be reasonably possible based on observation of current market conditions. The calculations are based on the
Group’s cash and cash equivalents held at each Balance Sheet date. All other variables are held constant.
2007 2006
£’000 £’000
+1% -1% +1% -1%
Loss for the year 128 (128) 45 (45)
Equity 128 (128) 45 (45)
23. Disposal and acquisition of business
During the financial year, the Group partly disposed of its energy efficiency business Energetix Voltage Control Limited to VPhase plc. The transaction chronology
is outlined below:
 On 3 September 2007, the Group sold 25% of Energetix Voltage Control Limited to Ora Capital Partners and certain Ora Capital employees for £600,000
(“Partial disposal (1)”). Net liabilities of Energetix Voltage Control Limited as at 3 September 2007 amounted to £59,000. The Group continued to hold
68.76% of the subsidiary’s share capital and Energetix (Nominees) Limited held 6.24% on behalf of management and staff.
 On 25 September 2007, the Group reversed Energetix Voltage Control Limited into VPhase plc (formerly Flightstore Group plc). Consequently, VPhase
plc became Energetix Voltage Control Limited’s immediate parent undertaking and the Group retained a holding of 60.1% in Energetix Voltage Control
Limited (Energetix (Nominees) Limited holding 5% of VPhase plc ordinary share capital and Energetix Group plc holding 55.1%). The Group received
375,097,506 new shares of 0.25 pence each in VPhase plc at 0.51 pence per share. Consequently, upon the transaction on 25 September 2007, the Group
acquired cash in VPhase plc (formerly Flightstore Group plc) amounting to £30,000, in addition the Group partially disposed of Energetix Voltage Control
Limited. The minority Shareholders in VPhase plc obtained a 45% share of the cash acquired in the company and on the same date acquired an additional
13.76% in the net assets of Energetix Voltage Control Limited amounting to £74,000 (“Partial disposal (2)”).
23.1 Partial disposal 1
2007 2006
Minority
Group Interest Total
£’000 £’000 £’000 £’000
Fair value consideration received 413 187 600 —
Share of net liabilities disposed of 18 (18) — —
431 169 600 —
23.2 Partial disposal 2 and acquisition of  VPhase plc (formerly Flightstore Group plc)
On 25 September 2007, partial disposal 2 of Energetix Voltage Control Limited was a reversal of the subsidiary into VPhase plc. As a result, VPhase plc became
Energetix Voltage Control Limited’s immediate parent undertaking and the Group gained a 60.1% holding in VPhase plc (Energetix (Nominees) Limited holding 5%
and the Group holding 55.1%). The deemed disposal gain and minority interest arising on the transaction is set out below:
2007 2006
Minority
Group Interest Total
£’000 £’000 £’000 £’000
Fair value consideration received 328 — 328 —
Share of net assets disposed of (74) 74 — —
254 74 328 —
Gain recorded by the Group:
Partial disposal 1 and 2 685
The total deemed gain of both disposals is £685,000. Energetix Group plc 37
Stock code: EGX
23. Disposal of business continued
In addition, there is goodwill arising on the acquisition of 55.1% of VPhase plc as set out in the table below:
2007
Minority
Group Interest
£’000 £’000
Fair value of business given in consideration 328 —
Less share of net assets acquired 17 13
Goodwill arising on transaction 311 13
The total minority interest arising from all transactions amounts to £256,000.
The relevant shareholding of Energetix Voltage Control Limited and post reversal VPhase plc is outlined below:
As at As at Partial Partial
1 January 2007 5 May 2007 Disposal 1 Disposal 2
Held by Energetix (Nominees) Limited — 8.32% 6.24% 5.00%
Acquired by Ora Capital Partners and certain Ora Capital employees —— 25.00% 20.00%
Former Flightstore Group plc shareholders —— — 19.90%
Total Minority Interest — 8.32% 31.24% 44.90%
Energetix Group plc 100.00% 91.68% 68.76% 55.10%
24. Share capital and reserves
24.1  Share capital
31 December 2007 31 December 2006
Number Number
of shares Share capital of shares Share capital
No. £’000 No. £’000
Authorised
Ordinary shares of 5p each 60,000,000 3,000 60,000,000 3,000
Issued and fully paid
As at 1 January 45,000,000 2,250 29,998,580 1,500
Shares issued 6 April 2006 —— 1,220 —
Loan note conversion 8 August 2006 —— 200 —
Proceeds from EIS placing — 15 August 2006 —— 2,500,000 125
Proceeds from General Placing — 16 August 2006 —— 12,500,000 625
Proceeds from placing 1 August 2007 10,000,000 500 ——
Shares issued 21 August 2007 22,727 1 ——
Shares issued 8 October 2007 22,727 1 ——
As at 31 December 55,045,454 2,752 45,000,000 2,250
Issue of shares
The Company was incorporated on 17 May 2006 as Futurebay Limited with an authorised share capital of 1,000 ordinary shares of £1 each.
On 6 April 2006, the Company issued 1,220 new ordinary shares of 5 pence each at 5 pence per share.
On 7 August 2006, the Company increased its authorised share capital to £3,000,000 denominated in ordinary shares of 5 pence each, with each issued and
unissued ordinary share of £1 being subdivided into 20 ordinary shares of 5 pence each. 
On 8 August 2006, the Company agreed with Axiomlab Group plc, the holder of loan notes, that £610,000 of the amount due to them would be converted to
£500,000 of equity by the issue of 200 new ordinary shares of 5 pence each.
On 8 August 2006, the Company issued 29,999,980 ordinary shares of 5 pence each credited as fully paid in consideration for the acquisition of the entire issued
share capital of Energetix (Europe) Limited and re-registered as a public limited company changing its name to Energetix Group plc.
On 15 August 2006, the Company issued 2,500,000 ordinary shares of 5 pence each at 40 pence per share under an EIS placing. 
