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Energetix Group plc
Group Financial Statements
for the year ended 31 December 2008 
Energetix Group plc Group Financial Statements for the year ended  31 December 2008 
Energetix Group plc
Capenhurst Technology Park
Chester
CH1 6EH
T. 0151 348 2100
F. 0151 348 2101
E: info@energetixgroup.com
www.energetixgroup.com
12065 Energetix CVR.indd   1 17/4/09   18:53:46 Energetix has three businesses 
in the Group with cost-effective 
products to meet the growing 
global demand for alternative 
energy technologies.
With a focus on distributed generation, energy 
storage and energy efficiency, Energetix businesses 
are:
Pnu Power  – compressed air back-up power •	
Genlec  – distributed generation in the home •	
VPhase  – domestic energy efficiency •	
Contents
01 Highlights
02 At a glance 
04 Chairman’s Statement
06 Chief Executive’s Review
10 Pnu Power Business Review 
12 Genlec Business Review
14 VPhase Business Review
16 Finance Review
17  Board of Directors and 
Senior Management 
19 Group Directors’ Report
24  Report of the Independent 
Auditors
 
 
25 Group Income Statement
26  Group Statement of Changes 
in Equity
27 Group Balance Sheet
28 Group Cash Flow Statement
29  Notes to the Group Financial 
Statements 
55 Company Balance Sheet
56  Notes to the Company 
Balance Sheet
64  Directors, Secretary and 
Advisors to the Group
 
29% of Global Energy Consumption    
FSC logo  
to go here
12065 Energetix CVR.indd   2 17/4/09   18:53:49 Highlights
Products from all three businesses  •	
 poised to generate sales in 2009
Good cash position •	
No further funding  •	
 required for current  
 strategic plans
£8.5bn energy wasted in the UK each ye ye y ar - EST ST S
29% of Global Energy Consumpti   is from households - IEA
World energy demand ex ex e pands by by b 45% between now and 2030 – WEO
Subsidiaries have all substantially completed the •	
development road map for their first products and are on 
the point of revenue generation;
January – Genlec and E.ON UK agree to collaborate on •	
the development of Genlec micro-CHP products;
February – Daalderop BV display ‘CombiVolt’, their •	
Genlec enabled micro-CHP boiler at a premier trade fair;
May – VPhase plc (‘VPhase’) raises £3.5 million gross •	
through a placing at 5 pence per share;
June – Genlec signs memorandum of understanding for •	
a fourth collaboration agreement;
September – VPhase teams with Scottish and Southern •	
Energy plc (‘SSE’) to commercialise the company’s 
products and in particular to establish funding for an 
Ofgem trial for CERT approval;
October – Chinese patent granted for Pnu Power •	
technology;
October – VPhase signs memorandum of understanding •	
with British Gas Services Limited (‘British Gas’) to  
distribute the VPhase energy saving product – subject  
to successful trials;
October – Genlec signs memorandum of understanding •	
with Stiebel Eltron bringing the total number of  
collaboration agreements to five;
November – Energy Minister, Mike O’Brien MP, Minister •	
of State at the new Department for Energy and Climate 
Change, launches Genlec’s micro-CHP unit;
December – Pnu Power receives first major order from •	
North America for US$380,000, partly funded by the  
US Department of Energy, as part of a system to reduce 
peak power demand at a major industrial facility; and
December – Genlec announces a further collaboration •	
with E.ON UK and a major European appliance 
manufacturer.
Post year end:
January 2009 – ‘CombiVolt’ product agreement with •	
Daalderop BV which targets sales of at least 30,000 
Genlec micro-CHP units over the next 3 years;
January 2009 – Ofgem approves SSE trials of VPhase •	
VX1 with funding provided by SSE to a cost of up to 
£240,000;
February 2009 – Pnu Power achieves CE marking on its •	
TC1 and TC2 products;
February 2009 – Pnu Power secures order from Telecom •	
Italia; and
The Group has sufficient cash reserves requiring no •	
further funding for current strategic plans.
Value drivers
2008 Highlights:
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
01
12065 Energetix FRONT.indd   1 17/4/09   19:03:39 Energetix strategy 
The Group’s strategy is to produce products based on 
robust engineering principles, regularly utilising existing 
mass produced components configured in a novel and 
patentable way. Avoiding cutting edge science has enabled 
our businesses to de-risk the new product development 
process which in turn reduces development time and 
costs. This has enabled the Group’s businesses to have a 
lower than normal technology risk whilst still producing 
strong intellectual property. In addition, this facilitates the 
outsourcing of production and assembly, significantly 
reducing the Group’s requirements for investment in capital 
equipment. The body of know-how developed within the 
Group has also enabled our businesses to modify the 
design of existing mass produced components to reduce 
costs, improve efficiency and strengthen the Group’s 
intellectual property position.
What this strategy has achieved
Since the Group’s flotation on AIM in August 2006, our 
strategy of focussing on robust engineering rather than 
cutting edge science has enabled us to transition three 
early stage technologies to the point of product sales, 
utilising only c.£11.0 million over this time. We have now 
substantially completed the development roadmap for our 
first products from these businesses. In addition, it has also 
enabled us to find manufacturing partners for our Genlec 
and VPhase products, and Pnu Power is currently 
assembling its existing orders from outsourced pre-
configured sub-assemblies. This has limited our tangible 
capital investment to only £335,000 in 2008, a figure which 
is not anticipated to materially increase in future years. 
Overall our careful cash control and utilisation in 2008 kept 
expenditure to a minimum. Our recent restructuring has 
also enabled further operational savings. Whilst using 
predominantly mass produced components we are still 
generating new intellectual property with three new patents 
granted and five applications in progress. In particular our 
know-how has led to potentially new inventions in the core 
components that we utilise, further strengthening our 
already robust intellectual property position.
Pnu Power’s UPS product. 
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
02
At 	 a 	 gl a n ce
12065 Energetix FRONT.indd   2 17/4/09   19:03:49 European boiler market
UK 21%
Italy 14.5%
France 9%
Germany 8.5%
Others 47%
Telecoms 46%
UPS/Data 30%
Other 24%
Insulation and  
double glazing 55%
Electrical appliances 
and lighting 23%
Heating appliances 21%
Others 1%
7 million
domestic boilers  
sold in europe 
annually
Over 7 million boilers, valued at 
£8.1 billion, are sold every year 
across Europe, each one has 
the potential to be a Genlec 
enabled micro-CHP unit.
Energetix Genlec
Genlec enabled micro-CHP  
appliances targeted at the 
domestic European boiler 
markets.
Industrial battery market
£2 billion
annual stationary 
lead acid battery 
market
£2 billion of batteries are 
installed every year for energy 
storage in UPS and other 
back-up power systems.
UK 21%
Italy 14.5%
France 9%
Germany 8.5%
Others 47%
Telecoms 46%
UPS/Data 30%
Other 24%
Insulation and  
double glazing 55%
Electrical appliances 
and lighting 23%
Heating appliances 21%
Others 1%
Energetix Pnu Power
Back-up power based on 
compressed air for un-interruptible 
power supply (‘UPS’) targeted  
at telecommunications, utility 
switching, and the commercial  
IT sectors.
UK household energy efficiency market
£8 billion 
market value for UK 
energy efficiency 
per annum
Estimated global investment in 
demand abatement and energy 
efficiency products to 2020 of 
$170 billion per annum.
UK 21%
Italy 14.5%
France 9%
Germany 8.5%
Others 47%
Telecoms 46%
UPS/Data 30%
Other 24%
Insulation and  
double glazing 55%
Electrical appliances 
and lighting 23%
Heating appliances 21%
Others 1%
An AIM listed company focussing 
on smart voltage control devices 
saving energy for the domestic 
and small commercial sectors.
VPhase
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
03
12065 Energetix FRONT.indd   3 17/4/09   19:03:58 Substantial growth with 
careful cash management. 
Cash reserves of £11.0 
million, well placed to reach 
profitability and cash 
generation without further 
funding.
Each of the Group’s businesses has launched its products and is 
at the point of revenue generation. Genlec has established 
commercial terms with Daalderop BV, Pnu Power has received 
orders from Africa, Europe and America, and VPhase is working 
closely with SSE and has a memorandum of understanding with 
British Gas. We have increased our understanding of the routes to 
market and the timescales involved in new product adoption and 
are confident in the Group’s ability to grow revenues during 2009.
Revenues of £32,000 were achieved during the year (2007: 
£55,000) arising from the sale of trial units and the business has 
continued to invest in its infrastructure and intellectual property. 
The Group’s cash position remains strong with £11.0 million in 
hand providing a solid financial base for future operations.
In response to the poor external economic conditions that 
occurred during 2008, at the beginning of 2009 the business 
restructured its operations under Neil Bright who was appointed 
to the Group Board as Operations Director on 22 January 2009. 
This has resulted in the merger of management roles between 
Genlec and Pnu Power and the consolidation of some activities 
into the central services function, enabling the Group to make 
operational savings of c.£45,000 per month. Also in January 
2009, Anton Elsborg resigned from the Board following six years’ 
involvement with the Group. I would like to thank Anton for his 
contribution over that time.
A J Aubrey
Non-Executive Chairman
23 March 2009
I am delighted by the substantial progress the Group has made 
against the targets we had set for each of our subsidiaries for the 
year. Our careful cash management during 2008 leaves us with 
strong cash reserves of £11.0 million at the year end. This position 
is an excellent base from which to deliver our 2009 goals of cash 
conservation and revenue generation.
During 2008, the Group focussed on building the business 
platform and launching its products in preparation for revenue 
generation. The Group has continued to make significant progress 
against these targets. Whilst the economic uncertainty that 
characterised the end of 2008 looks set to continue, I believe that 
Energetix Group is well placed to withstand these effects with 
sufficient cash for all three businesses to reach profitability and 
cash generation.
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
04
Ch ai r ma n ’ s 	Stat em ent
12065 Energetix FRONT.indd   4 17/4/09   19:03:58 “America has always risen to challenges, and our dependence  
on oil is one of the greatest we have ever faced.”
Barack Obama, 2008
“One thing is clear: the era of easy oil is over. What we do next 
will determine how well we meet the energy needs of the entire 
world in this century and beyond.”
David O’Reilly, CEO, Chevron
“Shell estimates that after 2015 supplies of easy-to-access oil  
and gas will no longer keep up with demand.” 
Jeroem van de Veer, CEO of Shell
“Our objective is nothing less than a sea-change in energy  
efficiency and consumption…”
Gordon Brown, PM, March 2009
“Globally, it is estimated that the market for low carbon goods 
and services is worth around US$3 trillion, and it is expected to 
double over the next decade.”
Gordon Brown, PM, March 2009
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
05
12065 Energetix FRONT.indd   5 17/4/09   19:03:59 Business Overview
I am very pleased with the progress made in establishing our 
three businesses during 2008 and believe that the restructuring 
carried out at the beginning of 2009 has left the Group well placed 
for achieving our goals of cash conservation and revenue 
generation in 2009.
Genlec
Energetix Genlec Limited (‘Genlec’) has surpassed its targets in 
developing further relationships with both boiler manufacturers 
and power utilities. The company now has six such relationships 
in place giving Genlec the potential to access all the major 
European boiler markets including the UK, Germany, Italy and  
the Netherlands.
In particular, a formal product supply agreement with Daalderop 
BV has been established targeting the sale of at least 30,000 
Genlec micro-CHP units for the Dutch and Belgian heating 
markets over the next three years. The agreement with  
Daalderop BV is a key component of Genlec’s strategy of  
targeting the Netherlands for product introduction, a country  
with an enviable record of new energy efficient product adoption, 
the Dutch Government having pledged to subsidise 10,000 
micro-CHP units into Dutch households.
In addition, a tripartite heads of terms has been signed with E.ON 
and a major European appliance manufacturer with the aim of 
investigating the potential to produce mass-market Genlec 
modules, and complete Genlec enabled micro-CHP appliances 
for E.ON’s UK and European domestic heating markets.
These agreements, along with the other collaborations with 
Stiebel Eltron, a leading German heating equipment manufacturer, 
and two further companies demonstrate substantial and broad 
industry support for the Genlec unit. 
The number of relationships fostered by Genlec with major players 
in the heating and power markets is, I believe, evidence of the 
benefits that a robust engineered product, which readily fits the 
existing distribution and installation routes to market, has over 
more complex products.
 
