Energetix Group plc Group Financial Statements
for the year ended 31 December 2009 
Energetix Group plc Group Financial Statements for the year ended  31 December 2009 
Energetix Group plc
Capenhurst Technology Park
Chester
CH1 6EH
T. 0151 348 2100
F. 0151 348 2101
E: info@energetixgroup.com
www.energetixgroup.com Brookesville State Trooper Telephone 
exchange with an installed Pnu Power unit
Energetix has three 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 Genlec business review 
08 Pnu Power business review
10 VPhase business review
12 Finance Review
14 Board of Directors and Senior Management 
16 Corporate Responsibility
17 Group Directors’ Report
21 Independent Auditor’s Report
22 Group Income Statement
23 Group Statement of Changes in Equity
24 Group Statement of Financial Position
25 Group Statement of Cash Flow
26 Notes to the Group Financial Statements 
53 Company Balance Sheet
54 Notes to the Company Balance Sheet
62 Directors, Secretary and Advisors to the Group
With a focus on distributed 
generation, energy storage 
and energy efficiency, 
Energetix businesses are:
Genlec – distributed generation 
in the home
Pnu Power – compressed air 
back-up power
VPhase – domestic energy 
efficiency
FSC logo  
to go here 1 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
2009 Highlights: 
Group:
VPhase and Pnu Power transitioned to CE-marked •	
products
Sales commenced, achieving turnover of £255,000 •	
(2008: £32,000)
Reduced operating losses to £4,009,000  •	
(2008: £4,202,000 loss)
Tight financial control resulting in cash reserves of •	
£5,657 ,000 (2008: £11,025,000)
Products:
Genlec 
Strategic plan to develop an integrated micro-CHP •	
appliance for the UK market 
Signed CombiVolt product agreement with •	
Daalderop BV, targeting sales of at least 30,000 
Genlec micro-CHP units over the next three years
Pnu Power 
Trial sales from: •	
Telecom Italia, Italy –
Harris Corporation (formerly M/A-COM), USA  –
National Grid, UK –
Abertis Infraestructuras, Spain –
First phase of contract for Pnu Power units supplied •	
to P&E Automation, USA
Achieved CE marking on its TC1 and TC2 products •	
VPhase 
Sales to Scottish and Southern Energy (SSE), British •	
Gas, electrical distributors and electricians plus 
direct to consumers
Achieved CE marking on its first product •	
Ofgem CERT trials funded by SSE commenced •	
Post year end:
Genlec 
Unveiled an integrated micro-CHP appliance for the •	
UK market, trade named Kingston
Appliance manufacturers and major utilities •	
expressing interest in taking Kingston to market
Pnu Power
Secured contract to supply two units to National •	
Grid US 
Awarded full accreditation under ISO9001 •	
Requests received for quotations for multiple units •	
from trial customers
VPhase
Commenced field trials with a Northwest-based •	
social housing provider 
VPhase staff home trials show savings of £75-£135 •	
per annum (depending on the level of incoming 
voltage and load profile)* 
Delay in SSE installations likely to defer CERT •	
approval until quarter 2, 2010
*  The small size of this sample means it may not be indicative of savings available 
across the whole of the UK housing stock. 2 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
Chairman’s Statement
Alan J Aubrey
Non-Executive Chairman
“The Group will develop 
further into a fully 
commercialised sales 
and associated services 
business”
2009 was a successful year for the Group, during which we 
progressed from technology development to having products 
available for sale. We started 2009 with three technology platforms 
and, despite delays and tough market conditions, we ended the 
year with two products that were achieving initial sales, VPhase and 
Pnu Power. These are combined with our third technology, Genlec, 
for which we have mapped a clear route to market by the end of 
2010 – particularly with the unveiling of the Kingston appliance in 
March 2010.
2010 is a major transition year when it is intended that the 
Group will develop further into a fully commercialised sales and 
associated services business. In order to manage the transition 
from technology development to commercial product sales and 
services, we are currently recruiting the necessary people and 
putting in place the appropriate processes.
The Group has continued to deliver tight cost control during our 
development phase, ensuring that we have sufficient funds for the 
transition period through to volume sales, sustainable growth and 
commercial success. This has resulted in an operating loss  
£0.2 million lower than last year and cash reserves of £5.7 million  
at the end of the year.
As previously reported, during the year and into the early part of 
2010, Pnu Power won orders from National Grid UK, National Grid 
US, Harris Corporation in the US (formerly M/A COM) and Abertis 
Infraestructuras in Spain. These orders indicate that we are on our 
way to making Pnu Power the back-up power system of choice in a 
number of territories. Pnu Power is now receiving enquiries for 
multiple units from existing customers which should lead to delivery 
of a critical KPI for 2010.
Genlec has taken advantage of the improving conditions for micro-
CHP in the UK market, particularly with the introduction of Feed-in 
Tariffs, and has developed its own fully integrated UK-specified 
heating appliance, named Kingston. A number of potential 
marketing partners have shown significant interest in this appliance, 
which is a compact low-cost micro-CHP unit.
During 2009 we also saw increasing awareness of, and support for, 
cleaner technologies around the world. This was epitomised by one 
of the first points made in US President Barack Obama’s speech to 
the Copenhagen Summit: “We have taken bold action at home – by 
making historic investments in renewable energy; by putting our 
people to work increasing efficiency in our homes and buildings; 
and by pursuing comprehensive legislation to transform to a clean 
energy economy”.
On our home ground, the UK Government introduced Feed-in 
Tariffs for microgeneration in February 2010. While we see this as 
good news in itself, we also believe it is an important recognition 
that energy efficiency is at least equally important in tackling climate 
change as renewable energy generation. At Energetix we view the 
Feed-in Tariffs as useful in helping to drive the uptake of our micro-
CHP product, Genlec, which is eligible for the tariff. However, unlike 
other micro-CHP technologies, our Genlec product is inherently 
low-cost in initial outlay and maintenance, and its economic case 
does not rely on any such subsidies. 
During the year we appointed Ambrian Partners as our Broker  
and Nomad. This consolidates our financial advisors from three 
firms to one, improving coordination and providing us with greater 
access to dedicated and specialist counsel specific to the  
cleantech arena.
I would also like to extend the thanks of the Board to all our 
employees who, through their hard work and effort, have enabled 
the Group to achieve another good year. We look forward to a 
challenging and successful 2010, as the Group continues its 
commercial growth.
Alan J Aubrey
Non-Executive Chairman
23 March 2010 3 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
“We have taken bold 
action at home - by 
making historic 
investments in renewable 
energy; by putting our 
people to work increasing 
efficiency in our homes 
and buildings; and by 
pursuing comprehensive 
legislation to transform to 
a clean energy economy”
US President Barrack Obama at the Copenhagen 
Summit, December 2009 4 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
Group Directors’ Report Chief Executive’s Review
Business review
Adrian C Hutchings
Chief Executive Officer
Our Objective
To provide long term shareholder value through the 
commercial growth of our three 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, 
energy storage and energy efficiency, our businesses 
are:
Genlec – distributed generation in the home •	
Pnu Power – compressed air back-up power •	
VPhase – domestic energy efficiency •	
Our Strategy
To pursue identified market opportunities in the •	
Group’s target sectors.
To produce products based on robust engineering •	
principles, regularly utilising existing mass produced 
components configured in a novel and patentable way.
To avoid cutting edge science enabling us to de-risk •	
the new product development process.
To provide exceptional levels of customer service. •	
To generate an environment which attracts highly •	
skilled and motivated people that can provide the 
Group with a sustainable competitive advantage.
To manage the Group in a controlled governance •	
environment with due regard to financial and 
other business risks.
“We are now in a position to 
complete the transition of 
the Group from a technology 
development business to a 
commercial products and 
services-led business”
Chief Executive’s Review
I am pleased to present this review of the last twelve months. Whilst 
encountering delays and difficult market conditions, I am confident 
that we are now in a position to complete the transition of the Group 
from a technology development business to a commercial products 
and services-led business. The Group has made substantial 
progress, with two of our three technology platforms converted to 
products and begun commercial sales. Furthermore, we have 
established a clear path for our third technology to follow. 
Whilst we are pleased to see both VPhase and Pnu Power products 
being shipped to our customers, we recognise that it has taken 
longer than originally anticipated to have these products available 
for sale. However, as we now have certified products, we are further 
developing the internal infrastructure associated with the processes, 
procedures and personnel to deliver our targeted sales. 
In our Genlec business, we recognised in 2009 that the downturn 
in market conditions had led to a lack of investment in Genlec 
appliance development from our European partners, and indeed 
this has led to a delay in micro-CHP appliances being available for 
testing in homes in 2009/10, as we had originally envisaged. 
However, in 2009 we also recognised that the market conditions in 
the UK were likely to become more favourable for micro-CHP 
appliances. We therefore took the decision to refine our strategic 
plan for Genlec to introduce a fully integrated micro-CHP appliance 
for the UK market. This has resulted in the unveiling of Kingston, a 
fully integrated micro-CHP appliance based on our Genlec Organic 
Rankine Cycle (“ORC”) technology. We are currently in negotiations 
with a major “white goods” appliance manufacturer and with power 
utilities for both the production and sales of the Kingston appliance 
in the UK. 
The sales cycle for our Pnu Power products is longer than originally 
anticipated, but we are now seeing enquiries for multiple unit orders 
from key trial customers. In addition, we now have products that 
can compete in our target sectors on a first-cost basis, and 
substantially better on a life-cycle cost basis, with battery based 
UPS products. The multiple unit enquiries are pleasing and add 
confidence that our chosen strategy for sales has been correct. 5 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
“The guarantee of 
getting an income 
on top of saving on 
energy bills will be 
an incentive to 
householders 
and communities 
wanting to make the 
move to low-carbon 
living”
Ed Miliband, Energy and Climate Change Secretary, 
February 2010
In our VPhase business, we have been disappointed by the slow 
progress that has been made in installing the trial units for the 
Scottish and Southern Energy CERT evaluation; however all 
installations have now been completed and data is being collected. 
In the meantime, VPhase has undertaken its own trials that have 
been independently analysed by EA Technology, a well established 
power management consultancy company and regular assessor of 
energy technologies. These trials indicate that the financial benefit 
of installing a VPhase unit could be significantly higher than originally 
anticipated, in the order of £75 to £135 per annum based on trials 
in a few staff homes (dependent upon, amongst other things, the 
load profile of the property). The small size of this sample means it 
may not be indicative of the saving across the whole of the UK 
housing stock.
The strict management of our cost base and cash resources  
has allowed us to deliver a loss that is lower than last year by  
£0.2 million despite the increased activity, ending the year with  
£5.7 million cash in the bank.
The Group has now established the foundations for its vision of 
becoming a clean energy products and services provider, with a 
focus on distributed generation, energy storage and energy 
efficiency.
General market review
Whilst the continuing downturn in global markets has impacted our 
existing and potential customers, particularly those that service the 
new build markets, this has been offset by further government 
support for clean technologies and an improvement in general 
public awareness of the importance of energy efficiency as a carbon 
reduction mechanism. 
The Directors believe that the UK Government’s introduction of 
Feed-in Tariffs for micro-CHP will provide further incentives to 
promote sales of our forthcoming Kingston micro-CHP appliance 
based on our Genlec technology. The Feed-in Tariff seems to be 
ideally scaled to benefit those micro-CHP appliances, such as 
Genlec, that are heat-led and produce most of the electricity for use 
in the home. 
Global and political framework
Concerns about the high level of greenhouse gas emissions from 
traditional methods of power generation and usage are increasing 
worldwide. In the United States, the Obama administration is 
addressing this issue far more urgently than its predecessor. In 
Europe, efforts to develop low-carbon methods of producing 
electricity are intensifying. In Asia similar work is under way.
For instance, US President Barack Obama set the tone for 2009 
when, on 17 February 2009 and just a month into his term, he 
signed into law his economic stimulus package – including $71 
billion for energy and environmental initiatives and another $20 
billion for green tax incentives.
Closer to home, and in addition to its adoption of Feed-in Tariffs for 
the domestic energy sector, the UK Government has recently 
announced plans for eco home loans. These are designed to fund 
both the initial purchase of energy-efficient technologies, such as 
our Genlec and VPhase units, and also to create an ongoing price 
differential between energy efficient and inefficient homes.
The Group’s position on such initiatives is clear. Whether provided 
through Feed-in Tariffs, eco-loans, household efficiency 
programmes (such as CERT and smart metering), or the proposed 
renewable heat incentive, they are useful in focusing public opinion 
on energy conservation and carbon reduction. We prefer, however, 
to develop products that deliver a compelling economic case 
without artificial subsidies from current or future governments.
Climate change, carbon reduction and energy efficiency dominated 
the global stage again in December 2009 during the COP-15 United 
Nations Climate Change Conference in Copenhagen. Views on its 
success are mixed, but significant achievements included the 
drafting of the Copenhagen Accord by the USA, China, Brazil, India 
and South Africa; bringing previously unengaged territories to the 
table and, longer term, helping to expand the global market for 
energy-saving technologies. The pressure is now on to build on 
that progress and create both a politically and legally binding 
protocol at COP-16 in November 2010. 6 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
Chief Executive’s Review continued
Business review
Group operational review
In this year of transition, the Group has put considerable time and 
effort into securing and developing the internal infrastructure to 
allow it to commercialise the three product sets of Genlec, Pnu 
Power and VPhase. This has included a range of new processes 
and procedures to enable the consistent supply and delivery of 
quality products to our customers. In particular, I would like to thank 
the teams who, amongst other things, have risen to the challenge 
and put in place the processes and controls to enable us to start 
selling VPhase products – not only to our commercial customers 
but also to the general public. The whole process was undertaken 
over a very short period of time and has been operating successfully 
for the past six months.
The Group has now experienced the completion of CE marking for 
two products, and has learnt valuable lessons on this process that 
should assist in the CE marking of our Kingston micro-CHP 
appliance.
In addition, Pnu Power has been assessed for ISO9001 compliance 
which was granted in March 2010. Again the lessons learnt from 
Pnu Power’s experience of this process will be used to the benefit 
of the Group’s wider businesses.