On 16 August 2006, the Company issued 12,500,000 ordinary shares of 5 pence each at 40 pence per share under a general placing.
On 1 August 2007, the Company issued 10,000,000 ordinary shares of 5 pence each at 120 pence per share.
On 21 August 2007, the Company issued 22,727 ordinary shares of 5 pence each at 55 pence per share to Bank Ora Limited in settlement of broker fees.
On 8 October 2007, the Company issued 22,727 ordinary shares of 5 pence each at 55 pence per share to Bank Ora Limited in settlement of broker fees. Group financial statements 2007 38 Energetix Group plc
24. Share capital and reserves continued
24.2 Warrants
As part of the agreed placing costs of the Company with its nominated adviser and broker on 15 August 2006, the Company granted 1,350,000 warrants with
an exercise price of 40 pence to its broker and nominated adviser. The warrants outstanding at 31 December 2006 and 2007 are:
Number of Exercise Exercise
Date granted warrants price (pence) period
15 August 2006 1,350,000 40 3 years
These warrants are exercisable during a three year period from the date of grant. On exercise, each warrant entitles the holder to one £0.05 ordinary share in
the Company.
As at 31 December 2007, 1,350,000 warrants were capable of being exercised (2006: 1,350,000). The warrants outstanding at 31 December 2007 had a weighted
average exercise price of 40 pence (2006: 40 pence), and a weighted average remaining contractual life of one year eight months. No warrants were exercised
during the year.
The Group uses the Black–Scholes model to fair value the Group’s warrants which resulted in a total fair value charge of £256,000, this has been charged against
share premium and credited to warrant reserve in 2006. 
Assumptions
The following assumptions are used to determine the fair value of warrants at the respective date of grant:
Ordinary Share price
Exercise shares at date Life of 
price under of grant Expected Interest warrant Expected
Date of grant (p) warrant (p) volatility rate (years) dividends
15 August 2006 40 1,350,000 46 45.7% 5% 3 Nil
The share price at date of grant is the closing price on that day which was the Company’s first day of trading.
Expected volatility is derived from observation of the volatility of quoted shares in similar sectors to the Group.
The expected life used in the model has been adjusted based on management’s best estimate, for the effects of non-transferability, exercise restrictions and
behavioural conditions.
25. Minority Interest
As at 31 December 2006, Energetix Laser Technologies Limited, a non-trading 60% owned subsidiary of Energetix (Europe) Limited, had net liabilities at 
31 December 2006 resulting in a debit minority interest. However, the Directors have made a provision against this balance on the basis that it is potentially
irrecoverable and hence there is no balance attributable to minority interests in the Group Balance Sheet.
In addition, as a result of the partial disposal of Energetix Voltage Control Limited to VPhase plc, a minority interest has arisen based on the 55.1% of VPhase plc’s
net assets as at 31 December 2007.
2007 2006
£’000 £’000
As at 1 January — (26)
Share of loss for the year (5) —
Partial disposal of Energetix Voltage Control Limited (Note 23) 256 —
Provisions — 26
As at 31 December 251 —
Notes to the Group financial statements continued Energetix Group plc 39
Stock code: EGX
26. Cash consumed by operations
2007 2006
£’000 £’000
Loss after income tax (1,847) (1,021)
Adjustments for:
— Depreciation 62 9
— Amortisation 333 205
— Finance income (413) (68)
— Other income (75) —
— Other gains on loan conversion — (110)
— Other gains on part disposal of Energetix Voltage Control Limited (Note 23) (685) —
— Share based payments 68 44
— Other share based payments 32 —
— Income tax charge 6 —
— Provision against minority interests — 26
Changes in working capital:
— Increase in inventories (58) —
— Increase in trade and other receivables (232) (101)
— Increase in trade and other payables 372 219
Cash consumed by operations (2,437) (797)
27. Operating lease commitments — minimum lease payments
The Group leases various offices and light industrial units under cancellable operating lease agreements. The leases have varying terms and durations; however,
all have the option to be determined on either six or twelve months’ notice from either the Company or the landlord. 
The future aggregate minimum lease payments are:
2007 2006
£’000 £’000
Buildings Buildings
Within one year 96 69
28. Commitments
The Group entered into an agreement to pay its joint broker in shares for services provided from March 2007 to March 2008. This agreement requires the issue
of 90,908 new ordinary shares of 5 pence at 55 pence per share. As at 31 December 2007, 45,454 shares had been issued and a further 45,454 are to be issued. 
On 26 July 2007, a subsidiary of the Group, VPhase plc, entered into an agreement to pay its joint broker in shares for services provided from 
25 September 2007 to 24 September 2008. This agreement requires the issue of 4,992,961 new ordinary shares of 0.25 pence each at 1.602 pence per share.
As at 31 December 2007, no shares had been issued and a further 4,992,961 are to be issued. On 13 February 2008, 1,248,240 shares are issued at 1.602 pence
per share.
On 16 October 2007, a subsidiary of the Group, VPhase plc, entered into a commitment to grant a prospective new Director of VPhase an option over
15,603,001 new ordinary shares of 0.25 pence each at an exercise price of 1.88 pence per share. As this was granted to a prospective Director of VPhase, and
was contingent on them commencing the role which they were not due to take up until 1 January 2008, no costs have been recorded in the Group financial
statements.
29. Related party transactions
Transaction between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed
in this note. Details of transaction between the Group and othe related parties are disclosed below:
At 31 December 2007, the amount owed to Axiomlab Group plc in relation to Loan Notes issued was £250,000 (2006: £250,000). 
Within the year the Group paid management fees to Axiomlab plc of £nil (2006: £5,000). The amount outstanding at 31 December 2007 was £15,000 (2006:
£15,000) which is included in trade payables.
A J Aubrey is also a Director and Shareholder in Axiomlab Group plc.
