Energetix Group plc Group Financial Statements for the year ended 31 December 2010
Energetix Group plc
Capenhurst Technology Park
Chester
CH1 6EH
T. 0151 348 2100
F. 0151 348 2101
E: info@energetixgroup.com
www.energetixgroup.com
Energetix Group plc Group Financial Statements
for the year ended 31 December 2010 Energetix has two businesses in the 
Group with cost-effective products to 
meet the growing global demand for 
alternative and efficient energy.
Welcome to Energetix
Contents
01 Highlights
02 Chairman’s Statement
04 Chief Executive’s Review
06 Finance Review
08 Board of Directors
09 Corporate Responsibility
10 Group Directors’ Report
15 Group Directors’ Remuneration Report
17 Independent Auditor’s Report
18 Group Income Statement
19 Group Statement of Changes in Equity
20 Group Statement of Financial Position
21 Group Statement of Cash Flows
22 Notes to the Group Financial Statements 
49 Company Balance Sheet
50 Notes to the Company Balance Sheet
56 Directors, Secretary and Advisors to the Group
With a focus on distributed generation, and 
energy storage, Energetix businesses are:
Genlec 
distributed generation in the home
Pnu Power 
compressed air back-up power
FSC logo  
to go here 1 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
2010 Highlights: 
Profit of £1.6 million (2009 restated: £3.8 million loss), as a result of the deemed disposal of •	
VPhase plc;
Commercial sales generated turnover of £26,000 from continuing operations (2009 restated: •	
£131,000 continuing);
Operating losses from continuing operations increased to £3.2 million (2009 restated:  •	
£3.0 million) reflecting increased commercial activity within the Group;
Successful transition of VPhase to a standalone, independently funded commercial venture; •	
First units of Genlec’s microCHP product, Kingston, are being trialled in staff homes  •	
and orders for trial units have already been secured from the UK, mainland Europe and  
North America;
CE accreditation of the Kingston boiler to enable field trials; •	
Pnu Power achieved accreditation of its Quality Management System to ISO 9001:2008; and •	
The Pnu Power product range has been extended to include the high power DC100 product •	
to meet the demand of the rapidly growing Green Data Centre market.
Post year end highlights
The Group raised £2.3 million net of expenses through a placing in March 2011, to accelerate •	
the commercial development of Genlec and Pnu Power. 2 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Chairman’s Statement
Alan J Aubrey
Non-Executive Chairman
The Company has continued to progress each business to a point 
where they can operate on an independent basis. The transition of 
VPhase to a standalone independently funded commercial venture 
was successfully completed during the year. VPhase is now treated 
as an associated undertaking of Energetix Group. The Group’s 
remaining share of VPhase’s market value as at 31 December 2010 
was £7.3 million. We anticipate that this investment has the potential  
to grow as VPhase increases its commercial activities. This  
transition also played a significant part in Energetix Group being 
able to show a profit of £1.6 million for the financial year. 
As outlined in my interim statement at the 30 June 2010, progress 
in bringing new technology developments to commercialisation can 
be delayed by technical hurdles and take up of a product by large 
corporate customers can be a slow process. Post the year end, the 
Group raised £2.3 million net of expenses from the placing of 
10,000,000 new shares. The Directors believe that these additional 
funds will enable the Group to complete the transition of our Pnu 
Power and Genlec businesses to commercial success.
Whilst the development of our Genlec microCHP product has taken 
longer than originally anticipated, we are pleased that we now have 
our first Kingston boilers operating in staff homes, and we are 
confident that the major technical hurdles have now been overcome. 
The development of the Genlec product is now predominantly 
complete with workshop testing demonstrating performance in 
excess of specification. Sales of demonstration and testing units 
have commenced, CE certification of the boiler has been obtained 
and initial units have been installed in employee homes. It is expected 
that CE certification of the power module will follow in the second 
quarter of 2011. Genlec will carry on field testing whilst continuing 
market engagement through multiple channel partners to continue 
commercial sales and establish a basis for growth from 2012. 
We are continuing to work with the major potential customers we 
have for our Pnu Power product range, and believe that these 
relationships will deliver orders during the current year. In addition, 
we are pleased that the Pnu Power range has been extended to 
include the DC100 product that can now meet the demand of the 
rapidly growing Green Data Centre market. 
Alan J Aubrey
Non-Executive Chairman
22 March 2011
“The Group has made a number of 
significant strategic steps during the 
period, and the Board is pleased with 
the progress made across all 
businesses. The certification of 
Kingston and subsequent orders is 
already promising, and the trials in 
staff homes are progressing well.” 3 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Home installation of the Kingston boiler 4 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Group Directors’ Report Chief Executive’s Review
Business review
Chief Executive’s Review
The Group has now predominately completed all technology 
development, with the CE certification of the Genlec power module 
the only outstanding technology risk. It is anticipated that this will 
be completed shortly. The Board is pleased with the successful 
transition of VPhase, and was delighted that we were able to attract 
Vanda Murray OBE as my replacement as Chairman of the VPhase 
board. I believe that the ability to attract someone with the 
experience and credentials of Vanda speaks highly of the growth 
potential of the VPhase business. It also confirms our belief that it is 
important to match the right leadership skills with the right stage of 
commercialisation of each of our businesses. Vanda’s highly 
successful background in sales and marketing, particularly in the 
building products sector, is an ideal fit with the needs of VPhase.
Genlec Review
The key strategic decision to develop a full microCHP appliance 
has enabled the Company to rapidly move from the prototype 
unveiled at our preliminary results presentation in March 2010 to CE 
approved units being tested in staff homes in January 2011. I would 
like to thank our Genlec team for their professional efforts and 
dedication in achieving this result. During the year, we have also 
worked closely with a major white goods manufacturer who has 
supported us in the installation of a pilot production line in our 
facilities at Chester. We have also worked with this manufacturer in 
the production of the first series of units. 
We have taken initial orders for Genlec’s new appliance, trade 
named Kingston, from organisations in the UK, mainland Europe, 
and North America. We are in discussions with a wide range of 
companies for the development of commercial routes for the 
Kingston product as we believe that the greatest uptake of the 
product will be through multiple market routes.
A key design decision for the Kingston appliance was to develop 
the power module as a separate component. This decision has 
delivered several significant benefits in that the wall mounted unit 
can be installed in two parts, reducing the lift weight, allowing for 
the power module to be simply removed and replaced for 
maintenance, and meaning the boiler can be operated independently 
of the power module. This independent operation could even allow 
for “microCHP ready” boilers to be sold and power modules fitted 
at a later date.
During the year we recruited a manufacturing manager from the 
boiler industry who has undertaken a review of the anticipated 
volume cost of the Kingston appliance. I am pleased that this review 
indicates that we should be able to manufacture Kingston  
appliances for a lower cost than we had originally estimated, and 
this further underpins our belief that Kingston will be the lowest cost 
microCHP appliance.
Pnu Power Review
Pnu Power has completed the development and certification of a 
range of products for the telecommunication, power network, and 
data centre markets; in particular Pnu Power achieved accreditation 
of its Quality Management System to ISO 9001:2008. 
Since the end of the year, Pnu Power has announced that it has 
developed and demonstrated a high powered system designed 
specifically for the power and reliability critical data centre market.
 
The new product, named DC100, has been successfully demonstrated 
to a number of industry experts, consulting engineers and potential 
customers from the data centre market.
 
The investment in greener data centres is predicted to experience 
rapid growth over the next five years, increasing from $7.5 billion in 
global revenue to $41.4 billion by 2015, representing 28% of the 
total data centre market (source: Pike Research, August 2010). 
Analysis indicates that power and cooling infrastructure solutions 
Adrian C Hutchings
Chief Executive Officer
Kingston ergonomic and industrial design 5 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
will be the largest portion of the green data centre market 
opportunity, representing 46% of revenue over the next five years, 
providing strong economic and regulatory drivers for the 
development of battery free solutions like Pnu Power.
 
DC100’s flexible back-up time, high efficiency and low maintenance 
are key benefits of the design. Internal estimates suggest that a 
typical 2MW data centre could save more than £1.75 million of 
electricity over its 20 year life by installing the Pnu Power DC100 
solution rather than a typical rotary system, and also reduce total 
CO
2
 emissions by more than 90% over that period.
To date the Pnu Power product range has been sold into the 
telecommunications and grid switching markets with systems in the 
2kW to 20kW range.
 
The DC100 is a 100kW module and represents a significant step 
forward in power output. These modules can be linked together to 
create systems of up to 2MW of backup power with no material 
effect to performance. This new product uses the same robust 
technology as the smaller systems. 
Pnu Power has been successful in achieving repeat trial sales in 
each of these markets; we now need to move out of the trial sales 
phase and into full volume commercial sales. From our experience 
of this transition with VPhase, it is our intention to recruit the 
necessary senior sales and marketing leadership for Pnu Power to 
take the business forward. Part of the recent fund raise will be used 
to undertake this recruitment and transition.
Market and Policy Framework
On 1 April 2010, the Government’s Feed in Tariff (“FiT”) became 
law. Under the terms of the legislation, the Government spelt out 
how microgeneration products would benefit from financial 
incentives to grow the small scale, low carbon electricity generation 
sector in the UK. The FiT comprises of three financial benefits to the 
owner of the microgeneration device such as a Genlec’s microCHP. 
The first benefit is the generation tariff which gives the device owner 
a quarterly payment based on the measured kWh of generation 
from the device; secondly the electricity generated can be used at 
no cost to the consumer, avoiding purchasing that amount across 
the meter and therefore reducing their energy bill. Finally any 
amount of electricity generated and not consumed in the house is 
exported and receives a small export tariff.
Energetix was actively involved in the dialogue and lobbying in 
advance of the publishing of the FiT by the Department of Energy 
and Climate Change, through its engagement with the Heating and 
Hotwater Industry Council and the Combined Heat and Power 
Association. This involvement continues as we monitor and seek to 
influence the developing regulatory and incentive landscape.
Since the new Coalition Government came to power in May 2010, it 
has conducted a comprehensive spending review, published in 
October 2010 by HM Treasury. In this major review of Government 
spending it stated that, “the efficiency of the Feed in Tariffs will be 
improved at the next formal review, rebalancing them in favour of 
more cost effective carbon abatement technologies”. This review 
was announced in February 2011 and will take place during the 
course of 2011, with a fast track review of solar farms which were 
not anticipated by the Government and are a threat to a balanced 
incentive programme for microgeneration. The high tariff under the 
FiT given to solar PV reflects the estimated 40 to 50 year payback 
without the FiT compared to 5 to 10 years for microCHP, although 
due to the inherent low cost of the Genlec technology the payback 
for our Kingston appliance could be as low as two years. This factor 
should bode well given the Treasury’s drive towards supporting 
more cost effective solutions.
Energetix is also currently monitoring the development of the Green 
Deal, which will replace the energy efficiency obligations which 
power suppliers have under Carbon Emissions Reduction Target 
(CERT), to be introduced in 2012. The principle is that bill payers will 
be able to get energy efficiency improvements without having to 
pay upfront cash, with capital supplied to the bill payer through the 
product supplier, with the loan attached to the property and paid 
off through energy savings. Energetix is again involved through its 
industry associations in understanding how this opportunity will 
play out in the industry.
Following the significant progress made in 2010 and the recent 
successful fundraising, the Group is well positioned to capitalise 
upon the many opportunities that lie ahead in 2011.
Adrian C Hutchings
Chief Executive Officer
22 March 2011  6 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Finance Review
Business review
Richard H Smith
Chief Financial Officer
Key highlights 
Commercial sales continued generating turnover of £26,000 from 
continuing operations (2009 restated: £131,000).
Operating losses from continuing operations increased to 
£3,216,000 (2009 restated: £3,017,000) reflecting increased 
commercial activity within the Group.
Continued tight financial control resulting in cash reserves of 
£1,379,000 at the year end (2009: £5,657,000).
Operating results   
  Restated 
 2010 2009 
 £’000 £’000
Revenue  26 131
Gross (loss)/profit  (33) 5
Operating loss-continuing operations  (3,216) (3,017)
Profit/(loss) for the year  1,627 (3,847)
Profit/(loss) attributable to equity shareholders 2,294 (3,350)
Cash reserves 31 December  1,379 5,657*
*2009 cash reserves have not been restated. 
Revenue
Revenue from continuing operations was £105,000 lower than 
2009 at £26,000 (2009 restated: £131,000). This reduction is due to 
lower income from both Energetix (Pnu) Power Limited and 
Energetix Genlec Limited. The order book for Kingston subsequent 
to the year end has increased to c.£100,000.
Overheads
Overheads after capitalisation of intangible expenditure (excluding 
depreciation and amortisation) of £2,315,000 were incurred in the 
year (2009 restated: £2,277,000), an increase of £38,000. Following 
the deemed disposal of VPhase plc, Energetix Group plc recognises 
its share of the former subsidiary’s loss and this amounted to 
£166,000 (2009: £Nil).
Depreciation of fixed assets and intangible amortisation
Depreciation of property, plant and equipment from  
continuing operations totalled £141,000 (2009: £181,000) on 
continuing operations.
