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for the year ended |
Pages for filing with the Registrar |
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Registered number: |
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Statement of financial position | |||||||
as at |
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Notes | 2020 | 2019 | |||||
£ | £ | ||||||
Fixed assets | |||||||
Tangible assets | 4 |
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Current assets | |||||||
Debtors | 5 |
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Deferred tax | 8 | - | 9,666 | ||||
Cash at bank and in hand |
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Creditors: amounts falling due within one year | 6 | ( |
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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 | 7 | ( |
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Net liabilities | ( |
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Capital and reserves | |||||||
Called up share capital |
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Profit and loss account | ( |
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Shareholders' funds | ( |
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The financial statements were approved by the board of directors and authorised for issue and are signed on its behalf by: | |||||||
Graham Mackenzie | |||||||
Director | |||||||
Approved by the board on |
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Notes to the Accounts | ||||||||
for the year ended |
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1 | Accounting policies | |||||||
Accounting convention | ||||||||
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The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. | ||||||||
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. | ||||||||
Going concern | ||||||||
The company meets its day to day working capital requirements through loans from shareholders. The shareholders have stated that they will not recall the loans to the company whilst it would damage the interests of external creditors. On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis. |
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Turnover | ||||||||
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Tangible fixed assets | ||||||||
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Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows: | ||||||||
Plant and equipment | straight line over a 15 year period | |||||||
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. | ||||||||
Borrowing costs related to fixed assets | ||||||||
Borrowing costs directly attributable to the construction of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use. | ||||||||
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. |
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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. | ||||||||
Cash at bank and in hand | ||||||||
Cash at bank and in hand 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. | ||||||||
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. |
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Basic financial assets | ||||||||
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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. | ||||||||
Basic financial liabilities | ||||||||
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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. Amounts 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. | ||||||||
Tax | ||||||||
The tax expense represents the sum of the tax currently payable and deferred tax. | ||||||||
Current tax | ||||||||
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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. |
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Foreign exchange | ||||||||
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2 | Operating loss | |||||||
2020 | 2019 | |||||||
Operating loss for the year is stated after charging: | ||||||||
Fees payable to the company's auditor for the audit of the company's financial statements |
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3 | Employees | |||||||
2020 | 2019 | |||||||
Average number of persons employed by the company |
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4 | Tangible fixed assets | |||||||
Plant and machinery etc | ||||||||
£ | ||||||||
Cost | ||||||||
At 1 January 2020 |
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At 31 December 2020 |
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Depreciation | ||||||||
At 1 January 2020 |
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Charge for the year |
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At 31 December 2020 |
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Net book value | ||||||||
At 31 December 2020 |
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At 31 December 2019 |
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Included within the carrying amount of plant and machinery is loan interest totalling £155,680 (2019: £172,998). | ||||||||
5 | Debtors | 2020 | 2019 | |||||
£ | £ | |||||||
Trade debtors |
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Other debtors |
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6 | Creditors: amounts falling due within one year | 2020 | 2019 | |||||
£ | £ | |||||||
Trade creditors |
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Other creditors |
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Included within other creditors is a deferred tax liability. Movement in the year is detailed in note 8. | ||||||||
7 | Creditors: amounts falling due after one year | 2020 | 2019 | |||||
£ | £ | |||||||
Payable by instalments 1 - 5 years |
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Payable by instalments after 5 years | 1,224,547 | 1,594,773 | ||||||
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Interest of 12% per annum is payable on a loan of £2,610,676 (2019: £2,698,470). During the year, £323,816 (2019: £335,349) was charged. £197,667 (2019: £87,795) is due within 1 year and is included within "Other creditors" in note 6. | ||||||||
8 | Deferred Taxation | |||||||
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon: | ||||||||
2020 | 2019 | |||||||
£ | £ | |||||||
Balances: | ||||||||
At 1 January 2020 | 9,666 | - | ||||||
Movement for the year | (96,620) | 9,666 | ||||||
At 31 December 2020 | ( |
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9 | Called up share capital | 2020 | 2019 | |||||
£ | £ | |||||||
Ordinary share capital Issued and fully paid | ||||||||
10,000 Ordinary shares of £1 each |
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10 | Events after the reporting date | |||||||
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11 | Related party transactions | |||||||
Interest of £323,816 (2019: £335,349) was charged on loans advanced by Iona Environmental Infrastructure 3 LP. Iona Capital Limited charged financial management service fees, directors fees and planning costs of £37,181 (2019: £484,800). At the period end, £Nil was due to Iona Capital Limited. Iona Capital Limited is a member of Iona EI (General Partner) 3 LLP which is the General Partner of Iona Environmental Infrastructure 3 LP. Advantage Biogas Limited ("ABL") is a company under common control of Iona Capital Limited. During the year, ABL charged maintenance fees and recharged operating costs of £241,255. During the prior period, ABL provided maintenance, design, construction and installation services to the company which totalled £1,755,914. At the year end, £17,450 (2019: £67,209) was due to ABL. |
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12 | COVID-19 | |||||||
The company, like many others throughout the UK, has been affected by the COVID-19 pandemic. At the date of approval of the financial statements, the company have prepared and approved up-to-date management accounts, budgets and cash flow projections which include key revenue and cost assumptions that the directors consider reasonable and prudent. Additionally, the shareholders have stated that they will not recall the loans to the company whilst it would damage the interests of external creditors. Having considered the matters above, the company is of the view that it will have sufficient resources to continue to operate and meet debts as they fall due for the foreseeable future. The financial statements have therefore been prepared on a going concern basis. |
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13 | Parent Company | |||||||
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14 | Other information | |||||||
Aerospace Energy UK Limited is a private company limited by shares and incorporated in England. Its registered office is: | ||||||||
123 Pall Mall | ||||||||
London | ||||||||
SW1Y 5EA | ||||||||
15 | 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: | ||||||||
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The audit report was signed on |
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