Genlec
Business review 
Genlec has made considerable progress this year in transforming 
its patented ORC micro-CHP technology platform into a fully 
operating, domestic wall-hung appliance. As part of the ongoing 
development of the technology, Genlec is required to undertake 
laboratory tests to determine the heating and electrical performance 
of heat-led micro-CHP packages, primarily intended for heating 
private dwellings. Using an independent company specialising in 
design and certification services for the gas industry, Genlec has 
completed the assembly of a compact wall-hung appliance suitable 
for the UK market. This appliance, the Kingston, is undergoing 
these tests and is being taken through to full UK certification, 
including CE compliance, which is expected to conclude in 2010.
The appliance is designed to generate 1kWe of power which can be 
utilised in the home, and any excess not used can be exported to 
the national electricity grid using the G83 protocol. The unit is 
compact, wall-hung, and tailored for installation in UK homes – a 
prerequisite for volume sales in the UK market. The target 
performance of the Kingston appliance is to have an overall 
efficiency equivalent to a high-efficiency boiler and an electrical 
efficiency of 10%. 
At the core of the appliance is a new Genlec scroll expander 
generator which has been designed in collaboration with a large 
scroll manufacturing corporation. In parallel with the UK product 
development, Genlec’s partner in the Netherlands, Daalderop, 
continues to develop the CombiVolt micro-CHP appliance. 
Daalderop has the right to produce, develop, manufacture, promote 
and market its wall-mounted CombiVolt boilers, incorporating the 
Genlec micro-CHP unit, principally in the Netherlands and the 
Belgian domestic heating market. 
On the commercial front, Genlec has continued to develop its 
relationships in the major markets in Europe. In Germany, Stiebel 
Eltron, an international leader in heating, ventilation, air-conditioning 
and refrigeration and systems technology, has undertaken several 
months of testing on the ORC technology platform and is now 
evaluating a programme to bring the technology to market. Genlec’s 
two other partners, one each in Italy and Germany, continue to test 
the technology. 
Genlec held several development meetings with a number of 
partners who may act as routes to market during 2010, and with the 
evolution of the Kingston appliance, the Directors believe the 
potential for marketing a volume micro-CHP appliance in the UK 
following certification within the next 12 months has been 
considerably enhanced. 
On the regulatory front, Genlec has been active, in conjunction with 
other important players in the micro-CHP market, in framing future 
regulations surrounding micro-CHP installations. This includes the 
Microgeneration Certification Scheme (“MCS”) which will give 
recognition of high-quality microgeneration products and services 
in the market place, and provide consumers with confidence and 
assurance when purchasing and installing these technologies. It 
“One quarter of the UK’s total 
emissions come from homes, so 
householders have to be a part of 
the solution to climate change. 
Increasing the energy efficiency 
of homes not only helps reduce 
emissions, but will also help 
reduce fuel bills”
Ed Miliband, Energy and Climate Change Secretary, December 2009 7 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
Case Study
Kingston case study: micro-CHP comparison 
Energetix has developed all its technologies on the 
premise that they are inherently cost-efficient even  
in the absence of artificial subsidies. In particular, the 
Directors believe that our Genlec-enabled product  
is substantially more affordable than our micro-CHP 
competitors. As a case in point, the following table 
compares the economics of our Kingston product 
with other micro-CHP technologies in 2010 and the 
potential position in 2020.
Even at this early stage of commercialisation, 
Genlec demonstrates clear advantages over 
competing technologies whether with or without  
the Feed-in Tariff incentives. 
should also guide consumers with realistic expectations of the 
performance of microgeneration systems in practice. 
Also, Genlec has attended several trade association meetings and 
has provided significant input to the Department of Energy and 
Climate Change (“DECC”) in respect of the proposed Feed-in Tariff 
scheme.
In April 2010, the Government’s proposed Feed-in Tariffs will come 
into effect whereby producers of small-scale renewable and efficient 
energy will be paid a guaranteed fixed rate for every kilowatt of 
electricity they produce, including the electricity they consume, for 
a 25-year period. Furthermore, as well as being paid for all the 
electricity generated, an extra premium is paid for any surplus 
exported to the national grid. 
Householders generating electricity in the home in this manner will 
benefit from the opportunity to use their electricity in the home to 
offset some or all of the electricity they would otherwise have had 
to buy. As a result they will be shielded to some extent from future 
price rises in electricity. In order to qualify for Feed-in Tariffs all 
installations must be carried out using MCS certified companies. 
Non-renewable micro-CHP is included in the scheme.
Kingston Case Study/micro-CHP comparison
Organic 
Rankine 
Cycle 2010
Organic 
Rankine 
Cycle 2020 
(estimate)
Stirling 
Engine 2010
Stirling 
Engine 2020 
(estimate)
Fuel cell 
2012
Fuel cell 
2020 
(estimate)
Payback with Feed-in Tariff (yrs) 7 2 15 5 10 5
Payback without Feed-in Tariff (yrs) 17 4 109 14 56 17
Annual energy cost savings with 
Feed-in Tariff (£)
385 433 400 463 1,033
Annual energy cost savings 
without Feed-in Tariff (£)
155 169 141 176 343
The values presented in the table above are illustrative and do not necessarily represent actual performance of a particular product.
Source: Delta Energy & Environment Ltd, Micro-CHP in the UK – An Economic Model, March 2010.  8 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
Chief Executive’s Review continued
Business review
National Grid and other global transmission system operators 
(“TSOs”) have been earmarked as key customers for the product. 
National Grid has its own certification standards and Pnu Power is 
currently working in conjunction with National Grid to produce a 
unit specifically to meet their requirements. In order to meet all of 
Pnu Power’s certification requirements, we have established an 
excellent working relationship with TRAC-TRL, a world-renowned 
organisation specialising in all aspects of certification. 
Pnu Power has worked closely with the British Standards Institute 
throughout 2009 towards achieving ISO9001 accreditation as a 
“designer and manufacturer of pneumatic battery systems”. This 
accreditation is a prerequisite for meeting the vendor approval 
requirements of many of Pnu Power’s customer base. Full 
accreditation to ISO9001 was achieved in March 2010. 
Pnu Power
Business review
During the year, Pnu Power has concentrated its efforts into those 
market segments and geographies where it is able to demonstrate 
sustainable competitive advantage against the incumbent 
technology of lead-acid batteries. These segments are principally 
utility high-voltage switching, land mobile radio systems and 
telecommunication transmission networks. Environmental 
legislation is becoming increasingly onerous with respect to 
installation and disposal of lead-acid batteries which, combined 
with a comparatively short life expectancy necessitating more 
replacements in the duty life cycle, has made the Pnu Power 
compressed air solution a viable alternative for more than just 
economic reasons. Following successful trials, which are currently 
continuing, full demand for the Pnu Power system is anticipated 
from several major companies. These include: the National Grid UK 
and USA, which are amongst the world’s largest utility and 
transmission and distribution companies and are focused on 
delivering energy to many millions of people across Great Britain 
and Northeastern US; Harris Corporation, which provides end-to-
end wireless network solutions to the growing $9 billion global land 
mobile radio systems market, and Telecom Italia a leader in the 
Italian telecommunication market, with around 10,000 base 
transceiver stations. 
Pnu Power has also installed a 20kW grid-connected system with a 
premier US aerospace and defence company. This installation is 
part of a US Department of Energy grant project to develop and 
demonstrate a diverse system of renewable distributed generation 
that will produce a verifiable, on-demand reduction of at least 15% 
of the facility’s substation load with no disruption of facility 
operations. Phase two of this programme is scheduled for 2010.
Product development has been focused on streamlining the range 
with product platforms developed at 2kW, 4kW and 10kW in both 
AC and DC configurations. Pnu Power has undertaken in-house 
scroll development programmes to supply a scroll at each of these 
ratings. The scroll design used is essentially the same across the 
range, with the design simply uprated in order to meet each power 
requirement. The supply chain necessary to meet planned 
production levels is now in place. All supply partners are Tier 1, 
ISO9001 OEM manufacturers. 9 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
Telecom Italia – Turin – Installed April 2009
The objective: to provide a low life-time cost solution to back-up power applications in a small regional central 
office supporting land line and broadband
The application: with a 2.5kW typical load and a 4kW maximum load
Existing battery 
installation to be 
replaced:
flooded lead-acid batteries, requiring; regular maintenance, climate control to maintain the 
temperature at less than 20°C, special safety measures for acid and lead and a controlled 
disposal process
Pnu Power system 
provided:
a fully integrated autonomous solution to provide 1 hour back-up in their small central office near 
Turin. The unit supplied was a TC4 Pnu Power unit producing 4kW with 48V DC output, along 
with a specially designed in-line compressor that can automatically refill cylinders after a power 
outage and a compressed air cylinder bank. The system was fully installed and commissioned 
within the existing facility
Benefits of the Pnu 
Power system
high reliability; •	
the system now only needs an annual inspection, compared to monthly maintenance •	
for batteries;
the system only uses energy after a power outage, whereas battery systems require •	
constant float charge through an installed rectifier; 
the Pnu Power unit does not need any environmental control compared to batteries that •	
need air conditioning to control their temperature; and
the Pnu Power system has an installed life of 20 years •	
National Grid UK – Chester – Installed August 2009
The objective: to be cheaper first cost and lower life-time cost than the existing battery installations
The application: both a 110V DC output for switching at 400kV to 132kV as well as support a 48V DC output 
for communications loads from a single Pnu Power product
Existing battery 
installation to be 
replaced:
VRLA lead-acid batteries which require regular maintenance and testing, condition reporting 
which is expensive and unreliable, battery condition and runtime available, do not necessarily 
correlate, and to meet the output requirement there needs to be two separate battery systems
Pnu Power system 
provided:
a TC4 dual output system that backs up both the 110V DC and the 48V DC loads which utilises 
the existing compressed air main that is used to provide arc suppression during a switching 
moment. As this unit is provided to IP54 standard it was installed outdoors avoiding the 
need for additional infrastructure costs such as a brick built block house in new installations
Benefits of the Pnu 
Power system
single system instead of two systems backing up both 110V and 48V DC loads; •	
low cost installation, total time for installation and commissioning less than two hours •	
whereas a typical battery installation usually requires about two days;
maintenance is reduced to an annual inspection rather than a monthly maintenance •	
programme;
known system condition and operational predictability through graphical user information •	
system which can be accessed remotely; and
reduced infrastructure costs •	
Harris Corporation (formerly M/A-COM) – Florida – Installed August 2009
The objective: the system has to deliver very high levels of availability and reliability supporting emergency 
service networks, Police, Fire, etc
The application: an AC load of around 2.5kW with a maximum load of 4kW
Existing battery 
installation to be 
replaced:
consists of VRLA batteries which require regular maintenance, climate control to keep the 
temperature below 20°C, in an area where summer temperatures reach 32°C and even winter 
temperatures can be above 21°C. Using lead-acid batteries requires annual issue of permits for 
their operation with associated costs
Pnu Power system 
provided:
an autonomous Pnu Power solution which provides 15 minutes of back-up supply producing 
4kW AC split phase output with a specially designed in-line compressor that automatically refills 
cylinders after a power outage and a compressed air cylinder bank. 
The system meets all local USA and Florida state regulations
Benefits of the Pnu 
Power system
low costs, installation and life time; •	
the system only requires an annual inspection; •	
the only energy used by the system is after a power outage when the compressor will refill •	
the cylinders; 
no need for air conditioning, saving in excess of $120 per month; and •	
has an installed life of twenty years compared to a five year life for VRLA batteries •	
Case Studies  10 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
Chief Executive’s Review continued
Business review
VPhase
Business review 
The Company has been increasing the profile of VPhase and 
promoting the VPhase message:
“VPhase is the smart new way to cut your energy costs immediately 
without changing your supplier or your lifestyle. By reducing and 
managing the voltage coming into your home, a VPhase device will 
ensure many of your electrical appliances use less electricity and 
cost less to run. It will also lower your carbon emissions. The device 
is simple to install by a qualified electrician and requires no 
maintenance. It’s simply a matter of fit, forget and save instantly!” 
In the first half of 2009 VPhase completed the development of its 
first domestic energy saving device which achieved CE marking in 
June 2009, declaring that the product complies with the essential 
requirements of the relevant European health, safety and 
environmental protection legislation and, therefore, permitting sales 
across the UK and continental Europe. Initially sales have been 
focused in the UK.
Achieving the CE milestone also enabled the commencement of 
Ofgem’s formal product Demonstration Action of the VPhase unit, 
in conjunction with Scottish and Southern Energy (SSE), for the UK 
Government’s CERT scheme. The results from this trial will indicate 
the level of lifetime carbon dioxide savings that utility companies 
can claim through the CERT scheme from the sale of the VPhase 
product. These trials are expected to conclude in the second 
quarter of 2010, which is later than we anticipated due to delays in 
the SSE customer selection and installation programme. These trial 
units are now fully installed.
Trials are also being conducted with a major Northwest-based 
social housing provider, British Gas, and in VPhase staff homes  
for both product performance and marketing opportunities. 
Independently analysed results from staff homes have shown 
annualised savings of between £75 to £135 per home, dependent 
upon the level of incoming voltage and load profile of the property. 
The small size of the staff home sample means it may not be 
indicative of the savings across the whole of the UK housing stock. 
During the year, we have increased our sales and marketing activity 
and have promoted the VPhase device at: Ecobuild, the world’s 
biggest trade and consumer event for sustainable design, 
construction and the built environment; on the BBC’s Working 
Lunch television programme; and in the national press. We recruited 
a head of sales and have established training sessions with the 
National Association of Professional Inspectors and Testers (NAPIT). 
These training sessions allow VPhase to train electrical contractors 
in the benefits and installation of VPhase whilst also introducing 
them to the additional revenue opportunity afforded by VPhase. We 
have established a programme of these training sessions for 2010 
and are organising product familiarisation days with electrical 
distributors for their customers along with a series of training days 
for electricians at VPhase’s premises in Capenhurst, Chester.
“VPhase is the smart new 
way to cut your energy 
costs immediately 
without changing your 
supplier or your lifestyle.”
People
In 2009 we continued to control costs, and our team of 41 people 
(2008: 38) has delivered excellent performance for the Group. We 
have begun the process of growing the teams necessary to deliver 
commercial success for the Group and 2010 will see further addition 
of sales and marketing professionals.
Financial position and outlook
We finished the year in a stronger financial position than the 
Directors’ expectations in terms of reduced losses and higher 
retained cash, leaving us well placed to capitalise on growing 
our sales through 2010.