Our 2008 target of creating  
a platform for revenue 
generation and growth has 
been achieved: 
Genlec
• 		 Volume 	 s a l es 	 t arg e t s 	 in	
place with boiler partner.
Pnu Power
• 		 S a l es 	 pi pe l i ne 	 of 	 gl ob a l 	
opportunities.
VPhase
• 		 Pr o d u c t 	 p r ep a rin g 	 to 	 ta ke 	
orders and deliver in 
volume.
Ho u s e h olds 	 a re 	 on 	 a v er a ge , 	 l os i ng 	 up 	to 	 £3 00	
a 	 ye ar 	 be c a us e 	 of 	 poo r 	 en er g y 	 eff icie nc y . 	 Ju s t	
r e plac i n g 	the 	m illi o n 	old e s t 	b o il e rs 	c oul d 	sa ve 	
e ac h 	 of 	 th os e 	 m illi o n 	 h ome s 	 £200 	 e ve ry 	year.
Foreword, Ed Miliband, Blears & Beckett, Heat & Energy Saving Strategy consultation 
February 2009
N ot 	 o nl y 	 is 	 the 	 c ombi n e d 	 m arke t 	 s i ze 	 hu g e 	 ( fo r	
m ic r o g e ne r ati o n ) 	 bu t 	 the 	 UK 	 ho u s e ho l d 	 s ect o r	
a lo n e 	 p r e s e ntl y 	 a c c ou nt s 	 fo r 	 2 7% 	 of 	 t o tal 	 UK	
e mi s s i ons 	 of 	 c a r b on 	 d io x i de .
Element Energy – The Growth Potential for Microgeneration
In 	 the h ome , 	 th r e e 	q u arte rs 	 of 	 c a r b on 	 d io x i de 	
e mi s s i ons 	 c ome 	 f r om 	 en er g y 	 us e d 	 fo r 	 	
he ati ng 	 a nd 	 p r o v i din g 	 h ot 	 wa te r 	 a nd 	 a 	 f ifth	
f r om 	 l ig hti ng 	 a nd 	 a ppl ia n c e s .
2007 Energy White Paper
Genlec enabled appliances including a Daalderop BV ‘CombiVolt’.
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
06
C hi ef 	 Exe c u t i v e’ s 	 R ev i e w
12065 Energetix FRONT.indd   6 17/4/09   19:03:59 VPhase VX1 with packaging and installation instructions.
VPhase
VPhase plc (‘VPhase’) raised £3.5 million (before costs) in May 
2008 by the placing of 70,000,000 new ordinary shares of 0.25 
pence each at a price of 5 pence per share.
The company launched its VPhase VX1 unit in October 2008 at 
the Interbuild trade show and it is anticipated that the VPhase 
VX1 unit will be available for sale from the second quarter of 2009, 
following CE marking.
During the year, VPhase signed a letter of intent to work with SSE to 
support the commercialisation of VPhase’s energy saving product. 
This has further progressed in January 2009 with Ofgem approval 
for trialing of the VPhase VX1 product under the UK Government’s 
Carbon Emissions Reduction Target (‘CERT’) scheme with SSE 
funding up to £240,000. The trial will be undertaken as a formal 
CERT Demonstration Action and involves installing a number of 
VX1 products in the homes of a range of SSE’s customers to 
measure the reduction in electricity used as a result of VPhase’s 
innovative and patented voltage reduction technology.
Also in 2008, the company signed a memorandum of 
understanding with British Gas, part of Centrica plc, for British 
Gas to independently test several devices. These trials are 
scheduled to commence following CE approval and a supply and 
distribution agreement will be negotiated with British Gas to 
supply VX1 units through its electrical and heating installation and 
maintenance operations in the UK. 
VPhase and Centrica plc (‘Centrica’) also plan to collaborate on 
how the products may be introduced to the North American 
domestic and business services market through Direct Energy, 
one of America’s leading integrated energy companies and 
another Centrica-owned business. British Gas is the UK’s  
largest installer of domestic energy efficiency measures under 
the Government’s CERT scheme and expects to spend up to  
£1 billion on such work over the next three years. In 2007, British 
Gas stated that it installed 17.3 million energy efficient products 
helping more than 6.4 million households save money. 
The fragility of the US electrical  
grid was revealed on February 26, when 
roughly a million customers in Southern 
Florida lost power after a substation fault 
caused a massive blackout.
US DoE Energy Efficiency & Renewable Energy Website, March 2008
Modernizing America’s electricity 
infrastructure is one of the US 
Department of Energy’s top priorities.
US DoE, Office of Electricity Delivery and Energy Reliability, 2009
European officials and electricity  
firms were investigating why a  
supply problem in Germany left  
about 10 million people in darkness 
across the continent.
Associated Press, November 2006
Efficiency is the No. 1 Priority.
Stephen Chu, US Secretary for Energy
Energy efficiency is the cheapest form of 
new energy we have.
David O’Reilly, Chevron, CEO
Around £8.5 billion of energy is wasted in 
the UK every year. This is enough  
to give every man, woman and child  
in the UK £140 a year.
Energy Saving Trust
Pnu Power
Energetix (Pnu) Power Limited (‘Pnu Power’) has successfully 
completed development of its TC1 and TC2 products. Both have 
achieved the important and rigorous CE certification in February 
2009, following independent testing on safety compliance and 
electromagnetic compatibility.
With CE marking complete, the company is building a sales 
pipeline. It has already received orders from the major South 
African utility Eskom, a multiple order worth US$380,000 from P&E 
Automation in San Diego, and an initial order from Telecom Italia 
through our Italian distribution partner, O.S.A.T. Elettronica s.r.l. 
Key benefits of the Pnu Power products are their high reliability 
and long operational life when compared to the incumbent 
technology of lead acid batteries. TC1 and TC2 have both been 
tested to in excess of 30,000 stop/starts and 24 years of 
accelerated life cycle running. This compares to a typical life 
expectancy of 7 to 10 years for a well maintained, air conditioned 
VRLA lead acid battery. In addition, the Pnu Power products have 
also been tested in some of the most extreme conditions for a 
back-up power system, in Pnu Power’s dedicated environmental 
test chamber. 
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
07
12065 Energetix FRONT.indd   7 17/4/09   19:03:59 Outlook
Despite the recent shock to the global economy caused by the 
banking crisis and the slow down in consumer demand, the need 
to reduce energy costs and reduce environmental emissions, as 
well as having access to reliable quality power, is as strong as 
ever. This global need continues to enhance the already favourable 
market conditions for the Group’s products. Governments across 
the world are looking to stimulate their economies, with one of the 
key drivers being their policies and investment in clean and 
alternative energy products. Barack Obama has just announced 
a plan to help create five million new jobs by strategically investing 
US$150 billion over the next ten years to act as a catalyst for 
private efforts to build a clean energy future.
Energetix is now in a position where we have substantial financial 
reserves, reduced cash expenditure, and products that 
individuals, industry, and governments will want to use to reduce 
costs and CO
2
 emissions, and stimulate economic growth. 
For example, our Genlec product is targeted at the domestic 
home market and it is clear that the construction of new properties 
has been, and is likely to remain substantially reduced from 
previous levels. However, in the UK the number of new build boiler 
installations is only around 12% of the 1.5 million boilers installed 
every year, with the bulk of installations being driven by the need 
to replace failed boilers. I believe that the new £910 million 
increase in the Government’s Home Energy Saving Programme 
announced by the UK Government on 11 September 2008, will 
partially if not wholly offset the reduction in the market from 
reduced new build installations, and can lead to significant 
savings both in terms of fuel costs to home owners and reduced 
CO
2
 emission levels stimulating increased levels of demand. 
One of the areas targeted by environmentalists and governments 
alike is that energy efficiency is the principal way to reduce 
emissions and to reduce costs. There has been significant interest 
and investment into smart metering as a way of helping home 
owners to understand their energy footprint and costs, and  
to enable them to modify their behaviour to reduce these.  
A significant number of such meters are being installed worldwide; 
Florida Power & Light alone have already installed 50,000 units 
across their network and plan to increase this to 100,000 units.  
In the UK, 33.8% of electricity is consumed in the domestic  
sector (Source: BERR Update of UK Final Energy Consumption 
July 2008). 
…the Government will legislate to 
channel £910 million from energy 
companies into energy-saving 
initiatives…
Gordon Brown, September 2008
The climate change act legislated for  
a legally binding path to an 80 per cent 
reduction in carbon emissions by 2050.
Ed Miliband, January 2008
We’re seeing interest in energy 
efficiency in the business world like we 
have never seen before. The mega watt 
you don’t have to produce is almost 
always the cheapest mega watt.
Dan Reicher, Climate Change and Energy Initiatives Director Google.org, 
March 2009
Mike 	 O’ Bri en 	MP, 	 M i n i ster 	 of 	 Sta t e 	 fo r 	 E ne rgy 	
and 	 Cl i ma t e 	 C h ang e 	 at 	 the 	 Ge nlec 	 l a un ch 	 in	
W e s t mi ns t e r , 	10 	 No v e m be r 	 2008 .
“ M i c r o g e ne r ati o n 	 t e c h no lo g i e s 	 th at 	 gen er a t e 	
b ot h 	 he at 	 a nd 	 e le c tr ici ty 	 ca n 	 r e du c e 	 ho u s e ho l d 	
en er g y 	 b ill s 	 a nd 	 pla y 	 an 	 i mp ort a n t 	 pa rt 	 in 	 the	
f ig ht 	 ag a in s t 	 cl i m at e 	 c h a n g e. 	 T he 	 UK 	 n eed s	 	
to 	 dr a m atic a l l y 	 r e du c e 	 d a m ag in g 	 c a r b on	
e mi s s i ons 	 by 	 2 0 5 0. 	 U n de r 	 n ew 	 l aw s , 	 p e op le 	
w ho 	 f it 	 l ow -c arb o n 	 pr od u c t s 	 su ch 	 as 	 the	
G e nle c 	 mi c r o-C HP 	 u ni t 	 w ill 	 s o on 	 be 	 a b le 	 to	
c l a im 	 mo ne y 	 fo r 	 the 	 e le c tr ici ty 	 the y 	 pr od u c e . ”
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
08 08
C hi ef 	Exec ut i v e’ s 	 R ev i e w 	continued
12065 Energetix FRONT.indd   8 17/4/09   19:04:00 Genlec test facility where a range of boilers from different manufacturers are enabled and tested with Genlec micro-CHP modules. 
Our VPhase product is very well suited to fit into this growing 
market and, unlike smart meters, does not require a change in 
home owner behaviour. VPhase will save energy automatically 
and hence has far more quantifiable energy and CO
2
 sa vi n g s .  
We have identified synergies for the joint installation of smart 
meters and VPhase products, and we are proactively pursuing 
these opportunities, in addition to the relationships we already 
have in place with SSE and British Gas.
Whilst there is emphasis on reducing energy costs and the 
environmental impact of energy generation, there is also a need 
to ensure that the world’s networks, that are predominantly reliant 
on computer based systems, are supported by highly reliable 
quality power systems. Lawrence Berkeley Lab’s report on behalf 
of the US Department of Energy estimated that the annual cost of 
power interruptions to US consumers is US$79 billion. 
Pnu Power has already successfully demonstrated a stand by 
power system with Eskom, the leading South African power utility, 
and having tested our product in the high temperature and 
humidity that can be expected in this environment, we have had 
discussions with the providers of the mobile network for the 2010 
World Cup in South Africa. Very high levels of power and telecoms 
reliability are critical in the exacting demands of a major world 
tournament. It is anticipated that the mobile network will see high 
levels of transmissions through the network during each match 
and, as such, highly reliable back-up power as can be provided 
by Pnu Power is essential. Pnu Power is developing a pipeline of 
global sales opportunities, having already achieved trial sales in 
South Africa, the USA and Italy, and we anticipate this sales 
pipeline will deliver further orders in the coming year.
2008 was the year we said we would work to establish the 
foundations for each business to create growing revenue and 
contribution in 2009; I am pleased to say we have achieved this 
goal with healthy cash resources of £11.0 million and no bank 
borrowings. I am confident of further substantial progress as we 
commercialise our three businesses during 2009.
A C Hutchings
Chief Executive Officer
23 March 2009
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
09 09
12065 Energetix FRONT.indd   9 17/4/09   19:04:00 US 	 a e r os pa c e 	 a nd 	 d ef e nc e 	 c omp a n y , 	 P&E 	
A u t o m ati o n 	 I n c, 	 o r de rs 	 Pn u 	 Powe r 	 c omp r e s s e d 	
a ir 	 en er g y 	 s y s te m s 	 wo rt h 	 up 	 to 	 U S$3 8 0 , 0 0 0 .	
“We 	 a re 	 d e l ig ht e d 	 to 	 be 	 wo rki n g 	 wit h 	 E ne r g e ti x 	
Pn u 	 Powe r 	 on 	 thi s 	 p r oje c t , 	 a nd 	 to 	 o ffe r 	 thi s 	 	
u n iq ue 	 s ol u t i on 	 fo r 	 cle a n , 	 r e l ia bl e 	 ba c k - up 	 	
p owe r 	 a nd 	 pe a k 	s h av i n g 	to 	 the 	 US 	 D OE 	 a nd 	 ou r 	
a e r os pa c e 	 in d u s t ry 	 cl ie nt . ”	
Deanna Bebb, President, P&E Automation
T e l e com 	 I tal i a, 	 o ne 	 of 	 Europe ’s 	 l a r ges t 	 te l ec o m 	
pr o v i d e rs, 	 o r de rs 	 a 	 Pn u 	 Powe r 	 c omp r e s s e d 	 a ir	
en er g y 	s y s te m 	as 	pa rt 	of 	an 	e v a l u ati o n 	e x er c i se 	
to 	 v a l ida t e , 	 in 	 a 	 r e a l - l i fe 	 a p p l ic a t io n , 	 the 	 in c r e a s e d 	
r e li a b ili ty 	 a nd 	 r ed u c ed 	 m a i nt e n a nc e 	 th at 	 a 	 Pn u 	
Powe r 	 u ni t 	 d el i v ers 	 c omp a r e d 	 to 	 batt e r y - ba s e d 	
s y s te m s .
“We 	 a re 	 p le a s e d 	 to 	 h a ve 	 i ntr o d u c e d 	 thi s 	 n ew	
a nd 	 e x ci ti ng 	 t e c h no lo g y 	 to 	 Telecom 	 I tal i a 	 to	
d e mo n s tr at e 	 the 	 i m p roved 	 r e li a b ili ty 	 it 	 w ill 	 b r in g 	
to 	 the i r 	 s ys t e m. ”	
Attilio Testagrossa, Managing Director of OSAT
B usi n e s s 	 R ev i e w
Pnu Power
Pnu Power’s products are a novel form of energy storage based 
on compressed air. The largest single competing technology is 
Valve Regulated Lead Acid (VRLA) batteries; Pnu Power has a 
number of distinct advantages when compared to VRLA batteries 
and other current forms of energy storage:
The energy store is clean compressed breathing air, not a •	
hazardous chemical mixture;
Extreme reliability; as long as there is compressed air available •	
Pnu Power will start. When placing a demand on a VRLA 
battery, there can be many occasions where the energy is not 
available when required;
Lower life cycle cost, as Eskom noted in September 2008,  •	
“Pnu Power is a viable alternative to conventional battery 
storage for standby power in utility systems”; and
Pnu Power is not adversely affected by extremes of •	
temperature whereas, in particular, heat is very damaging 
to VRLA batteries and, as a result, VRLA batteries need 
significant amounts of expensive infrastructure and air  
conditioning – Pnu Power does not.
Currently Pnu Power has CE marked products available in DC or 
AC variants targeting power ranges from 600 watts up to 10 kW. 
In addition, the company is testing its technology up to a 50 kW 
system which will enable the company to enter into the higher 
power data and communications UPS markets.
The large global markets that the business is targeting include:
Utility switching; •	
Telecommunications; •	
Mobile radio; •	
Utility network support; •	
Specialist UPS for industrial applications; •	
Railway signalling; and •	
Data centre backup. •	
Pnu Power’s dedicated environmental test chamber where TC1 and TC2 
have successfully operated in extreme conditions.
P&E Automation
P&E Automation is a San Diego, California, based company 
specialising in energy management systems and solutions 
focusing on delivering increased energy efficiencies.
The company was founded in 2002 to exploit the market 
opportunity for integrating low-cost internet technologies and 
open system philosophies into energy management applications. 
With strong competencies in industrial automation and  
web technologies and a team-wide passion for energy  
conservation, P&E engineers have designed industry-changing 
tools for automating energy efficiency in commercial and  
industrial facilities.
P&E Automation believes that integrating Pnu Power as part of this 
innovative demand reduction and renewable energy project was a 
key factor in the project receiving grant funding by the US 
Department of Energy. 
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
10
12065 Energetix FRONT.indd   10 17/4/09   19:04:01 Pnu Power
Distributor
Major Contractor Contractor
End Users
2008 Business update
T he 	 Pn u 	 Powe r	 bu s i ne s s	 ha s	 a d o p te d	 a	 s t a nda r d 	
6	 s t ag e 	 pr oc e s s 	 of	 n ew	 pr od u c t 	 in t r o du c t io n 	 to	
the	m a r ke t . 	T h ese	s t a ges 	a re 	as 	f o l l ow s:
1. Validation of technology by technical authority
 For example, Stellenbosch University have analysed 
Pnu Power devices and have been operating one at a 
test site in Cape Town South Africa for 8 months, on 
behalf of Eskom, a major South African power utility.
2. Economic analysis & validation
 Stellenbosch researchers have written and 
presented a paper at Intelec confirming the life 
cycle cost savings of Pnu Power systems on 
telecommunication and power utility networks.
3. Field trials into real applications
 Pnu Power is installing units in both the United 
States and Italy as demonstrations of the benefits 
of Pnu Power in live applications.
4. Standardised product offer into limited network 
deployment
 This stage finalises business relationships and ensures 
all the B2B structures are in place including ISO9000, 
order processing, invoicing, debt collection, supplier 
management, logistics and customer relationship 
management. Pnu Power is already well progressed 
with the establishment of these.
5. Integration of business processes (Business 
Process Engineering and Certification)
6. Wide-scale deployment
Pnu Power Routes to Market
Objectives 2008 Progress  Objectives 2009 
The Business Platform  Post trial rollout growing revenue 
  and contribution
Widen Eskom deployment. Eskom paper presented at Intelec  Wider deployment with major operators. 
 concluding: 
 “Pnu Power is a viable alternative to   
 conventional battery storage for standby   
  power in utility systems…” 
Pilot installation with leading European  Telecom Italia order received, installation Pilot installations in North America. 
operators. in progress. 
Launch of TC2 and UPS product range. TC2 product launched. TC1 and TC2  First orders for high power 
 awarded CE certification and UPS UPS in North America and Europe. 
 product being commissioned. 
Establishment of North America office  Office established with sales and Secure initial North American 
and technical support function. technical support. First order was  telecoms orders. 
 secured for US$380,000. 
Exhibit at two major shows. Six major international shows attended. 
ACHIEVED TARGET Q4 2009 TARGET  
Q4 2010
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
11
12065 Energetix FRONT.indd   11 17/4/09   19:04:01 M i n i s te r 	 of 	 Sta t e 	 at 	 the 	 D e pa rtm e nt 	 fo r 	 E ne r g y 	
a nd 	 Cl i ma t e 	 C h a n g e, 	 M i ke 	 O’ B ri e n , 	 l a u nc he s 	
G e n le c 	 mi c r o-C HP 	 p r o du c t .
“ M ic r o g e ne r ati o n 	 t e c h no lo g i e s 	 th at 	 gen er a t e 	
b ot h 	 he at 	 a nd 	 e le c tr ici ty 	 ca n 	 r e du c e 	 ho u s e ho l d 	
en er g y 	 b ill s 	 a nd 	 pla y 	 an 	 i mp ort a n t 	 pa rt 	 in 	 the	
f ig ht 	 ag a in s t 	 cl i m at e 	 c h a n g e. 	 T he 	 UK 	 n eed s 	 to	
dr a m atic a l l y 	 r e du c e 	 d a m ag in g 	 e mi s s i ons 	 by	
2 0 5 0. 	 U n de r 	 n ew 	 l aw s , 	 p e op le 	 w ho 	 f it 	 l ow -c arb o n 	
pr od u c t s 	 su ch 	 as 	 the 	 G e nle c 	 mi c r o-C HP 	 u ni t 	 w ill	
s o on 	 be 	 a b le 	 to 	 c l a im 	 mo ne y 	 fo r 	 the 	 e le c tr ici ty 	
the y 	 pr od u c e . ” 	
Mike O’Brien, Minister of State at the Department for Energy and Climate 
Change
G e nle c 	 s ig n s 	 a 	 c om me r c ia l 	 a gr e em en t 	 wit h	
Da a l d er o p 	 BV 	 of 	 the 	 N et h e r la nds 	 r e q u ir in g 	
Da a l d er o p 	BV 	to 	us e 	a ll 	r e a s ona bl e 	c om me r c ia l 	
a nd 	 t e c h nic a l 	 e n d ea vo u rs 	 to 	 a c hie v e 	 sal e s 	 of	
3 0 , 000 	 G e nle c 	 mi c r o-C HP 	 u ni t s 	 o ve r 	 the 	 n ext	
th r e e 	 ye ars.
“We 	 a re 	 c o nf i de n t 	 th at 	 wit h 	 G e nle c 	 as 	 ou r 	 pa rtne r	
we 	 ca n 	 d el i v er 	 a 	 w or ld - l e ad i n g 	 mi c r o-C HP 	
pr od u c t 	 at 	 the 	 l owe st 	 c os t 	 p o in t 	 of 	 any 	 su ch	
pr od u c t s . ”
Bart Romeijin, Chief Executive Officer of Daalderop BV 
G e nle c 	 s ig n s 	 a 	 tr i pa rtit e 	 h e ads 	 of 	 te rm s 	 wit h	
E.ON 	 E ng i ne e r i ng 	 L i mit e d 	 (a 	 s ubs i d i a r y 	 of 	 E.ON	
UK 	 p l c) 	 a nd 	 a 	 m a jo r 	 Eu r o p e a n 	 a p pl ia n c e 	
m a n u fac t u r e r 	 to 	 i n v e s tig at e 	 the 	 p o t e nti a l 	 fo r 	
ma s s - ma r k e t 	 p r o du c t io n 	 of 	 G e nle c 	 mo d ule s	 	
a nd 	 c ompl et e 	 G e nle c 	 e na bl e d 	 mi c r o-C HP 	
a p pl ia n c e s .
“E.ON 	 is 	 d e l ig ht e d 	 to 	 pa rtne r 	 wit h 	 E ne r g e ti x 	
G e nle c 	 a nd 	 to 	 be 	 i n vo l ved 	 wit h 	 thi s 	 i n n o v ativ e 	
p r oje c t 	 w hic h 	 is 	 d e s ig ne d 	 to 	 s ig nif ic a ntl y 	 a s s is t	
c ons u me rs 	 to 	 l owe r 	 the i r 	 en er g y 	 b ill s 	 w hi le 	
he l p i ng 	 to 	 c o m bat 	 cl i m at e 	change.”
Charles Bradshaw-Smith, Head of Innovation at E.ON UK plc
B usi n e s s 	 R ev i e w
Genlec
Genlec has developed a module that when combined in a normal 
heating appliance will convert it to a micro combined heat and 
power (‘micro-CHP’) appliance for domestic use.
The benefits of micro-CHP are well documented and include:
reduced energy costs for the homeowner; •	
reductions in carbon emissions; •	
reduced gas consumption for the UK overall, reducing our •	
reliance on imported gas;
microgeneration of electricity at the household; and •	
reduced electricity losses during distribution. •	
Genlec has been designed to be the lowest cost micro-CHP unit 
targeted at the mass-market that utilises existing routes to market 
so reducing the barriers to new technology adoption.
Utilising existing routes to market significantly reduces the barriers 
to entry. Installation of a Genlec enabled micro-CHP appliance is 
virtually identical to the installation of an existing boiler, as is its 
operation for the home owner.
The business is establishing both commercial agreements with 
boiler manufacturers to push the company’s products down 
existing routes to market as well as engaging with utility companies 
to encourage a pull for Genlec enabled appliances.
Daalderop BV
In a tradition that spans nearly 130 years Daalderop BV have 
become a leading manufacturer of innovative household 
products. From a purpose-built factory in the Netherlands, 
equipment is developed and produced for heating and cooling 
and for providing hot and cold water.
Daalderop BV and Genlec have been successfully developing 
and testing a Genlec enabled Daalderop BV micro-CHP 
appliance for two years, and in January 2009 signed an 
agreement that requires Daalderop BV to use all reasonable 
commercial and technical endeavours to achieve sales 
volumes of at least 30,000 Genlec enabled micro-CHP units 
for the residential heating markets over the next three years.
Daalderop BV have a stated vision of developing sustainable 
products that deliver in-house comfort and have stated their 
confidence that, with Genlec as their partner, they can deliver 
a world leading micro-CHP product at the lowest cost point 
for such products.
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
12
12065 Energetix FRONT.indd   12 17/4/09   19:04:01 Genlec
Boiler/appliance
manufacturers
Existing distribution 
networks
End Users
Genlec Routes to Market
Utilities
Major plumbing 
contractor
Plumbers
A Genlec enabled micro-CHP appliance has similar dimensions 
to conventional boilers and with its low weight these appliances 
can be wall hung. This is a significant factor as over 90% of the 
European boiler market is for wall hung appliances.
Genlec’s specific unique selling points over competitive 
micro-CHP technology include:
low weight (suitable for integration into wall hung •	
appliances);
low noise (suitable for living area accommodation); •	
ease of assembly and appliance integration; •	
conventional installation; and •	
low manufacturing costs. •	
The operating characteristics of the unit are such that electricity 
is generated as soon as heat is demanded so generation 
follows the heating and hot water demands of the home. With 
rapid start-up and shut-down capability, the excellent 
modulation characteristics of a Genlec enabled micro-CHP 
appliance maximise overall electrical efficiency.
‘CombiVolt’ is the first such Genlec enabled appliance to be 
launched by Daalderop BV. Daalderop BV plans to start sales 
of ‘CombiVolt’ later this year, and to achieve at least 30,000 
unit sales by the end of 2011. Other partners’ products are 
likely to be brought to market during 2010.
2008 Business update
Objectives 2008 Progress  Objectives 2009 
Product Launch  Revenue Growth
Complete E.ON trials.  New agreement announced to progress  Sales growth through boiler partners. 
 towards manufacturing Genlec enabled  
 micro-CHP appliances. 
Extend boiler company and utility  Three further relationships announced Volume agreement with utility partners. 
company relationships. during 2008 giving partners in all the  
 major European boiler markets. 
Dutch field trials. Starting 2009 Daalderop BV’s ‘CombiVolt’  Commence sales to Dutch homes. 
 Genlec enabled appliance is currently   
 undergoing Daalderop BV in-house testing. 
Formal product launch. Product launched by the Energy Minister European market growth. 
 Mike O’Brien MP in November 2008.
Increase company profile through  The company has been profiled on  
presentations and exhibitions. BBC North West News with coverage of 
 the Energy Minister’s visit to Energetix.The  
 company has participated in and presented  
 papers at four major industry events.
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
13
12065 Energetix FRONT.indd   13 17/4/09   19:04:01 VPhase’s smart voltage management device significantly reduces a 
property’s electricity costs leading to energy savings for the property 
owner, lower carbon emissions and consistent voltage levels.
The voltage supplied to a home or business needs to vary to 
ensure that the distribution network works effectively. Whilst the 
agreed statutory range across Europe is based on 230V +/- 10% 
(207V to 253V), voltages tend to be supplied at the higher end of 
the range to ensure that the network does not drop below the 
minimum when heavy loads are switched in and out. In the UK 
voltage is typically around 245 volts. 
Household appliances are designed to operate satisfactorily 
across the range. Most appliances get no benefit for voltages 
above the minimum level and by managing their voltage down 
from typical levels they will use less energy. These include lighting, 
refrigeration, other white goods, appliances with motors, pumps 
and some entertainment products. The amount of energy saved 
depends on the specific device and the level of voltage reduction 
and can typically vary from a few percent to over 15%.
The VPhase VX1 product uses the company’s unique technology 
to provide cost effective, smart voltage management. It works in 
conjunction with the consumer unit (fuse box) to selectively apply 
voltage reduction to the circuits most likely to deliver the greatest 
savings. Whenever the incoming voltage is higher the VX1 unit 
reduces it to a set level, typically 220V in the UK, a level that will 
optimise savings versus performance.
Currently the business is working directly with SSE and Ofgem to 
establish the product and its eligibility to CERT credits.
B usi n e s s 	 R ev i e w
VPhase
VP h a se 	 p lc 	 a n n ou nc e s 	 O f gem 	 ap p rov al 	 fo r 	
tr i a l i ng 	 of 	 the 	 VP h a se 	 VX1 	 pr od u c t 	 u n de r 	 the	 	
UK 	 G o v e r nme n t ’ s 	 Ca r b o n 	 E mi s s i ons 	 R e du c t io n 	
Target 	 ( CER T) 	 sc h em e 	 in 	 pa rtne rs hi p 	 wit h 	 S SE.
“We 	 a re 	 l o ok i ng 	 f o rward 	 to 	 c o n f ir m in g 	 the	 	
en er g y 	 a nd 	 c a r b on 	 sav i n g 	 c a p a b ili ty 	 of 	 the	
VP h a se 	 VX1 	 d e vi ce 	 a nd 	 s ubs e q u e ntl y 	 m a k in g 	
the 	 pr od u c t 	 a v a i la bl e 	 to 	 S SE 	 c u s t ome rs . ” 	
Paul Wilkins, Energy Efficiency Team Leader for SSE
VP ha se	 plc	 sig n s 	 a	 me m or a nd um	 of	
und e r s t a nding	 wit h 	 B r it is h 	 Ga s	 ( pa r t 	 of	
Ce ntr i c a 	 plc) 	 to	 d i s tr i but e 	 the	 VP ha se 	 en er g y 	
savi ng 	pr od u c t	–	su bje c t 	to	su c ce s s fu l	t r ia ls . 	
“ T h is	 MoU 	 is	 a n o the r 	 step 	 in	 B r it is h 	 Ga s 	
pu t ti ng 	 in	 place 	 a	 r a ng e 	 of	 low	 c a r bon 	 	
en er g y	 t e ch n o l ogi e s	 a nd 	 pr od u c t s	 for 	 our 	
r e s id e ntia l , 	 busi ne s s 	 a nd 	 pub l ic	 sect or 	
c u s t ome r s . 	 Th es e 	 t e ch n o l ogi e s	 will	 b e come 	
in cr e a sin gly 	 i mpor t a n t 	 as	 UK	 consu me r s	 s e ek	
to	b e come 	mo r e 	en er g y	ef f icie nt . ” 	
Gearoid Lane, Managing Director of British Gas New Energy, leading the 
product trials on behalf of British Gas Services
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
14
12065 Energetix FRONT.indd   14 17/4/09   19:04:02 VPhase Routes to Market
OEM 
Manufacturer
Consumer
Electrical 
Contractor
Housebuilder
Utility 
Company
VPhase
Housing 
Association
Local Authority
Specialist 
Distributor
2008 Business update
Objectives 2008 Progress  Objectives 2009 
Establish supply chain  Post trial rollout, growing revenue 
and provide customer pull  and contribution
Product engineering. Product is currently being CE marked  Start volume manufacture. 
 and it is anticipated that this will be  
 completed in H1 of 2009. 
Test house installation and data logging. VPhase have had units running  UK market rollout. 
 continuously since March 2008 simulating  
 household usage. This has provided   
 significant data to underpin energy savings. 
Deliver pre-production units for Completed in Q1 2009. Expansion of routes to markets.  
partner evaluation.  
Initial market introduction working with  Relationships are in place with SSE and Develop overseas markets. 
selected partners. British Gas. We are exploring routes to  
 market for the UK, Europe and   
 North America. 
Scale up for volume production. Contract negotiations currently under way. Development of next generation. 
products.
Exhibit at major show. The company exhibited at Interbuild in  
 2008 and Ecobuild in Q1 2009. 
The first product, the VX1, is a stand alone smart voltage 
management unit designed for domestic household and small 
commercial applications.
VPhase market entry is into the largest retrofit and replacement 
segment in both the private and public housing market. This will 
be followed by entry into the new build market as this sector 
recovers.
Calculations indicate that the VX1 will offer the home owner a 
similar payback period to that of adding loft insulation. The 
challenge is to communicate the positive principles of smart 
voltage management and, to achieve this, VPhase is teaming 
with utility companies, specifically SSE (18% share of UK 
electricity supply market) and British Gas (21% share of UK 
electricity supply market).
Regardless of economic conditions, however, public housing 
has electrical inspections every five years leading to average 
replacement cycles for fuse boxes of around 20 years.
Market Expansion
VPhase have initially focused upon the UK market. However, 
market research is ongoing in the EU where the opportunity to 
quickly market the VX1 product exists. In addition, market 
research is being conducted in North America where, although 
requiring a different product, the energy savings and market 
size are potentially much greater.
VPhase is in discussions with consumer unit manufacturers 
regarding the integration of VPhase technology within fuse box 
product ranges and VPhase is currently considering many 
different options for future generation products.
VPhase voltage control technology can deliver a range of 
products from a ‘stand alone’ unit to a component within a 
consumer unit (fuse box) or a future integration into individual 
appliances.
VPhase markets are:
new housing; •	
public housing replacement or retrofit; •	
private housing replacement or retrofit; and •	
small commercial (office/retail), new build or retrofit/replacement. •	
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
15
12065 Energetix FRONT.indd   15 17/4/09   19:04:02 Revenues of £32,000 (2007: £55,000) were achieved from the 
sale of development products. With the recent orders from P&E 
Automation and Telecom Italia for Pnu Power product, the signing 
of a commercial agreement with Daalderop BV for Genlec 
product, and the commencement of Ofgem trials following the 
CE marking of VPhase’s VX1, 2009 is expected to be a significant 
year for the Group. 
Overheads in the year were £4.20 million (2007: £3.05 million). 
This is an improvement on internal budgets and is consistent with 
the Group’s strategy of controlling expenditure and ensuring 
maximum value for the Group. 
Our operating loss of £4.20 million (2007: £3.01 million) reflects 
the positive progress that the Group has made over the past year 
in establishing a sound foundation from which to generate sales 
across all three trading subsidiaries in 2009.
The loss before income tax of £1.66 million (2007: £1.84 million) is 
significantly better than internal forecasts and reflects the Group’s 
tight expenditure controls. 
Cash utilised before the proceeds from placing of shares and 
before interest receipts of £0.62 million (2007: £0.41 million) in 2008 
was £5.67 million (2007: £3.37 million). The cash was utilised on 
operating activities £2.93 million (2007: £2.44 million) and on 
investing activities £1.98 million (2007: £0.17 million). Investing 
activities include the purchase of property, plant and equipment 
£0.34 million (2007: £0.19 million) and investment in intangible 
development assets of £2.26 million (2007: £1.02 million) in 
accordance with IAS38, less interest received; further details are 
contained in note 14 to the Group Financial Statements. The Group 
has a strong focus on cash management and is confident that all 
three businesses are fully funded. The cash balance at the end of 
the year was £11.03 million (2007: £12.78 million).
During the year £3.31 million, net of costs, was raised by VPhase 
plc, a subsidiary of the Group, through the placing of 70,000,000 
new ordinary shares of 0.25 pence at 5 pence per share. The 
Group currently owns 49.1% (2007: 55.1%) of VPhase and during 
the year this shareholding has increased in market value by £8.6 
million to £22.35 million. 
As the Group consolidates the results of VPhase, no credit for this 
has been taken to the Group Income Statement or Balance Sheet 
except where IFRS requires recognition of such gains. The issuing 
of new equity under IFRS requires the Group to recognise a value 
for the dilution in its interest and, in addition to the placing, VPhase 
has issued 4,992,960 new ordinary shares to the Company’s 
broker in settlement of fees. The impact of these transactions has 
resulted in a recognised gain of £1.63 million in other gains.
Cash has been managed to optimise the value from surplus cash 
balances giving priority to security then to liquidity and then to 
yield and to preserve the principal value of the investment by 
investing surplus funds only with institutions of a high credit 
standing. This strategy has resulted in interest earnings during 
the year of £0.62 million (2007: £0.41 million). 
During the year, the fees of the Company’s brokers have been 
settled by the issue of 77,504 new ordinary shares of 5 pence 
each and the Company has a commitment to issue a further 
32,050 shares for services provided up to the 22 March 2009. 
Accordingly, the fair value of these share based payments has 
been recorded in the Group Income Statement.
R H Smith
Chief Financial Officer
23 March 2009
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
16
Fi n a n c e 	 R ev i e w
12065 Energetix FRONT.indd   16 17/4/09   19:04:02 1. Alan 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 of Proactis Holdings plc,  
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 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 is a Non-Executive Board  
member of the Department for Innovation, 
Universities and Skills.
B oa r d 	 of 	 D i r ect o r s 	 a nd 	 Sen i o r 	 Ma n a gem en t
Board of Directors
2. Adrian 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 £50 million capital, £500 
million life cycle, design and construction project 
for a major facility at the Sellafield site. Adrian has 
a degree in Chemical Engineering. 
3. Richard 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. 
4. Dr. Henry J Cialone
Non-Executive Director
(Appointed 14 March 2008)
Dr. Henry Cialone is President and CEO of Edison 
Welding Institute (EWI), North America’s leading 
independent materials joining technology 
organisation and an Ohio Edison Centre. 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 
(Brown), and his MS and PhD degrees in Materials 
Science, also from Brown, where his area of 
specialisation was hydrogen enhanced fracture.
5. Neil S Bright
Operations Director
(Appointed 22 January 2009)
Neil Bright joined Energetix Group from Exide 
T echnologies, one of the world’s largest producers 
of lead-acid batteries, where he was President of 
the Group’s global Industrial Energy Division from 
2000 to 2006. He was responsible for a US$800m 
turnover division, managing industrial battery 
sales, manufacturing and logistics operations 
throughout Europe, the Middle East and Asia 
Pacific within a global telecommunications, UPS, 
and materials handling market worth US$3 billion. 
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.
1.
4.
2.
5.
3.
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
17
12065 Energetix FRONT.indd   17 17/4/09   19:04:03 Senior Management
Dr. Lee 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 oversaw the transition of 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. 
CE marked Pnu Power TC1.
Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
18
12065 Energetix FRONT.indd   18 17/4/09   19:04:03 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
19
Group Directors’ Report
for the year ended 31 December 2008
The Directors present their report and the audited Financial 
Statements for the year ended 31 December 2008.
Basis of preparation of the Financial Statements
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 2008 and 
for the corresponding period in 2007 . Further details are provided 
in note 2 to the Financial Statements.
Principal activities
Energetix Group plc is focussed 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 £1,662,000 
(2007: £1,847,000). 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, Business 
Review and the Finance Review on pages 4 to 16 and future 
developments as set out in the Chief Executive’s Review.
Risk review 
The Directors have monitored the progress of the overall Group 
strategy and have carried out a more detailed appraisal of its 
three key operating subsidiaries Energetix (Pnu) Power Limited, 
Energetix Genlec Limited, and VPhase plc. 
A review of the Key Performance Indicators (KPIs) is contained in 
the Chairman’s Statement, the Chief Executive’s Review, Business 
Review and the Finance Review on pages 4 to 16. 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:
Funding requirements
The Group is currently fully funded and is not seeking external 
finance or borrowing facilities.
Strength of the Group’s bankers
The Group has reviewed and updated its treasury policy, and, in 
accordance with this, funds are only lodged with UK and Irish 
based financial institutions with an ‘A’ rating or better.
Failure of suppliers of essential goods and services
Wherever practical the Group seeks to dual source its key 
components and services. Each supplier is assessed and where 
necessary strategies to manage and protect supply to the Group 
are put in place.
Value creation
The Group has established three businesses around three 
technology platforms each of which is targeting identified needs 
in high value global markets.
Each business has developed the technology into products which 
are either available for sale or in the final stages of certification/
testing to enable sale.
Each business is putting in place appropriate supply chain 
agreements with suppliers and customers as meet the needs of 
their markets and seek to maximise value capture for the Group.
Once a subsidiary business is established around a particular 
product or service the Group will keep under review the optimum 
strategy for creating value. This may involve continuing to operate 
the subsidiary or other strategies, including but not limited to, 
demerging the subsidiary, floating the subsidiary independently 
or a 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.
12065 Energetix BACK.indd   19 20/4/09   15:25:50 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
20
Group Directors’ Report continued
for the year ended 31 December 2008
The Group’s strategy of developing and 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 and development 
The Group undertakes a significant amount of research and development to address opportunities in the alternative energy market. 
In 2008, the Group incurred research and development costs of £2,281,000 (2007: £1,118,000) of which £2,255,000  
(2007: £1,020,000) has been capitalised in accordance with IAS 38 ‘Intangible Assets’. See note 14 for an analysis of capitalised 
development costs.
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 
 2008 2007
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
Dr. H J Cialone (Non-Executive Director) (Appointed 14 March 2008) – –
A C Elsborg (Non-Executive Director) (Resigned 22 January 2009) 1,162,884 1,162,884
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 no shares in the Company as at 31 December 2008 
(2007: 7,400,069).
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:
   Date of At 1  Granted At 31  Earliest 
   grant January  during the December Exercise exercise Expiry 
     2008 year 2008 price (p) date date
B M Gray  15 August 2006 337,500 –  337,500 40 15.08.06 14.03.09
The fair value charge recognised in the Group Income Statement in respect of share options granted to Directors was £8,000  
(2007: £20,000).
The middle market price of ordinary shares on 31 December 2008 was 45.0 (2007: 105.0) pence. The high and low market prices 
during the year were 117.5 (2007: 147.5) pence and 44.0 (2007: 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.
12065 Energetix BACK.indd   20 20/4/09   15:25:50 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
21
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, other than the 
Group’s treasury policy which has been updated in the year in 
response to the recent banking crisis. See note 22.1. 
Liquidity risk
The Group seeks to manage financial risk by ensuring sufficient 
liquidity is available to meet foreseeable needs and to invest cash 
assets safely and profitably. The Group had net cash balances of 
£11,025,000 as at 31 December 2008 (2007: £12,778,000).
The maturity of borrowings is set out in note 19 to the Group 
Financial Statements. 
Following the incorporation of Energetix Technologies Inc. in 
2008, the Directors have assessed the Group’s currency risk. 
Presently, the Directors do not believe that the Group’s currency 
risk requires hedging, however this situation will be monitored 
and amended if appropriate.
Credit risk
The Group’s principal financial asset is cash. Although the credit 
risk associated with cash is limited, the Group’s treasury policy 
has been updated in the year and is explained in more detail 
earlier in this Group Directors’ Report. 
Supplier payment policy
It is the Group’s policy, in respect of all suppliers, to agree payment 
terms in advance of the supply of goods and services and to 
adhere to those payment terms. Trade creditors of the Group at 
the year end as a proportion of amounts invoiced by suppliers 
during the year represent 35 days (2007: 45 days) and for the 
Company represent 60 days (2007: 16 days). 
 