Amortisation of intangible assets from continuing operations 
increased during the year as Pnu Power charged a full year of 
amortisation that began in 2009. This has resulted in an  
increase in the amortisation charge of £163,000 to £727,000  
(2009 restated: £564,000).
Deemed disposal of subsidiary
During the year, the Chairman and Chief Executive of VPhase plc 
each subscribed for new ordinary shares in VPhase plc which 
resulted in a deemed gain to Energetix Group plc of £19,000. In 
addition, the Group also recognised a further deemed gain following 
the placing in VPhase plc amounting to £5,971,000 giving a total 
gain on deemed disposals of £5,990,000. Following the deemed 
disposals in VPhase plc, the Group retains 42.86% of the  
issued share capital of VPhase plc which is now considered an 
associated undertaking.
Finance costs/income
Interest earned on money held on deposit for continuing operations 
totalled £19,000 (2009 restated: £34,000). The fair value adjustment 
of long term borrowings attributable to interest rate risk has resulted 
in a charge of £148,000 during the period (2009: £48,000 charge). 
Loss before tax
The loss before tax from continuing operations of £3,511,000  
(2009 restated: £3,013,000) has increased from last year’s reported 
loss largely due to the reduced contribution from sales,  
increased amortisation and recognition of the loss in the  
associated undertaking.
Tax
During the year, the Group received a tax credit of £458,000  
(2009 restated: £130,000) in relation to research and development 
expenditure in 2008. We are now preparing claims for 2009 although, 
in accordance with the Group’s accounting policies, no further 
amounts have been accrued for subsequent accounting periods as 
the amount expected to be recovered cannot be reliably measured. 7 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Loss per share
The loss per share, basic and diluted, from continuing operations 
was 5.54 pence (2009 restated: 5.23 pence).
Profit/(loss) for the year and profit/(loss) attributable to 
equity shareholders
Profit for the year of £1,627,000 (2009: £3,847,000 loss) is stated 
after taking account of £667,000 (2009: £497,000) of losses in 
VPhase plc which are not attributable to equity holders of Energetix 
Group plc. Profit attributable to equity holders of Energetix Group 
plc amounts to £2,294,000 (2009: £3,350,000 loss).
Investment in property, plant and equipment
During the year £42,000 (2009 restated: £61,000) was invested  
in property, plant and equipment for continuing operations  
and is consistent with the Group’s business model of  
outsourcing manufacturing operations to minimise capital 
investment requirements.
Investment in intangible assets
Investment in intangible assets during 2010 amounted to £1,070,000 
(2009 restated: £1,217,000). This investment is the internally 
generated product development costs capitalised in accordance 
with IAS 38. Further details are contained in note 14.
Cash and cash equivalents
At 31 December 2010, the Group had cash and cash equivalent 
reserves of £1,379,000. On 14 March 201 1, the Group raised a further 
£2,300,000 net of expenses following the placing of 10,000,000 new 
ordinary shares of 5 pence each at 25 pence per share.
Richard H Smith
Chief Financial Officer
22 March 2011 8 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Board of Directors
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.
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. On 7 July 2010, Adrian 
resigned from the Board of VPhase plc.
Richard H Smith
Chief Financial Officer
A Fellow of the Chartered Institute of Management 
Accountants Rick also has an MBA from 
Warwick University. Prior to his appointment as 
CEO of VPhase plc, he was CFO of both VPhase 
plc and Energetix Group plc. He was previously 
FD for Ultraframe (UK ) Limited, 2001-2004, and 
MD in 2004. Previous roles include the FD of 
Norcros Adhesives Limited, 1997-2001, which 
comprised subsidiary, joint venture and licensee 
operations in the UK, Middle East and India, the 
FD of International Energy Systems Limited, 
1995 – 1997 and prior to this the FC of a division 
of Robinson Healthcare, a division of Robinson 
Limited.
Dr Henry J Cialone
Non-Executive Director
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.
Neil S Bright
Group Operations Director
Neil Bright joined Energetix Group from Exide 
Technologies, 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.  9 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Corporate Responsibility
Overview
As our Company grows we are developing policies and procedures 
to ensure that we manage our growth responsibly.
As a Company we are committed to ensuring that our business is 
conducted to the highest ethical and professional standards and 
recognise that trust and reputation are key elements in our business 
and we make every effort to protect them. 
 
Employees
Our reputation is dependent on the skill and professionalism of 
everyone within our business and we aim to achieve sustainable 
growth through attracting, developing and retaining skilled and 
motivated people. We promote equality in all areas of our 
operations.
 
The Group is committed to the highest standards of Health and 
Safety in all areas of our business, to minimise the risks to our 
employees, our customers and the general public. 
Intellectual capital is a key strength of the Group and we encourage 
our staff to continuously develop their skills. We offer sponsorship 
for qualifications and allow study leave for exams.
Environment
As we develop our business operations we are building in 
environmentally friendly device processes and standards from the 
beginning. Our products are focused on delivering energy savings 
that reduce our customers’ costs and their carbon footprint.
We work with our suppliers to ensure that their environmental 
approach is consistent with our own. 
We recognise that we use significant amounts of energy within our 
operations, including supply chain, manufacture and distribution. 
On this basis we aim to reduce the amount of energy we use by 
improving the efficiency of existing buildings and processes and by 
seeking less environmentally harmful alternatives. 
Suppliers
We regard suppliers as partners and seek to work closely with 
them to achieve our objectives. We buy from suppliers within the 
EU and use reputable sources. 
We work with our suppliers to ensure that they meet our own 
standards of Corporate Responsibility. Notes to the Group Financial Statements
for the year ended 31 December 2010
10 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Group Directors’ Report
for the year ended 31 December 2010
The Directors present their report and the audited Financial Statements for the year ended 31 December 2010.
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 2010 and for the corresponding period in 2009. Further details are provided in note 2 to the  
Financial Statements.
Principal activities
Energetix Group plc is focused on the creation of shareholder value through the provision of home energy efficiency products and services 
and the supply of clean energy products for reliable back-up power. 
Results and dividends
The profit for the year, after taxation, amounted to £1,627,000 (2009 restated: loss £3,847,000). The Directors do not recommend the 
payment of a dividend.
Review of business and future developments
The business has continued to develop its Genlec and Pnu Power products and the Directors are pleased to report that Genlec’s CE 
approved Kingston units have been installed in staff homes and Pnu Power has developed and demonstrated a high power system 
designed specifically for the data centre market.
A more detailed appraisal of business developments is given in the Chairman’s Statement and Chief Executive’s Review and Financial Review 
on pages 2 to 7 .
Risk review
The Directors have monitored the progress of the overall Group strategy and a review of the Key Performance Indicators (KPIs) is included below:
Key performance indicator Progress
Revenue Product revenue fell from £131,000 in 2009 to £26,000 in 2010. Post the year end, the Genlec 
order book currently stands at c.£100,000 and Pnu Power’s new high powered DC100 unit has 
attracted considerable interest from potential partners and customers.
Product margins A gross loss was shown in 2010 as the Group sold heavily discounted products to customers 
with the potential to provide significant future volumes. It is anticipated that future product sales 
will be made at a profit. 
Warranty claims The Group has experienced no warranty claims or issues.
Research and development costs Technology is core to the Group’s success and management are committed to providing the 
necessary resources to achieve our stated aims. Expenditure in Genlec was £988,000 (2009: 
£1,075,000) as the Kingston unit was progressed to staff home trials and in Pnu Power £82,000 
(2009: £142,000) was expended in the development of the new high powered DC100 unit.
Administrative expenses Overheads excluding depreciation and amortisation from continuing operations have increased 
by just 1.7% as the Board have exercised tight cash control.
Capital expenditure Capital expenditure of £42,000 was incurred in the year (2009: restated £61,000). Energetix is 
not a capital intensive business and, in line with this philosophy, the Group will seek to outsource 
its manufacturing activities. 
Cash management The Group manages its capital to ensure that entities in the Group will be able to continue as a 
going concern while minimising costs and liquidity risk.
Creation of shareholder value Through the key performance indicators outlined above, the Group is ideally positioned to 
capitalise upon the significant opportunities that lie ahead and, ultimately, create substantial 
shareholder value.
The key business risks affecting the Group are set out below:
Funding requirements
Following the placing of 10,000,000 new ordinary shares passed at the General Meeting 14 March 2011, the Group has sufficient financial 
resources to continue to operate for the foreseeable future. 
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 based financial 
institutions with an ‘A’ rating or better. 11 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
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
To provide long term shareholder value through the commercial 
growth of our two businesses leading to growing earnings per 
share. We aim to do this with our cost effective products  
designed to meet the growing global demand for alternative  
energy technologies.
The Group has a focus on distributed generation and energy 
storage, our businesses are:
Genlec – distributed generation in the home; and •	
Pnu Power – compressed air back-up power •	
The Group will also seek to realise value from its investment in 
VPhase plc through increases in the VPhase share price and will 
receive dividends or sell down its interest as appropriate.
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.
The Group has established the Energetix Group plc Save as You 
Earn scheme in which all employees at the date of commencement 
of the scheme were invited to participate.
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 either incorporated into the products 
or processes of third parties, sold via distribution channels to the 
end consumer or supplied directly to industrial users. There can be 
no assurance that such products or processes will achieve 
commercial success or be an attractive alternative to conventional 
products or processes. If a mass market for any product or process 
fails to develop or develops more slowly than anticipated, the Group 
may fail to achieve profitability in respect of the technology 
associated with such product or process. 
The Group’s strategy of 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 2010, the Group incurred research and development 
costs of £1,158,000 (2009 restated: £1,456,000) of which  
£1,070,000 (2009 restated: £1,393,000) has been capitalised in 
accordance with IAS38 ‘Intangible Assets’. See note 14 for an 
analysis of capitalised development costs.
Directors
The Directors who held office in the year are shown below: 
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
Employees 
Throughout the year, Directors of the Group provide relevant 
information to employees and engage in consultation with them to 
ensure that their views are considered. 
Applications for employment by disabled persons are given full and 
fair consideration for all vacancies in accordance with their particular 
aptitudes and abilities. In the event of employees becoming disabled 
every effort is given to retrain them in order that their employment 
with the Group may continue. 
It is the policy of the Group that training, career development and 
promotion opportunities should be available to all employees. 
Financial risk management objectives and policies
Other than the proceeds from the issue of shares, the Group uses 
various financial instruments that include loans, cash and various 
items, such as trade receivables and trade payables arising directly 
from its operations. The main purpose of these financial instruments 
is to finance the Group’s operations. 12 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Group Directors’ Report continued
for the year ended 31 December 2010
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.
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 
£1,379,000 as at 31 December 2010 (2009 £5,657,000). The 
maturity of borrowings is set out in note 20 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 
remains the same as in the year and is explained in more detail in 
note 24.1.
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 payables of the Group at the year 
end as a proportion of amounts invoiced by suppliers during the 
year represent 30 days (2009: 37 days) and for the Company 
represent 60 days (2009: 102 days).
Going concern
Having made reasonable enquiries, the Directors are of the opinion 
that the Group has sufficient 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 21 March 2011 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:
   %
Aviva plc 9.86
Blackrock Investment Management 7.85
Ignis Investment Services Limited 6.09
Robert Quested 5.19
Invesco Limited 4.14
Gartmore Investments Limited   4.09
Corporate Governance Statement
The Directors are committed to maintaining high standards of 
Corporate Governance. Under the rules of the London Stock 
Exchange Aim Market, the Group is not required to comply with the 
Combined Code. Nevertheless, the Group has taken steps to 
comply in so far as it can be applied practically and appropriately 
given the size of the Group and the nature of its operations. 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 2010, relevant to the Group’s size 
and complexity.
Board of Directors
During the period under review the Board comprised three 
Executive and two Non-Executive Directors. Biographies of the 
Directors are provided on page 8 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. 
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 reports are 
tabled 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. 13 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Audit Committee
The members of the Audit Committee as at 31 December 2010 
were A J Aubrey (Chairman), 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 
2010 were Dr H J Cialone (Chairman) 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 
12 noon on 20 May 2011 at the Company’s registered office: Castlefield 
House, Liverpool Road, Castlefield, Manchester M3 4SB.
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. 
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. Under that law the Directors have prepared 
financial statements for the Group in accordance with International 
Financial Reporting Standards as adopted by the European Union 
(“IFRS”) and for the parent Company in accordance with United 
Kingdom Generally Accepted Accounting Practice and applicable 
laws. Under Company Law the Directors must not approve the 
financial statements unless they are satisfied that they give a true 
and fair view of the state of affairs and profit or loss of the Company 
and Group for that period. In preparing these financial statements, 
the Directors are required to:
select suitable accounting policies and then apply them •	
consistently;  14 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Group Directors’ Report continued
for the year ended 31 December 2010
make judgments and estimates that are reasonable and •	
prudent; 
state whether applicable IFRSs have been followed, subject to •	
any material departures disclosed and explained in the financial 
statements; and 
prepare the financial statements on the going concern basis •	
unless it is inappropriate to presume that the Company will 
continue in business. 