30. Approval of financial statements
The financial statements were approved by the Board and authorised for issue on 8 April 2008. Group financial statements 2007 40 Energetix Group plc
Company Balance Sheet
as at 31 December 2007
2007 2006
Note £’000 £’000 £’000 £’000
Fixed assets
Tangible assets 35 70 15
Investments 36 3,198 1,500
3,268 1,515
Current assets
Debtors 37 3,614 3,652
Cash at bank and in hand 12,146 4,426
15,760 8,078
Creditors: amounts falling due within one year 38 (4,178) (3,963)
Net current assets 11,582 4,115
Total assets less current liabilities 14,850 5,630
Net assets 14,850 5,630
Capital and reserves
Called up share capital 40 2,752 2,250
Share premium account 41 15,376 4,591
Warrant reserve 42 256 256
Other reserves 43 124 44
Profit and loss account 44 (3,658) (1,511)
Shareholders’ funds 45 14,850 5,630
The notes on pages 41 to 48 are an integral part of the Company’s financial statements.
These financial statements were approved by the Board of Directors on 8 April 2008 and were signed on its behalf by:
A C Hutchings R H Smith
Chief Executive Officer Chief Financial Officer Energetix Group plc 41
Stock code: EGX
Notes to the Company Balance Sheet
31. Principal accounting policies — UK GAAP
Basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with the Companies Act 1985 and applicable UK accounting
standards (United Kingdom Generally Accepted Accounting Practice).
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost net of depreciation and any provision for impairment.
Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets by equal annual instalments over their estimated useful
economic lives as follows:
— Leasehold improvements remainder of lease term (4 years)
— Plant and Machinery 3 years
Cash
Cash comprises of cash on hand and demand deposits together with other short term highly liquid investments that are readily convertible into known amounts
of cash.
Operating lease agreements
Leases where substantially all of the risks and rewards of ownership are not transferred to the Company are treated as operating leases. Rentals under operating
leases are charged against profits on a straight-line basis over the period of the lease.
Operating lease incentives are recognised, on a straight-line basis, as a reduction of the rental expense over the shorter of the lease term and the period to the
first rent review where market rentals will be payable.
Investments
Investments are stated at cost, less amounts provided for permanent diminution in value.
Current tax
The current tax charge is based on the profit for the year and is measured at the amounts to be paid based on the tax rates and laws substantively enacted by
the Balance Sheet date. Current and deferred tax is recognised in the profit and loss account.
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events have
occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exception: deferred tax assets
are recognised only to the extent that the Directors consider that it is more likely than not that there will be suitable taxable profits from which the future
reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax
rates and laws enacted or substantively enacted at the Balance Sheet date.
Equity-settled share-based payment 
All share-based payment arrangements granted after 7 November 2002 that have not vested prior to 1 January 2005 are recognised in the financial statements
as in accodance with FRS 20. 
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values. Where employees are rewarded using
share-based payments, the fair values of employees’ services are determined indirectly by reference to the fair value of the instrument granted to the employee.
This fair value is appraised at the grant date and excludes the impact of non-market vesting conditions (for example, profitability and sales growth targets).
All equity-settled share-based payments are ultimately recognised as an expense in the profit and loss account with a corresponding credit to “other reserves”.
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number
of share options expected to vest. Estimates are revised subsequently if there is any indication that the number of share options expected to vest differs from
previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense recognised in prior
periods if share options that have vested are not exercised.
Upon exercise of share options, the proceeds received net of attributable transaction costs are credited to share capital, and where appropriate share premium.
Other share-based payments
Warrants relating to the Company’s placing and admission to AIM have been provided to certain third parties. Warrants are valued at the date of grant using the
Black–Scholes option pricing model and are charged to share premium with a corresponding credit to “warrant reserve”.
In addition, during the year the Company has issued shares to its joint broker for annual services rendered up to March 2008. The services have been valued at
their fair value as they are received and are charged to the profit and loss account with a corresponding credit to equity.
Pension costs and other post-retirement benefits
The Company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the Company. 
The annual contributions payable are charged to the profit and loss account. Group financial statements 2007 42 Energetix Group plc
Notes to the Company Balance Sheet continued
32. Directors’ remuneration
2007 2006
£’000 £’000
Directors’ emoluments
Aggregate emoluments 515 255
Share based payments 20 44
535 299
Highest paid Director
The above includes remuneration of the highest paid Director as follows:
2007 2006
£’000 £’000
Aggregate emoluments 249 121
33. Staff numbers and costs
The average number of persons employed by the Company (including Directors) during the period, analysed by category, was as follows:
2007 2006
No. No.
Finance, administration and management 8 3
The aggregate payroll costs of these persons were as follows:
2007 2006
£’000 £’000
Wages and salaries 576 287
Social security costs 51 29
Share based payments 20 44
647 360
From 1 January 2007, subsidiary employees have been paid through the payroll of their relevant subsidiary. In addition, senior employees of subsidiary
companies have been granted options in the parent Company (Note 34). Energetix Group plc 43
Stock code: EGX
34. Share-based payments
The Company established, in June 2006, two share option schemes in relation to ordinary shares, namely the Energetix Unapproved Share Option Scheme 2006
and the Energetix Enterprise Management Incentive Scheme 2006. 
The Company grants options over the ordinary shares of the Company at not less than the market value of the Company’s ordinary shares on the date of grant.
The vesting period is generally three to four years. If the option remains unexercised after a period of 10 years from the date of grant, the options expire. The
Company has no legal or constructive obligation to repurchase or settle the options in cash. The movement in the number of share options is set out below:
2007 2006
No. No.
Number of outstanding share options at 1 January 337,500 —
Granted during the year 303,707 337,500
Number of outstanding share options at 31 December 641,207 337,500
As at 31 December 2007, 337,500 share options were capable of being exercised (2006: 337,500). The options outstanding at 31 December 2006 had a
weighted average exercise price of 48.1 pence (2006: 40 pence), and a weighted average remaining contractual life of eight years eleven months. The weighted
average exercisable price of share options granted during the year was 60.1 pence (2006: 40 pence). No options were exercised during the year.
