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Audited Financial Statements |
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for the Year Ended 31 March 2022 |
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Ignis Wick Limited |
REGISTERED NUMBER:
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Audited Financial Statements |
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for the Year Ended 31 March 2022 |
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for |
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Ignis Wick Limited |
Ignis Wick Limited (Registered number: 07469188) |
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Contents of the Financial Statements |
for the Year Ended 31 March 2022 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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Ignis Wick Limited |
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Company Information |
for the Year Ended 31 March 2022 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
Statutory Auditors |
Carlton House |
High Street |
Higham Ferrers |
Northamptonshire |
NN10 8BW |
Ignis Wick Limited (Registered number: 07469188) |
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Balance Sheet |
31 March 2022 |
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31.3.22 | 31.3.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
Stocks |
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Debtors | 6 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
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PROVISIONS FOR LIABILITIES | 10 |
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NET LIABILITIES | ( |
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CAPITAL AND RESERVES |
Called up share capital |
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Revaluation reserve | 11 |
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Retained earnings | ( |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Ignis Wick Limited (Registered number: 07469188) |
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Notes to the Financial Statements |
for the Year Ended 31 March 2022 |
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1. | STATUTORY INFORMATION |
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Ignis Wick Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Critical accounting judgements and key sources of estimation uncertainty |
Judgements made by the Directors, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed below. |
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The preparation of financial statements management are required to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based upon historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily available from other sources. Actual results may differ from these estimates. |
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The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only the period or in the period of revision and future periods if the revision affects both current and future periods. |
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Management consider the following to be a significant accounting policy or a key source of estimation uncertainty for the preparation of the financial statements: |
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Recoverability |
Due to the nature of the contracts between the company and customers there may be disputes around the calculation of revenue related to heat output. Such disputes may suggest that a portion of the amounts are not recoverable. As such there is a level of judgement around the collectability of accrued income and trade debtor balances. |
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Revaluation of tangible assets |
Due to the specialised nature of the property and machinery, the value has been estimated using a reinstatement insurance cost assessment adjusted to take account of wear and tear incurred to date and is not based on the evidence of sales of similar assets in the market. Therefore the increased values of the assets using this type of method is subject to the adequate long term profitability of the business. Changes in the valuations would have significant impact on the company's net asset value. |
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Useful lives of depreciable and intangible assets |
The annual depreciation and amortisation charges depend primarily on the estimated lives of each type of asset. The directors annually review these asset lives and adjust them as necessary to reflect current thinking on remaining lives in light of technological change, prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have significant impact on depreciation and amortisation charges for the financial year. |
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Impairment of tangible assets |
Determining whether tangible assets are impaired requires an estimation of the value in use of the cash generating units to which assets have been allocated. The value in use calculation requires the directors to estimate the future cash flows to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. Where the actual cash flows are less than expected, a material impairment may arise. The directors are satisfied on review that there is no impairment charge to recognise on tangible and intangible assets in the financial year. |
Ignis Wick Limited (Registered number: 07469188) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
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2. | ACCOUNTING POLICIES - continued |
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Turnover |
Turnover is measured at the fair value of the consideration receivable, net of discounts and Value Added Tax. Turnover is determined by the energy produced and submitted to Ofgem within the terms of the Renewable Heath Incentive Scheme. Income is earned in the period on the basis that it is probable that the company will receive the income based on data submissions of energy produced. The company has entered into a number of contracts to generate a minimum amount of heat and is recognised in the period to which it is supplied. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated. |
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Tangible fixed assets |
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Freehold property | - |
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Long leasehold | - |
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Plant and machinery | - |
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Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
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Stocks |
Stock are valued at the lower of cost and net realisable value. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. |
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Financial instruments |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. |
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Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Ignis Wick Limited (Registered number: 07469188) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
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2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Impairment of fixed assets |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