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Company’s 
transactions and disclose with reasonable accuracy at any time the 
financial position of the Company and enable them to ensure that 
the financial statements comply with the Companies Act 2006. 
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 each of 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
Grant Thornton UK LLP, having expressed their willingness to 
continue in office, will be deemed reappointed for the next financial 
year in accordance with section 489 of the Companies Act 2006.
On behalf of the Board
Adrian C Hutchings
Chief Executive Officer
22 March 2011 15 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Group Directors’ Remuneration Report
for the year ended 31 December 2010
This report to shareholders for the year ended 31 December 2010 
sets out the Company’s Remuneration policies as required by the 
AIM rules. This report is presented to disclose the key policies 
under which the Executive and Non-Executive Directors are 
remunerated and details of share interests of the Directors.
Composition and role of the Remuneration Committee
Membership of the Remuneration Committee during the year 
consisted wholly of independent Non-Executive Directors:
Henry J Cialone (Chairman)
Alan J Aubrey
The Committee met twice in 2010.
The Committee is responsible for determining on behalf of the 
Board, an appropriate remuneration policy for the Executive 
Directors and for designing a remuneration framework for them that 
is consistent with that policy. The Committee also monitors 
remuneration practice amongst other senior executives and 
determines the Chairman’s fee level and that of the other Non-
Executive Directors in consultation with the Chief Executive. No 
member of the Committee participates in discussions concerning 
their own remuneration.
Remuneration structure for Executive Directors
Overview
The Remuneration Committee is committed to maintaining high 
standards of corporate governance and has taken steps to comply 
with best practice in so far as it can be applied practically given the 
size of the Company and the nature of its operations.
Remuneration policy
The Committee aims to ensure that the total remuneration  
for the Executive Directors is soundly based, internally consistent, 
market competitive and aligned with the interests of  
shareholders. No Director takes part in decisions regarding their 
personal remuneration.
To design a balanced package for the Executive Directors and 
senior management the Committee considers:
the individual’s experience and the nature and complexity of •	
their work in order to pay a competitive salary that attracts and 
retains management of the highest quality, while avoiding 
remunerating those Directors more than is necessary;
the link between the individual’s remuneration package and the •	
Group’s long term performance; and
to provide employment related benefits including the provision •	
of life assurance and medical insurance.
Basic salary
Salaries are reviewed annually and are benchmarked against 
businesses of a similar size and stage of development. The review 
process is undertaken having regard to the development of the 
Group and the contribution that individuals will continue to make as 
well as the need to retain and motivate individuals. In this respect 
the Remuneration Committee draws on findings of external salary 
surveys and undertakes its own research.
Benefits
Directors are provided with life assurance for themselves and 
private medical insurance for themselves and their families.
Performance related pay
Directors can earn a cash bonus of up to one times their annual 
basic salary payable against meeting personal and business targets 
as set out by the Committee at the beginning of each year.
Share options
Share options are granted at the closing mid-market value of the 
Company’s ordinary shares on the day prior to grant. The vesting 
criteria can be that the shares vest after three years or such other 
time period as the Committee may decide or against specific 
business and or market performance criteria.
Service contracts
Each Executive Director has a service contract with the Group 
which contains details regarding remuneration, restrictions and 
disciplinary matters. Executive Directors are appointed by the 
Group on contracts terminable on not more than 6 months notice. 
Non-Executive Directors
The fees of the Chairman are determined by the Committee and the 
fees of the Non-Executive Directors by the Board following a 
recommendation from the Chairman. The Chairman and Non-
Executive Directors are not involved in any discussions or decisions 
about their own remuneration.
The annual fee levels as at 31 December 2010 were
Chairman £15,000
Non-Executive Director £18,000
Non-Executive Directors are not eligible to participate in any of the 
Group’s incentive schemes other than by way of share options. 16 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Group Directors’ Remuneration Report continued
for the year ended 31 December 2010
Directors’ emoluments for the year ended 31 December 2010 (audited)
   Energetix Group plc   VPhase plc*
   Share-based   Share-based  Total re- 
 Salary/fees Benefits payments Total Salary/fees payments Total muneration 
 £ £ £ £ £ £ £ £
Executive
Adrian Hutchings 157,000 1,000 – 158,000 16,000 – 16,000 174,000
Neil Bright 140,000 2,000 70,000 212,000 – – – 212,000
Richard Smith  73,000 1,000 – 74,000 47,000 – 47,000 121,000
Non-Executive
Alan Aubrey 15,000 – – 15,000 – – – 15,000
Henry Cialone 18,000 – – 18,000 – – – 18,000
 403,000 4,000 70,000 477,000 63,000 – 63,000 540,000
*Remuneration from VPhase plc is included until it ceased to be a subsidiary.
Directors’ emoluments for the year ended 31 December 2009 (audited)
   Energetix Group plc   VPhase plc
   Share-based   Share-based  Total re- 
 Salary/fees Benefits payments Total Salary/fees payments Total muneration 
 £ £ £ £ £ £ £ £
Executive
Adrian Hutchings 176,000 1,000 – 177,000 31,000 – 31,000 208,000
Neil Bright 168,000 2,000 6,000 176,000 – – – 176,000
Richard Smith  144,000 1,000 – 145,000 25,000 – 25,000 170,000
Non-Executive
Alan Aubrey 15,000 – – 15,000 – – – 15,000
Henry Cialone 18,000 – 7,000 25,000 – – – 25,000
 521,000 4,000 13,000 538,000 56,000 – 56,000 594,000
Directors’ interest in Share options (audited)
        Weighted 
    As at 1 Granted As at 31 average 
    January  during December exercise Exercise 
    2010 2010 2010 price (£) period
Neil Bright (1)    225,000 930,000 1,155,000 0.497 8 years
        2 months
Henry Cialone (2)    412,500 – 412,500 1.055 8 years
        0 months
(1) 225,000 options have no performance criteria attached. 930,000 options may be exercised at any time in the ten year period following their grant and vest equally in three 
tranches, subject to certain commercial performance criteria being met. In addition all the options may be exercised if the market capitalisation of the Group exceeds  
£100 million for a sustained period of three months within twelve months of the date of grant or for a sustained period of one month thereafter until the tenth anniversary of 
their grant.
(2) No performance criteria are attached.
Directors’ interest in shares (unaudited) are as follows:
      As at 1   As at 31 
      January   December 
      2010  2010
Adrian Hutchings  Ordinary shares of £0.05 each   11,267,965  11,267,965
Richard Smith  Ordinary shares of £0.05 each   1,740,377  1,740,377
Alan Aubrey  Ordinary shares of £0.05 each   1,074,486  1,074,486 17 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Independent Auditor’s Report
to the Members of Energetix Group plc 
We have audited the financial statements of Energetix Group plc for 
the year ended 31 December 2010 which comprise the Group 
Income Statement, the Group Statement of Changes in Equity, the 
Group Statement of Financial Position and the Group Statement of 
Cash Flows, Parent Company Balance Sheet, and the related 
notes. The financial reporting framework that has been applied in 
the preparation of the Group financial statements is applicable law 
and International Financial Reporting Standards as adopted by the 
European Union. The financial reporting framework that has  
been applied in the preparation of the Parent Company  
financial statements is applicable law and United Kingdom 
Accounting Standards (United Kingdom Generally Accepted 
Accounting Practice).
This report is made solely to the Company’s members, as a body, 
in accordance with Chapter 3 of Part 16 of the Companies Act 
2006. Our audit work has been undertaken so that we might state 
to the Company’s members those matters we are required to state 
to them in an auditor’s 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
As explained more fully in the Statement of Directors’ responsibilities 
set out on pages 13 and 14, the Directors are responsible for the 
preparation of the financial statements and for being satisfied that 
they give a true and fair view. Our responsibility is to audit and 
express an opinion on the financial statements in accordance with 
applicable law and International Standards on Auditing (UK and 
Ireland). Those standards require us to comply with the Auditing 
Practices Board’s (“APB’s”) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is 
provided on the APB’s website at www.frc.org.uk/apb/scope/
private.cfm
Opinion on financial statements
In our opinion:
the financial statements give a true and fair view of the state of  •	
the Group’s and of the Parent Company’s affairs as at  
31 December 2010 and of the Group’s profit for the year  
then ended; 
the Group financial statements have been properly prepared in •	
accordance with IFRS as adopted by the European Union;
the Parent Company financial statements have been properly •	
prepared in accordance with United Kingdom Generally 
Accepted Accounting Practice; and
the financial statements have been prepared in accordance with •	
the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies  
Act 2006
In our opinion the information given in the Group Directors’ Report 
for the financial year for which the financial statements are prepared 
is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters  
where the Companies Act 2006 requires us to report to you if, in 
our opinion:
adequate accounting records have not been kept by the Parent •	
Company, or returns adequate for our audit have not been 
received from branches not visited by us; or
the Parent Company financial statements are not in agreement •	
with the accounting records and returns; or
certain disclosures of Directors’ remuneration specified by law •	
are not made; or
we have not received all the information and explanations we •	
require for our audit.
 
Joanne Kearns
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Manchester
 
22 March 2011 18 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Group Income Statement
for the year ended 31 December 2010
        Restated 
       Year ended Year ended 
       31 December 31 December  
       2010 2009 
      Note £’000 £’000
Continuing operations
Revenue      3 26 131
Cost of sales       (59) (126)
Gross (loss)/profit       (33) 5
Administrative expenses       (3,183) (3,022)
Operating loss       (3,216) (3,017)
Share of loss from equity accounted investments      16 (166) –
Finance costs      5 (148) (48)
Finance income      5 19 34
Other gains      6 – 18
Loss before income tax from continuing operations     4 (3,511) (3,013)
Income tax      10 458 130
Loss for the year from continuing operations       (3,053) (2,883)
Discontinued operations
Gain on deemed disposal of VPhase plc      25 5,990 12
Profit/(loss) from discontinued operations      21 (1,310) (976)
Total profit/(loss) from discontinued operations       4,680 (964)
Profit/(loss) for the year       1,627 (3,847)
Attributable to:   
Equity holders of the Company       2,294 (3,350)
Non-controlling interest       (667) (497)
       1,627 (3,847)
Basic earnings/(loss) per share:    
From continuing operations      12 (5.54)p (5.23)p
From discontinued operations      12 8.49p (1.75)p
Total      12 2.95p (6.98)p
    
Diluted earnings/(loss) per share:    
From continuing operations      12 (5.54)p (5.23)p
From discontinued operations      12 8.33p (1.75)p
Total      12 2.89p (6.98)p
The Group has no items to be recognised in the “Group statement of comprehensive income” and consequently this statement has not 
been shown.
The notes on pages 22 to 48 are an integral part of these Group Financial Statements. 19 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Group Statement of Changes in Equity
for the year ended 31 December 2010 
 Attributable to Equity Holder of the Company
       Reverse     Total Non- Total 
 Share Share Retained acquisition Warrant Other shareholders controlling Total 
 capital premium earnings reserve reserve reserves equity interest equity 
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2009 2,756 15,198 (1,401) (821) 591 150 16,473 1,512 17,985
Share issued:         
– 4 June 2009 1 15 – – – – 16 – 16
– 6 August 2009 1 15 – – – – 16 – 16
Lapse of share-based payments – – 68 – – (68) – – –
Share-based payments – – – – – 11 11 – 11
Other share-based payments – – – – – (16) (16) – (16)
Lapse of warrants – – 256 – (256) – – – –
Deemed disposal in VPhase plc  
 (note 27) – – – – – – – 13 13
Share buy-back – – (43) – – – (43) – (43)
Transactions with owners 2,758 15,228 (1,120) (821) 335 77 16,457 1,525 17,982
Loss for the year and total         
 comprehensive income – – (3,350) – – – (3,350) (497) (3,847)
Balance at 31 December 2009 2,758 15,228 (4,470) (821) 335 77 13,107 1,028 14,135
Deemed disposal in VPhase plc  
 (note 27) – – – – – – – (361) (361)
Lapse of warrants – – 230 – (230) – – – –
Warrants held by former subsidiary – – 105 – (105) – – – –
Share-based payments – – – –  137 137 – 137
Transactions with owners 2,758 15,228 (4,135) (821) – 214 13,244 667 13,911
Profit/(loss) for the year and total – – 2,294 – – – 2,294 (667) 1,627
 comprehensive income                  
Balance at 31 December 2010 2,758 15,228 (1,841) (821) – 214 15,538 – 15,538
Total recognised income and expense recognised directly to equity amounts to £Nil (2009: £Nil). 
Reverse acquisition reserve 
The reverse acquisition reserve relates to the reverse acquisition between Energetix (Europe) Limited and Energetix Group plc on  
8 August 2006. 
Warrant reserve 
On 15 August 2006 Energetix Group plc (‘the Company’) granted 1,350,000 warrants to its then broker and Nominated Advisor in relation 
to the flotation which lapsed during the year. On 1 August 2007, as part of the agreed placing costs, the Company granted 500,000 
warrants to its then joint 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. At 31 December 2010, all warrants had lapsed.
Other reserves 
Other reserves comprise of share-based payments for the cost of options granted to employees and the Company Secretary.