The Company uses the Black–Scholes model to fair value the Company’s share options which resulted in a fair value charge of £68,000 (2006: £44,000) charged
to the profit and loss account and a corresponding credit to other reserves. 
Assumptions
The following assumptions are used to determine the fair value of share options at the respective date of grant:
Exercise Ordinary Share price Life of
price shares under at date of Expected Interest option Expected
Date of grant (p) option grant (p) volatility rate (years) dividends
15 August 2006 40.0 337,500 46.0 45.7% 5.00% 3 Nil
2 January 2007 49.0 45,000 49.0 45.7% 5.75% 3 Nil
22 January 2007 44.5 33,707 44.5 45.7% 5.75% 3 Nil
23 April 2007 67.0 225,000 67.0 45.7% 5.75% 3 Nil
The middle market price of ordinary shares on 31 December 2007 was 105.0 pence. The high and low market prices during the year were 147.5 pence and
41.5 pence respectively.
Expected volatility is derived from observation of the volatility of the Company’s shares. In 2006, as the Company did not have sufficient market history, volatility
was derived from observation of the volatility of comparable shares. In 2007, the expected volatility is derived from the volatility of the Company’s shares
The expected life used in the model has been adjusted based on management’s best estimate, for the effects of non-transferability, exercise restrictions and
behavioural conditions.
National insurance is payable on gains made by employees on exercise of share options granted to them. 
Other share-based payments
During the year, the Company has issued shares to its joint broker for annual services rendered up to March 2008. These services have been valued at their fair
value as they are received and are charged to the profit and loss account with a corresponding credit to equity.
35. Tangible fixed assets
Leasehold Plant and
improvements Machinery Total
£’000 £’000 £’000
Cost
At 1 January 2007 — 17 17
Additions 27 47 74
At 31 December 2007 27 64 91
Depreciation
At 1 January 2007 —2 2
Charge for the period 5 14 19
As at 31 December 2007 5 16 21
Net book value
As at 31 December 2007 22 48 70
As at 31 December 2006 — 15 15 Group financial statements 2007 44 Energetix Group plc
36. Investments 
2007 2006
£’000 £’000
Cost:
As at 1 January 1,813 —
Additions (note 46) 1,765 —
Share based payments to subsidiary Directors and employees 48 —
Disposals (note 46) (115) —
Reverse acquisition — 1,500
Transfers from subsidiary undertakings — 313
As at 31 December 3,511 1,813
Provisions:
At 1 January (313) —
Impairment provision during the year — (313)
As at 31 December (313) (313)
Net book amount:
As at 31 December 2007 3,198 1,500
As at 31 December 2006 1,500 —
The investment comprises:
Nominal
Percentage value Ordinary Preferred A
held (pence each) Shares Ordinary Ordinary
Thermetica Limited* 100% 10 7,670 2,330 —
Energetix (PNU) Power Limited* 99% 1 9,900 ——
Energetix Laser Technologies Limited 60% 10 —— 601
VPhase plc* 55.1% 0.25 343,855,008 ——
Energetix (Europe) Limited* 100% 1 16,619 ——
Energetix Genlec Limited* 97.25% 1 9,725 ——
Energetix (Nominees) Limited* 100% 100 1— —
Energetix Voltage Control Limited 55.1% 1 7,346 ——
* Directly owned subsidiaries.
On 7 August 2006, the Company acquired the entire share capital of Energetix (Europe) Limited in consideration for the issue of 29,999,980 ordinary shares of
5 pence each.
The Company is entitled to the merger relief offered by section 131 of the Companies Act 1985 and therefore these shares have been recorded at their nominal
value.
On 9 August 2006, as part of a further Group reconstruction, Energetix (Europe) Limited, a wholly owned subsidiary of the Company, transferred four of its
investments in subsidiaries to the Company at net book value.
During the year, options were granted by the Company to employees and directors of subsidiary companies. In accordance with UITF 44, the cost of these options
has been charged to the relevant subsidiary and is accounted for in the financial statements as an increase in the cost of investment.
The companies are all registered in England and Wales and at the Balance Sheet date had the following shares in issue:
Nominal 
value Ordinary Preferred AB C
(pence each) Shares Ordinary Ordinary Ordinary Ordinary
Thermetica Limited 10 7,670 2,330 —— —
Energetix (PNU) Power Limited 1 10,000 —— — —
Energetix Laser Technologies Limited 10 —— 601 249 150
VPhase plc 0.25 625,120,063 —— — —
Energetix (Europe) Limited 1 16,619 —— — —
Energetix Genlec Limited 1 10,000 —— — —
Energetix (Nominees) Limited 100 1— —— —
Energetix Voltage Control Limited 1 13,333 —— — —
Notes to the Company Balance Sheet continued Energetix Group plc 45
Stock code: EGX
36. Investments continued
At 31 December 2007 and 2006 the companies had the following capital and reserves:
2007 2006
Capital and Profit/ Capital and Profit/
reserves (loss) reserves (loss)
£’000 £’000 £’000 £’000
Thermetica Limited (307) (6) (301) (1)
Energetix (PNU) Power Limited (1,995) (1,240) (755) (322)
Energetix Laser Technologies Limited (65) — (65) (1)
Vphase plc 2,436 (242) ——
Energetix Genlec Limited (2,249) (1,695) (554) (554)
Energetix (Europe) Limited 3,059 (149) 3,208 (165)
Energetix (Nominees) Limited —— ——
Energetix Voltage Control Limited 479 (168) (56) (26)
37. Debtors
2007 2006
£’000 £’000
Amounts owed by subsidiary undertakings 3,450 3,595
Other debtors 44 27
Prepayments and accrued income 120 30
3,614 3,652
Amounts owed by subsidiary undertakings have been provided against as irreoverable in the short term where there is an amount due to the Company in excess
of the subsidiary’s net assets.