Going concern
Having made reasonable enquiries, the Directors are of the opinion 
that the Group has adequate resources to continue in operational 
existence for the foreseeable future and hence these Financial 
Statements have been prepared on a going concern basis. Further 
details are disclosed within note 2.2 to the Financial Statements.
Major shareholdings
As at 10 March 2009 the Company had been notified of the 
following interests in 3% or more of the Company’s issued share 
capital, pursuant to the Disclosure and Transparency rules of the 
Financial Services Authority:
   %
Blackrock Inc   15.98
Aviva plc   10.35
AXA Framlington   8.62
Invesco Limited   5.27
Gartmore Investment Limited   5.01
Lloyds Banking Group plc   4.07
Credit Suisse Sec (Europe) Limited   3.07
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 2008, 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 17 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 judgment 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. 
12065 Energetix BACK.indd   21 21/4/09   09:27:36 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
22
Group Directors’ Report continued
for the year ended 31 December 2008
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 2008 
were A C Elsborg who, as noted in the Chairman’s Statement, 
resigned on 22 January 2009 and was replaced as Chairman of 
the Audit Committee by A J Aubrey, and Dr. H J Cialone. 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
ensuring compliance with the relevant requirements of the AIM •	
Rules for Companies. 
Remuneration Committee
The members of the Remuneration Committee as at 31 December 
2008 were A C Elsborg who, as noted in the Chairman’s 
Statement, resigned on 22 January 2009 and was replaced as 
Chairman of the Remuneration Committee by Dr. H J Cialone, 
and A J Aubrey. 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.
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 
10am on 20 May 2009 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 practicably possible. As noted, 
the Audit Committee has a significant role in this area. The internal 
control systems established are designed to manage rather than 
completely eliminate risk and can only provide reasonable but not 
absolute assurance against misstatement or loss.
The Group does not currently have an internal audit function  
and this 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.
 