Adrian C Hutchings
Chief Executive Officer
23 March 2010 11 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
Case Studies
VPhase has begun receiving results from the trials with 
SSE, British Gas, the Northwest-based social housing 
provider and in staff homes, and the data is being 
independently analysed. 
In the case of the staff home trials, VPhase supplied 
recorded data from several properties that had been 
fitted with a VPhase unit. EA Technology, a well 
established power management consultancy and 
regular assessor of energy technologies, has analysed 
the electricity consumption data for these properties, 
for the period between December 2009 and February 
2010. The energy savings over this period ranged, for 
these properties, from 6% to 12%. Energy savings 
of this magnitude, provided they are sustained over a 
whole year, would result in annual savings of between 
£75 and £135 at these properties. For example:
One test home is a 5-bedroom detached house •	
which has between 3 and 5 people living in it. The 
property is gas centrally heated with a gas hob and 
an electric oven. The typical voltage reduction that 
VPhase is delivering is 8.9%. This property is in 
a rural location with an average voltage supply 
of 232V, which is lower than the national average 
of 245V. The annualised saving from VPhase is 
£75 per annum.
Another property is an urban 4-bedroom detached •	
house with a family of 5 in occupation. It is gas 
centrally heated and has an electric cooker. The 
average incoming voltage of 247V is marginally 
higher than the national average and VPhase is 
delivering a typical voltage reduction of 10.3% 
giving projected savings of £135 per annum.
 The small size of this sample means that it may not 
be indicative of the savings across the whole of the 
UK housing stock.
In addition, VPhase has been carrying out back-to-
back testing on a range of appliances. The typical 
energy savings demonstrated are:
17% on fridges and freezers •	
15% on lighting •	
10% on new energy saving light bulbs •	
30% on cordless phones •	
13% on hi-fi’s. •	
Whilst actual results may vary depending on the type 
and age of appliance and the level of incoming 
voltage, VPhase is consistently demonstrating 
encouraging levels of savings.
“Home energy efficiency has never 
been so important in achieving our  
long term goals on climate change  
and to making a real difference to 
householders’ energy bills.”
Joan Ruddock, Energy Minister, July 2009 12 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
Finance Review
Business review
Richard H Smith
Chief Financial Officer
Key highlights 
Commercial sales commenced  •	
generating turnover of £255,000 
(2008: £32,000)
Reduced operating losses to £4,009,000 •	
(2008: £4,202,000)
Tight financial control resulting in cash •	
reserves of £5,657 ,000 at the year end 
(2008: £11,025,000)
Operating results 
Revenue was £223,000 higher than 2008 at £255,000  
(2008: £32,000) through VPhase and Pnu Power product sales. 
Continuing operations  2009 2008 
  £’000 £’000
Revenue  255 32
Gross profit  33 –
Operating loss  (4,009) (4,202)
Cash reserves 31 December  5,657 11,025
Overheads
Overheads (excluding depreciation and amortisation) of £3,244,000 
were incurred in the year (2008: £3,741,000), a reduction of 
£497,000, mainly through the restructuring carried out in January 
2009. This is consistent with the stage of development of the 
business, the majority of these costs relating to employment of staff 
£2,458,000 (2008: £2,910,000). 
Depreciation of fixed assets and intangible amortisation
Depreciation of property, plant and equipment totalled £207,000 
(2008: £125,000), reflecting the full-year charge of expenditure 
incurred largely in 2008. 
Amortisation of intangible assets increased during the year as both 
Pnu Power and VPhase have transitioned from the development 
phase into the commercial phase and the intangible research and 
development asset that was generated is now being amortised 
over its useful life. This has resulted in an increase in the amortisation 
charge of £255,000 to £591,000 (2008: £336,000).
Net finance costs
Interest earned on money held on deposit totalled £45,000  
(2008: £615,000). The reduced amount reflects the lower interest 
rates that have prevailed throughout 2009 as compared to 2008, 
the lower quantum of cash held and the Group’s policy of giving 
priority to security, then liquidity and finally yield in its choice of 
where to invest surplus cash. 13 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
“The UK Low Carbon Transition Plan 
is a transition plan for Britain, a 
route-map to 2020, with carbon 
savings expected across every sector 
and a carbon budget aligned to every 
government department alongside its 
financial budget ”
Ed Miliband, Energy and Climate Change Secretary, July 2009
The fair value adjustment of long term borrowings attributable to 
interest rate risk has resulted in a charge of £48,000 during the 
period (2008: £296,000 gain). 
Other gains
Other gains of £12,000 (2008: £36,000) were made during the year 
from the issue of shares to the Group’s former joint broker 
for services provided to the Group’s subsidiary, VPhase plc, and 
£Nil (2008: £1,593,000) from the placing of new shares during the 
year by VPhase plc. All liabilities to issue shares for services to 
VPhase plc and the Group have been extinguished and no amounts 
are outstanding at the year end.
Loss before tax
The loss before tax of £3,982,000 (2008: £1,662,000) has increased 
from last year’s reported loss largely due to the non-monetary  
gains made in 2008 of £1,925,000 arising from other gains, fair 
value adjustments and lower interest earnings. The underlying 
performance of the business is better represented by the reduced 
operating loss.
Tax
During the year, the Group received a tax credit of £135,000  
(2008: £Nil) in relation to research and development expenditure 
in 2006/07. We are now preparing claims for 2008 and 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.
Loss per share
The loss per share, basic and diluted, was 6.08 pence 
(2008: 2.31 pence); the increase reflecting the impact of the non-
monetary gains reported in 2008.
Investment in property plant and equipment
During the year £76,000 (2008: £335,000) was invested in property 
plant and equipment 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 2009 amounted to £1,393,000 
(2008: £2,255,000). This investment is the internally generated 
product development costs capitalised in accordance with IAS 38. 
The reduction in 2009 reflects VPhase and Pnu Power transferring 
from the product development phase to commercialisation. Further 
details are contained in note 4.
Cash and cash equivalents
At 31 December 2009, the Group had cash and cash equivalent 
reserves of £5,657,000.
Richard H Smith
Chief Financial Officer
23 March 2010 14 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
Board of Directors and Senior Management
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.
Richard H Smith
Chief Financial Officer
A Fellow of the Chartered Institute of 
Management Accountants with an MBA from 
Warwick University, he was previously Finance 
Director for Ultraframe (UK) Limited (2001 to 
2004), and Finance Director for Norcros 
Adhesives Limited (1997 to 2001) which 
comprised subsidiary, joint venture and licensee 
operations in the UK, Europe, the Middle East 
and India. From 1995 to 1997 Richard worked 
with Adrian Hutchings as the Finance Director 
for IES and prior to this was the Financial 
Controller for Robinson Healthcare, a division 
of Robinson Limited that manufactured 
consumables for the healthcare industry. 15 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
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. 
Dr Lee Juby 
CEO VPhase plc 
A Chartered Engineer with a doctorate in 
electronics and over ten years’ experience in 
the development and commercialisation of 
advanced technology gained within a variety of 
different roles. Lee joined VPhase from Rolls-
Royce Distributed Generation Systems 
(RRDGS) where he had been Head of Product 
Planning and oversaw the transition of the 
RRDGS business unit from a capability provider 
to a product provider. Other recent positions 
include Commercialisation Manager at 
Energetix Group Limited where he developed 
the original VPhase technology, Director of 
Energetix (Pnu) Power Limited where he 
developed the initial technology and Senior 
Consultant at EA Technology where among 
other roles he acted as Lead Technical Expert 
for a number of banking clients for investment 
due diligence activities.  16 Energetix Group plc
Group Financial Statements for the year ended 31 December 2009
Corporate Responsibility
Overview
As we expand as a business, we are developing policies and 
procedures to ensure that we manage our growth responsibly. 
These focus on taking care of our staff, being aware of our 
environmental impact and building strong, long-term relationships 
with our suppliers.
Employees
As an entrepreneurial, fast growing organisation, we appreciate 
that attracting and retaining high calibre staff is critical to our future 
development. We have developed a comprehensive, competitive 
package for employees including free medical care for staff and 
their families and we plan to introduce a range of share schemes 
during 2010. 
Intellectual capital is one of our key strengths and we encourage 
our staff to continuously develop their skills. We offer sponsorship 
for professional qualifications – right up to MBA level – and allow 
study leave for exams. We also participate in a Knowledge Transfer 
Programme with our local university, sharing the costs of employing 
technical post-doctoral students and giving them business 
experience, whilst they contribute to our product development 
initiatives. This is a two year programme and both of the  
students who have participated so far have joined us at the end  
of the period.
Maintaining a safe working environment is an important part of the 
way we operate and we have an excellent health and safety record. 
We have no Reporting of Injuries, Disease and Dangerous 
Occurrences Regulations (RIDDOR) or Lost Time Injury Frequency 
Rates (LTIFR) incidents to report and work hard to maintain our high 
standards. We monitor our operations carefully, promote health 
and safety training and hold regular safety meetings.
Environment
Our products are focused on delivering energy savings that reduce 
our customers’ costs and their carbon footprint. As our products 
move into commercial use, we have been able to set up a number 
of 3rd party trials to verify these savings in the working environment; 
for example, recent certified trials of our VPhase Smart Voltage 
Management unit have generated carbon savings of between 
400kg – 700kg per annum, reducing electricity bills by between 
£75 to £135 a year.
As we develop our product manufacturing capacity, we are building 
in environmentally friendly device processes and standards from 
the start; for example, our VPhase device is fully Waste Electrical 
and Electronic Equipment (WEEE) directive compliant.
Supplier relationships
Much of our manufacturing requirement will be outsourced so we are 
seeking to build long-term supplier relationships, with contracts based 
on a number of important factors in addition to price and ability to 
supply. These include product quality processes, plans for waste 
reduction, health and safety records and geographic location.
Business continuity is equally important so we will be following a 
multi-sourcing policy to mitigate the risk of being dependent on a 
single supplier. 17 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Group Directors’ Report
for the year ended 31 December 2009
The Directors present their report and the audited Financial 
Statements for the year ended 31 December 2009.
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 2009 and for the 
corresponding period in 2008. 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 
backup power. 
Results and dividends
The loss for the year, after taxation, amounted to £3,847,000  
(2008: £1,662,000). The Directors do not recommend the payment 
of a dividend.
Review of business and future developments
The business has continued to develop its core products and the 
Directors are pleased to report that two of its three products are 
now available for sale and the third is on track for sales in the latter 
half of 2010.
A more detailed appraisal of business developments is given in the 
Chairman’s Statement, Chief Executive’s Review, Business Review 
and the Finance Review on pages 2 to 13 and future developments 
as set out in the Chief Executive’s Review.
Risk review
The Directors have monitored the progress of the overall Group 
strategy and have carried out a more detailed appraisal of its three 
key operating subsidiaries Energetix (Pnu) Power Limited, Energetix 
Genlec Limited, and VPhase plc.
A review of the Key Performance Indicators (KPIs) is contained in 
the Chairman’s Statement, the Chief Executive’s Review, Business 
Review and the Finance Review on pages 2 to 13. The Directors 
believe that, given the Group’s transition from the early stage of 
development to the sales and supply of product, the relevant KPIs 
are; creation of shareholder value, revenue, product margins, 
warranty claims, research and development costs, administrative 
expenses, capital expenditure and cash management.
The key business risks affecting the Group are set out below:
Funding requirements
The Group has sufficient financial resources to continue to operate 
for the foreseeable future and as a result is not currently seeking 
external finance or borrowing facilities.
Strength of the Group’s bankers
The Group has reviewed and updated its treasury policy, and, in 
accordance with this, funds are only lodged with UK and Irish 
based financial institutions with an ‘A’ rating or better.
Failure of suppliers of essential goods and services
Wherever practical the Group seeks to dual source its key 
components and services. Each supplier is assessed and where 
necessary strategies to manage and protect supply to the Group 
are put in place.
Value creation
To provide long term shareholder value through the commercial 
growth of our three 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, energy storage 
and energy efficiency, our businesses are:
• Genlec – distributed generation in the home
• Pnu Power – compressed air back-up power
• VPhase – domestic energy efficiency
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 is establishing an employee share save scheme to 
encourage greater share participation, retention of employees and 
improved goal congruence.
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 or 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.  18 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Group Directors’ Report continued
for the year ended 31 December 2009
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 2009, the Group incurred research and development 
costs of £1,456,000 (2008: £2,281,000) of which £1,393,000  
(2008: £2,255,000) has been capitalised in accordance with IAS 38 
‘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 (appointed 22 January 2009)
Dr H J Cialone Non-Executive Director
A C Elsborg Non-Executive Director (resigned 22 January 2009)
Employees 
Throughout the year, Directors of the Group provide relevant 
information to employees and engage in consultation with them to 
ensure that their views are considered. 
Applications for employment by disabled persons are given full and 
fair consideration for all vacancies in accordance with their particular 
aptitudes and abilities. In the event of employees becoming disabled 
every effort is given to retrain them in order that their employment 
with the Group may continue. 
It is the policy of the Group that training, career development and 
promotion opportunities should be available to all employees. 
Financial risk management objectives and policies
Other than the proceeds from the issue of shares, the Group uses 
various financial instruments that include loans, cash and various 
items, such as trade receivables and trade payables arising directly 
from its operations. The main purpose of these financial instruments 
is to finance the Group’s operations.
The existence of these financial instruments exposes the Group 
to a number of financial risks, which are described in more 
detail below.
The main risks arising from the Group’s financial instruments are 
credit risk and liquidity risk. The Directors review and agree policies 
for managing risk and these risk management policies have 
remained unchanged from previous years.
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 
£5,657,000 as at 31 December 2009 (2008: £11,025,000).
The maturity of borrowings is set out in note 19 to the Group 
Financial Statements.
Following the incorporation of Energetix Technologies Inc. in 2008, 
the Directors have assessed the Group’s currency risk. Presently, 
the Directors do not believe that the Group’s currency risk requires 
hedging, however this situation will be monitored and amended 
if appropriate.
Credit risk
The Group’s principal financial asset is cash. Although the credit 
risk associated with cash is limited, the Group’s treasury policy 
remains the same as in the year and is explained in more detail in 
note 22.1.