38. Creditors:  amounts falling due within one year 
2007 2006
£’000 £’000
Trade creditors 25 93
Amounts owed to subsidiary undertakings 3,800 3,779
Social security and other taxes 183 62
Accruals 170 29
4,178 3,963
39. Deferred taxation
The unprovided deferred taxation asset calculated at a tax rate of 28% (2006: 30%) is set out below:
2007 2006
£’000 £’000
Accelerated capital allowances (3) —
Share based payments (81) (10)
Trade losses (420) (366)
(504) (376)
Unrelieved tax losses of £1,500,000 (2006: £1,220,000) remain available to offset against future taxable trading profits. No deferred tax asset has been recognised
in respect of the losses as recoverability is uncertain.
During the year, as a result of the change in UK Corporation Tax rates which will be effective from 1 April 2008, deferred balances have been remeasured. Deferred
tax relating to temporary differences expected to reverse after 1 April 2008 is measured at the tax rate of 28% as these are the rates that are likely to apply on
reversal. Group financial statements 2007 46 Energetix Group plc
Notes to the Company Balance Sheet continued
40. Share Capital
31 December 2007 31 December 2006
Number Share Number Share 
of shares capital of Shares capital
No. £’000 No. £’000
Authorised
Ordinary shares of 5p each 60,000,000 3,000 60,000,000 3,000
Issued and fully paid
As at 1 January 45,000,000 2,250 29,998,580 1,500
Shares issued 6 April 2006 —— 1,220 —
Loan note conversion 8 August 2006 —— 200 —
Proceeds from EIS placing – 15 August 2006 —— 2,500,000 125
Proceeds from General Placing – 16 August 2006 —— 12,500,000 625
Proceeds from placing 1 August 2007 10,000,000 500 ——
Shares issued 21 August 2007 22,727 1 ——
Shares issued 8 October 2007 22,727 1 ——
As at 31 December 55,045,454 2,752 45,000,000 2,250
The Company was incorporated on 17 May 2006 as Futurebay Limited with an authorised share capital of 1,000 ordinary shares of £1 each.
On 6 April 2006, the Company issued 1,220 new ordinary shares of 5 pence each at 5 pence per share.
On 7 August 2006, the Company increased its authorised share capital to £3,000,000 denominated in ordinary shares of 5 pence each, with each issued and
unissued ordinary share of £1 being subdivided into 20 ordinary shares of 5 pence each. 
On 8 August 2006, the Company agreed with Axiomlab Group plc, the holder of loan notes, that £610,000 of the amount due to them would be converted to
£500,000 of equity by the issue of 200 new ordinary shares of 5 pence each.
On 8 August 2006, the Company issued 29,999,980 ordinary shares of 5 pence each credited as fully paid in consideration for the acquisition of the entire issued
share capital of Energetix (Europe) Limited and re-registered as a public limited company changing its name to Energetix Group plc.
On 15 August 2006, the Company issued 2,500,000 ordinary shares at 40 pence each under an EIS placing.
On 16 August 2006, the Company issued 12,500,000 ordinary shares at 40 pence each under a general placing.
On 1 August 2007, the Company issued 10,000,000 ordinary shares at 120 pence each.
On 21 August 2007, the Company issued 22,727 ordinary shares at 55 pence each to Bank Ora Limited in settlement of broker fees.
On 8 October 2007, the Company issued 22,727 ordinary shares at 55 pence each to Bank Ora Limited in settlement of broker fees.
41. Share premium account
2007 2006
£’000 £’000
As at 1 January 4,591 —
Shares issued during the year 11,522 5,250
Share issue expenses (737) (659)
As at 31 December 15,376 4,591 Energetix Group plc 47
Stock code: EGX
42. Warrant reserve
2007 2006
£’000 £’000
As at 1 January 256 —
Issued in the year — 256
As at 31 December 256 256
As part of the agreed placing costs of the Company with its nominated adviser and broker on 15 August 2006, the Company granted 1,350,000 warrants with
an exercise price of 40 pence to its broker and nominated adviser. The warrants outstanding at 31 December 2007 and 2006 were:
Number of Exercise Exercise
Date granted warrants price (pence) period
15 August 2006 1,350,000 40 3 years
These warrants are exercisable during a three year period from the date of grant. On exercise, each warrant entitles the holder to one £0.05 ordinary share in
the Company.
As at 31 December 2007, 1,350,000 warrants were capable of being exercised (2006: 1,350,000). The warrants outstanding at 31 December 2007 had a
weighted average exercise price of 40 pence (2006: 40 pence), and a weighted average remaining contractual life of one year eight months. No warrants were
exercised during the year.
The Group uses the Black–Scholes model to fair value the Group’s warrants which resulted in a total fair value charge of £256,000, this has been charged against
share premium and credited to warrant reserve in 2006.
Assumptions
The following assumptions are used to determine the fair value of warrants at the respective date of grant:
Exercise Ordinary Share price Life of
price shares under at date of Expected Interest warrant Expected
Date of grant (p) warrant grant (p) volatility rate (years) dividends
15 August 2006 40 1,350,000 46 45.7% 5% 3 Nil
The share price at date of grant is the closing price on that day which was the Company’s first day of trading.
Expected volatility is derived from observation of the volatility of quoted shares in similar sectors to the Group.
The expected life used in the model has been adjusted based on management’s best estimate, for the effects of non-transferability, exercise restrictions and
behavioural conditions.
43. Other reserves
2007 2006
£’000 £’000
As at 1 January 44 —
Share based payments to Directors 20 44
Share based payments to subsidiary Directors and employees 48 —
Other share based payments 12 —
As at 31 December 124 44
44. Profit and loss account
The Company has taken advantage of section 230 of the Companies Act 1985 and has not included its own profit and loss account in these financial statements.
The parent Company’s loss for the year was £2,147,000 (2006: £1,511,000).