12065 Energetix BACK.indd   22 20/4/09   15:25:50 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
23
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 the Group as at 
the end of the financial year and of the profit or loss of the Group 
for the financial year. The Directors have prepared 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 judgments and estimates that are reasonable and •	
prudent;
for the Group Financial Statements, state whether they have •	
been prepared in accordance with IFRS as adopted by the EU;
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 parent company 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 auditors 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
A C Hutchings
Chief Executive Officer 
23 March 2009
12065 Energetix BACK.indd   23 20/4/09   15:25:50 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
24
Report of the Independent Auditors to the 
Members of Energetix Group plc
We have audited the Group and parent company Financial 
Statements (the ‘Financial Statements’) of Energetix Group plc for 
the year ended 31 December 2008 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 
(IFRS) 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 Finance 
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, Finance  
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 judgments 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 IFRS as adopted by the European Union, of 
the state of the Group’s affairs as at 31 December 2008 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 2008;
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
23 March 2009
12065 Energetix BACK.indd   24 20/4/09   15:25:50 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
25
Group Income Statement
for the year ended 31 December 2008
        Year ended Year ended 
         31 December 31 December 
        2008 2007 
       Note £’000 £’000
Revenue       3 32 55
Cost of sales       (32) (24)
Gross profit       – 31
Administrative expenses       (4,202) (3,045)
Operating loss        (4,202) (3,014)
Finance income      5 911 488
Other gains       6 1,629 685
Loss before income tax      4 (1,662) (1,841)
Income tax      10 – (6)
Loss for the year       (1,662) (1,847)
Attributable to:    
Equity holders of the Company       (1,272) (1,842)
Minority interest      25 (390) (5)
       (1,662) (1,847)
Loss per share attributable to the equity holders of the Company during the year
Total and continuing: 
– Basic and diluted      12 (2.31)p (3.74)p
All revenue and costs originate from continuing activities.
The notes on pages 29 to 54 are an integral part of these Group Financial Statements.
 