Non-Controlling interest 
As at 31 December 2009, a non-controlling interest existed due to the Group owning less than 100% of VPhase plc. Following the Group’s 
deemed disposal of VPhase plc during the year, no non-controlling interest is recognised as at 31 December 2010, see note 27.
The notes on pages 22 to 48 are an integral part of these Group Financial Statements. 20 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Group Statement of Financial Position
as at 31 December 2010
      As at  As at  
       31 December  31 December  
      2010  2009  
     Note £’000  £’000
ASSETS
Non-current assets
Goodwill     13 –  311
Other intangible assets     14 9,837  9,865
Property, plant and equipment     15 117  284
Investments in Associates     16 6,711  –
      16,665  10,460
Current assets
Inventories     17 22  375
Trade and other receivables     18 334  272
Cash and cash equivalents     19 1,379  5,657
      1,735  6,304
Total assets      18,400  16,764
LIABILITIES
Non-current liabilities
Borrowings     20 1,821  1,600
      1,821  1,600
Current liabilities
Borrowings     20 12  85
Trade and other payables     22 1,029  944
      1,041  1,029
Total liabilities       2,862  2,629
EQUITY
Capital and reserves attributable to equity holders of the Company
Share capital     26 2,758  2,758
Share premium      15,228  15,228
Retained earnings      (1,841)  (4,470)
Reverse acquisition reserve      (821)  (821)
Warrant reserve      –  335
Other reserves      214  77
Total shareholders’ equity      15,538  13,107
Non-controlling interest     27 –  1,028
Total equity      15,538  14,135
Total equity and liabilities      18,400  16,764
The notes on pages 22 to 48 are an integral part of these Group Financial Statements.
These Financial Statements were approved by the Board of Directors and authorised for issue on 22 March 2011 and were signed on its 
behalf by:
Adrian C Hutchings 
Chief Executive Officer 
Company number: 5819555 21 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Group Statement of Cash Flows
for the year ended 31 December 2010
        Restated 
       2010 2009 
      Note £’000 £’000
Cash flows from operating activities
Cash consumed by operations      28 (3,158) (3,804)
Taxation
Tax received       458 130
Cash flows from taxation (discontinued)       – 5
       458 135
Cash flows from investing activities
Expenditure on intangible assets      14 (1,070) (1,217)
Purchases of property, plant and equipment      15 (42) (61)
Interest received       19 34
Cash disposed on deemed disposal of subsidiary       (2,390) –
Cash flows from investing activities (discontinued)       (1) (180)
       (3,484) (1,424)
Cash flows from financing activities
Cash flows from financing activities (discontinued)       1,906 –
Repayment of financial liabilities      20 – (232)
Share buy-back       – (43)
       1,906 (275)
Net increase/(decrease) in cash and cash equivalents       (4,278) (5,368)
Cash and cash equivalents at the beginning of the year      5,657 11,025
Cash and cash equivalents at the end of the year      19 1,379 5,657
The notes on pages 22 to 48 are an integral part of these Group Financial Statements.  22 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Group Financial Statements
for the year ended 31 December 2010
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 56 
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 policies 
The Group has adopted the following revisions and amendments to IFRSs issued by the International Accounting Standards Board, which 
are relevant to and effective for the Group’s financial statements for the annual period beginning 1 January 2010:
IAS 27 Consolidated and separate financial statements (Revised 2008). •	
The effect on current, prior or future periods arising from first time adoption of this new requirement in respect of presentation, recognition 
and measurement are as follows:
IAS 27R introduced changes to the accounting requirements for transactions with non-controlling (formerly called ‘minority’) interests •	
and the loss of control of a subsidiary. These changes are applied prospectively. During the current period, the Group had no 
transactions with non-controlling interests. The disposal of the investment in VPhase plc (see note 25) was not affected by the adoption 
of IAS 27R.
There are no new interpretations, revisions or amendments to IFRS issued by the International Accounting Standards Board which are 
relevant and effective for the Group’s financial statements for the annual period beginning 1 January 2010.
2.2 Basis of preparation 
The Group Financial Statements of Energetix Group plc have been prepared in accordance with IFRS. 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 20). 
Going concern 
The Group’s business activities, together with the factors likely to affect its future development, performance and position and 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 are set out in the Group Directors’ Report on pages 10 to 14. The 
financial position of the Group, its cash flows and liquidity position are described in the Finance Review on pages 6 and 7. 
In February 2011, the Group placed 10,000,000 new ordinary shares of 5p each at a price of 25p per share to raise gross proceeds of 
£2,500,000. A special resolution was passed on 14 March 2011 and the net proceeds were received on 15 March 2011.
The Group has sufficient 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 2013 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 overleaf.  23 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
2. Summary of significant accounting policies continued
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 2.13. 
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. 
Discount rate on intangible assets and financial liabilities 
Management have exercised judgment in selecting the appropriate discount rate for application against intangible assets and have 
selected 10.0% (2009: 11.60%) to represent the best estimate of the current cost of capital to the Group, see 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 for options with non-market vesting conditions and the simulation model for options with market 
vesting conditions attached. Where arrangements have both conditions, management apply judgement to the likelihood of each condition. 
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. 
In August 2010, the Group established the Energetix Save as You Earn (SAYE) scheme open to all employees. In September 2010, the 
Group established individual Company Share Ownership Plan (CSOP) for a number of senior employees.
Taxation 
Management have not provided for deferred tax in relation to unrelieved tax losses as the recoverability is currently uncertain. 
Critical accounting judgments 
Control over VPhase plc 
At 31 December 2009, the Group held 49.09% of the ordinary share capital of VPhase plc and consolidated the results of the subsidiary 
on the basis that it controlled the financial and operating polices of VPhase plc through Board members. In addition, the Group retained 
control over 53.3% 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. 
In July 2010, Adrian Hutchings, the Chief Executive Officer of Energetix Group plc, resigned as Executive Chairman of VPhase plc. 
Following the placing in October 2010, the Group’s direct holding in VPhase plc fell to 42.86% and, at the same time, Energetix Group plc 
lost control of the voting rights over the shares held in an Employee Benefit Trust. Consequently, from the end of October 2010, Energetix 
Group plc was no longer deemed to control VPhase plc. At this point, VPhase plc was no longer considered a subsidiary of the Group but 
an associated company and has been accounted for in accordance with IAS 28.
Disposal of VPhase plc 
Following the deemed disposal in VPhase plc, the Group retains 42.86% of the issued share capital of VPhase plc and is no longer 
considered to control it. Consequently, VPhase plc is no longer considered a subsidiary but an associated company as the Group can 
demonstrate significant influence over the operational and financial policies of the entity by virtue of its shareholding. Accordingly, the 
comparatives of the income statement and cash flow have been restated as discontinued activities. 
Previous deemed disposals (which did not result in a loss of control) have been accounted for under the ‘Parent Company concept’ as 
management deemed this to be the most appropriate basis of consolidation. Under this method where a part disposal of a subsidiary 
occurs and the relevant entity remains a subsidiary, the non-controlling interest will increase by the carrying amount of the net identifiable 
assets that are now attributable to the non-controlling 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. 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, non-controlling 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. 24 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Group Financial Statements continued
for the year ended 31 December 2010
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. Due to the instrument containing an embedded derivative, the 
Group has designated the entire instrument as fair value through profit and loss (FVTPL), see note 20. 
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 by Energetix Genlec Limited are deemed to still be in the development phase and accordingly no amortisation 
has been charged to the Group Income Statement for this subsidiary. Management deemed that mainstream sales commenced in  
June 2009 for Energetix (Pnu) Power Limited and, consequently, amortisation of these development costs began from this date.
2.4 Basis of consolidation 
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. Other than the deemed disposal of VPhase plc as set out in note 25, no 
acquisitions or disposals took place during the year. 
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 in full. Accounting 
policies of the subsidiaries have been established to ensure consistency with the policies adopted by the Group. 
Transactions with non-controlling interests
The Group applies a policy of treating transactions with non-controlling interests as transactions with parties external to the Group. In 
accordance with IAS 27 losses applicable to non-controlling interests, whereby the minority does not have a binding obligation to cover 
the losses, have been fully provided. 
Non-controlling interests in the net assets (excluding goodwill) of Group subsidiaries are identified separately from the Group’s equity 
therein. Non-controlling 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. 
Following the Group’s disposal of VPhase plc during the year, no non-controlling interest is recognised as at 31 December 2010.
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 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 VPhase Smart Energy Limited (formerly 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. 
Following the Group’s disposal of VPhase plc during the year, no goodwill is recognised as at 31 December 2010. 25 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
2. Summary of significant accounting policies continued
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 2.13), 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 by Energetix Genlec Limited are deemed to still be in the development phase and accordingly no amortisation 
has been charged to the Group Income Statement for this subsidiary. Management deem that mainstream sales commenced in  
June 2009 for Energetix (Pnu) Power Limited and, consequently, amortisation of development costs incurred until this date began from 
this point. During 2010, further development costs have been capitalised in relation to the 100kW telecoms unit as detailed in note 14.
Amortisation charges are recognised in the Group Income Statement within administrative expenses.
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. An impairment charge is reversed if the cash-generating 
unit’s recoverable amount exceeds its carrying amount. 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
– Furniture, fittings 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. 
2.7 Financial assets 
Financial assets are classified into the following specified category: ‘loans and receivables’. The classification depends on the nature and 
purpose of the financial assets and is determined at the time of initial recognition. Loans and receivables are measured initially at fair value 
and thereafter 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. 
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. The Group’s cash and cash equivalents, trade and most other receivables fall into this 
category of financial instruments. 26 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Group Financial Statements continued
for the year ended 31 December 2010
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, 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 Inventories 
Inventories are stated at the lower of cost and net realisable value. Costs of ordinarily interchangeable items are assigned using the first-in, 
first-out cost formula. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and 
costs necessary to make the sale.
2.9 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. 
2.10 Trade Payables 
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. 
2.11 Other financial liabilities 
Other financial liabilities including borrowings as detailed in note 20 are recognised and valued at fair value through profit and loss. 
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. 
2.12 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. •	
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.  27 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
2. Summary of significant accounting policies continued
Other income 
Other income includes movements on financial liabilities designated at fair value through profit and loss.
2.13 Research and development 
Research costs are charged against income as incurred. Certain development costs are capitalised as intangible assets when they meet 
the criteria discussed below. 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. •	
The costs of an internally generated intangible asset comprise all directly attributable costs necessary to create, produce, and prepare the 
asset to be capable of operating in the manner intended by management. Directly attributable costs include employee (other than 
Directors) costs incurred on technical development, testing and certification, materials consumed and any relevant third party costs. 
However, until completion of the development project, the assets are subject to impairment testing. 
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 statement of financial position 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. 
2.14 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. 
2.15 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/includes 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. 
2.16 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.  28 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Group Financial Statements continued
for the year ended 31 December 2010
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.
2.17 Employee benefits 
Share-based payments 
The Group issues equity-settled payments to certain employees (including Directors). During the year, the Group established the Energetix 
Save as You Earn (SAYE) scheme open to all employees and individual Company Share Ownership Plans (CSOP) for a number of senior 
employees.
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 for options with non-market vesting conditions 
attached and the simulation model for options with market vesting conditions attached, and are charged to operating profit over the 
vesting period of the award with a corresponding credit to ‘other reserves’. 
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period based on the best 
available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the 
number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the 
current period. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that 
estimated on vesting. 
Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital and where 
appropriate share premium account. 
Bonus plans 
The Group operates discretionary staff bonus schemes for its employees and Directors paid in cash. 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. 
2.18 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’. 
As at 31 December 2010, all outstanding warrants had lapsed.
2.19 Adopted IFRS not yet applied 
At the date of authorisation of these financial statements, certain new standards, amendments and interpretations to existing standards 
have been published but are not yet effective, and have not been adopted early by the Group.
Management anticipates that all of the relevant pronouncements will be adopted in the Group’s accounting policies for the first period 
beginning after the effective date of the pronouncement. Information on new standards, amendments and interpretations that are expected 
to be relevant to the Group’s financial statements is provided below. Certain other new standards and interpretations have been issued 
but are not expected to have a material impact on the Group’s financial statements.
Annual Improvements 2010 (effective from 1 July 2010 and later)
The IASB has issued Improvements to IFRS 2010 (2010 Improvements). Most of these amendments become effective in annual periods 
beginning on or after 1 July 2010 or 1 January 2011. The 2010 Improvements amend certain provisions of IFRS 3R, clarify presentations 
of the reconciliation of each of the components of other comprehensive income and clarify certain disclosure requirements for financial 
instruments. The Group’s preliminary assessments indicate that the 2010 Improvements will not have a material impact on the Group’s 
financial statements. 29 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
2. Summary of significant accounting policies continued
IFRS 9 Financial Instruments (effective from 1 January 2013)
The IASB aims to replace IAS 39 Financial Instruments : Recognition and Measurement in its entirety. The replacement standard (IFRS 9) 
is being issued in phases. To date, the chapter dealing with recognition, classification, measurement and derecognition of financial assets 
and liabilities have been issued. These chapters are effective for annual periods beginning 1 January 2013. Further chapters dealing with 
impairment methodology and hedge accounting are still being developed.