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 37 days (2008: 35 days) and for the Company 
represent 102 days (2008: 60 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 23 March 2010 the Company had been notified of the following 
interests in 3% or more of the Company’s issued share capital, 
pursuant to the Disclosure and Transparency rules of the Financial 
Services Authority:
  %
Blackrock Inc  15.97
Aviva plc  10.34
Axa Framlington  8.61
Invesco Limited  5.26
Lloyds Banking Group  5.01
Gartmore Investments Limited  5.01
Ignis Investment Services Limited  3.16
Credit Suisse Sec (Europe) Limited  3.07 19 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
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 2009, 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 pages 14 to 15 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 receive reports 
on the performance of each of the Group’s businesses. Monthly 
management accounts, that compare actual results with budget, 
are subject to detailed review. Other strategic and commercial 
issues are considered as required. Board decisions are 
communicated on a timely basis to management to ensure that 
operational implementation occurs without delay.
Audit Committee
The members of the Audit Committee as at 31 December 2009 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 
2009 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 pm 
on 20 May 2010 at the Company’s trading offices, Unit 1 Capenhurst 
Technology Park, Capenhurst, Chester, CH1 6EH. 
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. 20 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Group Directors’ Report continued
for the year ended 31 December 2009
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 elected to 
prepare financial statements for the Group in accordance with 
International Financial Reporting Standards as adopted by the 
European Union (IFRSs) and for the parent company in accordance 
with United Kingdom Accounting Standards (United Kingdom 
Generally Accepted Accounting Practice). The financial statements 
are required by law to give a true and fair view of the state of affairs 
of the Company and of the profit or loss of the Company for that 
period. The financial statements are required by law to give a true 
and fair view of the state of affairs of the Group and parent company 
and of the profit or loss of the Group for that period. In preparing 
these financial statements, the Directors are required to:
select suitable accounting policies and then apply them • 
consistently; 
make judgments and estimates that are reasonable and prudent; • 
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 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 is 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
23 March 2010 21 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
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 2009 which comprise the Group 
Income Statement, the Group Statement of Changes in Equity, the 
Group Statement of Financial Position and parent company Balance 
Sheet, the Group Statement of Cash Flows 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 (IFRSs) 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 page 20, 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 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/UKNP .
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 2009 and of the Group’s loss 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 
 
23 March 2010 Notes to the Group Financial Statements
for the year ended 31 December 2009
22 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Group Income Statement 
for the year ended 31 December 2009
       Year ended Year ended 
       31 December 31 December  
       2009 2008 
      Note £’000 £’000
Revenue      3 255 32
Cost of sales       (222) (32)
Gross profit       33 –
Administrative expenses       (4,042) (4,202)
Operating loss       (4,009) (4,202)
Net finance (costs)/income      5 (3) 911
Other gains      6 30 1,629
Loss before income tax      4 (3,982) (1,662)
Income tax      10 135 –
Loss for the year       (3,847) (1,662)
Attributable to:
Equity holders of the Company       (3,350) (1,272)
Minority interest      25 (497) (390)
       (3,847) (1,662)
Loss per share attributable to the equity holders of the Company during the year 
Total and continuing: 
– Basic and diluted      12 (6.08)p (2.31)p
The Group has no items to be recognised in the “Group statement of comprehensive income” and consequently this statement has not 
been shown.
All revenue and costs originate from continuing activities. 
The notes on pages 26 to 52 are an integral part of these Group Financial Statements.  23 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Group Statement of Changes in Equity 
for the year ended 31 December 2009
 Attributable to equity holders of the Company 
    Reverse   Total 
 Share Share Retained acquisition Warrant Other shareholders Minority Total 
 capital premium earnings reserve reserve reserves equity interest equity 
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 2008 2,752 15,376 (155) (821) 256 144 17,552 251 17,803
Share based payments – – 6 – – 22 28 – 28
Other share based payments – 2007 – – 20 – – (20) – – –
Other share based payments – 2008 – – – – – 16 16 – 16
Issue of warrants in VPhase plc – – – – 105 – 105 – 105
Issue of warrants – (230) – – 230 – – – –
Deemed disposal in VPhase plc – – – – – – – 1,651 1,651
Shares issued:
– 13 February 2008 1 11 – – – (12) – – –
– 12 June 2008 1 11 – – – – 12 – 12
– 14 August 2008 1 15 – – – – 16 – 16
– 8 October 2008 1 15 – – – – 16 – 16
Transactions with owners 2,756 15,198 (129) (821) 591 150 17,745 1,902 19,647
Loss for the year and total
 comprehensive income – – (1,272) – – – (1,272) (390) (1,662)
Balance at 31 December 2008 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 23) – – – – – – – 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
Total recognised income and expense recognised directly to equity amounts to £Nil (2008: £Nil). 
Reverse acquisition reserve 
As disclosed in note 2.4, the reverse acquisition reserve relates to the reverse acquisition between Energetix (Europe) Limited and  
Energetix Group plc on 8 August 2006. 
Warrant reserve 
As disclosed in note 24.2, on 15 August 2006 Energetix Group plc (‘the Company’) granted 1,350,000 warrants to its 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. 
Other reserves 
Other reserves comprise of share based payments for the cost of options granted to employees and the former joint brokers.
Minority interest 
As at 31 December 2009, a minority interest existed due to the Group owning less than 100% of VPhase plc. The Group’s shareholding 
has been further diluted during the year by the issue of shares to its former broker for services rendered up to June 2009. The Group 
appointed Ambrian Partners Limited as broker and Nominated Advisor from 6 July 2009 and associated fees will be settled in cash.
The notes on pages 26 to 52 are an integral part of these Group Financial Statements. Notes to the Group Financial Statements
for the year ended 31 December 2009
24 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Group Statement of Financial Position
as at 31 December 2009 
       As at As at 
        31 December 31 December  
       2009 2008 
      Note £’000 £’000
ASSETS
Non-current assets
Goodwill      13 311 311
Other intangible assets      14 9,865 9,063
Property, plant and equipment      15 284 415
       10,460 9,789
Current assets
Inventories      16 375 –
Trade and other receivables      17 272 415
Cash and cash equivalents      18 5,657 11,025
       6,304 11,440
Total assets       16,764 21,229
LIABILITIES
Non-current liabilities
Borrowings      19 1,600 1,625
       1,600 1,625
Current liabilities
Borrowings      19 85 264
Trade and other payables      20 944 1,355 
       1,029 1,619
Total liabilities       2,629 3,244
EQUITY
Capital and reserves attributable to equity holders of the Company
Share capital      24 2,758 2,756
Share premium       15,228 15,198
Retained earnings       (4,470) (1,401)
Reverse acquisition reserve       (821) (821)
Warrant reserve      24 335 591
Other reserves       77 150
Total shareholders’ equity       13,107 16,473
Minority interest      25 1,028 1,512
Total equity       14,135 17,985
Total equity and liabilities       16,764 21,229
The notes on pages 26 to 52 are an integral part of these Group Financial Statements.
These Financial Statements were approved by the Board of Directors and authorised for issue on 23 March 2010 and were signed on its 
behalf by:
Adrian C Hutchings Richard H Smith
Chief Executive Officer Chief Financial Officer
Company number: 5819555 25 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Group Statement of Cash flows 
for the year ended 31 December 2009 
       Year ended Year ended 
       31 December 31 December  
       2009 2008 
      Note £’000 £’000
Cash flows from operating activities
Cash consumed by operations      26 (3,804) (2,933)
Taxation
Tax received      10 135 – 
Cash flows from investing activities
Expenditure on intangible assets      14 (1,393) (2,255)
Purchases of property, plant and equipment      15 (76) (335)
Interest received      5 45 615 
       (1,424) (1,975)
Cash flows from financing activities
Net proceeds from the issue of ordinary shares       – 3,305
Repayment of financial liabilities      19 (232) (150)
Share buy-back       (43) –
       (275) 3,155
Net decrease in cash and cash equivalents       (5,368) (1,753)
Cash and cash equivalents at the beginning of the year      11,025 12,778
Cash and cash equivalents at the end of the year      18 5,657 11,025
The notes on pages 26 to 52 are an integral part of these Group Financial Statements.  Notes to the Group Financial Statements
for the year ended 31 December 2009
26 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
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 62 
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 new interpretations, revisions and amendments to IFRS 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 2009:
IAS 1 Presentation of Financial Statements (Revised 2007) • 
IFRS 8 Operating Segments • 
Amendments to IFRS 7 Financial Instruments: Disclosures – improving disclosures about financial instruments • 
Significant effects on current, prior or future periods arising from the first time application of these new requirements in respect of 
presentation, recognition and measurement are described below. An overview of standards, amendments and interpretations to  
IFRSs issued but not yet effective is given in note 2.19.
Adoption of IAS 1 Presentation of Financial Statements (Revised 2007)
The Group has adopted IAS 1 Presentation of Financial Statements (Revised 2007) in its Group Financial Statements. This standard has 
been applied retrospectively. The adoption of the standard does not affect the financial position or profits of the Group but affects the 
presentation of the financial statements.
IAS 1 (Revised 2007) affects the presentation of owner changes in equity and introduces an option to present a single ‘Statement of 
comprehensive income’ or two statements the ‘Income statement’ and a ‘Statement of comprehensive income’. The Group has elected 
to present the ‘Statement of comprehensive income’ in two statements: 
The measurement and recognition of the Group’s assets, liabilities, income and expenses is unchanged. 
Two comparative periods are presented for the statement of financial position when the Group:
(i) applies an accounting policy retrospectively; or
(ii) makes a retrospective restatement of items in its financial statements.
Although the Group has applied IAS 1, IFRS 8 and the amendment to IFRS 7 retrospectively there has been no retrospective restatement 
of items in its financial statements. Consequently, the statement of financial position includes only one comparative period.
Adoption of IFRS 8 Operating Segments
The adoption of this standard has not affected the identified operating segments for the Group. However the accounting policy for 
identifying segments is now based on internal management reporting information that is regularly reviewed by the chief operating decision 
maker.
In contrast, IAS 14 required the Group to identify two sets of segments (business and geographical) based on risks and rewards of the 
operating segments.
Adoption of amendments to IFRS 7 Financial Instruments: Disclosures – improving disclosures about financial instruments. The 
amendments require additional disclosures for financial instruments that are measured at fair value in the statement of financial position. 
These fair value measurements are categorised into a three-level fair value hierarchy (see note 22.4), which reflects the extent to which they 
are based on observable market data. A separate quantitative maturity analysis (see note 22.3) must be presented for derivative financial 
liabilities that shows the remaining contractual maturities only where these are essential for an understanding of the timing of cash flows. 
The Group has taken advantage of the transitional provisions in the amendments and has not provided comparative information in respect 
of fair value hierarchy disclosures.
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 19).  27 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
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 17 to 20.  
The financial position of the Group, its cash flows and liquidity position are described in the Finance Review on pages 12 and 13. 
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 2012 and taking account of reasonably 
possible changes in performance, show that the Group should be able to operate within the level of its current cash resources. 
After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to 
continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the 
Group Financial Statements. 
2.3 Critical accounting estimates and judgments 
The preparation of the Group Financial Statements in conformity with IFRS as adopted by the European Union requires the use of certain 
critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting 
policies. 
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of 
future events that are believed to be reasonable under the present circumstances. 
The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the  
Group Financial Statements are disclosed below. 
Critical accounting estimates 
Research and development activities 
Management have reviewed the Group’s research and development activities and have made estimates and judgments on the amount  
of development expenditure it is appropriate to capitalise. The criteria which management have to make judgments about are set out in 
note 2.13. 
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, in particular 
in relation to the exclusion of market returns between 2008 and 2009 due to economic conditions, and have selected 11.60% (2008:12.50%) 
to represent the best estimate of the current cost of capital to the Group, see notes 14 and 19. 
Share based incentive arrangements and warrants 
Share based incentive arrangements are provided to management and certain employees. These are valued at the date of grant using the 
Black-Scholes option pricing model and management have to exercise judgment over the likely exercise period, interest rate and share 
price volatility. Management uses various sources of information including its own share price performance, or where there is insufficient 
history the performance of comparable listed entities, experience from the historical exercise of options and published data on bank  
base rates. 
During the year, the Group has issued shares to its former joint broker for services rendered up to June 2009. These share based 
payments have been valued at the fair value of the services received and are charged to the Income Statement with a corresponding credit 
to equity. The Group appointed Ambrian Partners Limited as broker and Nominated Advisor from 6 July 2009 and associated fees will be 
settled in cash. Notes to the Group Financial Statements
for the year ended 31 December 2009
28 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Group Financial Statements continued
for the year ended 31 December 2009
2. Summary of significant accounting policies continued
Taxation 
Management have not provided for deferred tax in relation to unrelieved tax losses as the recoverability is currently uncertain. 
Critical accounting judgments 
Part Disposal of VPhase plc 
Management consider the ‘Parent Company concept’ to be the most appropriate basis of consolidation, as set out in note 2.4. Under this 
method where a part disposal of a subsidiary occurs and the relevant entity remains a subsidiary, the minority interest will increase by the 
carrying amount of the net identifiable assets that are now attributable to the minority interest due to the decrease in the Group’s interest. 
Accordingly, any gain or loss is recognised as the difference between the proceeds of the disposal and the portion of the carrying amount 
of the net assets that have been disposed of, including goodwill, see note 23. This accounting policy differs from the ‘entity concept’, 
whereby any gain or loss recognised on the sale of the subsidiary would be reported within equity. In addition, minority interest would not 
be deducted in arriving at the profit or loss for the financial year and would be shown as equity in accordance with IAS 1. 
Control over VPhase plc 
Following the deemed disposals in VPhase plc, the Group holds 49.1% (2008: 49.1%) of the ordinary share capital of VPhase plc. The 
Group continues to consolidate the results of the subsidiary on the basis that it controls the financial and operating polices of VPhase plc 
through Board members. In addition, the Group has control over 53.3% (2008: 53.7%) of the voting rights of the ordinary shares in  
VPhase plc as a result of retaining the voting rights over shares held by an Employee Benefit Trust. 
Financial liabilities 
Management have considered the terms of agreement with Battelle Memorial Institute and consider the obligation for future repayments 
based on a percentage of mainstream sales to be a non-financial item. Accordingly, the instrument is considered an embedded derivative 
and the Group has designated the entire instrument as fair value through profit and loss (FVTPL), see note 19. 
Amortisation of development assets 
Development costs capitalised, which form part of the Group’s intangible assets, are amortised on a straight line basis over a period not 
exceeding 15 years starting from the point that those products resulting from the development activity commence mainstream sales. 