2007 2006
£’000 £’000
As at 1 January (1,511) —
Loss for the financial year (2,147) (1,511)
As at 31 December (3,737) (1,511) Group financial statements 2007 48 Energetix Group plc
Notes to the Company Balance Sheet continued
45. Shareholders’ funds
2007 2006
£’000 £’000
Loss for the financial year (2,147) (1,511)
Shares issued in the year 11,367 5,341
Increase in shareholders’ funds 9,220 3,830
Shareholders’ funds at 1 January 5,630 1,800
Shareholders’ funds at 31 December 14,850 5,630
46. Acquisition and disposals 
During the financial year, the Company partly disposed of its energy efficiency business Energetix Voltage Control Limited to VPhase plc. The transaction
chronology is outlined below:
 On 4 May 2007, 832 bonus shares in Energetix Voltage Control Limited were granted to Directors and employees of Energetix Voltage Control Limited.
All shares (equating to 8.32% of the then issued ordinary share capital) were held beneficially on behalf of the Directors and employees in Energetix
(Nominees) Limited, a wholly owned subsidiary undertaking.
 On 4 May 2007, the Company subscribed for additional new shares in Energetix Voltage Control Limited for £115,000 and the Company continued to
hold 91.68% of the subsidiary share capital.
 On 3 September 2007, the Company sold 25% of Energetix Voltage Control Limited to Ora Capital Partners and certain Ora Capital employees for
£600,000. The Company continued to hold 68.76% of the subsidiary’s share capital.
 On 25 September 2007, the Company reversed Energetix Voltage Control Limited into VPhase plc (formerly Flightstore Group plc). Consequently,
VPhase plc became Energetix Voltage Control Limited’s immediate parent undertaking and the Company retained a holding of 55.1% in VPhase plc. The
cost of investment amounts to £1,650,000 representing the Company’s share of the fair value of consideration of £2,400,000.
The Company was incorporated on 17 May 2006 as Futurebay Limited. On 8 August 2006, the Company changed its name to Energetix Group plc and
reregistered as a public limited company. On 8 August 2006, the Company became the legal holding company of Energetix (Europe) Limited via a share exchange.
The share for share exchange has been accounted for as a reverse acquisition giving rise to an investment value of £1,500,000.  
47. Leasing commitments
Annual commitments under cancellable operating leases are as follows:
2007 2006
£’000 £’000
Land and Land and
buildings Buildings
Within one year 96 69
48. Commitments
The Company entered into an agreement to pay its joint broker in shares for services provided from March 2007 to March 2008. This agreement requires the
issue of 90,908 new ordinary shares of 5 pence at 55 pence per share. As at 31 December 2007, 45,454 shares had been issued and a further 45,454 are to
be issued.
49. Related party transactions
The Company has taken advantage of the exemption in Financial Reporting Standard No. 8 “Related party disclosures” and has not disclosed transactions with
Group undertakings. Energetix Group plc 49
Stock code: EGX
Notice of Annual General Meeting
ENERGETIX GROUP PLC
(Company No: 5819555)
Notice is hereby given that the Annual General Meeting of Energetix Group plc (“the Company”) will be held at 10.00 am on Wednesday 21 May 2008 at
5th Floor, Steam Packet House, 76 Cross Street, Manchester, M2 4JU for the following purpose:
Ordinary Business
To consider and, if thought fit, pass the following resolutions, all of which will be proposed as ordinary resolutions:
1. To receive and adopt the audited financial statements of the Company for the financial year ended 31 December 2007, the Directors’ report and
the independent auditors’ report on those financial statements.
2. To elect as a Director Dr. Henry J Cialone who vacates his office of Director as he was appointed in the period prior to this meeting and whose
biographical details are set out on page 12 of the Annual Report.
3. To re-elect Alan J Aubrey as a Director who retires by rotation.
4. To re-elect Adrian C Hutchings as a Director who retires by rotation.
5. To re-appoint Grant Thornton UK LLP as the independent auditors of the Company to hold office from the conclusion of the meeting until the
conclusion of the next meeting at which accounts are laid before the Company.
6. To authorise the Directors to determine the remuneration of the independent auditors of the Company.
Special Business
To consider and, if thought fit, pass the following resolutions, of which resolutions 7 and 8 will be proposed as ordinary resolutions and resolution 9 will be
proposed as a special resolution:
7. That the authorised share capital of the Company be increased from £3,000,000 to £5,000,000 by the creation of 40,000,000 ordinary shares of
£0.05 each ranking pari passu in all respects with the existing ordinary shares of £0.05 each in the capital of the Company.
8. THAT subject to passing resolution 7, above, the Directors be and they are hereby generally and unconditionally authorised for the purposes of
section 80 of the Companies Act 1985 (Act) to exercise all powers of the Company to allot relevant securities (within the meaning of that section)
up to an aggregate nominal amount of £917,803 provided that this authority shall, unless renewed, varied or revoked by the Company in general
meeting, expire on the conclusion of the next Annual General Meeting of the Company, but the Company may, before such expiry, make an offer
or agreement which would or might require relevant securities to be allotted after such expiry, and the Directors may allot relevant securities in
pursuance of such offer or agreement notwithstanding that the authority conferred by this resolution has expired. This authority is in substitution
for all previous authorities conferred upon the Directors pursuant to section 80 of the Act, but without prejudice to the allotment of any relevant
securities already made or to be made pursuant to such authorities.
