Company Registration No. SC419022 (Scotland)
CLOFFRICKFORD RENEWABLE ENERGY COMPANY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
PAGES FOR FILING WITH REGISTRAR
CLOFFRICKFORD RENEWABLE ENERGY COMPANY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
CLOFFRICKFORD RENEWABLE ENERGY COMPANY LIMITED
BALANCE SHEET
AS AT
31 MARCH 2019
31 March 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
4,959,538
5,264,629
Current assets
Debtors
4
411,333
417,766
Cash at bank and in hand
535,581
406,155
946,914
823,921
Creditors: amounts falling due within one year
5
(406,715)
(463,076)
Net current assets
540,199
360,845
Total assets less current liabilities
5,499,737
5,625,474
Creditors: amounts falling due after more than one year
6
(3,935,928)
(4,473,757)
Provisions for liabilities
Provisions
55,000
55,000
Deferred tax liability
304,037
222,557
(359,037)
(277,557)
Net assets
1,204,772
874,160
Capital and reserves
Called up share capital
7
1,000
1,000
Profit and loss reserves
1,203,772
873,160
Total equity
1,204,772
874,160
CLOFFRICKFORD RENEWABLE ENERGY COMPANY LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2019
31 March 2019
- 2 -
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 March 2019 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 members have 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 24 July 2019 and are signed on its behalf by:
Mr David Smith
Mrs Valerie Smith
Director
Director
Company Registration No. SC419022
CLOFFRICKFORD RENEWABLE ENERGY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
- 3 -
1
Accounting policies
Company information
Cloffrickford Renewable Energy Company Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Cloffrickford, Auchnagatt, ELLON, AB41 8YD.
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
pound
.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts
invoiced
for
renewable energy generated
net of VAT
. Turnover is recognised on generation of electricity. Income is recognised on an accruals basis where it is capable of being reliably measured. Where no reliable estimate is possible, income is recognised on a receipt basis.
1.3
Tangible fixed assets
Tangible fixed assets
are measured at cost, 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:
Plant and machinery
- 5% straight line and 20% reducing balance
Motor vehicles
- 25% reducing balance
Other assets
- nil
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
.
Included in plant & machinery is a decommissioning provision of £55,000 (2018 - £55,000) which is not depreciated.
Included in other assets are costs of £24,714 (2018 - £16,064) which are not depreciated as the assets are still under construction.
1.4
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.
1.5
Cash at bank and in hand
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
.
CLOFFRICKFORD RENEWABLE ENERGY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 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 balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs
.
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 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
payments
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
.
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.
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 profit and loss account 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.
CLOFFRICKFORD RENEWABLE ENERGY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 5 -
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.
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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.
1.9
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
1.10
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income 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 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 are included in the profit and loss account for the period.
1.12
Decommissioning costs have been provided in respect of the anticipated cost to the company for the removal of the wind turbines at the end of their useful life.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 0 (2018 - 0).
CLOFFRICKFORD RENEWABLE ENERGY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 6 -
3
Tangible fixed assets
Plant and machinery etc
Other assets
Total
£
£
£
Cost
At 1 April 2018
6,292,864
16,064
6,308,928
Additions
-
8,650
8,650
At 31 March 2019
6,292,864
24,714
6,317,578
Depreciation and impairment
At 1 April 2018
1,044,299
-
1,044,299
Depreciation charged in the year
313,741
-
313,741
At 31 March 2019
1,358,040
-
1,358,040
Carrying amount
At 31 March 2019
4,934,824
24,714
4,959,538
At 31 March 2018
5,248,565
16,064
5,264,629
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
4,500
75,292
Other debtors
406,833
342,474
411,333
417,766
5
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
266,511
247,315
Corporation tax
363
274
Other taxation and social security
85,312
95,215
Other creditors
54,529
120,272
406,715
463,076
CLOFFRICKFORD RENEWABLE ENERGY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 7 -
6
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
3,327,621
3,746,637
Other creditors
608,307
727,120
3,935,928
4,473,757
The bank loan is secured by a first bond and floating charge over the assets of the company and includes a share pledge in the respect of the issued shares of the company.
Other creditors represents amounts of £608,307 (2018 - £727,120) which are subordinated to the bank debt.
Creditors which fall due after five years are as follows:
2019
2018
£
£
Payable by instalments
1,704,237
2,239,885
7
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary shares of £1 each
1,000
1,000
1,000
1,000
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable long term operating leases, as follows:
2019
2018
£
£
2,602,111
2,727,111
CLOFFRICKFORD RENEWABLE ENERGY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 8 -
9
Related party transactions
The company operates a loan account with Skelmonae Windfarm Limited ("Skelmonae"). The directors are also directors of Skelmonae. During the year Skelmonae paid amounts of £nil (2018 - £14,734) on behalf of Cloffrickford and the company repaid amounts totalling £92,039 (2018 - £10,196) to Skelmonae. Included in creditors at the year end is a balance of £561,988 (2018 - £654,027). Interest is charged at 4.5%.
During the year interest of £25,423 (2018 - £29,307) and electricity of £18,746 (2018 - £19,094) has been charged by Skelmonae. At the year end, a balance of £16,280 (2018 - £17,299) is included within accruals due to Skelmonae.
10
Directors' transactions
Dividends totalling £50,000 (2018 - £160,000) were paid in the year in respect of shares held by the company's directors.
Included within sundry expenses is a total value of £48,550 (2018 - £17,250) which was paid to directors for services provided to the company. This year's expense includes £23,800 which relates to the 2018 year end.
During the year the company made foreign exchange transactions with a business owned by one of the directors. At the year end £4,500 (2018 - £nil) was due to the company.
11
Controlling party
The shares in issue are held by Triodos Bank N.V. under a share pledge arrangement. The day to day operations of the company are managed and controlled by the directors, subject to the provisions of the share pledge agreement.