Management have yet to assess the impact that this amendment is likely to have on the financial statements of the Group. However, they 
do not expect to implement the amendments until all chapters of IFRS 9 have been published and they can comprehensively assess the 
impact of all changes.
2.20 Foreign currency
The individual financial statements of each Group company are presented in the currency of the primary economic environment in which 
it operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each 
Group company are expressed in pounds sterling, which is the functional currency of the Company and the presentation currency for the 
consolidated financial statements. In preparing the financial statements of the individual companies, transactions in currencies other than 
the entity’s functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At 
each Balance Sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing 
on the balance sheet date. Non-monetary items that are measured in terms of historical cost in foreign currency are not retranslated. 
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included in profit or loss 
for the year.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated 
at exchange rates prevailing on the Balance Sheet date. Income and expense items are translated at the average exchange rates for the 
period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the date of the transactions 
are used. Exchange differences arising, if any, are classified as other comprehensive income and transferred to the Group’s currency 
reserve. Such translation differences are recognised as income or as expenses in the period in which the operation is disposed of. 
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and 
translated at the closing rate. The Group has elected to treat goodwill and fair value adjustments arising on acquisitions before the date of 
transition to IFRS as sterling denominated assets and liabilities.
2.21 Operating segments
In identifying its operating segments, management generally follows the Group’s service lines, which represent the main products provided 
by the Group:
products for distributed generation and load shifting, these are the microCHP products from Genlec; and •	
products for power quality and reliability, these comprise the compressed air battery products of Pnu Power. •	
From 1 January 2011, the Group will no longer report the position and performance of products for energy efficiency (comprising the 
voltage control devices of VPhase) in its financial statements.
Each of these operating segments is managed separately as each of these service lines requires different technologies and other resources 
as well as marketing approaches. All inter-segment transfers are carried out at arm’s length prices.
The measurement policies the Group uses for segment reporting under IFRS 8 are the same as those used in its financial statements, 
except that development costs meeting the criteria of IAS 38 are not capitalised in subsidiary financial statements, see note 3 for a 
reconciliation of the segmental information to the primary statements. 30 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Group Financial Statements continued
for the year ended 31 December 2010
3. Segmental information 
The Group’s operating segments have been identified based on internal management reporting information that is regularly reviewed by 
the chief operating decision maker as set out in note 2.21. These operating segments are monitored and strategic decisions are made on 
the basis of adjusted segment operating results.
The segment results for the year ended 31 December 2010 are as follows:
    Distributed Power     
    generation quality  
   and load and Other Total Discontinued  
   shifting reliability segments continuing operations Total 
   £’000 £’000 £’000 £’000 £’000 £’000
Revenue
From external customers   – 26 – 26 212 238
Segment revenues   – 26 – 26 212 238
Operating loss   (1,922) (1,092) (175) (3,189) (1,312) (4,501)
Finance Income   – – – – 2 2
Other Income/costs   (286)   (286)  (286)
Discounts allowed   – – – – – –
Loss before income tax   (2,208) (1,092) (175) (3,475) (1,310) (4,785)
Income tax credit   293 165  458  458
Loss for the year   (1,915) (927) (175) (3,017) (1,310) (4,327)
Depreciation/Amortisation (excluding Intangible assets)  (372) (56) – (428) (27) (455)
Other non cash movements   (286) – – (286) – (286)
Two minor operating segments, for which quantities thresholds have not been met, are currently combined above under ‘Other segments’.
The discontinued operations segment relates to the energy efficiency service line which was disposed of during the year.
The segment results for the year ended 31 December 2009 are as follows:
     
    Distributed Power     
    generation quality  
   and load and Other Total Discontinued  
   shifting reliability segments continuing operations Total 
Restated   £’000 £’000 £’000 £’000 £’000 £’000
Revenue      
From external customers   44 87 – 131 124 255
Segment revenues   44 87 – 131 124 255
Operating loss   (1,930) (1,015) (846) (3,791) (992) (4,783)
Finance Income   – – – – 11 11
Other income   92 – – 92 – 92
Discounts allowed   – – 18 18 – 18
Loss before income tax   (1,838) (1,015) (828) (3,681) (981) (4,662)
Income tax expense   78 52 – 130 5 135
Loss for the year   (1,760) (963) (828) (3,551) (976) (4,527)
Depreciation/Amortisation (excluding Intangible assets)  (373) (81) (7) (461) (26) (487)
Other non cash movements   92 – – 92 – 92 31 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
3. Segmental information continued
The segment assets and liabilities at 31 December 2010 and capital expenditure for the year then ended are as follows:
    Distributed Power     
    generation quality  
   and load and Other Total Discontinued  
   shifting reliability segments continuing operations Total 
   £’000 £’000 £’000 £’000 £’000 £’000
Assets   8,784 2,099 3,948 14,831 9,864 24,695
Liabilities   (12,914) (6,490) (2,028) (21,432) (6,368) (27,800)
Capital expenditure
– Tangible   38 39 – 77 47 124
– Intangible    4,169 2,046 – 6,215 360 6,575
The segment assets and liabilities at 31 December 2009 and capital expenditure for the year then ended are as follows:
    Distributed Power     
    generation quality  
   and load and Other Total Discontinued  
   shifting reliability segments continuing operations Total 
   £’000 £’000 £’000 £’000 £’000 £’000
Assets   8,069 2,561 9,849 20,479 3,337 23,816
Liabilities   (11,308) (5,128) (4,563) (20,999) (3,638) (24,637)
Capital expenditure
– Tangible   55 98 3 156 61 217
– Intangible    3,181 1,964 – 5,145 398 5,543
The totals presented for the Group’s operating segments reconcile to the entity’s key financial figures from continuing operations as 
presented in its financial statements as follows:
        2009 
       2010 Restated 
       £’000 £’000
Revenue from continuing operations
Total segment revenues from continuing operations       26 131
Group revenues from continuing operations       26 131
Loss from continuing operations
Segment operating loss from continuing operations       (3,189) (3,791)
Other expenses not allocated       (1,097) (619)
Research and development costs (note 14)        1,070 1,393
Group operating loss from continuing operations      (3,216) (3,017)
Net finance (costs)/income from continuing operations       (129) (14)
Other gains       – 18
Share of loss of associated company       (166) –
Group loss before tax       (3,511) (3,013)
Assets 
Total segment assets       24,695 23,816
Consolidation       (14,828) (18,095)
Group headquarters       8,533 11,043
Group assets       18,400 16,764
Other expenses not allocated represent unallocated group costs and amortisation of intangible assets. 32 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Group Financial Statements continued
for the year ended 31 December 2010
3. Segmental information continued
Revenue from external customers can be summarised as follows:
       2010 2009 
       £’000 £’000
Sale of distributed generation and load shifting products      – 44
Sale of power quality and reliability products        26 87
Sale of energy efficiency products        212 124
       238 255
Attributable to:
Continuing       26 131
Discontinued       212 124
Total       238 255
Geographic analysis of revenue:
       2010 2009 
       £’000 £’000
UK       212 188
Europe       12 20
USA       14 47
       238 255
All Group non-current assets are located within the UK.
The table below shows customers that constituted in excess of 10% of Group revenues from continuing operations:
Customer A, power quality and reliability products, £12,000 or 46%
Customer B, power quality and reliability products, £14,000 or 54%
Management note that as the commercial operations of each segment develop this concentration will diminish.
4. Loss before income tax
Loss before income tax is stated after charging/(crediting):
       2010 2009 
       £’000 £’000
Amortisation (note 14)       817 591
Depreciation (note 15)       175 207
Inventories recognised as an expense       – 148
Employee benefit expense (note 8)       2,754 2,458
Other share-based payment credit       – (16)
Research costs (not capitalised)       88 63
Grant income received       (36) (122)
Operating lease rentals:
– buildings       116 116
Audit remuneration:
– fees payable to Company auditor for the audit of Parent Company and Group Financial Statements  19 14
– subsidiary companies       16 12
Non-audit services:
– tax services       42 45
– other services pursuant to legislation       3 3
Foreign exchange differences       1 4
The Group has not received any other forms of government assistance during the year, other than the government grant income as noted 
above. There are no unfulfilled conditions attached to government grants recognised in the year.  33 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
5. Net finance income/(costs)
       2010 2009 
       £’000 £’000
Loans and receivables (including cash and cash equivalents)       19 45
Fair value adjustment of long term borrowings attributable to interest rate risk (note 20)    (148) (48)
       (129) (3)
Attributable to:
Continuing operations       (130) (14)
Discontinuing operations       1 11
       (129) (3)
6. Other gains 
Other gains result from: 
       2010 2009 
       £’000 £’000
Discounts allowed for settlement of loan notes       – 18
       – 18
7. Directors’ remuneration 
       2010 2009 
       £’000 £’000
Directors’ emoluments
Aggregate emoluments       470 581
Highest paid Director
The above includes remuneration of the highest paid Director as follows:
       2010 2009 
       £’000 £’000
Aggregate emoluments       174 208
8. Employee benefit expense
       2010 2009 
       £’000 £’000
Wages and salaries       2,394 2,172
Social security costs       223 227
Share options granted to Directors       70 13
Share options granted to employees       67 46
       2,754 2,458
The analysis above includes employee benefits capitalised in the development asset totalling £615,000 (2009: £655,000).
Attributable to:
       2010 2009 
       £’000 £’000
Continuing operations       2,175 2,117
Discontinued operations       580 341
Total       2,755 2,458 34 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Group Financial Statements continued
for the year ended 31 December 2010
8. Employee benefit expense continued
Average number of persons employed:
       2010 2009 
       No No
Finance, administration and management       31 18
Research and development       14 23
Total       45 41
Attributable to:
Continuing operations       32 33
Discontinued operations       13 8
Total       45 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. 
In August 2010, the Group established the Energetix Save as You Earn (SAYE) scheme open to all employees. 
In September 2010, the Company established individual Company Share Ownership Plans (CSOPs) for a number of senior employees.
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 with the exception of the SAYE scheme due to the timing difference between making the offer and issuing the option.
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: 
    2010   2009
    Weighted average   Weighted average
    Exercise Remaining  Exercise Remaining 
   2010 price contractual 2009 price contractual 
   No. (pence) life  No. (pence) life
Number of outstanding share options at 1 January   709,789 86.8 8 years 607,500 50.7 7 years
     8 months    11 months
Granted during the year   1,721,716 37.4 9 years 484,789 96.0  9 years  
     9 months   5 months 
Lapsed during the year   – – – (382,500) 41.1 –
Number of outstanding share options at 31 December   2,431,505 51.8 8 years 709,789 86.8  8 years 
     9 months   8 months
As at 31 December 2010, 709,789 share options were capable of being exercised (2009: 206,250) with a weighted average exercise price 
of 86.8 pence (2009: 105.5 pence). 
Share options are valued at the date of grant using the Black-Scholes option pricing model for options with non-market vesting conditions 
attached and the simulation model for options with market vesting conditions, and are charged to operating profit over  
the vesting period of the award with a corresponding credit to the ‘other reserves’. This resulted in a fair value charge of £137,000  
(2009: £11,000) and a corresponding credit to other reserves. 35 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
9. Share-based payments continued
Assumptions
The following assumptions are used to determine the fair value of share options at the respective date of grant: 
  Ordinary Share price   Life of 
 Exercise shares at date of Expected Interest option Expected Vesting 
Date of grant price (pence) under option grant (pence) volatility rate (years) dividends requirements
23 April 2007 67.0 225,000 67.0 45.7% 5.75% 3 Nil 1
21 January 2009 105.5 412,500 39.5 38.7% 4.50% 1 Nil 1
7 September 2009 41.5 72,289 41.5 42.7% 4.50% 3 Nil 1
31 August 2010 23.0 608,862 29.5 40.8% 4.50% 3 Nil 1
29 September 2010 43.8 182,854 43.8 38.7% 4.50% 3 Nil 1
22 November 2010 45.5 930,000 39.3 41.5% 4.50% 3 Nil 2
1.  No performance criteria are attached and may be exercised until the tenth anniversary following their grant.
2.  The options may be exercised at any time in the ten year period following their grant and vest equally in three tranches, subject to certain commercial performance criteria 
being met. In addition all the options may be exercised if the market capitalisation of the Group exceeds £100 million for a sustained period of three months within twelve 
months of the date of grant or for a sustained period of one month thereafter until the tenth anniversary of their grant.
The middle market price of ordinary shares on 31 December 2010 was 37.3 (2009: 49.5) pence. The high and low market prices during 
the year were 52.0 (2009: 57.0) pence and 20.0 (2009: 27.0) 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. 
National insurance is payable on gains made by employees on exercise of share options granted to them. 
10. Income tax
        Restated 
       2010 2009 
       £’000 £’000
Current tax
Prior year adjustment       (458) (130)
The prior year adjustment originates from a tax credit received in cash arising from research and development activities during the financial 
year ended 31 December 2008 undertaken in Energetix Genlec Limited £293,000 (2009: £78,000) and Energetix Pnu Power Limited 
£165,000 (2009: £52,000). In 2009, £5,000 was received in VPhase Smart Energy Limited formerly (Energetix Voltage Control Limited).
