Company Registration No. SC246746 (Scotland)
Midfearn Renewables Limited
Unaudited financial statements
for the year ended 31 March 2021
Pages for filing with the Registrar
Midfearn Renewables Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 7
Midfearn Renewables Limited
Statement of financial position
As at 31 March 2021
Page 1
2021
2020
Notes
£
£
£
£
Fixed assets
Investment properties
3
574,945
645,831
Investments
4
1,252,498
1,252,498
1,827,443
1,898,329
Current assets
Debtors
5
3,498,434
3,334,937
Cash at bank and in hand
219,856
4,838
3,718,290
3,339,775
Creditors: amounts falling due within one year
6
(165,595)
(494,499)
Net current assets
3,552,695
2,845,276
Total assets less current liabilities
5,380,138
4,743,605
Provisions for liabilities
(91,833)
(105,301)
Net assets
5,288,305
4,638,304
Capital and reserves
Called up share capital
100
100
Share premium account
58,173
58,173
Capital redemption reserve
100
100
Other reserves
744,776
744,776
Profit and loss reserves
4,485,156
3,835,155
Total equity
5,288,305
4,638,304
Midfearn Renewables Limited
Statement of financial position (continued)
As at 31 March 2021
Page 2
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered 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 17 November 2021 and are signed on its behalf by:
Charles Brooke
Director
Company Registration No. SC246746
Midfearn Renewables Limited
Notes to the financial statements
For the year ended 31 March 2021
Page 3
1
Accounting policies
Company information
Midfearn Renewables Limited is a
private
company
limited by shares
incorporated in
Scotland
.
The registered office is
Midfearn Lodge, Ardgay, Ross-shire, IV24 3DL.
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 investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
1.3
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in profit or loss.
1.4
Fixed asset investments
Fixed asset investments
are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
1.5
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand
and
deposits held at call with banks. Bank overdrafts are shown within borrowings in current liabilities.
Midfearn Renewables Limited
Notes to the financial statements (continued)
For the year ended 31 March 2021
1
Accounting policies (continued)
Page 4
1.6
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 statement of financial position 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, 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.
Basic financial liabilities
Basic financial liabilities, including
creditors and
bank loans, 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.
1.7
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.
Midfearn Renewables Limited
Notes to the financial statements (continued)
For the year ended 31 March 2021
1
Accounting policies (continued)
Page 5
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
income statement
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
-
Midfearn Renewables Limited
Notes to the financial statements (continued)
For the year ended 31 March 2021
Page 6
3
Investment property
2021
£
Fair value
At 1 April 2020
645,831
Revaluations
(70,886)
At 31 March 2021
574,945
Investment property comprises the windfarm site. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 March 2021 by the directors. The valuation was made on an open market value basis. The historic cost of investment property is £64,247 (2020 - £64,247).
4
Fixed asset investments
2021
2020
£
£
Shares in group undertakings and participating interests
1,252,498
1,252,498
Movements in fixed asset investments
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 April 2020 & 31 March 2021
1,252,498
Carrying amount
At 31 March 2021
1,252,498
At 31 March 2020
1,252,498
Midfearn Renewables Limited
Notes to the financial statements (continued)
For the year ended 31 March 2021
Page 7
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Other debtors
3,498,434
3,334,937
6
Creditors: amounts falling due within one year
2021
2020
£
£
Corporation tax
-
144,722
Other creditors
165,595
349,777
165,595
494,499
7
Operating lease commitments
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2021
2020
£
£
48,110
50,820
8
Related party transactions
The following amounts were outstanding at the reporting end date:
2021
2020
Amounts due from related parties
£
£
Entities over which the entity has control, joint control or significant influence
3,485,091
3,334,937
Amounts due from related parties are unsecured, interest free and have no fixed terms of repayment.