Company Registration No. NI639416 (Northern Ireland)
KILMOYLE AD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
KILMOYLE AD LIMITED
COMPANY INFORMATION
Directors
Stefania Trivellato
James Blair
Ali Karkuti
Company number
NI639416
Registered office
9 Kilmoyle Road
Ballymoney
Northern Ireland
BT53 6NR
Auditor
MBS Chartered Accountants
3 High Street
Larne
Co. Antrim
BT40 1JN
KILMOYLE AD LIMITED
CONTENTS
Page
Directors' report
1
Independent auditor's report
Profit and loss account
Balance sheet
2
Notes to the financial statements
3 - 10
KILMOYLE AD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 1 -
The directors present their annual report and financial statements for the year ended 31 March 2022.
Principal activities
The principal activity of the company continued to be the production of energy from waste products.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Stefania Trivellato
James Blair
Ali Karkuti
Auditor
Pursuant to Section487 of the Companies Act 2006, the auditor MBS Chartered Accountants, will continue in office.
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 the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Stefania Trivellato
Director
9 December 2022
KILMOYLE AD LIMITED
BALANCE SHEET
AS AT 31 MARCH 2022
31 March 2022
- 2 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
2,749,979
2,905,279
Current assets
Debtors
5
275,519
221,982
Cash at bank and in hand
181,770
210,446
457,289
432,428
Creditors: amounts falling due within one year
6
(742,070)
(885,401)
Net current liabilities
(284,781)
(452,973)
Total assets less current liabilities
2,465,198
2,452,306
Creditors: amounts falling due after more than one year
7
(4,760,510)
(4,388,506)
Net liabilities
(2,295,312)
(1,936,200)
Capital and reserves
Called up share capital
10
10
Profit and loss reserves
9
(2,295,322)
(1,936,210)
Total equity
(2,295,312)
(1,936,200)
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 9 December 2022 and are signed on its behalf by:
Stefania Trivellato
Director
Company Registration No. NI639416
KILMOYLE AD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -
1
Accounting policies
Company information
Kilmoyle AD Limited is a
private
company
limited by shares
incorporated in
Northern Ireland
.
The registered office is
9 Kilmoyle Road, Ballymoney, Northern Ireland, BT53 6NR.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Net liabilities at the year-end amounted to £2,295,312 and net current liabilities amounted to £284,78
1
. Income of £1,247,905 was generated during the year. In view of the structure of the company’s financing arrangements, which are linked to shareholders loan agreements, the company will make losses in earlier years and profit in later years. The primary concern is the company's ability to meet the demands of the financing arrangement being with the loans which the shareholders of the company have issued. From review of the loan agreement and the repayment schedule, it is highlighted that there is no default on the loan if the security trustee (which is the shareholder) determines that there are insufficient funds to pay the relevant amounts. As a result of this, there is no risk of default, as there is discretion over what needs to be repaid and as such the company can agree with its funders to defer payments until they are in a cash generative position again. The projections of the company forecast a cash positive position. Based on the above, the accounts are continued to be prepared on a going concern basis.
The directors do not expect COVID-19 to have any material impact on the going concern of the company. Accordingly, in view of the above the directors continue to adopt the going concern basis in preparing the directors’ report and financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
KILMOYLE AD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 4 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leased plant & machinery
5% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
KILMOYLE AD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 5 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
KILMOYLE AD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 6 -
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
The directors received fees of £11,010 (2021: £10,782) for their services.
3
Interest payable and similar expenses
2022
2021
£
£
Interest payable and similar expenses includes the following:
Interest payable to group undertakings
KILMOYLE AD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 7 -
4
Tangible fixed assets
Leased plant & machinery
£
Cost
At 1 April 2021
3,275,296
Additions
13,490
Disposals
(3,914)
At 31 March 2022
3,284,872
Depreciation and impairment
At 1 April 2021
370,017
Depreciation charged in the year
164,876
At 31 March 2022
534,893
Carrying amount
At 31 March 2022
2,749,979
At 31 March 2021
2,905,279
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Other debtors
275,519
221,982
6
Creditors: amounts falling due within one year
2022
2021
£
£
Obligations under finance leases
235,000
235,000
Other borrowings
8
235,000
235,000
Trade creditors
92,222
141,953
Taxation and social security
16,630
11,951
Other creditors
104,371
113,201
Accruals and deferred income
58,847
148,296
742,070
885,401
KILMOYLE AD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
7
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Obligations under finance leases
2,330,255
2,144,253
Other borrowings
8
100,000
100,000
Other creditors
2,330,255
2,144,253
4,760,510
4,388,506
8
Loans and interest bearing borrowings
This note provides information about the contractual terms of the company's interest-bearing loans and borrowings, which are measured at amortised cost.
2022
2021
£
£
Creditors - falling due in less than one year
Secured loan facility from related parties
235,000
235,000
Creditors - faling due after more than one year
Secured loan facility from related parties
2,330,255
2,144,253
Minimum lease payments under finance leases are as follows:
Net obligations repayable:
within one year
235,000
235,000
between one and five years
975,000
975,000
in more than five years
1,355,255
1,169,253
2,565,255
2,379,253
The balance of payments outlined above is based upon the timing of payments as outlined within the contractual agreements. Included within secured loan facility from related parties above are amounts repayable after five years of £1,355,255. In relation to the interest-bearing loans discussed above, Foresight Fund Managers Limited, KKV (Cobalt) Limited and Greenmead AD Limited hold a fixed and floating charge over lands adjacent to 9 Kilmoyle Road, Ballymoney
Terms and debt repayment schedule
Lender
Currency
Nominal
Year of
Repayment
2022
interest rate
maturity
schedule
£
KILMOYLE AD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
8
Loans and interest bearing borrowings
(Continued)
- 9 -
Loan from Greenmead AD
GBP
10%
2032
Quarterly capital and interest
2,565,255
Finance lease from KKV (Cobalt) Limited
GBP
10%
2032
Quarterly capital and interest
2,565,255
Loan from Greenmead AD
GBP
10%
2023
Capital due at maturity date
50,000
Loan from KKV (Cobalt) Limited
GBP
10%
2023
Capital due at maturity date
50,000
5,030,510
9
Profit and loss reserves
2022
2021
£
£
At the beginning of the year
(1,936,210)
(1,157,580)
Loss for the year
(359,112)
(778,630)
At the end of the year
(2,295,322)
(1,936,210)
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Barry Millar.
The auditor was MBS Chartered Accountants.
KILMOYLE AD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 10 -
11
Operating lease commitments
The future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
Within one year
10,000
10,000
Between two and five years
40,000
40,000
In over five years
123,425
133,425
173,425
183,425
The initial rent on the land lease is £10,000 per annum and this is subject to annual inflationary increases based on RPI. These inflationary increases are not reflected in the table above.
2022-03-31
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