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:
        Restated 
       2010 2009 
       £’000 £’000
Loss before income tax       (3,511) (3,013)
Loss before income tax multiplied by rate of corporation tax in the UK of 28.0% (2009: 28.0%)   (983) (844)
Adjustment for tax rate differences       108 –
Adjustment for non-deductible expenses       172 11
Movement in deferred tax not provided       703 833
Adjustment in respect of prior periods        (458) (130)
Current tax       (458) (130)
Unrelieved tax losses of £15,936,000 (2009: £16,891,000) 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.  36 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Group Financial Statements continued
for the year ended 31 December 2010
11. Deferred tax 
The unprovided deferred taxation is calculated at a tax rate of 28% (2009: 28%) and is set out below: 
       2010 2009 
       £’000 £’000
Accelerated capital allowances       (132) (59)
Share-based payments       (23) (62)
Other short term temporary differences       1,511 1,480
Trade losses       (4,303) (4,729)
       (2,947) (3,370)
12. Loss per ordinary share
The earnings per ordinary share is based on the profit of £1,627,000 (2009 restated: loss of £3,847,000) and 55,155,008 (2009: 55,138,105) 
ordinary shares of 5 pence each are being the weighted average number of shares in issue during the year. The diluted earnings per 
ordinary share include the effects of all potentially dilutive ordinary shares, which increases the weighted average number of shares  
to 56,214,267.
All shares have been included in the computation based on the weighted average number of days since issuance. 
        Restated 
       Year Year 
      ended ended 
      31 December 31 December 
      2010 2009
Profit/(loss) for the year (£’000)      1,627 (3,847)
Weighted average number of ordinary shares in issue      55,155,008 55,138,105
Basic earnings/(loss) per share (pence)      2.95 (6.98)
Diluted earnings/(loss) per share (pence)      2.89 (6.98)
Attributable to:  
Continuing operations  
Profit/(loss) attributable to equity holders of the Company (£’000)     (3,053) (2,883)
Weighted average number of ordinary shares in issue      55,155,008 55,138,105
Basic loss per share (pence)      (5.54) (5.23)
Diluted loss per share (pence)      (5.54) (5.23)
Discontinued operations  
Profit/(loss) attributable to equity holders of the Company (£’000)     4,680 (964)
Weighted average number of ordinary shares in issue      55,155,008 55,138,105
Basic earnings/(loss) per share (pence)      8.49 (1.75)
Diluted earnings/(loss) per share (pence)      8.33 (1.75)
13. Goodwill 
        Goodwill 
        £’000 
Year ended 31 December 2009
Opening and closing net book value        311
Year ended 31 December 2010
Opening net book value         311
Accumulated impairment        –
Deemed disposal (note 25)        (311)
Closing net book value        –
At 31 December 2009
Cost and closing net book value        311
Goodwill arose on 25 September 2007 from the reverse acquisition of VPhase Smart Energy Limited formerly (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. 
Following the placing of 100,000,000 shares in VPhase plc, it is no longer a subsidiary of the Group and the goodwill has been eliminated 
(see note 25). 37 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
14. Other intangible assets 
    Compressed  Voltage 
  micro-chp  air battery  Management 
  Research  Research  Research and  
  and  and Total development asset  
 Intellectual development  development (Continuing  (Discontinued   
 property asset Total asset operations) operations) Total 
 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Year ended 31 December 2009
Opening net book value 4,913 2,106 7,019 1,822 8,841  222 9,063
Additions – 1,075 1,075 142 1,217  176 1,393
Amortisation (336) – (336) (228) (564)  (27) (591)
Closing net book value 4,577 3,181 7,758 1,736 9,494  371 9,865
Year ended 31 December 2010      
Opening net book value 4,577 3,181 7,758 1,736 9,494  371 9,865
Additions – 988 988 82 1,070  – 1,070
Amortisation (336) – (336) (391) (727)  (90) (817)
Deemed disposal – – – – –  (281) (281)
Closing net book value 4,241 4,169 8,410 1,427 9,837  – 9,837
At 31 December 2010      
Cost 5,787 4,169 9,956 2,046 12,002  398 12,400
Accumulated amortisation (1,546) – (1,546) (619) (2,165)  (117) (2,282)
Deemed Disposal – – – – –  (281) (281)
Closing net book value 4,241 4,169 8,410 1,427 9,837  – 9,837
At 31 December 2009      
Cost 5,787 3,181 8,968 1,964 10,932  398 11,330
Accumulated amortisation (1,210) – (1,210) (228) (1,438)  (27) (1,465)
Closing net book value 4,577 3,181 7,758 1,736 9,494  371 9,865
All additions during the year arise from internal development. In addition, of the above amortisation £90,000 relates to discontinued 
activities (2009: £27,000).
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 Limited 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.  38 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Group Financial Statements continued
for the year ended 31 December 2010
14. Other intangible assets continued
        £’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 13 years. 
Capitalised product development costs 
The Group currently has internally generated intangible assets from development of its microCHP module and compressed air battery. 
Following the deemed disposal in VPhase plc during the year, the internally generated asset from the smart voltage management unit  
is no longer consolidated into these financial statements. All other development work has been written off as incurred where the criteria 
for recognition as an asset are not met.
Development costs are capitalised by the Group until the commencement of mainstream sales. Management determined that such sales 
began in Energetix (Pnu) Power Limited in June 2009 and, consequently, capitalisation of development costs ceased and amortisation of 
the carrying amount of the development assets within these businesses began this month. Development costs continue to be capitalised 
under IFRS for Energetix Genlec Limited as mainstream sales are yet to commence.
Following the commencement of mainstream sales in Pnu Power, development costs relating to products in existence at 1 January 2010 
that are now being sold are expensed to the Income Statement and no longer capitalised. Subsequent to the commencement of 
mainstream sales, Energetix (Pnu) Power Limited incurred £48,000 of development costs that have been expensed to the Income 
Statement in relation to these products.
Additions may be analysed as follows: 
        2009 
       2010 Restated 
       £’000 £’000
Research and development capitalised during the year      1,070 1,217
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: 
        Total intangible 
        carrying value 
Technology   Cash generating unit   Cost of capital  £
Micro-CHP   Energetix Genlec Limited  10.0%   8,410,000
Compressed air battery   Energetix (Pnu) Power Limited  10.0%   1,427,000
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 both cash generating units. 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 recently prepared forecasts and prudent extrapolations 
beyond the forecast period.
Revenues were computed using:
signed commercial agreements; •	
memoranda of understanding with commercial partners; and •	
management’s expectations 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 expectations 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 approved 
forecasts for the period to 31 December 2013 and reasonably possible extrapolations thereon for the following two years.  39 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
14. Other intangible assets continued
The sales growth rate used beyond the forecast period in all businesses is in excess of GDP. Management asserts that such a growth rate 
is appropriate as the products of each CGU are novel and once customer adoption begins in earnest, a growth rate significantly in excess 
of UK GDP is to be expected.
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 2010. 
Beta: taken from MoneyAM (http://www.moneyam.com). 
Management note that the cost of capital may increase substantially across all companies before any material impact is noted.
Effect of reasonably possible changes 
Management have undertaken scenario analyses, including a reduction in sales forecasts which would result in the value in use being less 
than the carrying value of each of the cash generating units. Under such a scenario, the carrying value of the intangible would be impaired 
and would require writing down. Management stress that this merely represents one modelled scenario and they do not believe any 
impairment is required.
15. Property, plant and equipment 
       Furniture 
     Leasehold Plant and fittings and  
     improvement equipment equipment Total 
     £’000 £’000 £’000 £’000
Year ended 31 December 2009
Opening net book value     65 230 120 415
Additions     3 34 39 76
Depreciation charge     (25) (108) (74) (207)
Closing net book value     43 156 85 284
Year ended 31 December 2010     
Opening net book value     43 156 85 284
Additions     9 20 27 56
Depreciation charge     (21) (92) (62) (175)
Deemed disposal     – (40) (8) (48)
Closing net book value     31 44 42 117
At 31 December 2010
Cost     96 381 275 752
Accumulated depreciation     (65) (297) (225) (587)
Deemed disposal     _ (40) (8) (48)
Closing net book value     31 44 42 117
At 31 December 2009
Cost     88 361 229 678
Accumulated depreciation     (45) (205) (144) (394)
Closing net book value     43 156 85 284
Of the above additions £14,000 (2009: £15,000) and depreciation £34,000 (2009: £26,000) relates to discontinued activities respectively. 40 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Group Financial Statements continued
for the year ended 31 December 2010
16. Investments in Associates
       2010 2009 
Carrying value       £’000 £’000
Value of investment at date of deemed disposal (note 25)      6,877 –
Share of loss from equity accounted investments       (166) –
At 31 December       6,711 –
Included in:
Non-current assets       6,711 –
Following the deemed disposal in VPhase plc, the Group retains 42.86% of the issued share capital of VPhase plc which is now considered 
an Associated company as the Group exerts significant influence over the company by virtue of its shareholding.
The carrying value at date of disposal has been calculated based on 343,855,009 shares held in VPhase plc at a share price of £0.02 at 
the date of disposal.
Summarised financial information relating to the associated undertaking is as follows:
       2010 2009 
For the year ended/as at 31 December       £’000 £’000
Revenue       266 124
Operating loss       (1,713) (992)
Assets       3,118 2,670
Liabilities       (349) (266)
Total equity       2,769 2,404
17. Inventories 
       2010 2009 
        £’000 £’000
Raw materials       22 175
Finished goods       – 200
       22 375
Attributable to:
Continuing operations       22 –
Discontinued operations       – 375
The cost of inventories recognised as an expense during the period in respect of continuing operations was £Nil (2009: £148,000). 
18. Trade and other receivables 
       2010 2009 
        £’000 £’000
Trade receivables       98 70
Amounts owed by Associated companies       65 –
Prepayments and accrued income       83 90
Other receivables       88 112
       334 272
The average credit period on sales of goods is 152 days (2009: 103 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 £64,000 (2009: £Nil) which are past due at 
the reporting date. 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 have made a credit provision of £64,000 at  
31 December 2010 (2009: £Nil). The movement in the credit provision represents £64,000 of impairment losses recognised during  
the year.
The Group does not hold any collateral as security.  41 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
19. Cash and cash equivalents 
       2010 2009 
       £’000 £’000
Cash at bank and in hand       1,379 5,657
20. Financial liabilities – Borrowings 
       2010 2009 
        £’000 £’000
Current
Financial liabilities designated at fair value through profit and loss (FVTPL)     12 85
       12 85
Non-current
Financial liabilities designated at fair value through profit and loss (FVTPL)     1,821 1,600
       1,821 1,600
The maturity of non-current borrowings is as follows:
       2010 2009 
        £’000 £’000
Between 1 and 2 years       347 265
Between 2 and 5 years        1,474 1,335
       1,821 1,600
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 10.0% (2009: 11.6%)  
from the date of assuming the preference debt until anticipated settlement date giving rise to a non-current liability of £1,821,000  
(2009: £1,600,000) and a current liability of £12,000 (2009: £85,000). The terms are that it is not interest bearing, that £500,000 was 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, £Nil (2009: £Nil) was repaid and the discounting of future repayments at 10.0% (2009: 11.6%) has resulted in a £148,000 increase 
(2009: £48,000 increase) to the carrying value of the liability. The amount contractually repayable at 31 December 2010 was £2,500,000 
(2009: £2,500,000). 
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 2010 and 31 December 2009. 
The change in value of the financial liability is derived from the level of mainstream sales expected to be obtained and, as such, is not 
attributable to changes in the credit risk of the liability.
21. Discontinued operations
The results of VPhase plc and its subsidiaries until the date of disposal, 31 October 2010, have been treated as discontinued operations. 
Consequently, the comparatives of the income statement and cash flow have been restated. The results of these operations have been 
summarised below:
Loss for the year from discontinued operations
       2010 2009 
       £’000 £’000
Revenue       212 124
Cost of sales       (139) (96)
Gross profit       73 28
Expenses       (1,385) (1,020)
Finance income       2 11
Loss before tax       (1,310) (981)
Tax       – 5
Loss for the year from discontinued operations       (1,310) (976) 42 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Group Financial Statements continued
for the year ended 31 December 2010
21. Discontinued operations continued
Cash flow from discontinued operations
       2010 2009 
       £’000 £’000
Net cash flow from operating activities       (1,192) (1,351)
Net cash flow from investing activities       (1) (180)
Net cash flow from financing activities       1,906 –
Net cash flows from tax       – 5
Net cash flows       713 (1,526)
22. Trade and other payables 
       2010 2009 
       £’000 £’000
Trade payables       360 352
Amounts owed to Associated companies       178 –
Social security and other taxes       60 158
Accrued expenses       431 434
       1,029 944
23. Compensation of key management personnel 
The remuneration of Directors and other members of key management during the year was as follows: 
       2010 2009 
       £’000 £’000
Short-term benefits       523 645
Share-based payments       70 13
       593 658
The remuneration of Directors is determined by the remuneration committee having regard to performance of individuals and  
market trends detailed in the Remuneration Report on pages 15 and 16.