Sales of prototype products 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 September 2009 for VPhase plc and, consequently, amortisation of these development 
costs began from these respective dates.
2.4 Basis of consolidation 
Reverse acquisition 
The Company was incorporated on 17 May 2006 as Futurebay Limited. On 8 August 2006, the Company changed its name to  
Energetix Group plc and re-registered as a public limited company. On 8 August 2006, the Company became the legal holding Company 
of Energetix (Europe) Limited via a share for share exchange. 
The share for share exchange has been accounted for using reverse acquisition methodology. Although these Group Financial Statements 
have been issued in the name of the legal parent, the Company it represents in substance is a continuation of the financial information of 
the legal subsidiary, Energetix (Europe) Limited because after the transaction former Energetix (Europe) Limited shareholders held 100% 
of the share capital of the legal parent. The following accounting treatment has been applied in respect of the reverse acquisition: 
a) the assets and liabilities of the legal subsidiary, Energetix (Europe) Limited are recognised and measured in the Group Financial 
Statements at the pre-combination carrying amounts, without reinstatement to fair value; and 
b) the retained (loss)/earnings and other equity balances recognised in the Group Financial Statements reflect the retained (loss)/earnings 
and other equity balances of Energetix (Europe) Limited immediately before the business combination, and the results of the period 
from 1 January 2006 to the date of the business combination are those of Energetix (Europe) Limited as the Company did not trade 
prior to the transaction. However, the equity structure appearing in the Group Financial Statements reflects the equity structure of the 
legal parent, including the equity instruments issued under the share for share exchange to effect the business combination. 
The Company had no significant assets, liabilities or contingent liabilities of its own at the time that the share for share exchange took effect 
and no cash consideration was paid in respect of the business combination. Transaction costs of equity transactions relating to the issue 
and listing of the Company’s shares are accounted for as a deduction from equity where it relates to the issue of new shares and listing 
costs are charged to the Group Income Statement as an administrative expense.  29 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
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 disposals of VPhase plc as set out in note 23, 
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 minority interests 
The Group applies a policy of treating transactions with minority interests as transactions with parties external to the Group. In accordance 
with IAS 27 losses applicable to minority interests, whereby the minority does not have a binding obligation to cover the losses, have been 
fully provided. 
Minority interests in the net assets (excluding goodwill) of Group subsidiaries are identified separately from the Group’s equity therein. 
Minority interests consist of the amount of those interests at the date of the original business combination and the minority’s share of 
changes in equity since the date of the combination. 
Government grants 
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions attaching to 
them and that the grants will be received. 
Government grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets are 
recognised as deferred income in the Balance Sheet and transferred to the Income Statement on a systematic and rational basis over the 
useful life of the related assets. 
Other government grants are recognised as income over the periods necessary to match them with the costs for which they are intended 
to compensate, on a systematic basis. Government grants that are receivable as compensation for expenses or losses already incurred 
or for the purpose of giving immediate financial support to the Group with no future related costs are recognised in the Income Statement 
in the period for which they become receivable. 
Goodwill 
Goodwill arose on the reverse acquisition of Energetix Voltage Control Limited into VPhase plc (formerly Flightstore group plc), being the 
difference between the cost of the business combination and the fair value of VPhase plc’s identifiable assets and liabilities at the 
acquisition date. 
2.5 Intangible assets 
The carrying values of intangible assets are tested for impairment at least annually or when events or changes in circumstances indicate 
that the carrying amount may not be recoverable. 
Intellectual property costs are included at cost and amortised on a straight line basis over their useful economic lives from the date 
of acquisition over a period not exceeding 20 years or the remaining life of the patent if shorter. Amortisation is charged to 
administrative expenses. 
Development costs capitalised (note 2.13), 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 September 2009 for VPhase plc and, consequently, amortisation of these development costs 
began from these respective dates. Notes to the Group Financial Statements
for the year ended 31 December 2009
30 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Group Financial Statements continued
for the year ended 31 December 2009
2. Summary of significant accounting policies continued
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 categories: financial assets ‘at fair value through profit or loss’ (FVTPL), ‘held to 
maturity’ investments, ‘available for sale’ (AFS) financial assets and ‘loans and receivables’. The classification depends on the nature and 
purpose of the financial assets and is determined at the time of initial recognition. The Group currently has only loans and receivables 
recognised in these Group Financial Statements. 
Effective interest method 
The effective interest method is a method of calculating the amortised cost of a financial asset/liability and of allocating interest income/
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts/ payments 
through the expected life of the financial asset/liability, or, where appropriate, a shorter period. 
Income is recognised on an effective interest basis for debt instruments. 
Loans and receivables 
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in an active market are 
classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less  
any impairment. Interest income is applied by applying the effective interest rate, except for short-term receivables when the recognition 
of interest would be immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this category of  
financial instruments.
Impairment of financial assets 
Financial assets are assessed for indicators of impairment at each Balance Sheet date. Financial assets are impaired where there is 
objective evidence that as a result of one or more events that occurred after initial recognition of the financial asset, the estimated cash 
flows of the investment have been impacted. 
For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are 
subsequently assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could 
include the Group’s past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the 
average credit period of 45 days, as well as observable changes in national or local economic conditions that correlate with default  
on receivables. 
For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and 
the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. 
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade 
receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered 
uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against 
the allowance account. Changes in the carrying amount of the allowance account are recognised in the Group Income Statement.  31 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
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 19 are recognised and valued at fair value through profit and loss  
(FVTPL) using the effective interest method. 
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least  
12 months after the Balance Sheet date. 
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or they expire. 
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. 
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. •  Notes to the Group Financial Statements
for the year ended 31 December 2009
32 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Group Financial Statements continued
for the year ended 31 December 2009
2. Summary of significant accounting policies continued
The costs of an internally generated intangible asset comprises all directly attributable costs necessary to create, produce, and prepare 
the asset to be capable of operating in the manner intended by management. Directly attributable costs include employee (other than 
Directors) costs incurred on technical development, testing and certification, materials consumed and any relevant third party costs. 
However, until completion of the development project, the assets are subject to impairment testing only. 
Careful judgement by the Directors is applied when deciding whether the recognition requirements for development costs have been met. 
This is necessary as the economic success of any product development is uncertain and may be subject to future technical problems at 
the time of recognition. Judgments are based on the information available at each 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. 
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).
All goods and services received in exchange for the grant of any share based payment are measured at their fair values. Where employees 
are rewarded using share based payments the fair values of employees’ services are determined indirectly by reference to the fair value 
of the instrument granted to the employee. This fair value is appraised at the grant date and excludes the impact of non-market vesting 
conditions (for example profitability and sales growth targets). 
Share options are valued at the date of grant using the Black-Scholes option pricing model and are charged to operating profit over the 
vesting period of the award with a corresponding credit to the ‘other reserves’. 
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period based on the best 
available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the 
number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the 
current period. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that 
estimated on vesting.  33 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
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’. 
In addition, during the year the Group has issued shares to its former joint broker for services rendered up to June 2009. These share 
based payments have been valued at the fair value of the services received and are charged to the Group Income Statement with a 
corresponding credit to equity. From 6 July 2009 the Group appointed Ambrian Partners Limited as joint broker and Nominated Advisor 
and associated fees will be settled in cash. 
2.19 Adopted IFRS not yet applied 
At the date of authorisation of these consolidated financial statements, there were a number of standards and interpretations that have not 
been applied in these consolidated financial statements, which were in issue but not yet effective. 
In future periods the following are expected to have an impact on the Group Financial Statements: 
IAS 27 Consolidated and Separate Financial Statements (Revised 2008) (effective from 1 July 2009)
The revised standard introduces changes to the accounting requirements for the loss of control of a subsidiary and for changes in the 
Group’s interest in subsidiaries. These changes will be applied prospectively in accordance with the transitional provisions and so do not 
have an immediate effect on the Group’s financial statements.
IFRS 3 Business Combinations (Revised 2008) (effective from 1 July 2009)
The standard is applicable for business combinations occurring in reporting periods beginning on or after 1 July 2009 and will be applied 
prospectively. The new standard introduces changes to the accounting requirements for business combinations, but still requires use of 
the purchase method, and will have a significant effect on business combinations occurring in future reporting periods.
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 equity 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. Notes to the Group Financial Statements
for the year ended 31 December 2009
34 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Group Financial Statements continued
for the year ended 31 December 2009
2. Summary of significant accounting policies continued
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 micro-CHP products from Genlec; • 
products for power quality and reliability, these comprise the compressed air battery products of Pnu Power; and • 
products for energy efficiency, these comprise the voltage control devices of VPhase. • 
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 reconciliation.
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 2009 are as follows:
    Distributed Power  
    generation quality  
    and load and Energy Other 
    shifting reliability efficiency segments Total 
    £’000 £’000 £’000 £’000 £’000
Revenue
From external customers    44 87 124 – 255
Segment revenues    44 87 124 – 255
Operating loss    (1,930) (1,015) (733) (846) (4,524)
Finance income    – – 11 – 11
Other income    92 – – – 92
Discounts allowed    – – – 18 18
Loss before income tax    (1,838) (1,015) (722) (828) (4,403)
Income tax expense    78 52 5 – 135
Loss for the year    (1,760) (963) (717) (828) (4,268)
Depreciation and amortisation expense    (373) (81) (26) (7) (487)
Other non cash movements    92 – – – 92
Two minor operating segments, for which quantities thresholds have not been met, are currently combined above under ‘Other segments’. 35 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
The segment results for the year ended 31 December 2008 are as follows:
    Distributed Power  
    generation quality  
    and load and Energy Other 
    shifting reliability efficiency segments Total 
    £’000 £’000 £’000 £’000 £’000
Revenue
From external customers    32 – – – 32
Segment revenues    32 – – – 32
Operating loss    (2,784) (1,631) (544) (984) (5,943)
Finance income    – – 84 4 88
Other income    296 – – – 296
Loss before income tax    (2,488) (1,631) (460) (980) (5,559)
Income tax expense    – – – – –
Loss for the year    (2,488) (1,631) (460) (980) (5,559)
Depreciation and amortisation expense    (353) (64) (5) (2) (424)
Other non cash movements    296 – (105) – 191
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 Energy Other 
    shifting reliability efficiency segments Total 
    £’000 £’000 £’000 £’000 £’000
Assets    8,069 2,561 3,337 9,849 23,816
Liabilities    (11,308) (5,128) (3,638) (4,563) (24,637)
Capital expenditure
– Tangible    55 98 61 3 217
– Intangible    3,181 1,964 398 – 5,543
The segment assets and liabilities at 31 December 2008 and capital expenditure for the year then ended are as follows:
    Distributed Power  
    generation quality  
    and load and Energy Other 
    shifting reliability efficiency segments Total 
    £’000 £’000 £’000 £’000 £’000
Assets    7,330 2,350 3,799 9,838 23,317
Liabilities    (9,878) (4,094) (3,558) (3,798) (21,328)
Capital expenditure     
– Tangible    65 160 72 10 307
– Intangible    2,106 1,822 222 – 4,150 Notes to the Group Financial Statements
for the year ended 31 December 2009
36 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Group Financial Statements continued
for the year ended 31 December 2009
3. Segmental information continued
The totals presented for the Group’s operating segments reconcile to the entity’s key financial figures as presented in its financial statements 
as follows:
       2009 2008 
       £’000 £’000
Revenue
Total segment revenues       255 32
Group revenues       255 32
Profit or loss
Segment operating loss       (4,524) (5,943)
Other expenses not allocated       (878) (514)
Research and development costs       1,393 2,255
Group operating loss       (4,009) (4,202)
Net finance (costs)/income       (3) 911
Other gains       30 1,629
Group loss before tax       (3,982) (1,662)
Assets
Total segment assets       23,816 23,317
Consolidation       (18,095) (16,711)
Group headquarters       11,043 14,623
Group assets       16,764 21,229
All revenue and costs originate from continuing operations.
Revenue from external customers can be summarised as follows:
       2009 2008 
       £’000 £’000
Sale of distributed generation and load shifting products      44 32
Sale of power quality and reliability products        87 –
Sale of energy efficiency products        124 –
       255 32
Geographic analysis of revenue:
       2009 2008 
       £’000 £’000
UK       188 –
Europe        20 32
USA       47 –
       255 32
All Group non-current assets are located within the UK.
The table below shows customers that constituted in excess of 10% of Group revenues:
Customer A, distributed generation and load shifting products, £41,000 or 16%
Customer B, power quality and reliability products, £43,000 or 17%
Customer C, energy efficiency, £97,000 or 38%
Management note that as the commercial operations of each segment develop this concentration will diminish. 37 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
4. Loss before income tax
Loss before income tax is stated after charging/(crediting):
       2009 2008 
       £’000 £’000
Amortisation (note 14)       591 336
Depreciation (note 15)       207 125
Inventories recognised as an expense       148 –
Employee benefit expense (note 8)       2,458  2,910
Other share based payment expense       (16) 136
Research costs (not capitalised)       63 26
Grant income received       (122) (34)
Operating lease rentals:
– buildings       116 116
Audit remuneration:
– fees payable to Company auditor for the audit of Parent Company and Group Financial Statements  14 17
– subsidiary companies       12 11
Non-audit services:
– tax services       45 37
Foreign exchange differences       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. 
5. Net finance income/(costs)
       2009 2008 
       £’000 £’000
Loans and receivables (including cash and cash equivalents)       45 615
Fair value adjustment of long term borrowings attributable to interest rate risk (note 19)    (48) 296
       (3) 911
6. Other gains 
Other gains during the year of £30,000 (2008: £1,629,000) results from: 
       2009 2008 
       £’000 £’000
Discounts allowed for settlement of loan notes       18 –
Gains resulting from placing of 6% of the Group’s interest in VPhase plc     – 1,593
Gain resulting from deemed disposal that arises on settlement of fees with equity (note 23)   12 36
       30 1,629
7. Directors’ remuneration 
       2009 2008 
       £’000 £’000
Directors’ emoluments
Aggregate emoluments       644 489
Share based payment charge       13 8
       657 497
The increase from the prior year is primarily due to the appointment of Neil S. Bright to the Board of Directors on 22 January 2009.