9. That, subject to the passing of resolution 8 above the Directors be and they are empowered pursuant to section 95 of the Act to allot equity
securities wholly for cash pursuant to the authority conferred by resolution 8 above as if section 89(1) of the Act did not apply to any such
allotment, provided that this power shall be limited to the allotment of equity securities:
(a) in connection with an offer of such securities by way of rights to holders of ordinary shares in proportion (as nearly as may be practicable)
to their respective holdings of such shares, but subject to such exclusions or other arrangements as the Directors may deem necessary or
expedient in relation to fractional entitlements or any legal or practical problems under the laws of any territory, or the requirements of any
regulatory body or stock exchange, and
(b) otherwise than pursuant to paragraph (a) above up to an aggregate nominal amount of £137,670.45;
and shall expire on the conclusion of the next Annual General Meeting of the Company, save that the Company may before such expiry make an
offer or agreement which would or might require equity securities to be allotted after such expiry and the Directors may allot equity securities in
pursuance of any such offer or agreement notwithstanding that the power conferred by this resolution has expired. 
BY ORDER OF THE BOARD
P M Barry
Secretary
Registered office:
Steam Packet House
76 Cross Street
Manchester
M2 4JU  Group financial statements 2007 50 Energetix Group plc
Notes
1 A member entitled to attend and vote at the meeting is entitled to appoint one or more proxies (who need not be members of the Company) to
attend and, on a poll, to vote instead of him. A form of proxy is enclosed. To be effective, it must be deposited at the office of the Company’s Registrars
Neville Registrars Limited, Neville House, 18 Laurel Lane, Halesowen, West Midlands, B6 3DA so as to be received not later than 48 hours before the
time appointed for holding the Annual General Meeting. Completion of the proxy does not preclude a member from subsequently attending and voting
at the meeting in person if he or she so wishes.
2 Any corporation which is a member of the Company may authorise a person (who need not be a member of the Company) to act as its representative
to attend, speak and vote (on a show of hands or a poll) on its behalf.
3 Documents for Inspection – The following documents are available for inspection at Steam Packet House, 76 Cross Street, Manchester M2 4JU during
business hours on any weekday (excluding Saturdays) from the date of this notice until the close of the meeting:
3.1 a register of interests of Directors and their families in the shares of the Company;
3.2 copies of all Directors service or consultancy agreements; and
3.3 Articles of Association of the Company.
4 In accordance with Regulation 41 of the Uncertificated Securities Regulations 2001, only those members entered on the Company's register of members
not later than 10.00 am on 19 May 2008, or, if the meeting is adjourned, Shareholders entered on the Company's register of members not later than
48 hours before the time fixed for the adjourned meeting shall be entitled to attend and vote at the meeting.
Explanatory notes on Resolutions
5 Resolution 1: To receive the accounts and Directors report.
For each financial year, the Directors must present the Report of Directors, the audited financial statements and the independent auditors’ report to
Shareholders at a General Meeting. 
6 Resolutions 2, 3 and 4: Re-election of Directors.
Henry J Cialone having been appointed in the period prior to the meeting is recommended for re-election in accordance with the Articles of Association
of the Company. Alan J Aubrey and Adrian C Hutchings retire by rotation and being eligible offer themselves for re-election, in accordance with Article
25 of the Articles of Association.
7 Resolutions 5 and 6: Re-appointment and remuneration of independent auditors.
At every general meeting at which accounts are presented to Shareholders, the Company is required to appoint auditors to serve until the next such
meeting. Grant Thornton UK LLP have indicated that they are willing to continue as the Company’s auditors for another year. You are asked to re-appoint
them and authorise the Directors to determine their remuneration. 
8 Resolution 7 – Increase to authorised share capital.
This resolution seeks Shareholder approval to increase the authorised share capital of the Company from £3,000,000 to £5,000,000 which represents
an increase of approximately 66%. The issued share capital of the Company is currently 55,068,181 shares. The proposed increase is intended to provide
the Company with sufficient headroom for the future, subject to the parameters of the Directors’ authority to allot such shares sought at resolution 8.
However, as stated below, there is no current intention to issue shares other than in connection with the Company’s share option schemes.
9 Resolution 8: Directors’ authority to allot new securities. 
The purpose of this Resolution is to renew for a further period until the conclusion of the Annual General Meeting in 2009, the authority pursuant to
Section 80 of the Companies Act 1985. This Ordinary Resolution, if approved by Shareholders, would enable the Directors to exercise their existing
power under the Company’s Articles of Association to allot new shares in the capital of the Company. It would be limited to an aggregate nominal amount
of £917,803 being a maximum of 18,356,060 Ordinary shares (known as the Section 80 Amount), which is the lesser of (i) the unissued Ordinary Share
capital of the Company, assuming the passing of resolution 7 and (ii) a sum equal to 33.3% of the issued share capital, as at 
10 March 2008. This limit is derived from guidelines issued by the Association of British Insurers (“ABI”) which, for public companies listed in the UK,
effectively limit the maximum amount of share capital which can be authorised for allotment. Other than the allotment of Ordinary shares for the
purposes of fulfilling the Company’s obligations under its various employee share plans and for the provision of certain services, the Directors have no
present intention of allotting any of the authorised Ordinary share capital of the Company which has not yet been allotted.
10 Resolution 9: Dis-application of pre-emption rights.
The purpose of this Resolution is to renew the dissaplication of pre-emption rights for a further period until the conclusion of the Annual General Meeting
in 2009 pursuant to Section 89 of the Companies Act 1985. This Special Resolution authorises the Directors to allot equity securities of the Company
either in connection with a rights issue or to persons other than existing Shareholders, as if the pre-emption provisions of Section 89 of the Companies
Act 1985 did not apply. Under Section 89, when new securities are allotted, they must first be offered to existing Shareholders pro-rata to their holdings.
This provision was designed to prevent the holdings of existing Shareholders being diluted against their wishes by the allotment of new equity securities.
Shareholders may waive this right of pre-emption. The authority contained in this Resolution would be limited to the allotment of equity securities having
an aggregate nominal value of £137,670.45 being a maximum of 2,753,409 Ordinary shares representing 5% of the total Ordinary share capital of the
Company currently in issue (known as the Section 89 Amount), as at 10 March 2008. The limit of 5% is also derived from the ABI guidelines mentioned
in the notes to Resolution 8. Although the Directors have no present intention of making use of the authorities sought in Resolution 8 or 9, they wish
to retain the flexibility to act quickly and allot securities within these limits if they consider it in the interests of the Company to do so.