12065 Energetix BACK.indd   25 20/4/09   15:25:51 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
26
Group Statement of Changes in Equity
for the year ended 31 December 2008
 Attributable to equity holders of the Company
 Share  Share Retained Reverse Warrant Other Total Minority Total 
 capital premium earnings acquisition reserve  reserves shareholders interest  equity 
    reserve   equity 
 £’000 £’000 £’000 £’000 £’000 £’000 £’000  £’000 £’000
Balance at 1 January 2007 2,250 4,591 1,687 (821) 256 44 8,007 – 8,007
Loss for the year and total 
 recognised loss for the year – – (1,842) – – – (1,842) (5) (1,847)
Partial disposal of Energetix  
 Voltage Control Limited – – – – – – – 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
Shares 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
Loss for the year and total  
 recognised loss for the year – – (1,272) – – – (1,272) (390) (1,662)
Share based payments – – 6 – –  22 28 – 28
Other share based payments – 2007 – – 20 – – (20) – – –
Other share based payments – 2008 – – – – – 16 16 – 16
Issue of warrants in VPhase plc – – – – 105 – 105 – 105
Issue of warrants – (230) – – 230 – – – –
Deemed disposal in VPhase plc (note 23) – – – – – – – 1,651 1,651
Shares issued:
– 13 February 2008 1 11 – – – (12) – – –
– 12 June 2008 1 11 – – – – 12 – 12
– 14 August 2008 1 15 – – – – 16 – 16
– 8 October 2008 1 15 – – – – 16 – 16
Balance at 31 December 2008 2,756 15,198 (1,401) (821) 591 150 16,473 1,512 17,985
Total recognised income and expense recognised directly to equity amounts to £Nil (2007: £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 Energetix Group plc (‘the Company’) granted 1,350,000 warrants to its broker and 
nominated advisor in relation to the flotation. On 1 August 2007, as part of the agreed placing costs of the Company with its broker, 
the Company granted 500,000 warrants to its broker. 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. In 2008 warrants were issued by VPhase plc in settlement of part of its 
costs for placing shares in May 2008.
Other reserves
Other reserves comprise of share based payments for the cost of options granted £22,000 (2007: £68,000). In addition, it includes 
£16,000 (2007: £32,000) for other share based payments issued to the joint brokers, note 28.
Minority interest
As at 31 December 2008, a minority interest existed due to the Group owning less than 100% of VPhase plc. The Group’s shareholding 
has been further diluted by the issue of shares to its broker, Novum Securities Limited, in settlement of outstanding fees and the 
placing of 70,000,000 VPhase shares as set out in note 23.
The notes on pages 29 to 54 are an integral part of these Group Financial Statements.
12065 Energetix BACK.indd   26 20/4/09   15:25:51 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
27
Group Balance Sheet
as at 31 December 2008
        As at 31  As at 31 
        December December 
        2008 2007 
       Note £’000 £’000
ASSETS    
Non-current assets    
Goodwill      13 311 311
Other intangible assets      14 9,063 7,144
Property, plant and equipment      15 415 205
       9,789 7,660
Current assets    
Inventories      16 – 58
Trade and other receivables      17 415 360
Cash and cash equivalents      18 11,025 12,778
       11,440 13,196
Total assets       21,229 20,856
   
LIABILITIES   
Non-current liabilities   
Financial liability – borrowings      19 1,625 2,245
       1,625 2,245
Current liabilities   
Financial liability – borrowings      19 264 89
Trade and other payables      20 1,355 719
       1,619 808
   
Total liabilities       3,244 3,053
   
EQUITY    
Capital and reserves attributable to equity holders of the Company 
Share capital      24 2,756 2,752
Share premium       15,198 15,376
Retained earnings       (1,401) (155)
Reverse acquisition reserve       (821) (821)
Warrant reserve      24 591 256
Other reserves       150 144
Total shareholders’ equity       16,473 17,552
Minority interest      25 1,512 251
Total equity       17,985 17,803
  
Total equity and liabilities       21,229 20,856
The notes on pages 29 to 54 are an integral part of these Group Financial Statements.
These Financial Statements were approved by the Board of Directors and authorised for issue on 23 March 2009 and were signed on 
its behalf by:
A C Hutchings R H Smith   
Chief Executive Officer Chief Financial Officer  
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Group Financial Statements for the year ended 31 December 2008
28
Group Cash Flow Statement
for the year ended 31 December 2008
        Year ended Year ended 
        31 December 31 December 
        2008 2007 
       Note £’000 £’000
Cash flows from operating activities    
Cash consumed by operations      26 (2,933) (2,437)
   
Cash flows from investing activities   
Expenditure on intangible assets      14 (2,255) (1,020)
Purchases of property, plant and equipment      15 (335) (190)
Proceeds from part disposal of business       – 600
Net cash acquired with subsidiaries       – 30
Interest received      5 615 413
       (1,975) (167)
Cash flows from financing activities   
Net proceeds from the issue of ordinary shares       3,305 11,287
Repayment of financial liabilities      19 (150) (350)
       3,155 10,937
Net (decrease)/increase in cash and cash equivalents      (1,753) 8,333
Cash and cash equivalents at the beginning of the year      12,778 4,445
Cash and cash equivalents at the end of the year      18 11,025 12,778
The notes on pages 29 to 54 are an integral part of these Group Financial Statements.
 
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Group Financial Statements for the year ended 31 December 2008
29
Notes to the Group Financial Statements
for the year ended 31 December 2008
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 64 of the Group Financial Statements. Energetix Group plc is a limited company incorporated in England and Wales.
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
One interpretation issued by the International Financial Reporting Interpretations Committee is effective for the current period;  
IFRIC 14 IAS19 – the limit as a defined benefit asset, minimum funding requirements and their interaction. The adoption of the 
interpretation has not led to any changes in the Group’s accounting policies. 
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 (note 19).
Going concern
The Group’s business activities, together with the factors likely to affect its future development, performance and position are set out 
in the Group Directors’ Report on pages 19 to 23. The financial position of the Group, its cash flows and liquidity position are described 
in the Finance Review on page 16. In addition, this note 2 to the Financial Statements includes the Group’s objectives, policies and 
processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; 
and its exposures to credit risk and liquidity risk.
The Group has considerable financial resources and, together with contractual arrangements with certain economic partners in 
different geographical areas and industries, this provides a sound platform for launching the Group’s products and generating future 
sales. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully despite the 
current uncertain economic outlook.
The Group’s forecasts and projections, which have been prepared for the period to 31 December 2011 and taking account  
of reasonably possible changes in performance, show that the Group should be able to operate within the level of its current  
cash resources.
After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to 
continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing 
the Group Financial Statements.
2.3 Critical accounting estimates and judgments
The preparation of the Group 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 judgment in the process of applying the Group’s  
accounting policies. 
Estimates and judgments 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. 
The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the Group 
Financial Statements are disclosed below.
Critical accounting estimates
Research and development activities
Management have reviewed the Group’s research and development activities and have made estimates and judgments on the 
amount of development expenditure it is appropriate to capitalise. The criteria which management have to make judgments about are 
set out in note 2.12.
Discount rate on intangible assets and financial liabilities
Management have exercised judgment in selecting the appropriate discount rate for application against intangible assets and  
financial liabilities and have selected 12.50% (2007: 7.50%) to represent the best estimate of the current cost of capital to the Group, 
see notes 14 and 19.
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Group Financial Statements for the year ended 31 December 2008
30
Notes to the Group Financial Statements continued
for the year ended 31 December 2008
2.3 Critical accounting estimates and judgments continued 
Impairment of intangible assets
Management have conducted an impairment review of intangible assets and have to make judgments as to the likelihood of them 
generating future cash flow, the period over which 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, management uses a variety of sources including third party published reports and knowledge from discussions with 
partners and potential partners in both the supply and distribution channels as set out in note 14.
Share based incentive arrangements and warrants
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 judgment 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.
During the year, the Group has issued shares to its joint broker for annual services rendered up to March 2009 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 2009. 
These share based payments have been valued at their fair value as they are received and are charged to the Income Statement with 
a corresponding credit to equity.
In addition, during the year the Group has issued warrants to its broker, as part of agreed placing costs. These warrants have been 
valued at their fair value as they are received based upon the Black-Scholes option pricing model and are charged to the share 
premium account, as set out in note 24.2.
Taxation
Management have not provided for deferred tax in relation to unrelieved tax losses as the recoverability is currently uncertain.
Critical accounting judgments
Part Disposal of VPhase plc 
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 part 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.
Control over VPhase plc
Following the deemed disposals in VPhase plc, the Group holds 49.1% (2007: 55.1%) of the ordinary share capital of VPhase plc. The 
Group continues to consolidate the results of the subsidiary on the basis that it controls the financial and operating polices of  
VPhase plc through Board members. In addition, the Group has control over 53.7% (2007: 60.1%) of the voting rights of the  
ordinary shares in VPhase plc as a result of retaining the voting rights over shares held by an Employee Benefit Trust.
Financial liabilities
Management have considered the terms of agreement with Battelle Memorial Institute and consider the obligation for future repayments 
based on a percentage of mainstream sales to be a non-financial item. Accordingly, the instrument is considered an embedded 
derivative and the Group has designated the entire instrument as fair value through profit and loss (FVTPL), see notes 14 and 19. 
Amortisation of development assets
Development costs capitalised, 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 products are deemed to still be in the development phase and accordingly no amortisation has been 
charged to the Group Income Statement.
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Group Financial Statements for the year ended 31 December 2008
31
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.
The share for share exchange has been accounted for using reverse acquisition methodology. 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; and
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. 
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 Group Income Statement as an administrative expense.
Consolidation model
The Group Financial Statements also incorporate the Financial Statements 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. 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 fully provided.
Minority interests in the net assets (excluding goodwill) of Group 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.
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Group Financial Statements for the year ended 31 December 2008
32
Notes to the Group Financial Statements continued
for the year ended 31 December 2008
2.4 Basis of consolidation continued
Inventories
Inventories are stated at the lower of cost and net realisable value. Costs include an appropriate portion of fixed and variable overhead 
expenses, and 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.
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 the Income Statement 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 
the Income Statement in the period for which they become receivable. 
Goodwill
Goodwill arose on the reverse acquisition of Energetix Voltage Control Limited into VPhase plc (formerly Flightstore group plc), 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.
2.5 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. Amortisation is charged to  
administrative expenses.
Development costs capitalised (note 2.12), 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 products are deemed to still be in the development phase and accordingly no amortisation has 
been charged to the Group Income Statement.
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. The impairment review of intangible assets is 
analysed in note 14.
2.6 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 as follows: 
 – 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 the carrying amount. These are included in the Group Income Statement.
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Group Financial Statements for the year ended 31 December 2008
33
2.7 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 Group 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 through 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  
Group Income Statement. 
2.8 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.
2.9 Trade Payables
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest 
method. 
2.10 Other financial liabilities
Other financial liabilities including borrowings as detailed in note 19 are recognised and valued at fair value through profit and loss 
(FVTPL) using the effective interest method.
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.
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Group Financial Statements for the year ended 31 December 2008
34
Notes to the Group Financial Statements continued
for the year ended 31 December 2008
2.11 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 sale 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.
Other income
Other income includes the revaluation of long term borrowings as the term to payment reduces.
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. 
2.12 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 or when events or changes in circumstances indicate that the carrying value may not be recoverable. 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. •	
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Group Financial Statements for the year ended 31 December 2008
35
2.12 Research and development continued
The costs of an internally generated intangible asset comprises 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 cost 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. Judgments 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.
2.13 Operating leases
The Group’s buildings 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.
2.14 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.
2.15 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.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the Group 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.
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Group Financial Statements for the year ended 31 December 2008
36
Notes to the Group Financial Statements continued
for the year ended 31 December 2008
2.16 Employee benefits
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 value 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 the ‘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.
2.17 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 Group has issued shares to its joint broker for annual services rendered up to March 2009 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 2009. These share based payments 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.
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Group Financial Statements for the year ended 31 December 2008
37
2.18 Adopted IFRS not yet applied
The following IFRS have been issued but have not yet been adopted by the Group in these Financial Statements as they are not yet 
effective:
IFRS 8 ‘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.
IAS 1 ‘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.
IAS 23 ‘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 utilises share based payments 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 
combinations, 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.
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. This standard has not yet been adopted 
by the European Union and, as the Group does not enter into such arrangements, its 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 15 ‘Agreements for the construction of real estate’ gives guidance on the definition of a construction contract, the articulation •	
between IAS 11 and IAS 18 and on how to account for revenue when the agreement for the construction of real estate falls within 
the scope of IAS 18. IFRIC 15 is effective for annual periods beginning on or after 1 January 2009. As the Group does not engage 
in the construction of real estate, the adoption will have no impact upon the results or net assets of the Group.
IFRIC 16 ‘Hedges of a Net Investment in a Foreign Operation’ gives guidance on: identifying the foreign currency risks that qualify •	
as a hedged risk in the hedge of a net investment in a foreign operation; where, within a group, hedging instruments that are 
hedges of a net investment in a foreign operation can be held to qualify for hedge accounting; and how an entity should determine 
the amounts to be reclassified from equity to profit or loss for both the hedging instrument and the hedged item. IFRIC 16 is 
effective for annual periods beginning on or after 1 October 2008. As the Group holds no such investments, the adoption will 
have no impact upon the results or net assets of the Group.
IFRIC 17 ‘Distributions of Non-cash Assets to Owners’ gives guidance on the recognition and measurement of dividends and •	
replaces IFRIC D23 Distributions of Non-cash Assets to Owners. IFRIC 17 is effective for annual periods beginning on or after 1 
July 2009. As the Group does not engage in distributions of non-cash assets to owners, the adoption will have no impact upon 
the results or net assets of the Group.
IFRIC 18 ‘Transfers of Assets from Customers’ clarifies the requirements of IFRS for agreements in which an entity receives from •	
a customer an item of property, plant and equipment that the entity must then use either to connect the customer to a network 
or to provide the customer with ongoing access to a supply of goods or services. As the Group does not enter into such transfers, 
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 and the additional presentational impact of IAS 1 
‘Presentation of financial statements’.
12065 Energetix BACK.indd   37 20/4/09   15:25:51 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
38
Notes to the Group Financial Statements continued
for the year ended 31 December 2008
3. Segmental information
At 31 December 2008, 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 devices of VPhase. •	
The segment results for the year ended 31 December 2008 are as follows:
     Distributed Power Energy Unallocated Group 
     generation  quality  efficiency 
      and load  and 
     shifting  reliability   
     £’000 £’000 £’000 £’000 £’000
Segment revenue    32 – – – 32
Operating (loss)/profit    (2,784) (1,631) (853) 1,066 (4,202)
Finance income    296 – 84 531 911
Other gains    – – – 1,629 1,629
(Loss)/profit before income tax    (2,488) (1,631) (769) 3,226 (1,662)
Income tax     – – – – –
(Loss)/profit for the year    (2,488) (1,631) (769) 3,226 (1,662)
Depreciation and amortisation expense    (353) (64) (5) (39) (461)
Other non cash movements    296 – (105) 48 239
The segment results for the year ended 31 December 2007 are as follows:
     Distributed Power Energy Unallocated Group 
     generation  quality  efficiency 
      and load  and 
     shifting  reliability   
     £’000 £’000 £’000 £’000 £’000
Segment revenue    47 8 – – 55
Operating loss    (1,160) (757) (191) (906) (3,014)
Finance income    25 – 3 460 488
Other gains    – – 685 – 685
(Loss)/profit before income tax    (1,135) (757) 497 (446) (1,841)
Income tax    – – – (6) (6)
(Loss)/profit 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 assets and liabilities at 31 December 2008 and capital expenditure for the year then ended are as follows: 
     Distributed Power Energy Unallocated Group 
     generation  quality  efficiency 
      and load  and 
     shifting  reliability   
     £’000 £’000 £’000 £’000 £’000
Assets    7,330 2,350 3,641 7,908 21,229
Liabilities    (9,878) (4,094) (334) 11,062 (3,244)
Capital expenditure      
 – Tangible    17 64 72 182 335
 – Intangible    1,298 735 222 – 2,255
12065 Energetix BACK.indd   38 20/4/09   15:25:51 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
39
3. Segmental information continued
The segment assets and liabilities at 31 December 2007 and capital expenditure for the year then ended are as follows:
     Distributed Power Energy Unallocated Group 
     generation  quality  efficiency 
      and load  and 
     shifting  reliability   
     £’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
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:
       2008 2007 
       £’000 £’000
Sale of distributed generation and load shifting products      32 47
Sale of power quality and reliability products       – 8
       32 55
Geographic analysis of revenue:
       2008 2007 
       £’000 £’000
UK       – 39
Europe       32 8
Rest of world       – 8
       32 55
All assets are based in the UK and £13,000 of liabilities arise for the Rest of world.
4. Loss before income tax
Loss before income tax is stated after charging:
       2008 2007 
       £’000 £’000
Amortisation (note 14)       336 333
Depreciation (note 15)       125 62
Employee benefit expense (note 8)       2,910 2,176
Other share based payment expense       136 32
Research costs       26 98
Grant income received       34 5
Operating lease rentals:  
 – buildings       116 46
Audit remuneration:  
 – fees payable to Company auditor for the audit of parent company and Group Financial Statements  17 16
 – subsidiary companies       11 9
Non-audit services:   
 – other services pursuant to legislation       – 42
 – tax services       37 14
Other services pursuant to legislation relate to Corporate Finance work in relation to the Group’s subsidiaries £Nil (2007: £42,000). 
Tax services relate to the provision of advice in relation to the Group’s tax affairs.
12065 Energetix BACK.indd   39 20/4/09   15:25:52 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
40
Notes to the Group Financial Statements continued
for the year ended 31 December 2008
5. Finance income
       2008 2007 
       £’000 £’000
Loans and receivables (including cash and cash equivalents)      615 413
Fair value adjustment of long term borrowings attributable to interest rate risk (note 19)    296 75
        911 488
6. Other gains
Other gains during the year of £1,629,000 (2007: £685,000) result from the placing of 6% of the Group’s interest in VPhase plc on  
14 May 2008 and the deemed disposal that arises on the settlement of fees with equity as set out in note 24. In the previous year,  
the Group disposed of 45% of its interest in Energetix Voltage Control Limited resulting in a gain of £685,000. 
7. Directors’ remuneration
       2008 2007 
       £’000 £’000
Directors’ emoluments   
Aggregate emoluments       489 522
Share based payment charge       8 20
       497 542
Highest paid Director
The above includes remuneration of the highest paid Director as follows:
       2008 2007 
       £’000 £’000
Aggregate emoluments       244 254
8. Employee benefit expense
       2008 2007 
       £’000 £’000
Wages and salaries       2,479 1,774
Bonus shares in subsidiaries       – 95
Social security costs       296 237
Share options granted to Directors       8  20
Share options granted to employees       127 48
Pension costs – stakeholder schemes       –  2
       2,910 2,176
Average number of persons employed:
        2008 2007 
        No No
Finance, administration and management       20 12
Research and development       18 20
Total       38 32
Employee benefits capitalised in the development asset total £1,038,000 (2007: £615,000).
12065 Energetix BACK.indd   40 20/4/09   15:25:52 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
41
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:
       2008 2007 
       No No
Number of outstanding share options at 1 January       641,207 337,500
Granted during the year       –  303,707
Lapsed during the year        (33,707) – 
Number of outstanding share options at 31 December       607,500 641,207
As at 31 December 2008, 337,500 share options were capable of being exercised (2007: 337,500). The options outstanding at 31 
December 2008 had a weighted average exercise price of 50.7 pence (2007: 48.1 pence), and a weighted average remaining 
contractual life of 7 years 11 months. The weighted average exercise price of share options granted during the year was Nil pence 
(2007: 60.1 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 charge of £135,000 
(2007: £68,000) 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 Expected Interest Life of Expected 
   price  shares at date volatility rate option dividends 
   (p) under  of grant   (years) 
Date of grant    option (p) 
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
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 2008 was 45.0 (2007: 105.0) pence. The high and low market prices 
during the year were 117.5 (2007: 147.5) pence and 44.0 (2007: 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 2009 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 2009. 
These share based payments 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.
12065 Energetix BACK.indd   41 20/4/09   15:25:52 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
42
Notes to the Group Financial Statements continued
for the year ended 31 December 2008
10. Income tax 
       2008 2007 
       £’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 Group entities as follows:
        2008 2007 
        £’000 £’000
Loss before income tax       (1,662) (1,841)
Loss before income tax multiplied by rate of corporation tax in the UK of 28.49% (2007: 30%)   (473) (552)
Adjustment for tax rate differences       16 123
Adjustment for tax exempt income        (464) (129)
Adjustment for non-deductible expenses       682 15
Movement in deferred tax not provided       239 543
Effect of current year events       – (6)
Current tax       – (6)
Unrelieved tax losses of £10,324,000 (2007: £6,111,000) 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.
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 is calculated at a tax rate of 28% (2007: 28%) and is set out below:
       2008 2007 
       £’000 £’000
Accelerated capital allowances       (37) (7)
Share based payments       (78) (81)
Trade losses       (1,923) (1,711)
       (2,038) (1,799)
12. Loss per ordinary share
The loss per ordinary share is based on the loss of £1,272,000 (2007: loss of £1,842,000) and 55,087,756 (2007: 49,177,833) ordinary 
shares of 5 pence each, being the weighted average number of shares in issue during the year. All shares have been included in the 
computation based on the weighted average number of days since issuance. 
       2008 2007
Loss attributable to equity holders of the Company (£’000)      (1,272) (1,842)
Weighted average number of ordinary shares in issue       55,087,756 49,177,833
Basic & diluted loss per share (pence)       (2.31) (3.74)
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.
12065 Energetix BACK.indd   42 20/4/09   15:25:52 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
43
13. Goodwill
        Goodwill 
        £’000
Year ended 31 December 2007 
Opening net book value        311
Additions        – 
Impairment        – 
Closing net book value        311
Year ended 31 December 2008        
Opening net book value        311
Additions        – 
Impairment        – 
Closing net book value        311
At 31 December 2008 
Cost         311
Accumulated impairment        – 
Closing net book value        311
At 31 December 2007        
Cost        311
Accumulated impairment        –
Closing net book value        311
Goodwill arose on 25 September 2007 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 Smart voltage 
   Micro-CHP    air battery management
   Intellectual Research and  Research and Research and 
    property development  development development 
     asset Total asset asset Total 
   £’000 £’000 £’000 £’000  £’000
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
      
