Directors' Report

Enigin PLC is incorporated as a Public Limited Company (PLC) in the UK, which means we are subject to even more stringent rules and deadlines than ordinarily incorporated Limited Liability (Ltd) companies. All of the information held at Companies House is available for public inspection so you can rest assured that you are dealing with a totally transparent enterprise.

In order to comply with Companies House regulations, and as a demonstration of the company’s commitment to reinvesting in the further development of the business the directors of Enigin PLC present the following report.

The directors present this extract from the annual report and accounts of the company for the year ended 31 March 2011

This report defines Enigin as a profitable business asset that is strategically positioned to capitalize on the enormous potential within the energy saving industry. Enigin is resourced not only to survive the current economic and environmental turmoil, but also to ensure that the company, its distributors and loyal customers continue to profit with integrity from the ‘green technology’ sector.

During this financial period Enigin has achieved a number of significant milestones congruent with their Mission Statement;

"To provide, innovative and responsible energy saving solutions - empowering forward thinking people to Profit With Integrity"

This is being achieved via:-

EnergyMaps – a unique ethical approach that empowers organisations to control... reduce and even eliminate those big energy bills.

Eniscope – Enigin’s trademarked Real-time Energy Management System.

iMec, ACES, LESS and Chilled Unit Energy Savers – the company’s portfolio of efficacious load-side energy saving products.

Nucleus, ECOS, The Knowledge Base and the News Feed System – Powerful business tools designed and developed in-house to systemize and automate many of the company’s logistical operations thereby dramatically increasing efficiency and minimizing costs.

The combined results of this innovative approach to this new burgeoning industry – rapidly approaching critical mass - have enabled Enigin to robustly deliver exceptional levels of service. It also safeguarded the all-important health and profitability of the business... in addition to providing the infrastructure to facilitate inevitable expansion as the company seeks to increase its market share.

Principal activities and business review

The directors of Enigin PLC are pleased to report yet another significant increase in annual turnover to £2.7 Million, almost half a million up on the previous year.

This represents growth of 22% following the trend that this business has set from the 18% growth seen in the previous year, itself based on an 83% quantum leap from year one.

In value terms, pre-tax profits for the year ended 31 March 2011 of £928,201 are some 2.5 times those seen in the previous year - this too following the company’s burgeoning trend.

The directors are satisfied the company is adequately resourced in all areas of the business to ensure its long-term stability. The same, it seems, is true of other observers; one of the world’s foremost credit rating agencies reported as at the date of these accounts, “Enigin PLC is in the top 5% of UK companies least likely to fail”.

Furthermore, as a nice aside, against the same criteria, the same agency reported, “Enigin PLC is found to be above average, against other UK companies, in promptly meeting its financial obligations to Creditors”.

Factors in the development during the period

The market for energy saving solutions and initiatives is huge and Enigin has significantly increased its investment in resources to ensure that the company is constantly at the forefront of its niche field.

The company takes a very dynamic yet professional approach to Research and Development, identifying specific projects and empowering the R&D team with core objectives. The team is the largest in the company and is headed by one of the founder directors. It works relentlessly in refining the company’s existing systems and developing new concepts.

Eniscope remains the company’s flagship product and following significant further enhancements now comprises of the Eniscope Hub and multiple Meters. The solution is UL certified as required, tested and declared as CE compliant and both the Hub and Meter hold GOST R certification.

Acquisition and External Financial Support

The primary goal this year was to further consolidate the company’s position in readiness for planned substantial growth in the forthcoming decade. To this end the company undertook the following restructuring during the period.

Two new directors appointed from the Senior Management team who have been with Enigin from early 2007.
Implementing the decision that all directors should be active in the business, which lead to accepting the resignation from one non-executive director.
Approval of the redistribution of shareholding to more evenly reflect the contribution made by each respective director/shareholder. (Sale and transfer of shares was undertaken outside the Company and is therefore not reflected in these accounts)
Repayment of £275,000 investment capital introduced in year one by Hindel Ltd., which was reflected in previous accounts as a loan.
Securing the immediate and future needs for expansion of its Head Office facility via acquisition of shares in Meridian South West Ltd. Meridian’s portfolio of properties and fixed assets was valued at £3.2 Million as at the date of these accounts. That portfolio includes both the premises presently occupied by Enigin PLC and a parcel of adjacent land. This parcel of land has the benefit of planning consent for 14,500 sq. ft. of accommodation and will provide for Enigin’s expansion needs. Enigin PLC purchased 49.95% of Meridian’s Ordinary share capital for a mere £434,565. The Company’s Managing Director owns the remaining Meridian shares.

Future Opportunity

Why is this business enjoying inexorable growth? In the opinion of the directors there are three factors that collaborate together and move the company ever closer to ‘tipping point’ in the global economy namely:

Climate Change – this is no longer a matter of debate, a significant number of scientists, climatologists, politicians and influential world leaders recognize that ‘doing nothing’ is no longer a valid stance.
Fossil Fuels - a Finite Resource – Most of our electrical energy is generated by way of fossil fuels which are a finite resource... the end of oil as a plentiful commodity is now within sight and since there is as yet no viable alternative... energy management buys us invaluable time.
Global Financial Crisis – Energy costs are continuing to rise to unprecedented levels and all indications are the worst is yet to come... saving energy is one of the most cost effective ways of saving a company money.

Enigin are in a unique position to capitalize on this new opportunity in an ever-changing world, and the accounting period reported upon demonstrates the company’s ability to profit with integrity and meet the challenges and opportunities that lay ahead.