Notice of Annual General Meeting continued Energetix Group plc 51
Stock code: EGX
Form of Proxy
ENERGETIX GROUP plc
(“the Company”)
For use at the Annual General Meeting to be held at 5th Floor, Steam Packet House, 76 Cross Street, Manchester, M2 4JU on Wednesday 21 May 2008 at
10.00 am.
I/We  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PLEASE COMPLETE IN BLOCK CAPITALS
of  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
being (a) member(s) of the above named Company hereby appoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or failing him/her, the
Chairman of the Meeting as my/our proxy to attend and vote on my/our behalf at the Annual General Meeting of the Company to be held at 10.00 a.m.
on 21 May 2008 and at any adjournment of that meeting.
I/We direct my/our proxy to vote as follows:
(INDICATE WITH AN X IN THE BOXES BELOW)
Resolutions For Against
Votes withheld Discretionary
(see note 6) (see note 6)
1 To receive and adopt the audited financial statements for the financial
year ended 31 December 2007 together with the Directors’ report
and the independent auditors’ report on those financial statements.
2 To elect Henry J Cialone as a Director of the Company.
3 To re-elect Alan J Aubrey as a Director of the Company.
4 To re-elect Adrian C Hutchings as a Director of the Company.
5 To re-appoint Grant Thornton UK LLP as independent auditors of
the Company.
6 To authorise the Directors to determine the independent auditors’
remuneration.
7 To increase the authorised share capital from £3,000,000 to
£5,000,000 by the creation of 40,000,000 ordinary shares of
£0.05 each.
8 In substitution for any existing authority, to authorise the Directors of
the Company to allot shares up to an aggregate nominal amount of
£917,803 provided that such authority shall expire at the conclusion
of the next Annual General Meeting.
9 To authorise the Directors of the Company to allot all the shares
subject to the authority above as if section 89(1) of the Act
(statutory pre-emption rights) did not apply to any such allotment up
to an aggregate nominal amount of £137,670.45
Your Board recommends that you vote in favour of all the above resolutions.
Signature   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dated  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2008
Additional Notes:
1. Only holders of ordinary shares entered on the register of members of the Company at 10.00 am on 19 May 2008, or, in the event of an adjournment, at 9.00
am on the second day prior to the adjournment of it shall (unless otherwise entitled to do so) be entitled to attend and vote at the meeting or at any such
adjournment. This is in accordance with Regulation 41 of the Uncertificated Securities Regulations 2001 and the Company’s articles of association.
2. A member entitled to attend and vote at the meeting may appoint one or more proxies to attend and, on a poll, to vote instead of him/her. A proxy need not
be a member of the Company.
3. To be valid for the meeting, a form of proxy should be completed, signed and lodged (together with any power of authority or any other authority under
which it is signed or a duly certified copy of such power of authority) at Neville Registrars Limited, Neville House, 18 Laurel Lane, Halesowen, West Midlands,
B63 3DA no later than 48 hours before the time for which the meeting is convened.
4. The Chairman of the Meeting shall act as a proxy unless another proxy is desired, in which case, insert full name of your proxy in the space provided above. A
proxy will act in his/her discretion in relation to any business, other than that above, at the meeting (including any resolution to amend a resolution or to
adjourn the meeting).
5. In the case of joint holders, the vote of the senior holder shall be accepted to the exclusion of the votes of other joint holders.  For this purpose, seniority shall
be determined by the order in which the names of such holders stand in the register of members in respect of the joint holding.
6. To abstain from voting on a resolution, tick the box “Votes withheld”. A “vote withheld” is not a vote in law which means that the vote will not be counted in
the calculation of votes “for” and “against” the resolution. Ticking “Discretionary”, or failing to tick any box against a resolution, will mean your proxy can vote
as he or she wishes or can decide not to vote at all.  Second fold
Third fold
and tuck in flap opposite
First fold
PLEASE
AFFIX
STAMP
HERE
Neville Registrars Limited
Neville House
18 Laurel Lane
Halesowen
West Midlands
B63  3BR Directors, Secretary and Advisers to the Group
Company registration number
5819555
Registered office
Steam Packet House
76 Cross Street
Manchester
M2 4JU
Principal place of business
Capenhurst Technology Park
Capenhurst
Chester
CH1 6EH
Directors
A J Aubrey (Non-Executive Chairman)
A C Hutchings (Chief Executive Officer)
R H Smith (Chief Financial Officer)
A C Elsborg (Non-Executive Director)
Dr. H J Cialone (Non-Executive Director)
Company Secretary
P M Barry
Steam Packet House
76 Cross Street
Manchester
M2 4JU
Nomad/Broker
Zeus Capital Limited
3 Ralli Courts
West Riverside
Manchester
M3 5FT
Joint Broker
Novum Securities Limited (formerly Bank Ora Limited)
Austin Friars House
2–6 Austin Friars
London
EC2N 2HD
Bankers
HSBC Bank plc
Chester & Deeside Commercial Centre
Vista
St David’s Park
Ewloe
Flintshire
CH5 3RX
Solicitors
Atticus Legal LLP
Steam Packet House
76 Cross Street
Manchester
M2 4JU
Independent Auditors
Grant Thornton UK LLP
Registered Auditors
Chartered Accountants
4 Hardman Square
Spinningfields
Manchester
M3 3EB
Public Relations Advisers
Abchurch Communications Limited
Sanford House
Medwin Walk
Horsham
West Sussex
RG12 1AG
Registrars
Neville Registrars Limited
Neville House
18 Laurel Lane
Halesowen
West Midlands
B63 3DA www.energetixgroup.com
Energetix Group plc
Capenhurst Technology Park
Chester
CH1 6EH
t. 0151 348 2100
f. 0151 348 2101
info@energetixgroup.com