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Going concern |
The Company is in a net liability position. The Company relies on the support of its parent, group and ultimate parent entities to meet its liabilities as they fall due. These entities have indicated that they will continue to provide such support as needed. The directors also consider that any potential change of ownership at parent level would not directly affect the Company as the directors have a reasonable expectation that the Company would be seen as a stable investment and any new shareholder would continue to support the business as necessary. |
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Consequently, the directors have no reason to believe that a material uncertainty exists that may cast significant doubt about the ability of the Company to continue as a going concern. |
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The Company's forecasts and projections taking account of reasonably possible changes in trading performance, including the impact of SEPA drought closures of customers on future revenue, show that the Company should be able to operate within the level of its current resources, notwithstanding the net liabilities. |
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On the basis of their assessment of the company’s financial position and the continued support of the parent entities, the Company’s directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was NIL (2021 - NIL). |
Ignis Wick Limited (Registered number: 07469188) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
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4. | INTANGIBLE FIXED ASSETS |
Development |
costs |
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COST |
At 1 April 2021 |
and 31 March 2022 |
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AMORTISATION |
At 1 April 2021 |
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Amortisation for year |
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At 31 March 2022 |
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NET BOOK VALUE |
At 31 March 2022 |
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At 31 March 2021 |
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5. | TANGIBLE FIXED ASSETS |
Freehold | Long | Plant and |
property | leasehold | machinery | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 April 2021 |
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Additions |
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Disposals |
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At 31 March 2022 |
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DEPRECIATION |
At 1 April 2021 |
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Charge for year |
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Eliminated on disposal |
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At 31 March 2022 |
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NET BOOK VALUE |
At 31 March 2022 |
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At 31 March 2021 |
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Cost or valuation at 31 March 2022 is represented by: |
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Freehold | Long | Plant and |
property | leasehold | machinery | Totals |
£ | £ | £ | £ |
Valuation in 2013 | - | 557,183 | 2,487,127 | 3,044,310 |
Cost | 135,687 | 382,776 | 5,895,985 | 6,414,448 |
135,687 | 939,959 | 8,383,112 | 9,458,758 |
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The energy centre building and the district heating network were valued externally as at 31 May 2013 by Mr M Radmilo MRICS MSCS of Rushton International. They were valued based on the reinstatement insurance cost assessment adjusted to take account of wear and tear incurred to date. |
Ignis Wick Limited (Registered number: 07469188) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.22 | 31.3.21 |
£ | £ |
Trade debtors |
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Other debtors |
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VAT |
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Accrued income |
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Prepayments |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.22 | 31.3.21 |
£ | £ |
The Energy Saving Loan | 67,902 | 66,726 |
Trade creditors |
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Accrued expenses |
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8. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
31.3.22 | 31.3.21 |
£ | £ |
The Energy Saving Loan | 145,146 | 179,394 |
Amounts owed to group undertakings |
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9. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.3.22 | 31.3.21 |
£ | £ |
Within one year |
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Between one and five years |
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In more than five years |
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10. | PROVISIONS FOR LIABILITIES |
31.3.22 | 31.3.21 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
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Tax losses carried forward | ( |
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Other timing differences | 457,862 | 471,793 |
- | 23,518 |
Ignis Wick Limited (Registered number: 07469188) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2022 |
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10. | PROVISIONS FOR LIABILITIES - continued |
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Deferred |
tax |
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Balance at 1 April 2021 |
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Utilised during year | ( |
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Balance at 31 March 2022 |
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11. | RESERVES |
Revaluation |
reserve |
£ |
At 1 April 2021 |
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Deferred tax movement | 23,518 |
Excess revaluation depreciation | (73,322 | ) |
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At 31 March 2022 |
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12. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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13. | RELATED PARTY DISCLOSURES |
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At the year end the company owed its parent company £8,256,543 (2021: £7,615,255). There are no fixed terms of repayment on the loan element of the balance. |
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14. | ULTIMATE CONTROLLING PARTY |
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The Company is controlled by Equitix ESI CHP Limited, a company registered in England and Wales. |
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Equitix ESI CHP Limited's joint owners are Equitix Energy Efficiency Fund LP (the ultimate parent of Equitix Energy Efficiency Fund Holdco Limited, a company incorporated in Guernsey) and Energy Saving Investments LP, a limited partnership registered in England and Wales. Copies of Equitix Energy Efficiency Fund Holdco Limited are not publicly available. The Company's results are not consolidated into the group as it has been defined as an investment entity under IFRS 10. |