Highest paid Director
The above includes remuneration of the highest paid Director as follows:
       2009 2008 
       £’000 £’000
Aggregate emoluments       232 244
The key management of the Group is the same as the Board of Directors and Senior Management as set out on pages 14 and 15. Notes to the Group Financial Statements
for the year ended 31 December 2009
38 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Group Financial Statements continued
for the year ended 31 December 2009
8. Employee benefit expense
       2009 2008 
       £’000 £’000
Wages and salaries       2,172 2,479
Social security costs       227 296
Share options granted to Directors       13 8
Share options granted to employees       46 127
       2,458 2,910
The analysis above includes employee benefits capitalised in the development asset totalling £655,000 (2008: £1,038,000).
Average number of persons employed:
       2009 2008 
       No No
Finance, administration and management       18 20
Research and development       23 18
Total       41 38
9. Share based payments 
The Company established, in June 2006, two share option schemes in relation to ordinary shares, namely the Energetix Unapproved 
Share Option Scheme 2006 and the Energetix Enterprise Management Incentive Scheme 2006. 
The Group grants options over the ordinary shares of the Company at not less than the market value of the Company’s ordinary shares 
on the date of grant. The vesting period is generally three to four years. If the option remains unexercised after a period of 10 years  
from the date of grant, the options expire. The Group has no legal or constructive obligation to repurchase or settle the options in cash. 
The movement in the number of share options is set out below: 
    2009  2008 
    Weighted average 
|||||||||||||||||||||||||||||||||||||||
 Weighted average
    Exercise Remaining  Exercise Remaining 
   2009 price contractual 2008 price contractual 
   No. (pence) life  No. (pence) life
Number of outstanding share options at 1 January   607,500 50.7 7 years 641,207 48.1 8 years 
     11 months   11 months
Granted during the year   484,789 96.0 9 years – – – 
     5 months
Lapsed during the year   (382,500) 41.1 – (33,707) 44.5 –
Number of outstanding share options at 31 December   709,789 86.8 8 years 607,500 50.7 7 years 
     8 months   11 months
As at 31 December 2009, 206,250 share options were capable of being exercised (2008: 337,500) with a weighted average exercise price 
of 105.5 pence (2008: 40.0 pence). 
The Group uses the Black-Scholes model to fair value the Group’s share options which resulted in a fair value charge of £59,000 
(2008: £135,000) and a corresponding credit to other reserves. 
Assumptions
The following assumptions are used to determine the fair value of share options at the respective date of grant: 
   Ordinary Share price   Life of 
  Exercise shares at date of Expected Interest option Expected 
Date of grant  price (pence) under option grant (pence) volatility rate (years) dividends
23 April 2007  67.0 225,000 67.0 45.7% 5.75% 3 Nil
21 January 2009  105.5 412,500 39.5 38.7% 4.50% 1 Nil
7 September 2009  41.5 72,289 41.5 42.7% 4.50% 3 Nil
The middle market price of ordinary shares on 31 December 2009 was 49.5 (2008: 45.0) pence. The high and low market prices during 
the year were 57.0 (2008: 117.5) pence and 27.0 (2008: 44.0) pence respectively.  39 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
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. 
Other share based payments 
During the year, the Group has issued shares to its former joint broker for services rendered up to June 2009. These share based 
payments have been valued at their fair value as they are received, using the Black-Scholes model, and are charged to the Group Income 
Statement with a corresponding credit to equity. From 6 July 2009, the Group appointed Ambrian Partners Limited as its joint broker and 
Nominated Advisor and these fees will be settled in cash.
10. Income tax
       2009 2008 
       £’000 £’000
Current tax
Prior year adjustment       135 –
The prior year adjustment originates from a tax credit received in cash arising from research and development activities during the financial 
years ending 31 December 2006 and 2007 undertaken in Energetix Genlec Limited (£78,000), Energetix Pnu Power Limited (£52,000) and 
Energetix Voltage Control Limited (£5,000).
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:
       2009 2008 
       £’000 £’000
Loss before income tax       (3,982) (1,662)
Loss before income tax multiplied by rate of corporation tax in the UK of 28.0% (2008: 28.49%)   (1,115) (473)
Adjustment for tax rate differences       – 16
Adjustment for tax exempt income       – (464)
Adjustment for non-deductible expenses       56 682
Movement in deferred tax not provided       1,059 239
Adjustment in respect of prior periods        (135) –
Current tax       (135) –
Unrelieved tax losses of £16,891,000 (2008: £12,260,000) 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. 
11. Deferred tax 
The unprovided deferred taxation is calculated at a tax rate of 28% (2008: 28%) and is set out below: 
       2009 2008 
       £’000 £’000
Accelerated capital allowances       (59) (37)
Share based payments       (62) (78)
Other short term temporary differences       1,480 –
Trade losses       (4,729) (1,923)
       (3,370) (2,038) Notes to the Group Financial Statements
for the year ended 31 December 2009
40 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Group Financial Statements continued
for the year ended 31 December 2009
12. Loss per ordinary share
The loss per ordinary share is based on the loss of £3,350,000 (2008: loss of £1,272,000) and 55,138,105 (2008: 55,087,756) ordinary 
shares of 5 pence each, being the weighted average number of shares in issue during the year. All shares have been included in the 
computation based on the weighted average number of days since issuance. 
       2009 2008
Loss attributable to equity holders of the Company (£’000)      (3,350) (1,272)
Weighted average number of ordinary shares in issue        55,138,105 55,087,756
Basic & diluted loss per share (pence)       (6.08) (2.31)
The share options and warrants in issue are anti-dilutive in respect of the basic loss per share calculation and have therefore not 
been included.
13. Goodwill 
        Goodwill 
        £’000 
Year ended 31 December 2008 
Opening and closing net book value        311
Closing net book value        311
Year ended 31 December 2009
Opening and closing net book value        311
At 31 December 2009
Cost        311
Accumulated impairment        –
Closing net book value        311
At 31 December 2008
Cost        311
Accumulated impairment        –
Closing net book value        311
Goodwill arose on 25 September 2007 from the reverse acquisition of Energetix Voltage Control Limited into VPhase plc (formerly 
Flightstore Group plc) amounting to £311,000, being the difference between the cost of the business combination and the fair value of 
VPhase plc’s identifiable assets and liabilities at the acquisition date. Given the current recoverable amount of VPhase plc, the Directors 
have reviewed the carrying value and no impairment is necessary.  41 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
14. Other intangible assets 
  Compressed Smart voltage 
 micro-CHP air battery management
    Research  Research Research 
    and  and and 
   Intellectual development  development development 
   property asset Total asset asset Total 
   £’000 £’000 £’000 £’000 £’000 £’000
Year ended 31 December 2008
Opening net book value   5,249 808 6,057 1,087 – 7,144
Additions   – 1,298 1,298 735 222 2,255
Amortisation   (336) – (336) – – (336)
Closing net book value   4,913 2,106 7,019 1,822 222 9,063
Year ended 31 December 2009
Opening net book value   4,913 2,106 7,019 1,822 222 9,063
Additions   – 1,075 1,075 142 176 1,393
Amortisation   (336) – (336) (228) (27) (591)
Closing net book value   4,577 3,181 7,758 1,736 371 9,865
At 31 December 2009
Cost   5,787 3,181 8,968 1,964 398 11,330
Accumulated amortisation   (1,210) – (1,210) (228) (27) (1,465)
Closing net book value   4,577 3,181 7,758 1,736 371 9,865
At 31 December 2008
Cost   5,787 2,106 7,893 1,822 222 9,937
Accumulated amortisation   (874) – (874) – – (874)
Closing net book value   4,913 2,106 7,019 1,822 222 9,063
All additions during the year arise from internal development.
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.  Notes to the Group Financial Statements
for the year ended 31 December 2009
42 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Group Financial Statements continued
for the year ended 31 December 2009
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 14 years. 
Capitalised product development costs 
The Group currently has internally generated intangible assets from development of its micro-CHP module, compressed air battery and 
smart voltage management unit. All other development work has been written off as incurred where the criteria for recognition as an asset 
are not met.
Development costs are capitalised by the Group until the commencement of mainstream sales. Management determine that such sales 
began in Energetix (Pnu) Power Limited in June 2009 and Energetix Voltage Control Limited in September 2009. Consequently, capitalisation 
of development costs ceased and amortisation of the carrying amount of the development assets within these businesses began in  
these months. 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 VPhase and Pnu Power, development costs relating to products 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 and Energetix Voltage control Limited £15,000 of development costs that have been expensed to 
the Income Statement.
Additions may be analysed as follows: 
       2009 2008 
       £’000 £’000
Research and development capitalised during the year      1,393 2,255
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 
     Cost of capital carrying value 
Technology  Cash generating unit    £
Micro-CHP  Energetix Genlec Limited   11.6% 7,758,000
Compressed air battery  Energetix (Pnu) Power Limited   11.6% 1,736,000
Smart voltage management  VPhase plc    8.8%  371,000
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.  43 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Key assumptions 
All assumptions are applicable to each cash generating unit. In determining value in use, forecasts have been prepared for the five years 
following the Balance Sheet date. These forecasts were constructed with: 
the most recent approved forecasts and, where forecasts have not been approved; • 
prudent extrapolations of the above. • 
Revenues were computed using:
signed commercial agreements; • 
memoranda of understanding with commercial partners; and • 
management’s assertions following discussion with various potential customers. • 
Costs have been calculated using existing cost bases adjusted for achievement of the above revenues. 
Growth rates contained within the forecasts are based on management’s assertions following discussions with potential customers and 
increase by various rates throughout the forecasted period. The forecasted value in use period is five years and is based on the Board 
approved forecasts for the period to 31 December 2012 and reasonably possible extrapolations thereon for the following two years. 
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 2007. Returns for the 12 months to 31 December 2008 and 2009 have been excluded 
from the analysis as management do not believe they are representative of the return demanded by investors. 
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, and in no scenario does the value in use of any of the 
cash generating units approach the carrying value.  Notes to the Group Financial Statements
for the year ended 31 December 2009
44 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Group Financial Statements continued
for the year ended 31 December 2009
15. Property, plant and equipment 
       Furniture 
     Leasehold Plant and fittings and 
     improvements equipment equipment Total 
     £’000 £’000 £’000 £’000
Year ended 31 December 2008
Opening net book value     36 106 63 205
Additions     42 184 109 335
Depreciation charge     (13) (60) (52) (125)
Closing net book value     65 230 120 415
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
At 31 December 2009
Cost     88 361 229 678
Accumulated depreciation     (45) (205) (144) (394)
Closing net book value     43 156 85 284
At 31 December 2008
Cost     85 327 190 602
Accumulated depreciation     (20) (97) (70) (187)
Closing net book value     65 230 120 415
16. Inventories 
       2009 2008 
       £’000 £’000
Raw materials       175 –
Finished goods       200 –
       375 –
The cost of inventories recognised as an expense during the period in respect of continuing operations was £148,000 (2008: £Nil). 
 
17. Trade and other receivables 
       2009 2008 
       £’000 £’000
Trade receivables       70 –
Prepayments and accrued income       90 176
Other receivables       112 239
       272 415
The average credit period on sales of goods is 103 days (2008: 35 days). No interest is charged on trade receivables. 
Before accepting any new customer, the Group uses published credit information to assess the potential customer’s credit quality and 
defines credit limits by customer. 
Included in the Group’s trade receivables balance are receivables with a carrying amount of £Nil (2008: £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 do not believe that any credit provision is required at 
31 December 2009 (2008: £Nil). 45 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
No impairment loss has been recognised on trade receivables and no other gains or losses have been recognised in respect of loans and 
receivables. The Group does not hold any collateral as security. 
18. Cash and cash equivalents 
       2009 2008 
       £’000 £’000
Cash at bank and in hand       5,657 11,025
19. Financial liabilities – Borrowings 
       2009 2008 
       £’000 £’000
Current
Financial liabilities designated at fair value through profit and loss (FVTPL)     85 14
Loan notes       – 250
       85 264
Non-current
Financial liabilities designated at fair value through profit and loss (FVTPL)     1,600 1,625
       1,600 1,625
The maturity of non-current borrowings is as follows:
       2009 2008 
       £’000 £’000
Between 1 and 2 years       265 156
Between 2 and 5 years       1,335 1,469
       1,600 1,625
The Group agreed with Axiomlab Group plc that £610,000 of the loan notes due to them was converted to £500,000 of equity on the 
flotation of the Group on the AIM Market of the London Stock Exchange. Conversion was at the flotation price. 
The remaining £250,000 of the loan notes due to Axiomlab Group plc was deferred for repayment within two to five years. In accordance 
with this agreement, £232,000 was paid to Axiomlab Group plc in July 2009 in full settlement of the liability with the Group receiving an 
£18,000 discount.
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 11.60% (2008: 12.50%)  
from the date of assuming the preference debt until anticipated settlement date giving rise to a non-current liability of £1,600,000  
(2008: £1,625,000) and a current liability of £85,000 (2008: £14,000). 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 (2008: £150,000) was repaid and the discounting of future repayments at 11.60% (2008: 12.50%) has resulted in a £48,000 increase 
(2008: £296,000 reduction) to the carrying value of the liability. The amount contractually repayable at 31 December 2009 was £2,500,000 
(2008: £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 2009 and 31 December 2008. 
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. Notes to the Group Financial Statements
for the year ended 31 December 2009
46 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Group Financial Statements continued
for the year ended 31 December 2009
20. Trade and other payables 
       2009 2008 
       £’000 £’000
Trade payables       352 302
Social security and other taxes       158 72
Accrued expenses       434 981
       944 1,355
21. Compensation of key management personnel 
The remuneration of Directors and other members of key management during the year was as follows: 
       2009 2008 
       £’000 £’000
Short-term benefits       753 984
Share based payments       67 135
       820 1,119
The remuneration of Directors is determined by the remuneration committee having regard to performance of individuals and 
market trends. 
22. Financial instruments
22.1 Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern whilst maximising the return 
to stakeholders. The Group’s overall strategy remains unchanged from 2008 and seeks to minimise costs and liquidity risk. At the 
beginning of 2009, in light of recent bank failures the Group adopted a new treasury policy which sets out to optimise the value from 
surplus cash balances giving priority to security then to liquidity and then to yield; and to preserve the principal value of the investment by 
investing surplus funds only with institutions of a high credit standing. 