24. Financial instruments
24.1 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 2009 and seeks to minimise costs and liquidity risk. At the 
beginning of 2009, in light of 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 £1,833,000 (2009: £1,685,000) as disclosed in note 20, 
cash and cash equivalents of £1,379,000 (2009 restated: £5,657,000) and equity attributable to equity holders of the parent, comprising 
issued capital, reserves and retained earnings as disclosed in note 26 and in the Group Statement of Changes in Equity. 
The Group manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk 
characteristics of the underlying assets. In order to maintain or adjust the capital structure the Group may in future adjust the amount of 
dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets and reduce debt.
24.2 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.  43 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
24.3 Categories of financial instruments
       2010 2009 
       £’000 £’000
Financial assets
Loans and receivables (including cash and cash equivalents)      1,630 5,839
Financial liabilities
Designated at fair value through profit and loss       1,833 1,685
Amortised cost       969 786
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 10 to 14. 
Furthermore, as detailed in note 20, 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 
(2009: £2,500,000). Payments are dependent upon mainstream sales with a consequent inflow of funds to the Group. 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 
   2010 2010 2010 2010 2010 2010 
As at 31 December 2010   £’000 £’000 £’000 £’000 £’000 £’000
Trade and other payables   969 – – – – 969
Total excluding derivatives   969 – – – – 969
Financial liability held at FVTPL   – – 13 420 2,067 2,500
   969 – 13 420 2,067 3,469
       Greater than  
    61 days – 7 months – 13 months – 2 years up 
   0 – 60 days 6 months 12 months 2 years to 5 years Total 
   2009 2009 2009 2009 2009 2009 
As at 31 December 2009   £’000 £’000 £’000 £’000 £’000 £’000
Trade and other payables   786 – – – – 786
Total excluding derivatives   786 – – – – 786
Financial liability held at FVTPL   – – 95 330 2,075 2,500
   786 – 95 330 2,075 3,286
24.4 Fair value hierarchy
The following table presents financial assets and liabilities measured at fair value in the statement of financial position in accordance with 
the fair value hierarchy. This hierarchy groups financial assets and liabilities into three levels based on the significance of inputs used in 
measuring the fair value of the financial assets and liabilities. The fair value hierarchy has the following levels:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; •	
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (ie as prices) •	
or indirectly (ie derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). •	
The level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair  
value measurement. 44 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Group Financial Statements continued
for the year ended 31 December 2010
24. Financial instruments continued
The financial liabilities measured at fair value in the statement of financial position are grouped into the fair value hierarchy as follows:
     Level 1 Level 2 Level 3 Total 
31 December 2010    Note £’000 £’000 £’000 £’000
Liabilities
Designated at fair value through profit and loss    20 – – 1,833 1,833
Net fair value     – – 1,833 1,833
     Level 1 Level 2 Level 3 Total 
31 December 2009    Note £’000 £’000 £’000 £’000
Liabilities
Designated at fair value through profit and loss    20 – – 1,685 1,685
Net fair value     – – 1,685 1,685
 
There have been no transfers between levels during the period.
The methods and valuation techniques used for the purpose of measuring fair value are unchanged compared to the previous 
reporting period.
Fair value measurement in Level 3
The Group’s financial liabilities classified in Level 3 use valuation techniques based on significant inputs that are not based on observable 
market data. The financial instruments within this level can be reconciled from beginning to ending balances as follows:
 Financial liabilities
 at fair value through
       profit and loss Total 
31 December 2010       £’000 £’000
Opening balance       1,685 1,685
Loss recognised in profit and loss for the period and presented in ‘net finance costs/income’   148 148
Closing balance       1,833 1,833
The Group measures its fair value liability using a discounted cash flow model based on future sales. The Group has determined the 
applicable discount rate as set out in note 14. 
The Group has determined future sales used in the model from agreed forecasts and, where such forecasts are not available, prudent 
extrapolations of such forecasts. Using alternative forecasts changes the fair value of the investment as follows:
   Fair value at Change in 
   31 December 2010 fair value 
Alternative sales forecast   £’000 £’000
£0.5m reduction in 2011   1,829 4
£2.0m reduction in 2012   1,821 12
£4.0m reduction in 2013   1,788 45
Given the above management believe that the fair value presented in these Group Financial Statements is appropriate.
24.5 Liquidity risk
Liquidity risk is the risk arising from the Group not being able to meet its obligations. The Group manages its liquidity needs by monitoring 
scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows due in day-to-day 
business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity 
needs are monitored in various time bands, on a day-to-day and week-to-week basis, as well as on the basis of a rolling 30-day projection. 
Long-term liquidity needs for a 180-day and a 360-day lookout period are identified monthly. Net cash requirements are compared to 
available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are 
expected to be sufficient over the lookout period.
The Group’s objective is to maintain cash and marketable securities to meet its liquidity requirements for 30-day periods at a minimum. 
Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities and the ability to sell 
long-term financial assets. The Group does not have instruments that include accelerated repayment terms (for example in the event of a 
downgrade in credit rating).  45 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
24. Financial instruments continued
A contractual maturity analysis is included in note 24.3.
The Directors maintain that given the cash resources available to the Group, the liquidity risk inherent in the above may be 
adequately managed.
24.6 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 1%  
(2009: 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: 
  2010  2009 
  £’000  £’000
      +1% –1% +1% –1%
Loss for the year     14 (14) 83 (83)
Equity     14 (14) 83 (83)
25. Deemed disposals
On 7 July 2010, VPhase plc, an AIM listed former subsidiary, issued 1,680,672 new ordinary shares to the Chairman and Chief Executive 
Officer of VPhase plc at 2.38 pence per share. On 28 October 2010, VPhase plc placed 100,000,000 new ordinary shares at 2.00 pence 
per share. Energetix Group plc subscribed for no shares reducing its interest in VPhase plc from 49.09% to 42.86% and, consequently, 
VPhase plc is no longer controlled by Energetix Group plc. However, the Directors assert that, through its substantial shareholding, 
significant influence is exerted over VPhase plc and, as such, VPhase plc is no longer treated as a subsidiary but as an  
associated undertaking.
The reductions in the Group’s interest in VPhase plc constituted deemed disposals at Group level and resulted in a gain to the Group as 
calculated below. 
Deemed disposal 1
     2010
       Minority 
      Group Interest Total 
7 July 2010      £’000 £’000 £’000
Fair value of consideration       40 – 40
Share of net assets disposed of      (21) 21 –
Gain on disposal      19 21 40
This deemed disposal did not result in VPhase no longer being treated as a subsidiary.
Deemed disposal 2
Placing of 100,000,000 shares 28 October 2010        £’000
Fair value of Energetix Group plc’s shares in VPhase plc (note 16)       6,877
De-recognition of non-controlling interest        382
Write off of goodwill relating to VPhase plc (note 13)        (311)
De-recognition of previously consolidated assets of VPhase plc       (977)
Gain on deemed disposal         5,971
Following the deemed disposal in VPhase plc, the Group held 42.86% of the ordinary share capital of VPhase plc.
Total gains are therefore summarised as follows: 
       2010 2009 
       £’000 £’000
Gain resulting from deemed disposal that arises on settlement of fees with equity    – 12
Gain resulting from deemed disposal on issue of new VPhase plc shares to VPhase Executive Directors  19 –
Gain resulting from placing of 100,000,000 new shares in VPhase plc     5,971 –
Total gain from deemed disposals       5,990 12 46 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Group Financial Statements continued
for the year ended 31 December 2010
26. Share capital and reserves 
26.1 Share capital
 31 December 2010 
l
  31 December 2009
    Number of Share  Number of Share 
    shares capital  shares capital 
    No. £’000  No. £’000
Authorised
Ordinary shares of 5p each  100,000,000 5,000 100,000,000 5,000
Issued and fully paid
As at 1 January    55,155,008 2,758  55,122,958 2,756
Shares issued 10 June 2009    – –  16,025 1
Shares issued 12 August 2009    – –  16,025 1
As at 31 December    55,155,008 2,758  55,155,008 2,758
Issue of shares 
No shares in Energetix Group plc have been issued in 2010.
26.2 Warrants 
On 1 August 2007, as part of the agreed placing costs of the Company with its then broker, the Company granted 500,000 warrants with 
an exercise price of 120 pence to its then joint broker. These warrants were capable of being exercised over the three year period from the 
date of grant and lapsed during the year.
  Weighted average Weighted average 
 Number of warrants exercise price (pence) remaining contractual life
At 1 January 2010 500,000 120 7 months
Lapsed (500,000) – –
At 31 December 2010 – – –
No warrants were outstanding or capable of exercise at 31 December 2010 (2009: 500,000).
Lapses of £230,000 (2009: £256,000) resulted in a charge to warrant reserve and a credit to retained earnings.
In addition, warrants that were issued in part settlement of fees for the placing of 70,000,000 shares in VPhase plc in 2008 have been 
de-recognised in the consolidated statements of Energetix Group plc resulting in a charge to warrant reserve and credit to retained 
earnings of £105,000.
27. Non-controlling interest
As a result of the Group losing control of its former subsidiary, VPhase plc, the Group no longer recognises any non-controlling interest. 
The non-controlling interest at the beginning and end of the year are as follows:
       2010 2009 
       £’000 £’000
Balance at beginning of year       1,028 1,512
Share of loss for the year (until disposal of subsidiary in 2010)      (667) (497)
Partial disposal of Energetix Voltage Control Limited (now VPhase Smart Energy Limited) (note 25)   21 13
De-recognition of remaining non-controlling interest 31 October 2010 (note 25)    (382) –
Balance at end of year       – 1,028 47 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
28. Cash consumed by operations 
        2009 
       2010 restated 
       £’000 £’000
Continuing operations   
Loss before income tax       (3,511) (3,013)
Adjustments for:   
– Loss attributable to Associate       166 –
– Depreciation       141 181
– Amortisation       727 564
– Finance income       (19) (34)
– Other costs       148 48
– Share-based payments       137 11
Other share-based payments       – 16
– Deemed fair value of consideration on deemed disposal      – 25
– Discount on settlement of Axiomlab liability       – (18)
Changes in working capital:  
– Increase in inventories       (22) –
– (Increase)/decrease in trade and other receivables       (176) 185
– Decrease/(increase) in trade and other payables       443 (344)
Cash consumed by continuing operations       (1,966) (2,379)
Discontinued operations   
Loss before income tax       (1,310) (976)
Adjustments for:   
– Depreciation       34 26
– Amortisation       90 27
– Finance income       (2) (11)
Changes in working capital:   
– Increase in inventories       (2) (375)
– Increase in trade and other receivables       (88) (42)
– Decrease/(increase) in trade and other payables       86  (69)
– Income tax       –  (5)
Cash consumed by discontinued operations       (1,192) (1,425)
Total cash consumed by operations       (3,158) (3,804) 48 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Group Financial Statements continued
for the year ended 31 December 2010
29. 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:
       2010 2009 
       £’000 £’000 
       Buildings Buildings
Within one year       77 96
2 – 5 years       26 103
No sublease payments or contingent rent payments were made or received, neither do the Group’s operating lease agreements contain 
any contingent rent clauses, renewal or purchase options or escalation clauses.
30. 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. 
From 1 November 2010, VPhase plc ceased to be a subsidiary of the Group and became an associated undertaking. Prior to this, 
Energetix Group plc charged management fees of £212,000 (2009: £218,000 full year) to VPhase plc. From 1 November 2010 to  
31 December 2010, Energetix Group plc charged management fees of £28,000 for services provided to VPhase plc which was offset by 
a £4,000 charge for the services of the VPhase plc Chief Executive Officer, Richard Smith, as Chief Financial Officer of Energetix Group 
plc. At 31 December 2010, the net amount owed by Energetix Group plc and its subsidiaries to VPhase plc was £113,000 representing  
VAT repayable on purchases resulting from historic VAT grouping arrangements. From October 2010, VPhase plc established its own  
VAT grouping. 49 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Company Balance Sheet
as at 31 December 2010
       2010 2009
      Note £’000 £’000
Fixed assets
Tangible assets      33 40 67
Investments      34 3,304 3,241
       3,344 3,308
Current assets
Debtors      35 3,849 3,776
Cash at bank and in hand       1,339 3,957
       5,188 7,733
Creditors: amounts falling due within one year      36 (4,161) (4,119)
Net current assets       1,027 3,614
Total assets less current liabilities       4,371 6,922
Net assets       4,371 6,922
Capital and reserves
Called up share capital      38 2,758 2,758
Share premium account      39 15,228 15,228
Warrant reserve       – 230
Other reserves      41 214 77
Profit and loss account      42 (13,829)  (11,371)
Shareholders’ funds      43 4,371 6,922
The notes on pages 50 to 55 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 22 March 2011 and were signed on its 
behalf by:
Adrian C Hutchings 
Chief Executive Officer 
Company number 5819555 50 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Company Balance Sheet 
 
31. Principal accounting policies – UK GAAP 
Basis of preparation 
The Financial Statements have been prepared under the historical cost convention and in accordance with the Companies Act 2006 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 
– 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. 