Year ended 31 December 2008    
Opening net book value   5,249 808 6,057 1,087 –  7,144
Additions   –  1,298 1,298 735 222 2,255
Amortisation   (336) –  (336) –  – (336)
Closing net book value   4,913 2,106 7,019 1,822 222 9,063
      
At 31 December 2008     
Cost   5,787 2,106 7,893 1,822 222 9,937
Accumulated amortisation   (874) – (874) – – (874)
Closing net book value   4,913 2,106 7,019 1,822 222 9,063
At 31 December 2007     
Cost   5,787 808 6,595 1,087 – 7,682
Accumulated amortisation   (538) – (538) – – (538)
Closing net book value   5,249 808 6,057 1,087 – 7,144
12065 Energetix BACK.indd   43 20/4/09   15:25:52 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
44
Notes to the Group Financial Statements continued
for the year ended 31 December 2008
14. Other intangible assets continued
Intangibles include internally generated product development costs capitalised in accordance with IAS 38 and purchased intellectual 
property held at cost less amortisation following the disposal of Energetix Micropower Ltd as detailed below.
Intellectual property
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, the 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 the preference debt until the 
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 
foregone plus the value of debt assumed by the Company.
        £’000
Current receivable foregone as at 16 April 2006        900
Discounted value of deferred consideration foregone        2,378
Discounted value of preference debt given for 40% of the equity       2,509
Value of intellectual property included in intangible assets      5,787
The remaining amortisation period of the intellectual property is 15 years. 
Capitalised product development costs
The Group currently has internally generated intangible assets from development of its micro-CHP module, compressed air battery 
and smart voltage management unit. All other development work has been written off as incurred where the criteria for recognition as 
an asset are not met. 
Prior to VPhase’s placing of shares on 14 May 2008, £26,000 of research and development expenditure incurred by VPhase plc (or 
its subsidiaries) has not been capitalised as an intangible asset as it did not meet the requirements of IAS 38. Subsequent to the 
placing, research and development expenditure incurred by VPhase plc does meet the requirements of IAS 38 and, consequently, 
has been capitalised.
Additions may be analysed as follows:
       2008 2007 
       £’000 £’000
Research and development capitalised during the year      2,255 1,020
12065 Energetix BACK.indd   44 20/4/09   15:25:52 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
45
14. Other intangible assets continued
Impairment review
In accordance with IAS 36, the Group has undertaken an impairment review by cash generating unit. The Group determines that the 
following cash generating units exist and that their individual costs of capital are:
Technology Cash generating unit Cost of capital % Total intangible carrying value £
Micro-CHP Energetix Genlec Limited 12.5% 6,850,000
Compressed air battery Energetix (Pnu) Power Limited 12.5% 1,823,000
Smart voltage management unit VPhase plc 12.5% 222,000
IAS36 requires an impairment charge against assets “if and only if the recoverable amount of an asset is less than its carrying 
amount”. The standard further states that the recoverable amount is determined as the higher of:
fair value, less costs to sell, in an arms length transaction; and •	
value in use. •	
Management determine that given the explicit technological nature of each cash generating unit, the fair value in an arms length 
transaction does not constitute the most appropriate recoverable amount valuation methodology and, consequently, the recoverable 
amount has been ascertained via the value in use methodology.
Value in use has been established for each cash generating unit by taking into account the following:
estimated future cash flows; •	
potential variation in amount and timing of these cashflows; •	
the time value of money; •	
the price for bearing the uncertainty inherent in the asset; and •	
other factors such as liquidity. •	
Following a review of each business, the Directors do not believe that the carrying value in any of the Group’s cash generating units 
is impaired and, hence, no charge has been made.
Key assumptions
All assumptions are applicable to each cash generating unit. In determining value in use, forecasts have been prepared for the five 
years following the Balance Sheet date. These forecasts were constructed with:
the most recent approved forecasts and, where forecasts have not been approved; •	
prudent extrapolations of the above. •	
Revenues were computed using:
signed commercial agreements; •	
memoranda of understanding with commercial partners; and •	
management’s assertions following discussion with various potential customers. •	
Costs have been calculated using existing cost bases adjusted for achievement of the above revenues.
Growth rates contained within the forecasts are based on management’s assertions following discussions with potential customers 
and increase by various rates throughout the forecasted period. The forecasted value in use period is five years and is based on  
the Board approved forecasts for the period to 31 December 2011 and reasonably possible extrapolations thereon for the following 
two years.
12065 Energetix BACK.indd   45 20/4/09   15:25:52 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
46
Notes to the Group Financial Statements continued
for the year ended 31 December 2008
14. Other intangible assets continued
Cost of capital
The Capital Asset Pricing Model (CAPM) has been used to arrive at the costs of capital stated above. 
The components of this calculation were determined as follows:
Risk-free rate: lower range of UK Gilts as provided by the website of the Debt Management Office website (http://www.dmo.gov.uk/).
Market-return rate: taken as the annual return on the ‘Industrial Engineering’ and ‘Electronics and Electrical Equipment’ sectors within 
AIM for each year from 2 January 2004 to 31 December 2007. Returns for the 12 months to 31 December 2008 have been excluded 
from the analysis as management do not believe returns of circa minus 31% are representative of the return demanded by investors.
Beta: taken from MoneyAM (http://www.moneyam.com). 
Effect of reasonably possible changes 
Management have undertaken scenario analyses, including a material reduction in sales, and in no scenario does the value in use of 
any of the cash generating units approach the carrying value.
15. Property, plant and equipment
        Furniture  
   Leasehold  Plant &  fittings & 
   improvements  equipment   equipment  Total 
   £’000  £’000  £’000  £’000
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
Year ended 31 December 2008       
Opening net book value  36  106  63  205
Additions  42  184  109  335
Depreciation charge  (13)  (60)  (52)  (125)
Closing net book value  65  230  120  415
At 31 December 2008       
Cost   85  327  190  602
Accumulated depreciation  (20)  (97)  (70)  (187)
Closing net book value  65  230  120  415
At 31 December 2007       
Cost   43  150  92  285
Accumulated depreciation  (7)  (44)  (29)  (80)
Closing net book value  36  106  63  205
12065 Energetix BACK.indd   46 20/4/09   15:25:52 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
47
16. Inventories
       2008 2007 
       £’000 £’000
Raw materials       – 58
The cost of inventories recognised as an expense during the period in respect of continuing operations was £Nil (2007: £58,000).
The cost of inventories recognised as an expense includes £Nil (2007: £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
       2008 2007 
       £’000 £’000
Trade receivables       –  25
Prepayments and accrued income       176 194
Loans to employees       –  8
Other receivables       239 133
       415 360
The average credit period on sales of goods is 35 days (2007: 45 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 receivables balance are receivables with a carrying amount of £Nil (2007: £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 other receivables 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 31 December 2008 (2007: none).
No impairment loss has been recognised on trade receivables and no other gains or losses have been recognised in respect of loans 
and receivables. The Group does not hold any collateral as security.
18. Cash and cash equivalents
       2008 2007 
       £’000 £’000
Cash at bank and in hand       11,025 12,778
12065 Energetix BACK.indd   47 20/4/09   15:25:52 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
48
Notes to the Group Financial Statements continued
for the year ended 31 December 2008
19. Financial liabilities – Borrowings
       2008 2007 
       £’000 £’000
Current
Financial liabilities designated at fair value through profit and loss (FVTPL)     14 89
Loan notes       250 –
       264 89
Non-current   
Financial liabilities designated at fair value through profit and loss (FVTPL)     1,625 1,995
Loan notes       – 250
       1,625 2,245
The maturity of non-current borrowings is as follows:
       2008 2007 
       £’000 £’000
Between 1 and 2 years       156  576
Between 2 and 5 years       1,469 1,669
       1,625 2,245
The Group agreed with Axiomlab Group plc that £610,000 of the loan notes 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 
accordance with this agreement, £250,000 will be paid to Axiomlab Group plc in December 2009 in full settlement of the liability.
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 12.50% (2007: 
7 .50%) from the date of assuming the preference debt until anticipated settlement date giving rise to a non current liability of £1,625,000 
(2007: £1,995,000) and a current liability of £14,000 (2007: £89,000). The terms are that it is not interest bearing, that £500,000 would 
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. The obligation for future repayments based on a percentage of mainstream sales is considered an embedded 
derivative. During the year, £150,000 (2007: £350,000) was repaid and the discounting of future repayments at 12.50% (2007: 7.50%)
has resulted in an adjustment of £296,000 (2007: £75,000) to the carrying value of the liability. The amount contractually repayable at 
31 December 2008 was £2,500,000 (2007: £2,650,000).
Financial liabilities are recognised when the Group becomes party to the contractual agreement of the instrument. All interest  
related charges and changes in an instrument’s 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 2008 and 31 December 2007.
20. Trade and other payables
       2008 2007 
       £’000 £’000
Trade payables       302 227
Social security and other taxes       72 193
Accrued expenses       981 299
       1,355 719
12065 Energetix BACK.indd   48 20/4/09   15:25:52 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
49
21. Compensation of key management personnel
The remuneration of Directors and other members of key management during the year was as follows:
       2008 2007 
       £’000 £’000
Short-term benefits       984 870
Share based payments       135  68
Bonus shares in subsidiaries       – 29
       1,119 967
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 whilst maximising the 
return to stakeholders. The Group’s overall strategy remains unchanged from 2007 to minimise costs and liquidity risk. At the  
beginning of 2009, in light of recent bank failures the Group adopted a new treasury policy which sets out to optimise the value  
from surplus cash balances giving priority to security then to liquidity and then to yield; and to preserve the principal value of the 
investment by investing surplus funds only with institutions of a high credit standing.
The capital structure of the Group consists of debt, which includes borrowings of £1,889,000 (2007: £2,334,000) as disclosed in  
note 19, cash and cash equivalents of £11,025,000 (2007: £12,778,000) 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.
22.3 Categories of financial instruments
       2008 2007 
       £’000 £’000
Financial assets   
Loans and receivables (including cash and cash equivalents)      11,264 12,919
Financial liabilities   
Designated at fair value through profit and loss       1,639 2,084
Amortised cost        1,533 776
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 a significant number of transactions denominated in foreign currencies. Nevertheless, the 
Directors are aware of the benefits of hedging currency transactions and will implement such procedures when the number and/or 
scale of such transactions makes such a course of action appropriate.
For commentary on market risk, interest rate risk, credit risk, currency risk and liquidity risk please see note 2 and the financial risk 
management objectives and policies disclosed in the Group Directors’ Report on pages 19 to 23.
As required by IFRS 7, the table below provides an analysis of financial liabilities to which the Group is contractually obliged:
       2008 2007 
       £’000 £’000
Less than one year       250 150
More than one year       –  250
       250 400
The Directors maintain that given the cash resources available to the Group, the liquidity risk inherent in the above may be adequately 
managed.
12065 Energetix BACK.indd   49 20/4/09   15:25:52 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
50
Notes to the Group Financial Statements continued
for the year ended 31 December 2008
22.3 Categories of financial instruments continued
Furthermore, as detailed in note 19, there exists the obligation for future payments based on a percentage of mainstream sales by 
Energetix Genlec Limited against the preference debt. The maximum outstanding against this debt is capped at £2,500,000 
(2007: £2,650,000). As such payments are dependent upon mainstream sales. With a consequent inflow of funds to the Group  
and, given the cash resources available to the Group, the Directors maintain that the liquidity risk inherent in this contingent  
liability can be adequately managed.
Contractual undiscounted cash flows in respect of financial liabilities (or outflows in respect of financial assets) are as follows:
      Greater than 
   61 days - 7 months -  13 months - 2 years up 
  0 - 60 days 6 months 12 months 2 years to 5 years Total 
  2008 2008 2008 2008 2008 2008 
As at 31 December 2008  £000 £000 £000 £000 £000 £000
Trade payables  302 – – – – 302
Loan notes  – – 250 – – 250
Total excluding derivatives  302 – 250 –  – 552
Financial liability held at FVTPL  – – 15 197 2,288 2,500
  302 – 265 197 2,288 3,052
      Greater than 
   61 days - 7 months -  13 months - 2 years up 
  0 - 60 days 6 months 12 months 2 years to 5 years Total 
  2007 2007 2007 2007 2007 2007 
As at 31 December 2007  £000 £000 £000 £000 £000 £000
Trade payables   227 – – – – 227
Loan notes   – – – 250 – 250
Total excluding derivatives   227 – – 250 – 477
Financial liability held at FVTPL   – – 96 326 2,228 2,650
   227 – 96 576 2,228 3,127
22.4 Interest rate sensitivity
The following table illustrates the sensitivity of the loss for the year and equity to a reasonably possible change in interest rates of 2% 
(2007: 1%) with effect from the beginning of the year. These changes are considered to be reasonably possible based on an observation 
of current market conditions. The calculations are based on the Group’s cash and cash equivalents held at the Balance Sheet date. 
All other variables are held constant:
   2008  2007
   £’000 
I
 £’000
     +2% -2% +1% -1%
Loss for the year     225 (225) 128 (128)
Equity     225 (225) 128 (128)
23. Deemed disposals
During the year, the Group made deemed disposals in its AIM listed subsidiary, VPhase plc. The chronology of the transactions is 
outlined below:
On 7 February 2008, VPhase plc issued 1,248,240 shares to Novum Securities Limited in settlement of broker services received; •	
On 19 May 2008, VPhase plc issued 70,000,000 ordinary shares via a placing. The placing raised £3,500,000 before issue costs of •	
£195,000 and share based payments of £105,000; 
On 12 June 2008, VPhase plc issued 1,248,240 shares to Novum Securities Limited in settlement of broker services received; •	
On 14 August 2008, VPhase plc issued 1,248,240 shares to Novum Securities Limited in settlement of broker services received; and •	
On 8 October 2008, VPhase plc issued 1,248,240 shares to Novum Securities Limited in settlement of broker services received. •	
12065 Energetix BACK.indd   50 20/4/09   15:25:53 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
51
23. Disposal and acquisition of business continued
The Group’s interest in VPhase plc reduced from 55.1% to 49.1% following these transactions. The reduction in the Group’s interest 
in VPhase plc constituted a deemed disposal at Group level and resulted in a gain to the Group as calculated below.
Deemed disposal 1
       2008  
       Minority  
     Group  Interest  Total 
     £  £  £
Fair value of consideration    20,000  –   20,000
Share of net assets disposed of    (9,695)  9,695  – 
Gain on disposal    10,305  9,695  20,000
Deemed disposal 2
       2008  
       Minority  
     Group  Interest  Total 
     £  £  £
Proceeds from placing    3,500,000  –   3,500,000
Share issue expenses    (300,000)  –   (300,000)
Share of net assets disposed of    (1,607,452)  1,607,452  – 
Gain on disposal    1,592,548  1,607,452  3,200,000
     