The capital structure of the Group consists of debt, which includes borrowings of £1,685,000 (2008: £1,889,000) as disclosed in note 19, 
cash and cash equivalents of £5,657,000 (2008: £11,025,000) and equity attributable to equity holders of the parent, comprising issued 
capital, reserves and retained earnings as disclosed in note 24 and in the Group Statement of Changes in Equity. 
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.
22.2 Significant accounting policies
Details of significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the 
basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument 
are disclosed in note 2 to the Financial Statements. 
22.3 Categories of financial instruments
       2009 2008 
       £’000 £’000
Financial assets
Loans and receivables (including cash and cash equivalents)      5,839 11,264
Financial liabilities
Designated at fair value through profit and loss       1,685 1,639
Amortised cost       786 1,533
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 17 to 20.  47 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Furthermore, as detailed in note 19, there exists the obligation for future payments based on a percentage of mainstream sales by 
Energetix Genlec Limited against the preference debt. The maximum outstanding against this debt is capped at £2,500,000 
(2008: £2,500,000). As such payments are dependent upon mainstream sales. With a consequent inflow of funds to the Group and, given 
the cash resources available to the Group, the Directors maintain that the liquidity risk inherent in this contingent liability can be 
adequately managed. 
Contractual undiscounted cash flows in respect of financial liabilities (or outflows in respect of financial assets) are as follows: 
       Greater than  
    61 days – 7 months – 13 months – 2 years up 
   0 – 60 days 6 months 12 months 2 years to 5 years Total 
   2009 2009 2009 2009 2009 2009 
As at 31 December 2009   £’000 £’000 £’000 £’000 £’000 £’000
Trade and other payables   786 – – – – 786
Loan notes   – – – – – –
Total excluding derivatives   786 – – – – 786
Financial liability held at FVTPL   – – 95 330 2,075 2,500
   786 – 95 330 2,075 3,286
       Greater than  
    61 days – 7 months – 13 months – 2 years up 
   0 – 60 days 6 months 12 months 2 years to 5 years Total 
   2008 2008 2008 2008 2008 2008 
As at 31 December 2008   £’000 £’000 £’000 £’000 £’000 £’000
Trade and other payables   1,533 – – – – 1,533
Loan notes   – – 250 – – 250
Total excluding derivatives   1,533 – 250 – – 1,783
Financial liability held at FVTPL   – – 15 197 2,288 2,500
   1,533 – 265 197 2,288 4,283
22.4 Fair value hierarchy
The Group adopted the amendments to IFRS 7 Improving Disclosures about Financial Instruments effective from 1 January 2009. These 
amendments require the Group to present certain information about financial instruments measured at fair value in the statement of 
financial position. In the first year of application, comparative information need not be presented for the disclosures required by the 
amendment. Accordingly, the disclosure for the fair value hierarchy is only presented for the 31 December 2009 year end.
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.
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 2009    Note £’000 £’000 £’000 £’000
Liabilities
Designated at fair value through profit and loss    19 – – 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. Notes to the Group Financial Statements
for the year ended 31 December 2009
48 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Group Financial Statements continued
for the year ended 31 December 2009
22. Financial instruments continued
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 2009      £’000 £’000
Opening balance       1,637 1,637
Loss recognised in profit and loss for the period and presented in ‘net finance costs/income’   48 48
Closing balance       1,685 1,685
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 19. 
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 2009 fair value 
Alternative sales forecast      £’000 £’000
£0.5m reduction in 2010       1,670 15
£1m reduction in 2010       1,664 21
£2.5m reduction in 2011       1,675 10
Given the above management believe that the fair value presented in these Group Financial Statements is appropriate.
22.5 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). 
A contractual maturity analysis is included in note 22.3.
As required by IFRS 7, the table below provides an analysis of financial liabilities to which the Group is contractually obliged: 
       2009 2008 
       £’000 £’000
Less than one year       – 250
More than one year       – –
       – 250
The Directors maintain that given the cash resources available to the Group, the liquidity risk inherent in the above may be 
adequately managed. 49 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
22.6 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%  
(2008: 2%) 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: 
   2009  2008 
   £’000 
|||||||||||||||
 £’000
     +1% –1% +2% –2%
Loss for the year     83 (83) 225 (225)
Equity     83 (83) 225 (225)
23. Deemed disposals
On 5 June 2009, VPhase plc, an AIM listed subsidiary, issued 416,666 shares to Novum Securities Limited in settlement of broker  
services received.
From 6 July 2009, Ambrian Partners Limited was appointed broker and Nominated Advisor for the Group and the associated fees will be 
settled in cash.
The Group’s interest in VPhase plc reduced from 49.11% to 49.09% following these transactions. The reduction in the Group’s interest in 
VPhase plc constituted a deemed disposal at Group level and resulted in a gain to the Group as calculated below. 
Deemed disposal 
 2009
       Minority 
      Group Interest Total 
      £’000 £’000 £’000
Fair value of consideration      25 – 25
Share of net assets disposed of      (13) 13 –
Gain on disposal      12 13 25
Following the deemed disposal in VPhase plc, the Group held 49.1% of the ordinary share capital of VPhase plc. The Group continues to 
consolidate the results of the subsidiary on the basis that it controls the financial and operating polices of VPhase plc through 
Board members. 
The Group has control over 53.3% (2008: 53.7%) 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. 
24. Share capital and reserves 
24.1 Share capital
   31 December 2009 
|
 31 December 2008
     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     55,122,958 2,756 55,045,454 2,752
Shares issued 7 February 2008     – – 22,727 1
Shares issued 12 June 2008     – – 22,727 1
Shares issued 14 August 2008     – – 16,025 1
Shares issued 8 October 2008     – – 16,025 1
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 55,122,958 2,756 Notes to the Group Financial Statements
for the year ended 31 December 2009
50 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Group Financial Statements continued
for the year ended 31 December 2009
24. Share capital and reserves continued
Issue of shares 
On 7 February 2008, the Company issued 22,727 ordinary shares at 55 pence each to Novum Securities Limited in settlement of broker 
services received. 
On 12 June 2008, the Company issued 22,727 ordinary shares at 55 pence each to Novum Securities Limited in settlement of broker 
services received. 
On 14 August 2008, the Company issued 16,025 ordinary shares at 98 pence each to Novum Securities Limited in settlement of broker 
services received. 
On 8 October 2008, the Company issued 16,025 ordinary shares at 98 pence each to Novum Securities Limited in settlement of broker 
services received. 
On 10 June 2009, the Company issued 16,025 ordinary shares at 98 pence each to Novum Securities Limited in settlement of broker 
services received. 
On 12 August 2009, the Company issued 16,025 ordinary shares at 98 pence each to Novum Securities Limited in settlement of broker 
services received. 
From 6 July 2009, the Group appointed Ambrian Partners Limited as joint broker and Nominated Advisor and associated fees will be 
settled in cash.
24.2 Warrants 
As part of the agreed placing costs of the Company with its then Nominated Advisor and broker on 15 August 2006, the Company granted 
1,350,000 warrants with an exercise price of 40 pence. These warrants were capable of being exercised over the three year period from 
the date of grant and lapsed during the course of 2009.
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 are capable of being exercised over the three year period from the 
date of grant.
   Weighted average Weighted average 
  Number of warrants exercise price (pence) remaining contractual life
At 1 January 2008    1,850,000 62 11 months
Lapses    (1,350,000)  – –
At 31 December 2008    500,000 120 7 months
The warrants outstanding at 31 December 2009 were: 
       Exercise  
      Number of price Exercise 
Date granted      warrants (pence) period
1 August 2007      500,000 120 3 years
These warrants are exercisable during a three year period from the date of grant. On exercise, each warrant entitles the holder to one  
5 pence ordinary share in the Company. 
As at 31 December 2009, 500,000 warrants were capable of being exercised (2008: 1,850,000). No warrants were exercised during 
the year. 
The Group uses the Black-Scholes model to fair value the Group’s warrants which resulted in a total fair value charge of £Nil  
(2008: £230,000). This has been charged against share premium and credited to warrant reserve. 
Lapses of £256,000 (2008: £Nil) resulted in a charge to warrant reserve and a credit to retained earnings.
In addition, warrants were issued in part settlement of fees for the placing of 70,000,000 shares in VPhase which resulted in a fair value 
charge of £Nil (2008: £105,000) to the Group’s warrant reserve.  51 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Assumptions 
The following assumptions are used to determine the fair value of warrants at the respective date of grant: 
   Ordinary      
   shares Share price   Life of  
  Exercise under at date of Expected Interest option Expected 
Date of grant  price (pence) warrant grant (pence) volatility rate (years) dividends
1 August 2007  120 500,000 136.0 45.7% 5.75% 3 Nil
The share price at date of grant is the closing price on the day that the warrants were granted. Expected volatility is derived from  
the volatility of the Company’s shares.
The expected life used in the model has been adjusted based on management’s best estimate, for the effects of non-transferability, 
exercise restrictions and behavioural conditions.
25. Minority Interest 
As a result of the partial disposals of the Group’s holding in VPhase plc as set out in note 23, the minority interest has increased from the 
prior year. 
       2009 2008 
       £’000 £’000
Balance at beginning of year       1,512 251
Share of loss for the year       (497) (390)
Partial disposal of Energetix Voltage Control Limited (note 23)      13 1,651
Balance at end of year       1,028 1,512
26. Cash consumed by operations 
       2009 2008 
       £’000 £’000
Loss before income tax       (3,982) (1,662)
Adjustments for:
– Depreciation       207 125
– Amortisation       591 336
– Finance income       (45) (615)
– Other costs       48 (296)
– Other gains on part disposal of VPhase plc       (12) (1,629)
– Share based payments       11 28
– Other share based payments       16 136
– Issue of warrants in subsidiary       – 105
– Deemed fair value of consideration on deemed disposal      25 –
– Discount on settlement of Axiomlab liability       (18) –
Changes in working capital:
– (Increase)/decrease in inventories       (375) 58
– Decrease/(increase) in trade and other receivables       143 (55)
– (Increase)/decrease in trade and other payables       (413) 536
Cash consumed by operations       (3,804) (2,933) Notes to the Group Financial Statements
for the year ended 31 December 2009
52 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Group Financial Statements continued
for the year ended 31 December 2009
27. Operating lease commitments – minimum lease payments 
The Group leases various offices and light industrial units under cancellable operating lease agreements. The leases have varying terms 
and durations however all have the option to be determined on either six or twelve months notice from either the Company or 
the landlord. 
The future aggregate minimum lease payments are:
       2009 2008 
       £’000 £’000 
       Buildings Buildings
Within one year       96 96
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.
28. Related party transactions
Transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation 
and are not disclosed in this note. Details of the transactions between the Group and other related parties are disclosed below:
At 31 December 2009, the amount owed to Axiomlab Group plc in relation to loan notes issued was £Nil (2008: £250,000). This amount 
was repaid in full during the course of 2009.
A J Aubrey, a Director of the Company, is also a Director and shareholder in Axiomlab Group plc. 53 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Company Balance Sheet
as at 31 December 2009
   2009 
|||||||
 2008
    Note £’000 £’000 £’000 £’000
Fixed assets
Tangible assets    33  67  108
Investments    34  3,241  3,198
      3,308  3,306
Current assets
Debtors    35 3,776  3,584
Cash at bank and in hand     3,957  7,732
     7,733  11,316
Creditors: amounts falling due within one year    36 (4,119)  (4,122)
Net current assets      3,614  7,194
Total assets less current liabilities      6,922  10,500
Net assets      6,922  10,500
Capital and reserves
Called up share capital    38  2,758  2,756
Share premium account    39  15,228  15,198
Warrant reserve    40  230  486
Other reserves    41  77  150
Profit and loss account    42  (11,371)  (8,090)
Shareholders’ funds    43  6,922  10,500
The notes on pages 54 to 61 are an integral part of the Company’s Financial Statements.
These Financial Statements were approved by the Board of Directors and authorised for issue on 23 March 2010 and were signed on its 
behalf by:
Adrian C Hutchings    Richard H Smith
Chief Executive Officer    Chief Financial Officer
Company number 5819555 Notes to the Group Financial Statements
for the year ended 31 December 2009
54 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Company Balance Sheet
29. 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 
All share based payment arrangements granted after 7 November 2002 that have not vested prior to the period end are recognised in the 
Financial Statements in accordance with FRS 20. 
All goods and services received in exchange for the grant of any share based payment are measured at their fair values. Where employees 
are rewarded using share based payment, the fair values of employees’ services are determined indirectly by reference to the fair value of 
the instrument granted to the employee. This fair value is appraised at the grant date and excludes the impact of non-market vesting 
conditions (for example, profitability and sales growth targets). 
All equity-settled share based payments are ultimately recognised as an expense in the profit and loss account with a corresponding 
credit to ‘other reserves’. 
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best 
available estimate of the number of share options expected to vest. Estimates are revised subsequently if there is any indication that the 
number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the 
current period. No adjustment is made to any expense recognised in prior periods if share options that have vested are not exercised.  55 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
29. Principal accounting policies – UK GAAP continued
Upon exercise of share options, the proceeds received net of attributable transaction costs are credited to share capital, and where 
appropriate share premium. 
Other share based payments 
Warrants relating to the Company’s placing and admission to AIM have been provided to certain third parties for services rendered. 
Warrants are valued at the date of grant using the Black-Scholes option pricing model and are charged to share premium with a 
corresponding credit to ‘warrant reserve’. 
In addition, during the year the Company has issued shares to its former joint broker for annual services rendered up to June 2009.
From 6 July 2009, the Company appointed Ambrian Partners Limited as broker and Nominated Advisor and the associated fees will be 
settled in cash.
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. 
30. Directors’ remuneration 
       2009 2008 
       £’000 £’000
Directors’ emoluments
Aggregate emoluments       582 498
Share based payments       13 8
       595 506
Highest paid Director
The above includes remuneration of the highest paid Director as follows:
       2009 2008 
       £’000 £’000
Aggregate emoluments       198 173
31. Staff numbers and costs
The average number of persons employed by the Company (including Directors) during the period, analysed by category, was as follows:
       2009 2008  
       No No
Finance, administration and management       11 10
The aggregate payroll costs of these persons was as follows: 
       2009 2008 
       £’000 £’000
Wages and salaries       835 542
Social security costs       87 77
Share based payments       12 28
       934 647 Notes to the Group Financial Statements
for the year ended 31 December 2009
56 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Company Balance Sheet continued
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. 