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 
The Company issues equity-settled payments to certain employees (including Directors). During the year, the Company established the 
Energetix Save as You Earn (SAYE) scheme open to all employees and individual Company Share Ownership Plans (CSOPs) for a number 
of senior employees.
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 for options with non-market vesting conditions 
attached and the simulation model for options with market vesting conditions attached, 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.  51 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
31. Principal accounting policies – UK GAAP continued
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’. 
Estimation techniques
The Company has conducted an impairment review of investments and as such has had to make judgements as to the likelihood of  
them generating future cash flows, 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 the 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. 
32. 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. 
In August 2010, the Group established the Energetix Save as You Earn (SAYE) scheme open to all employees. 
In September 2010, the Company established individual Company Share Ownership Plans (CSOPs) for a number of senior employees.
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 with the exception of the SAYE scheme due to the timing difference between making the offer and issuing  
the option.
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: 
    2010   2009
    Weighted average   Weighted average
    Exercise Remaining  Exercise Remaining 
   2010 price contractual 2009 price contractual 
   No. (pence) life  No. (pence) life
Number of outstanding share options at 1 January   709,789 86.8 8 years 607,500 50.7 7 years 
     8 months    11 months
Granted during the year   1,721,716 37.4 9 years 484,789 96.0 9 years 
     9 months   5 months
Lapsed during the year   – – – (382,500) 41.1 –
Number of outstanding share options at 31 December   2,431,505 51.8 8 years 709,789 86.8  8 years
     9 months   8 months 
As at 31 December 2010, 709,789 share options were capable of being exercised (2009: 206,250) with a weighted average exercise price 
of 86.8 pence (2009: 105.5 pence). 
Share options are valued at the date of grant using the Black-Scholes option pricing model for options with non-market vesting conditions 
attached and the simulation model for options with market vesting conditions attached, and are charged to operating profit over  
the vesting period of the award with a corresponding credit to the ‘other reserves’. This resulted in a fair value charge of £137,000  
(2009: £11,000) and a corresponding credit to other reserves. 52 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Company Balance Sheet continued
 
32. Share-based payments continued
Assumptions
The following assumptions are used to determine the fair value of share options at the respective date of grant: 
  Ordinary Share price   Life of 
 Exercise shares at date of Expected Interest option Expected Vesting 
Date of grant price (pence) under option grant (pence) volatility rate (years) dividends requirements
23 April 2007 67.0 225,000 67.0 45.7% 5.75% 3 Nil 1
21 January 2009 105.5 412,500 39.5 38.7% 4.50% 1 Nil 1
7 September 2009 41.5 72,289 41.5 42.7% 4.50% 3 Nil 1
31 August 2010 23.0 608,862 29.5 40.8% 4.50% 3 Nil 1
29 September 2010 43.8 182,854 43.8 38.7% 4.50% 3 Nil 1
22 November 2010 45.5 930,000 39.3 41.5% 4.50% 3 Nil 2
1.  No performance criteria are attached and may be exercised until the tenth anniversary following their grant.
2.  The options may be exercised at any time in the ten year period following their grant and vest equally in three tranches, subject to certain commercial performance criteria 
being met. In addition all the options may be exercised if the market capitalisation of the Group exceeds £100 million for a sustained period of three months within twelve 
months of the date of grant or for a sustained period of one month thereafter until the tenth anniversary of their grant.
The middle market price of ordinary shares on 31 December 2010 was 37.3 (2009: 49.5) pence. The high and low market prices during 
the year were 52.0 (2009: 57.0) pence and 20.0 (2009: 27.0) 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. 
National insurance is payable on gains made by employees on exercise of share options granted to them. 
33. Tangible fixed assets 
      Leasehold Plant and 
      improvements machinery Total 
      £’000 £’000 £’000
Cost
At 1 January 2010      55 126 181
Additions      1 15 16
At 31 December 2010      56 141 197
Depreciation
At 1 January 2010      26 88 114
Charge for the period      12 31 43
As at 31 December 2010      38 119 157
Net Book Value      
As at 31 December 2010      18 22 40 
As at 31 December 2009      29 38 67
34. Investments
       2010 2009 
       £’000 £’000
Cost:
At 1 January       3,554 3,511
Additions       63 43
As at 31 December       3,617 3,554
Provisions:
At 1 January       (313) (313)
As at 31 December       (313) (313)
Net book amount:
As at 31 December       3,304 3,241 53 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
34. Investments continued
The investments comprise:
     Nominal  
    Percentage Value Ordinary Preferred 
    held (pence each) Shares Ordinary A Ordinary
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
    42.86% 0.25 343,855,008 – –
VPhase Smart Energy Limited (formerly Energetix Voltage Control Limited 
b
)  42.86% 1 7,346 – –
Energetix (Europe) Limited 
a
    100% 1 23,719 – –
Energetix Genlec Limited 
a
    100% 1 10,000 – –
Energetix (Nominees) Limited 
a
    100% 100 1 – –
Energetix Technologies Inc. 
a
    100% 100 1 – –
a. Directly owned subsidiaries. 
b. Directly owned subsidiary of VPhase plc. 
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 (pence each) Shares Ordinary A Ordinary B Ordinary C Ordinary
Thermetica Limited 10 7,670 2,330 – – –
Energetix (Pnu) Power Limited 1 10,000 – – – –
Energetix Laser Technologies Limited 10 – – 601 249 150
VPhase plc 0.25 802,210,361 – – – –
VPhase Smart Energy Limited (formerly Energetix Voltage 1  7,346 – – –  –
 Control Limited)
Energetix (Europe) Limited 1 23,719 – – – –
Energetix Genlec Limited 1 10,000 – – – –
Energetix (Nominees) Limited 100 1 – – – –
Energetix Technologies Inc. 100 1 – – – –
At 31 December 2010 and 2009 the companies had the following capital and reserves:
     2010  2009
     Capital and Profit/ Capital and Profit/ 
     Reserves (Loss) Reserves (Loss) 
     £’000 £’000 £’000 £’000
Thermetica Limited     (310) (1) (309) (1)
Energetix (Pnu) Power Limited     (5,383) (877) (4,531) (963)
Energetix Laser Technologies Limited     (65) – (65) –
Energetix (Europe) Limited     (2,295) (253) 2,548 (247)
Energetix Genlec Limited     (8,299) (1,915) (6,421) (1,759)
Energetix Technologies Inc.     (434) (50) (384) (173)
Energetix (Nominees) Limited     – – – –
35. Debtors
       2010 2009 
       £’000 £’000
Amounts owed by related parties       63 –
Amounts owed by subsidiary undertakings       3,737 3,729
Other debtors       19 15
Prepayments and accrued income       30 32
       3,849 3,776 54 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Notes to the Company Balance Sheet continued
 
36. Creditors: amounts falling due within one year 
       2010 2009 
       £’000 £’000
Trade creditors       78 50
Amounts owed to subsidiary undertakings       3,824 3,867
Social security and other taxes       51 140
Accruals       208 62
       4,161 4,119
37. Deferred taxation
The unprovided deferred taxation asset calculated at a tax rate of 28% (2009: 28%) is set out below:
       2010 2009 
       £’000 £’000
Accelerated capital allowances       (40) (14)
Trade losses       (656) (552)
       (696) (566)
Unrelieved tax losses of £2,431,000 (2009: £1,973,000) 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.
38. Share capital
 31 December 2010 31 December 2009
    Number of Share  Number of Share 
    shares capital  shares capital 
    No. £’000  No. £’000
Authorised
Ordinary shares of 5p each   100,000,000 5,000 100,000,000 5,000
Issued and fully paid
As at 1 January    55,155,008 2,758  55,122,958 2,756
Shares issued 10 June 2009    – –  16,025 1
Shares issued 12 August 2009    – –  16,025 1
As at 31 December    55,155,008 2,758  55,155,008 2,758
No shares in Energetix Group plc have been issued in 2010.
39. Share premium account 
       2010 2009 
       £’000 £’000
At 1 January       15,228 15,198
Shares issued in consideration for services received        – 30
At 31 December       15,228 15,228
40. Warrant reserve
On 1 August 2007, as part of the agreed placing costs of the Company with its then broker, the Company granted 500,000 warrants with an 
exercise price of 120 pence to its then joint broker. These warrants were capable of being exercised over the three year period from the date of 
grant and lapsed during the year.
  Weighted average Weighted average 
 Number of warrants exercise price (pence) remaining contractual life
At 1 January 2010 500,000 120 7 months
Lapsed (500,000) – –
At 31 December 2010 – – –
No warrants were outstanding or capable of exercise at 31 December 2010 (2009: 500,000).
Lapses of £230,000 (2009: £256,000) resulted in a charge to warrant reserve and a credit to retained earnings.
In addition, warrants that were issued in part settlement of fees for the placing of 70,000,000 shares in VPhase plc in 2008 have  
been de-recognised in the consolidated statements of Energetix Group plc resulting in a charge to warrant reserve and credit to retained  
earnings of £105,000. 55 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
41. Other reserves
     2010 2009 
     £’000 £’000
At 1 January       77 150
Lapsed share-based payments     – (68)
Share-based payments     137 11
Other share-based payments        – (16)
At 31 December       214 77
42. Profit and loss account
The Company has taken advantage of section 408 of the Companies Act 2006 and has not included its own profit and loss account in 
these Financial Statements. The Parent Company’s loss for the year was £2,688,000 (2009: £3,605,000).
     2010 2009 
     £’000 £’000
At 1 January        (11,371) (8,090)
Options lapsed in the year     – 68
Warrants lapsed in the year     230 256
Loss for the year       (2,688) (3,605)
At 31 December       (13,829) (11,371)
43. Shareholders’ funds
     2010 2009 
     £’000 £’000
Loss for the year       (2,688) (3,605)
Shares issued in the year      – 16
Share-based payments       137 11
Decrease in shareholders’ funds       (2,551) (3,578)
Shareholders’ funds at 1 January     6,922 10,500
Shareholders’ funds at 31 December       4,371 6,922
44. Leasing commitments 
The Company has no commitments under cancellable operating leases. 
45. Related party transactions 
From 1 November 2010, VPhase plc ceased to be a subsidiary of the Group and became an associated undertaking. Prior to this, 
Energetix Group plc charged management fees of £212,000 (2009: £218,000 full year) to VPhase plc. From 1 November 2010 to  
31 December 2010, Energetix Group plc charged management fees of £28,000 for services provided to VPhase plc which was offset by 
a £4,000 charge for the services of the VPhase plc Chief Executive Officer, Richard Smith, as Chief Financial Officer of Energetix Group 
plc. At 31 December 2010, the net amount owing from VPhase plc to the Company was £63,000 (2009: amount owing to VPhase plc from 
the Company, £20,000). 56 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2010
Company registration number
5819555
Registered office
Castlefield House
Liverpool Road
Castlefield
Manchester
Greater Manchester
M3 4SB
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
Nominated Advisor/Broker
Ambrian Partners Limited
Old Change House
128 Queen Victoria Street
London
EC4V 4BJ
Bankers
HSBC Bank plc
Chester & Deeside Commercial Centre
Vista
St David’s Park
Ewloe
Flintshire
CH5 3RX
Solicitors
Atticus Legal LLP
Castlefield House
Liverpool Road
Castlefield
Manchester
Greater Manchester
M3 4SB
Independent Auditors
Grant Thornton UK LLP
Registered Auditors
Chartered Accountants
4 Hardman Square
Spinningfields
Manchester
M3 3EB
Public Relations Advisors
Abchurch Communications Limited
125 Old Broad Street
London
EC2N 1AR
Registrars
Neville Registrars Limited
Neville House
18 Laurel Lane
Halesowen
West Midlands
B63 3DA
Directors, Secretary and Advisors to the Group
  Energetix has two businesses in the 
Group with cost-effective products to 
meet the growing global demand for 
alternative and efficient energy.
Welcome to Energetix
Contents
01 Highlights
02 Chairman’s Statement
04 Chief Executive’s Review
06 Finance Review
08 Board of Directors
09 Corporate Responsibility
10 Group Directors’ Report
15 Group Directors’ Remuneration Report
17 Independent Auditor’s Report
18 Group Income Statement
19 Group Statement of Changes in Equity
20 Group Statement of Financial Position
21 Group Statement of Cash Flows
22 Notes to the Group Financial Statements 
49 Company Balance Sheet
50 Notes to the Company Balance Sheet
56 Directors, Secretary and Advisors to the Group
With a focus on distributed generation, and 
energy storage, Energetix businesses are:
Genlec 
distributed generation in the home
Pnu Power 
compressed air back-up power Energetix Group plc Group Financial Statements for the year ended 31 December 2010
Energetix Group plc
Capenhurst Technology Park
Chester
CH1 6EH
T. 0151 348 2100
F. 0151 348 2101
E: info@energetixgroup.com
www.energetixgroup.com
Energetix Group plc Group Financial Statements
for the year ended 31 December 2010