Deemed disposal 3
       2008  
       Minority  
     Group  Interest  Total 
     £  £  £
Fair value consideration    20,000  –  20,000
Share of net assets disposed of    (10,353)  10,353  – 
Gain on disposal    9,647  10,353  20,000
Deemed disposal 4
       2008  
       Minority  
     Group  Interest  Total 
     £  £  £
Fair value of consideration    20,000  –   20,000
Share of net assets disposed of    (11,753)  11,753  – 
Gain on disposal    8,247  11,753  20,000
Deemed disposal 5
       2008  
       Minority  
     Group  Interest  Total 
     £  £  £
Fair value of consideration    20,000  –   20,000
Share of net assets disposed of    (11,677)  11,677  – 
Gain on disposal    8,323  11,677  20,000
The total deemed gain resulting from the disposals is £1,629,000.
The minority interest arising from all transactions was £1,651,000. 
Following the deemed disposals in VPhase plc, the Group held 49.1% of the ordinary share capital of VPhase plc. The Group continues 
to consolidate the results of the subsidiary on the basis that it controls the financial and operating polices of VPhase plc through Board 
members.
The Group has control over 53.7% (2007: 60.1%) of the voting rights of the ordinary shares in VPhase plc as a result of retaining the 
voting rights over shares held by an employee benefit trust.
12065 Energetix BACK.indd   51 20/4/09   15:25:53 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
52
Notes to the Group Financial Statements continued
for the year ended 31 December 2008
24.Share capital and reserves
24.1 Share capital
   31 December 2008 
I
 31 December 2007
     Number of  Share Number of Share 
     shares capital shares capital 
     No £’000 No £’000
Authorised
Ordinary shares of 5p each     100,000,000 5,000 60,000,000 3,000
Issued and fully paid    
As at 1 January     55,045,454 2,752 45,000,000 2,250
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
Shares issued 7 February 2008     22,727 1 –  – 
Shares issued 12 June 2008     22,727 1 –  – 
Shares issued 14 August 2008     16,025 1 –  – 
Shares issued 8 October 2008     16,025 1 –  – 
As at 31 December      55,122,958 2,756 55,045,454 2,752
Having passed the resolution at the Annual General Meeting of Energetix Group plc on 21 May 2008, the authorised share capital of 
Energetix Group plc was increased from £3,000,000 to £5,000,000 by the creation of 40,000,000 ordinary shares of 5 pence which 
rank pari passu in all respects with the existing ordinary shares of 5 pence each in the capital of Energetix Group plc.
Issue of shares
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 Novum Securities 
Limited in settlement of broker services received.
On 8 October 2007, the Company issued 22,727 ordinary shares of 5 pence each at 55 pence per share to Novum Securities 
Limited in settlement of broker services received.
On 7 February 2008, the Company issued 22,727 ordinary shares at 55 pence each to Novum Securities Limited in settlement of 
broker services received.
On 12 June 2008, the Company issued 22,727 ordinary shares at 55 pence each to Novum Securities Limited in settlement of 
broker services received.
On 14 August 2008, the Company issued 16,025 ordinary shares at 98 pence each to Novum Securities Limited in settlement of 
broker services received.
On 8 October 2008, the Company issued 16,025 ordinary shares at 98 pence each to Novum Securities Limited in settlement of 
broker services received.
12065 Energetix BACK.indd   52 20/4/09   15:25:53 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
53
24.2 Warrants
As part of the agreed placing costs of the Company with its nominated advisor 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 advisor. 
On 1 August 2007, as part of the agreed placing costs of the Company with its broker, the Company granted 500,000 warrants with 
an exercise price of 120 pence to its joint broker.
The warrants outstanding at 31 December 2008 were:
Date granted       Number of Exercise Exercise 
       warrants price period 
        (pence) 
15 August 2006      1,350,000 40 3 years
1 August 2007      500,000 120 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 
5 pence ordinary share in the Company.
As at 31 December 2008, 1,850,000 warrants were capable of being exercised (2007: 1,850,000). The options outstanding at  
31 December 2008 had a weighted average exercise price of 62 pence (2007: 62 pence), and a weighted average remaining contractual 
life of 11 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 £230,000 
(2007: £Nil). This has been charged against share premium and credited to warrant reserve. In addition, warrants were issued in part 
settlement of fees for the placing of 70,000,000 shares in VPhase which resulted in a fair value charge of £105,000 (2007: £Nil) to the 
Groups warrant reserve.
Assumptions
The following assumptions are used to determine the fair value of warrants at the respective date of grant:
     Ordinary Share price Expected  
   Exercise  shares under at date volatility Interest Life of Expected 
   price Warrant  of grant rate  rate  warrant dividends 
Date of grant   (pence)   (pence)    (years)
15 August 2006  40 1,350,000 46 45.7% 5.75% 3 Nil
1 August 2007  120 500,000 136 45.7% 5.75% 3 Nil
The share price at date of grant is the closing price on the day that the warrants were granted.
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.
25. Minority Interest
As a result of the partial disposals of the Group’s holding in VPhase plc as set out in note 23, the minority interest has increased from 
the prior year.
       2008 2007 
       £’000 £’000
Balance at beginning of year       251 – 
Share of loss for the year       (390) (5)
Partial disposal of Energetix Voltage Control Limited (note 23)      1,651 256
Balance at end of year       1,512 251
12065 Energetix BACK.indd   53 20/4/09   15:25:53 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
54
Notes to the Group Financial Statements continued
for the year ended 31 December 2008
26. Cash consumed by operations
        2008 2007 
       £’000 £’000
Loss before income tax       (1,662) (1,847)
Adjustments for:   
 – Depreciation       125 62
 – Amortisation       336 333
 – Finance income       (615) (413)
 – Other income       (296) (75)
 – Other gains on part disposal of Energetix Voltage Control Limited/VPhase plc    (1,629) (685)
 – Share based payments (note 8)       135 68
 – Other share based payments       136 32
 – Issue of warrants in subsidiary       105 –
 – Income tax charge       – 6
Changes in working capital:   
 – Decrease/(increase) in inventories       58 (58)
 – Increase in trade and other receivables       (55) (232)
 – Increase in trade and other payables       429 372
Cash consumed by operations       (2,933) (2,437)
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:
       2008 2007 
       £’000 £’000 
       Buildings  Buildings
Within one year       96 96
28. Commitments
The Group entered into an agreement to pay its joint broker in shares for services provided from March 2008 to March 2009. This 
agreement requires the issue of 64,100 new ordinary shares of 5 pence at 97.5 pence per share. As at 31 December 2008, 32,050 
shares had been issued and a further 32,050 are to be issued. 
During the year, VPhase plc, entered into an agreement to pay its joint broker in shares for services provided from 25 September 2008 
to 24 September 2009. This agreement requires the issue of 833,333 new ordinary shares of 0.25 pence each at 6.0 pence per share. 
As at 31 December 2008 no shares had been issued and a further 833,333 are to be issued.
29. Related party transactions
Transactions 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 the transactions between the Group and other related parties are  
disclosed below:
At 31 December 2008, the amount owed to Axiomlab Group plc in relation to loan notes issued was £250,000 (2007: £250,000). This 
amount is due to be repaid in full during the course of 2009.
A J Aubrey, a Director of the Company, is also a Director and shareholder in Axiomlab Group plc.
12065 Energetix BACK.indd   54 20/4/09   15:25:53 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
55
Company Balance Sheet
as at 31 December 2008
   2008 
I
 2007
     Note £’000 £’000 £’000 £’000
Fixed assets     
Tangible assets    34  108  70
Investments    35  3,198  3,198
      3,306  3,268
Current assets     
Debtors    36 3,584  3,614
Cash at bank and in hand     7,732  12,146
     11,316  15,760
Creditors: amounts falling due within one year    37 (4,122)  (4,178)
Net current assets      7,194  11,582
     
Total assets less current liabilities      10,500  14,850
Net assets      10,500  14,850
     
Capital and reserves     
Called up share capital    39   2,756  2,752
Share premium account    40  15,198  15,376
Warrant reserve    41  486  256
Other reserves    42  150  124
Profit and loss account    43  (8,090)  (3,658)
Shareholders’ funds    44  10,500  14,850
The notes on pages 56 to 63 are an integral part of the Company’s Financial Statements.
These Financial Statements were approved by the Board of Directors and authorised for issue on 23 March 2009 and were signed on 
its behalf by:
A C Hutchings R H Smith
Chief Executive Officer Chief Financial Officer
 