The Company grants options over the ordinary shares of the Company at not less than the market value of the Company’s ordinary shares 
on the date of grant. The vesting period is generally three to four years. If the option remains unexercised after a period of 10 years  
from the date of grant, the options expire. The Company has no legal or constructive obligation to repurchase or settle the options in cash. 
The movement in the number of share options is set out below: 
    2009  2008 
    Weighted average 
|||||||||||||||||||||||||||||||
 Weighted average
    Exercise Remaining  Exercise Remaining 
   2009 price contractual 2008 price contractual 
   No. (pence) life  No. (pence) life
Number of outstanding share options at 1 January   607,500 50.7 7 years 641,207 48.1 8 years 
     11 months   11 months
Granted during the year   484,789 96.0 9 years – – – 
     5 months
Forfeited during the year   (382,500) 41.1 – (33,707) 44.5 –
Number of outstanding share options at 31 December   709,789 86.8 8 years 607,500 50.7 7 years 
     8 months   11 months
As at 31 December 2009, 206,250 share options were capable of being exercised (2008: 337,500) with a weighted average exercise price 
of 105.5 pence (2008: 40.0 pence). 
The Company uses the Black-Scholes model to fair value the Company’s share options which resulted in a fair value charge of £12,000 
(2008: £28,000) and a corresponding credit to other reserves. 
Assumptions 
The following assumptions are used to determine the fair value of share options at the respective date of grant: 
   Ordinary Share price   Life of 
  Exercise  shares at date of  Expected Interest option Expected 
Date of grant  price (pence) under option grant (pence) volatility rate (years)  dividends
23 April 2007  67.0 225,000 67.0 45.7% 5.75% 3 Nil
21 January 2009  105.5 412,500 39.5 38.7% 4.50% 1 Nil
7 September 2009  41.5 72,289 41.5 42.7% 4.50% 3 Nil
The middle market price of ordinary shares on 31 December 2009 was 49.5 (2008: 45.0) pence. The high and low market prices during 
the year were 57.0 (2008: 117.5) pence and 27.0 (2008: 44.0) 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. 
Other share based payments 
During the year, the Company has issued shares to its former joint broker for annual services rendered up to June 2009. These share 
based payments have been valued at the fair value of the services received and are charged to the profit and loss account with a 
corresponding credit to equity. From 6 July 2009, the Company appointed Ambrian Partners Limited as its brokers and Nominated 
Advisor and these fees will be settled in cash. 57 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
33. Tangible fixed assets 
      Leasehold Plant and 
      improvements machinery Total 
      £’000 £’000 £’000
Cost
At 1 January 2009      54 112 166
Additions      1 14 15
At 31 December 2009      55 126 181
Depreciation
At 1 January 2009      13 45 58
Charge for the period      13 43 56
As at 31 December 2009      26 88 114
Net Book Value
As at 31 December 2009      29 38 67
As at 31 December 2008      41 67 108
34. Investments
       2009 2008 
       £’000 £’000
Cost:
At 1 January       3,511 3,511
Additions       43 –
Disposals       – –
As at 31 December       3,554 3,511
Provisions:
At 1 January       (313) (313)
Impairment provision during the year       – –
As at 31 December       (313) (313)
Net book amount:
As at 31 December       3,241 3,198
The investments comprise:
      Ordinary 
    Percentage Nominal Shares Preferred  
    held Value (pence each) 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
    49.1% 0.25 343,855,008 – –
Energetix Voltage Control Limited 
b
    49.1% 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.  Notes to the Group Financial Statements
for the year ended 31 December 2009
58 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Company Balance Sheet continued
34. Investments continued
All companies are registered in England and Wales with the exception of Energetix Technologies Inc. which is registered in Delaware, 
United States, and at the Balance Sheet date had the following shares in issue: 
  Nominal Ordinary Preferred 
  Value Shares Ordinary A Ordinary B Ordinary C Ordinary
Thermetica Limited  10 pence each 7,670 2,330 – – –
Energetix (Pnu) Power Limited  1 pence each 10,000 – – – –
Energetix Laser Technologies Limited  10 pence each – – 601 249 150
VPhase plc  0.25 pence each 700,529,689 – – – –
Energetix Voltage Control Limited  1 pence each  7,346 – – – –
Energetix (Europe) Limited  1 pence each 23,719 – – – –
Energetix Genlec Limited  1 pence each 10,000 – – – –
Energetix (Nominees) Limited  100 pence each 1 – – – –
Energetix Technologies Inc.  100 pence each 1 – – – –
At 31 December 2009 and 2008 the companies had the following capital and reserves:
   2009 
|||||
 2008
     Capital and Profit/ Capital and Profit/ 
     Reserves (Loss) Reserves (Loss) 
     £’000 £’000 £’000 £’000
Thermetica Limited     (309) (1) (308) (1)
Energetix (Pnu) Power Limited     (4,531) (963) (3,567) (1,631)
Energetix Laser Technologies Limited     (65) – (65) –
Energetix Voltage Control Limited 
a
     (698) (717) 19 (460)
Energetix (Europe) Limited     2,548 (247) 2,795 (264)
Energetix Genlec Limited     (6,421) (1,759) (4,485) (2,319)
VPhase plc     5,092 (407) 5,425 (422)
Energetix Technologies Inc.     (384) (173) (211) (211)
Energetix (Nominees) Limited     – – – –
a. Energetix Voltage Control Limited is a wholly owned subsidiary of VPhase plc.
35. Debtors
       2009 2008 
       £’000 £’000
Amounts owed by subsidiary undertakings       3,729 3,470
Other debtors       15 29
Prepayments and accrued income       32 85
       3,776 3,584
36. Creditors: amounts falling due within one year 
       2009 2008 
       £’000 £’000
Trade creditors       50 110
Amounts owed to subsidiary undertakings       3,867 3,833
Social security and other taxes       140 64
Accruals       62 115
       4,119 4,122 59 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
37. Deferred taxation
The unprovided deferred taxation asset calculated at a tax rate of 28% (2008: 28%) is set out below:
       2009 2008 
       £’000 £’000
Accelerated capital allowances       (14) (7)
Share option and warrants       – (3)
Trade losses       (552) (406)
       (566) (416)
Unrelieved tax losses of £1,973,000 (2008: £1,424,000) 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
  December 2009 
|
 December 2008
    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    55,122,958 2,756 55,045,454 2,752
Shares issued 7 February 2008    – – 22,727 1
Shares issued 12 June 2008    – – 22,727 1
Shares issued 14 August 2008    – – 16,025 1
Shares issued 8 October 2008    – – 16,025 1
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 55,122,958 2,756
Issue of shares
On 7 February 2008, the Company issued 22,727 ordinary shares of 5 pence each at 55 pence per share to Novum Securities Limited in 
settlement of broker services received. 
On 12 June 2008, the Company issued 22,727 ordinary shares of 5 pence each at 55 pence per share to Novum Securities Limited in 
settlement of broker services received. 
On 14 August 2008, the Company issued 16,025 ordinary shares of 5 pence each at 98 pence per share to Novum Securities Limited in 
settlement of broker services received. 
On 8 October 2008, the Company issued 16,025 ordinary shares of 5 pence each at 98 pence per share to Novum Securities Limited in 
settlement of broker services received. 
On 10 June 2009, the Company issued 16,025 ordinary shares of 5 pence each at 98 pence per share to Novum Securities Limited in 
settlement of broker services received. 
On 12 August 2009, the Company issued 16,025 ordinary shares of 5 pence each at 98 pence per share to Novum Securities Limited in 
settlement of broker services received. 
From 6 July 2009, the Company appointed Ambrian Partners Limited as broker and Nominated Advisor and associated fees will be paid 
in cash. Notes to the Group Financial Statements
for the year ended 31 December 2009
6 0 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes to the Company Balance Sheet continued
39. Share premium account 
       2009 2008 
       £’000 £’000
At 1 January       15,198 15,376
Issue of warrants       – (230)
Shares issued in consideration for services received (note 38)       30 52
At 31 December       15,228 15,198
40. Warrant reserve
       2009 2008 
       £’000 £’000
At 1 January       486 256
Charged during the year       – 230
Lapses during the year       (256) –
At 31 December       230 486
As part of the agreed placing costs of the Company with its then Nominated Advisor and broker on 15 August 2006, the Company granted 
1,350,000 warrants with an exercise price of 40 pence. These warrants were capable of being exercised over the three year period from 
the date of grant and lapsed during the course of 2009.
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 joint broker. These warrants were capable of being exercised over the three year period from the date 
of grant.
   Weighted average Weighted average 
  Number of warrants exercise price (pence) remaining contractual life
At 1 January 2008    1,850,000 62 11 months
Lapses    (1,350,000) – –
At 31 December 2008    500,000 120 7 months
The warrants outstanding at 31 December 2009 were: 
       Exercise  
      Number of price Exercise 
Date granted      Warrants (pence) period
1 August 2007      500,000 120 3 years
These warrants are exercisable during a three year period from the date of grant. On exercise, each warrant entitles the holder to one 
5 pence ordinary share in the Company. 
As at 31 December 2009, 500,000 warrants were capable of being exercised (2008: 1,850,000). No warrants were exercised during 
the year. 
The Group uses the Black-Scholes model to fair value the Group’s warrants which resulted in a total fair value charge of £Nil  
(2008: £230,000). This has been charged against share premium and credited to warrant reserve. 
Lapses of £256,000 (2008: £Nil) resulted in a charge to warrant reserve and a credit to retained earnings.
Assumptions 
The following assumptions are used to determine the fair value of warrants at the respective date of grant: 
   Ordinary      
   shares Share price   Life of  
  Exercise under at date of Expected Interest option Expected 
Date of grant  price (pence) warrant grant (pence) volatility rate (years) dividends
1 August 2007  120 500,000 136.0 45.7% 5.75% 3 Nil 61 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
The share price at date of grant is the closing price on the day that the warrants were granted. Expected volatility is derived from the 
volatility of the Company’s shares. 
The expected life used in the model has been adjusted based on management’s best estimate for the effects of non-transferability, 
exercise restrictions and behavioural conditions. 
41. Other reserves
       2009 2008 
       £’000 £’000
At 1 January       150 124
Lapsed share based payments       (68) (6)
Share based payments       11 28
Other share based payments        (16) 4
At 31 December       77 150
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 £3,605,000 (2008: £4,438,000).
       2009 2008 
       £’000 £’000
At 1 January       (8,090) (3,658)
Options lapsed in the year       68 6
Warrants lapsed in the year       256 –
Loss for the year       (3,605) (4,438)
At 31 December       (11,371) (8,090)
43. Shareholders’ funds
       2009 2008 
       £’000 £’000
Loss for the year       (3,605) (4,438)
Shares issued in the year        16 56
Share based payments       11 28
Other share based payments        – 4
Decrease in shareholders’ funds       (3,578) (4,350)
Shareholders’ funds at 1 January       10,500 14,850
Shareholders’ funds at 31 December       6,922 10,500
44. Disposals
On 5 June 2009, VPhase plc, an AIM listed subsidiary, issued 416,666 shares to Novum Securities Limited, its broker in settlement of 
broker services received.
From 6 July 2009, the Company appointed Ambrian Partners Limited as broker and Nominated Advisor and these fees will be paid 
in cash.
45. Leasing commitments 
The Company has no commitments under cancellable operating leases. 
46. Related party transactions 
During the year, the Company charged management fees to its subsidiary, VPhase plc, of £218,000 (2008: £60,000). At 31 December, the 
amount owing to VPhase plc from the Company was £20,000 (2008: amount owing to VPhase plc from the Company, £17,000). Notes to the Group Financial Statements
for the year ended 31 December 2009
62 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Directors, Secretary and Advisors to the Group
Bankers
HSBC Bank plc
Chester & Deeside Commercial Centre
Vista
St David’s Park
Ewloe
Flintshire
CH5 3RX
Solicitors
Atticus Legal LLP
Steam Packet House
76 Cross Street
Manchester
M2 4JU
Independent Auditors
Grant Thornton UK LLP
Registered Auditors
Chartered Accountants
4 Hardman Square
Spinningfields
Manchester
M3 3EB
Public Relations Advisors
Abchurch Communications Limited
100 Cannon Street
London
EC4N 6EU
Registrars
Neville Registrars Limited
Neville House
18 Laurel Lane
Halesowen
West Midlands
B63 3DA
Company registration number
5819555
Registered office
Steam Packet House
76 Cross Street
Manchester
M2 4JU
Principal place of business
Capenhurst Technology Park
Capenhurst
Chester
CH1 6EH
Directors
A J Aubrey (Non-Executive Chairman)
A C Hutchings (Chief Executive Officer)
R H Smith (Chief Financial Officer)
N S Bright (Operations Director)
Dr H J Cialone (Non-Executive Director)
Company Secretary
P M Barry
Steam Packet House
76 Cross Street
Manchester
M2 4JU
Nominated Advisor/Broker
Ambrian Partners Limited
Old Change House
128 Queen Victoria Street
London
EC4V 4BJ 63 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009 64 E n e r ge t i x Group plc
Group Financial Statements for the year ended 31 December 2009
Notes Brookesville State Trooper Telephone 
exchange with an installed Pnu Power unit
Energetix has three 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 Genlec business review 
08 Pnu Power business review
10 VPhase business review
12 Finance Review
14 Board of Directors and Senior Management 
16 Corporate Responsibility
17 Group Directors’ Report
21 Independent Auditor’s Report
22 Group Income Statement
23 Group Statement of Changes in Equity
24 Group Statement of Financial Position
25 Group Statement of Cash Flow
26 Notes to the Group Financial Statements 
53 Company Balance Sheet
54 Notes to the Company Balance Sheet
62 Directors, Secretary and Advisors to the Group
With a focus on distributed 
generation, energy storage 
and energy efficiency, 
Energetix businesses are:
Genlec – distributed generation 
in the home
Pnu Power – compressed air 
back-up power
VPhase – domestic energy 
efficiency Energetix Group plc Group Financial Statements
for the year ended 31 December 2009 
Energetix Group plc Group Financial Statements for the year ended  31 December 2009 
Energetix Group plc
Capenhurst Technology Park
Chester
CH1 6EH
T. 0151 348 2100
F. 0151 348 2101
E: info@energetixgroup.com
www.energetixgroup.com