12065 Energetix BACK.indd   55 20/4/09   15:25:53 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
56
Notes to the Company Balance Sheet
30. 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).
The principal accounting policies of the Company have remained unchanged from the previous year and are set out below.
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 cash in hand and deposits repayable on demand, less overdrafts repayable on demand.
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 payments 
All share based payment arrangements granted after 7 November 2002 that have not vested prior to the period end are recognised 
in the Financial Statements in accordance 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 payment, 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.
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Group Financial Statements for the year ended 31 December 2008
57
30. Principal accounting policies – UK GAAP continued
Equity-settled share based payment
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 for services rendered. 
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 
shares have been valued at the fair value of services provided at the date of signing a third party agreement dated 23 March 2007 and 
are charged to the profit and loss account with a corresponding credit to equity.
31. Directors’ remuneration
       2008 2007 
       £’000 £’000
Directors’ emoluments   
Aggregate emoluments       498 515
Share based payments       8 20
       506 535
Highest paid Director
The above includes remuneration of the highest paid Director as follows:
       2008 2007 
       £’000 £’000
Aggregate emoluments       173 249
32. Staff numbers and costs
The average number of persons employed by the Company (including Directors) during the period, analysed by category, was  
as follows:
       2008 2007
       No No
Finance, administration and management       10 8
12065 Energetix BACK.indd   57 20/4/09   15:25:53 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
58
Notes to the Company Balance Sheet continued
32. Staff numbers and costs continued
The aggregate payroll costs of these persons was as follows:
       2008 2007 
       £’000 £’000
Wages and salaries       542 576
Social security costs        77 51
Share based payments       28 20
       647 647
33. 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:
       2008 2007
       No No
Number of outstanding share options at 1 January       641,207 337,500
Granted during the year       –  303,707
Lapsed during the year       (33,707) –
Number of outstanding share options at 31 December       607,500 641,207
As at 31 December 2008, 337,500 share options were capable of being exercised (2007: 337,500). The options outstanding at  
31 December 2008 had a weighted average exercise price of 50.7 pence (2007: 48.1 pence), and a weighted average remaining 
contractual life of 7 years 11 months. 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 
£28,000 (2007: £20,000) 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 Expected Interest Life of Expected 
   price  shares at date volatility rate option dividends 
   (p) under  of grant   (years) 
Date of grant    option (p) 
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
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 2008 was 45.0 (2007: 105.0) pence. The high and low market prices 
during the year were 117.5 (2007: 147.5) pence and 44.0 (2007: 41.5) pence respectively.
Expected volatility is derived from observation of 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.
12065 Energetix BACK.indd   58 20/4/09   15:25:53 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
59
33. Share based payments continued
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 2009. These share based 
payments 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.
34. Tangible fixed assets
       Leasehold  Plant and 
       Improvements Machinery  Total 
       £’000 £’000 £’000
Cost    
At 1 January 2008      27 64 91
Additions      27 48 75
At 31 December 2008      54 112 166
Depreciation    
At 1 January 2008      5 16 21
Charge for the period      8 29 37
As at 31 December 2008      13 45 58
Net Book Value    
As at 31 December 2008      41 67 108
As at 31 December 2007      22 48 70
35. Investments 
       2008 2007 
       £’000 £’000
Cost:  
At 1 January        3,511 1,813
Additions       – 1,765
Share options granted to subsidiary Directors and employees      – 48
Disposals       – (115)
As at 31 December        3,511 3,511
Provisions:  
At 1 January        (313) (313)
Impairment provision during the year       – – 
As at 31 December        (313) (313)
Net book amount:  
As at 31 December       3,198 3,198
The investments comprise:
    Percentage Nominal Ordinary Preferred A 
    held Value Shares Ordinary Ordinary 
      (pence each)
Thermetica Limited 
a
  100% 10  7,670 2,330 – 
Energetix (Pnu) Power Limited 
a
  99% 1  9,900 –  – 
Energetix Laser Technologies Limited  60% 10  –  –  601
VPhase plc 
a
  49.1% 0.25  343,855,008 –  – 
Energetix Voltage Control Limited 
c
  49.1% 1  7,346 –  – 
Energetix (Europe) Limited 
a
  100% 1  16,619 –  – 
Energetix Genlec Limited 
a
 
b
  98% 1  9,800 –  – 
Energetix (Nominees) Limited 
a
  100% 100 1 –  – 
Energetix Technologies Inc.
a
  100% 100 1 –  – 
a.  Directly owned subsidiaries.
b.  Following the departure of some of the management of Energetix Genlec Limited the beneficial interest in the shares has reverted to the Company. As at 31 January 2009 Energetix 
Group plc’s beneficial interest in Energetix Genlec Limited was 99% of the issued ordinary shares.
c.  Directly owned subsidiary of VPhase plc.
12065 Energetix BACK.indd   59 20/4/09   15:25:53 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
60
Notes to the Company Balance Sheet continued
35. Investments continued
All companies are registered in England and Wales with the exception of Energetix Technologies Inc. which is registered in Delaware, 
United States, and at the Balance Sheet date had the following shares in issue:
   Nominal Ordinary Preferred    
   Value Shares Ordinary A Ordinary B Ordinary C Ordinary
Thermetica Limited   10 pence each 7,670 2,330 –  –  – 
Energetix (Pnu) Power Limited   1 pence each 10,000 –  –  –  – 
Energetix Laser Technologies Limited  10 pence each –  –  601 249 150
VPhase plc   0.25 pence each 700,113,023 –  –  –  – 
Energetix Voltage Control Limited   1 pence each 7,346 –  –  –  – 
Energetix (Europe) Limited   1 pence each 16,619 –  –  –  – 
Energetix Genlec Limited   1 pence each 10,000 –  –  –  – 
Energetix (Nominees) Limited   100 pence each 1 –  –  –  – 
Energetix Technologies Inc.   100 pence each 1 –  –  –  – 
At 31 December 2008 and 2007 the companies had the following capital and reserves:
 2008 
I
 2007
     Capital and  Profit/ Capital and Profit/ 
     Reserves (Loss) Reserves (Loss) 
     £’000 £’000 £’000 £’000
Thermetica Limited     (308) (1) (307) (6)
Energetix (Pnu) Power Limited     (3,567) (1,631) (1,995) (1,240)
Energetix Laser Technologies Limited    (65) –  (65) – 
Energetix Voltage Control Limited 
a
    19 (460) 479 (168)
Energetix (Europe) Limited     2,795 (264) 3,059 (149)
Energetix Genlec Limited     (4,485) (2,319) (2,249) (1,695)
VPhase plc     5,425 (422) 2,436 (242)
Energetix Technologies Inc.     (211) (211) –  – 
Energetix (Nominees) Limited     –  –  –  – 
a. Energetix Voltage Control Limited is a wholly owned subsidiary of VPhase plc.
36. Debtors
        2008  2007
       £’000 £’000
  
Amounts owed by subsidiary undertakings       3,470 3,450
Other debtors       29 44
Prepayments and accrued income       85 120
       3,584 3,614
12065 Energetix BACK.indd   60 20/4/09   15:25:54 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
61
37. Creditors: amounts falling due within one year     
       2008 2007 
       £’000 £’000
Trade creditors        110 25
Amounts owed to subsidiary undertakings       3,833 3,800
Social security and other taxes       64 183
Accruals       115 170
       4,122 4,178
38. Deferred taxation
The unprovided deferred taxation asset calculated at a tax rate of 28% (2007: 30%) is set out below:
       2008 2007 
       £’000 £’000
Accelerated capital allowances       (7) (3)
Share option and warrants       (3) (81)
Trade losses       (406) (420)
       (416) (504)
Unrelieved tax losses of £1,424,000 (2007: £1,500,000) 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.
39. Share Capital
   December 2008 
I
 December 2007
     Number of  Share Number of Share 
     shares capital shares capital 
     No £’000 No £’000
Authorised
Ordinary shares of 5p each     100,000,000 5,000 60,000,000 3,000
Issued and fully paid
As at 1 January     55,045,454 2,752 45,000,000 2,250
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
Shares issued 7 February 2008     22,727 1 –  – 
Shares issued 12 June 2008     22,727 1 –  – 
Shares issued 14 August 2008     16,025 1 –  – 
Shares issued 8 October 2008     16,025 1 –  – 
As at 31 December      55,122,958 2,756 55,045,454 2,752
Having passed the resolution at the Annual General Meeting of Energetix Group plc on 21 May 2008, the authorised share capital of 
Energetix Group plc was increased from £3,000,000 to £5,000,000 by the creation of 40,000,000 ordinary shares of 5 pence which 
rank pari passu in all respects with the existing ordinary shares of 5 pence each in the capital of Energetix Group plc.
Issue of Shares
On 1 August 2007, the Company issued 10,000,000 ordinary shares of 5 pence each at 120 pence each.
On 21 August 2007 , the Company issued 22,727 ordinary shares of 5 pence each at 55 pence per share to Novum Securities Limited in 
settlement of broker services received.
On 8 October 2007, the Company issued 22,727 ordinary shares of 5 pence each at 55 pence per share to Novum Securities 
Limited in settlement of broker services received.
On 7 February 2008, the Company issued 22,727 ordinary shares of 5 pence each at 55 pence per share to Novum Securities 
Limited in settlement of broker services received.
On 12 June 2008, the Company issued 22,727 ordinary shares of 5 pence each at 55 pence per share to Novum Securities Limited 
in settlement of broker services received.
On 14 August 2008, the Company issued 16,025 ordinary shares of 5 pence each at 98 pence per share to Novum Securities 
Limited in settlement of broker services received.
On 8 October 2008, the Company issued 16,025 ordinary shares of 5 pence each at 98 pence per share to Novum Securities 
Limited in settlement of broker services received.
12065 Energetix BACK.indd   61 20/4/09   15:25:54 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
62
Notes to the Company Balance Sheet continued
40. Share premium account
       2008 2007 
       £’000 £’000
At 1 January        15,376 4,591
Premium on shares issued in the period       –  11,522
Issue of warrants       (230) –
Shares issued in consideration for services received (note 39)      52 – 
Share issue expenses       –  (737)
At 31 December       15,198 15,376
41. Warrant reserve
       2008 2007 
       £’000 £’000
At 1 January        256 256
Charged in period       230 – 
At 31 December        486 256
As part of the agreed placing costs of the Company with its nominated advisor 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 advisor. 
On 1 August 2007, as part of the agreed placing costs of the Company with its joint broker, the Company granted 500,000 warrants 
with an exercise price of 120 pence to its broker.
The warrants outstanding at 31 December 2008 were:
        Exercise  
       Number of price Exercise 
Date granted       warrants  (pence) period
15 August 2006      1,350,000 40 3 years
1 August 2007      500,000 120 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 
5 pence ordinary share in the Company.
As at 31 December 2008, 1,850,000 warrants were capable of being exercised (2007: 1,850,000). The warrants outstanding at 31 
December 2008 had a weighted average exercise price of 62 pence (2007: 62 pence), and a weighted average remaining contractual 
life of 11 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 £230,000 
(2007: £Nil), this has been charged against share premium and credited to warrant reserve. 
Assumptions
The following assumptions are used to determine the fair value of warrants at the respective date of grant:
   Exercise  Ordinary Share price Expected Interest Life of Expected 
   price  shares at date volatility rate option dividends 
   (pence) under  of grant rate  (years) 
Date of grant    warrant (pence) 
15 August 2006  40 1,350,000 46 45.7% 5.75% 3 Nil
1 August 2007  120 500,000 136 45.7% 5.75% 3 Nil
The share price at date of grant is the closing price on the day that the warrants were granted.
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.
12065 Energetix BACK.indd   62 20/4/09   15:25:54 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
63
42. Other reserves
       2008 2007 
       £’000 £’000
At 1 January        124 44
Reversal of lapsed share based payments       (6) –
Share based payments       28 68
Other share based payments       4 12
At 31 December        150 124
43. 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 £4,438,000 (2007: £2,147,000).
       2008 2007 
       £’000 £’000
At 1 January        (3,658) (1,511)
Options lapsed in the year       6 –
Loss for the year       (4,438) (2,147)
At 31 December        (8,090) (3,658)
44. Shareholders’ funds
       2008 2007
       £’000 £’000
Loss for the year       (4,438) (2,147)
Shares issued in the year       56  11,287
Share based payments       28 68
Other share based payments       4 12
(Decrease)/increase in shareholders’ funds       (4,350) 9,220
Shareholder’s funds at 1 January       14,850 5,630
Shareholder’s funds at 31 December       10,500 14,850
45. Disposals 
During the financial year, the Company partly disposed of its energy efficiency business VPhase plc. The transaction chronology is 
outlined below:
On 7 February 2008, VPhase plc issued 1,248,240 shares to Novum Securities Limited, its broker in settlement of broker  •	
services received;
On 19 May 2008, VPhase plc issued 70,000,000 ordinary shares via a placing. The placing raised £3,500,000 before issue costs of •	
£195,000 and share based payments of £105,000; 
On 12 June 2008, VPhase plc issued 1,248,240 shares to Novum Securities Limited, its broker in settlement of broker  •	
services received; 
On 14 August 2008, VPhase plc issued 1,248,240 shares to Novum Securities Limited, its broker in settlement of broker services •	
received; and
On 8 October 2008, VPhase plc issued 1,248,240 shares to Novum Securities Limited, its broker in settlement of broker  •	
services received.
46. Leasing commitments
The Company has no commitments under cancellable operating leases.
47. Commitments
The Group entered into an agreement to pay its joint broker in shares for services provided from March 2008 to March 2009. This 
agreement requires the issue of 64,100 new ordinary shares of 5 pence at 97.5 pence per share. As at 31 December 2008, 32,050 
shares had been issued and a further 32,050 are to be issued. 
48. 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.
12065 Energetix BACK.indd   63 20/4/09   15:25:54 Energetix Group plc  
Group Financial Statements for the year ended 31 December 2008
64
Directors, Secretary and Advisors 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)
N S Bright (Operations 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
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 Advisors
Abchurch Communications Limited
100 Cannon Street
London
EC4N 6EU
Registrars
Neville Registrars Limited
Neville House
18 Laurel Lane
Halesowen
West Midlands
B63 3DA
 
12065 Energetix BACK.indd   64 20/4/09   15:25:54 Energetix has three businesses 
in the Group with cost-effective 
products to meet the growing 
global demand for alternative 
energy technologies.
With a focus on distributed generation, energy 
storage and energy efficiency, Energetix businesses 
are:
Pnu Power – compressed air back-up power Genlec – distributed generation in the home VPhase – domestic energy efficiency Contents
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29% of Global Energy Consumption
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Project1:Layout 1 20/4/09 12:21 Page 2 Group Financial Statements
for the year ended 31 December 2008
Energetix Group plc Group Financial Statements for the year ended 31 December 2008
Energetix Group plc
Capenhurst Technology Park
Chester
CH1 6EH
T. 0151 348 2100
F. 0151 348 2101
E: info@energetixgroup.com
www.energetixgroup.com
Project1:Layout 1 20/4/09 12:21 Page 1