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REGISTERED NUMBER: 06759707 (England and Wales)





















UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

LOWER REULE BIOENERGY LIMITED

LOWER REULE BIOENERGY LIMITED (REGISTERED NUMBER: 06759707)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021




Page

Company Information 1

Statement of Financial Position 2

Notes to the Financial Statements 3


LOWER REULE BIOENERGY LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2021







DIRECTORS: D P Bullen
C M Waters





SECRETARY: G P May





REGISTERED OFFICE: The Old School
High Street
Stretham
Ely
CB6 3LD





REGISTERED NUMBER: 06759707 (England and Wales)





ACCOUNTANTS: Howards Limited
Chartered Certified Accountants
Newport House
Newport Road
Stafford
Staffordshire
ST16 1DA

LOWER REULE BIOENERGY LIMITED (REGISTERED NUMBER: 06759707)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2021

2021 2020
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 5 6,350,812 4,657,649

CURRENT ASSETS
Stocks 10,716 5,196
Debtors 6 4,252,769 4,145,063
Prepayments and accrued income 123,629 157,431
Cash at bank 303,221 138,209
4,690,335 4,445,899
CREDITORS
Amounts falling due within one year 7 1,216,545 675,791
NET CURRENT ASSETS 3,473,790 3,770,108
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,824,602

8,427,757

CREDITORS
Amounts falling due after more than one
year

8

(13,746,897

)

(10,434,454

)

ACCRUALS AND DEFERRED INCOME (28,431 ) (52,874 )
NET LIABILITIES (3,950,726 ) (2,059,571 )

CAPITAL AND RESERVES
Called up share capital 287 287
Retained earnings (3,951,013 ) (2,059,858 )
SHAREHOLDERS' FUNDS (3,950,726 ) (2,059,571 )

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 12 August 2022 and were signed on its behalf by:




D P Bullen - Director


LOWER REULE BIOENERGY LIMITED (REGISTERED NUMBER: 06759707)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

1. STATUTORY INFORMATION

Lower Reule Bioenergy Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 06759707 and the registered office address is 4th Floor 36 Spital Square, London, E1 6DY. The trading address is Brookfield Farm, Cowley, Gnosall, Staffordshire, ST20 0BG.

The principal activity of the company is that of the production of electricity.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Functional currency
The financial statements are prepared in sterling (£). The functional currency of the company is sterling (£).

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates
In determining and applying accounting policies, judgement is often required in respect of items where the choice of specific policy, accounting estimate or assumption to be followed could materially affect the reported results or net asset position of the company. It may later be determined that a different choice would have been more appropriate. Management considers that certain accounting estimates and assumptions relating to revenue, taxation, stock, tangible fixed assets and provisions are its critical accounting policies.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents the value of goods and services provided under contracts to the extent that there is a right to consideration and is recorded at the value of the consideration due.

Where a contract has only been partly completed at the balance sheet date turnover represents the value of the service provided to date based on a proportion of the total expected consideration at completion. Where payments are received in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Land and buildings - Straight line over 15 years
Plant and machinery - Straight line over 15 years
Fixtures and fittings - 25% on cost
Motor vehicles - 25% on reducing balance

Included with land and buildings is land which is not depreciated.

Stocks
Stocks are measured at an actual cost rate. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

LOWER REULE BIOENERGY LIMITED (REGISTERED NUMBER: 06759707)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

3. ACCOUNTING POLICIES - continued

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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.

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.

Current or deferred taxation assets and liabilities are not discounted.

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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

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.

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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Provisions
Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

LOWER REULE BIOENERGY LIMITED (REGISTERED NUMBER: 06759707)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

3. ACCOUNTING POLICIES - continued

Going concern
The company receives significant financial support from Privilege Project Finance an entity that holds equity in the parent company.

This will continue and the directors believe that it is therefore appropriate to continue to prepare the accounts on the going concern basis.

4. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2020 - 5 ) .

5. TANGIBLE FIXED ASSETS
Fixtures
Land and Plant and and
buildings machinery fittings
£    £    £   
COST
At 1 January 2021 500,604 3,320,083 5,639
Additions - 2,384 332
Disposals - (6,717 ) -
At 31 December 2021 500,604 3,315,750 5,971
DEPRECIATION
At 1 January 2021 416,639 2,419,667 4,734
Charge for year 7,482 103,484 591
Eliminated on disposal - (2,114 ) -
At 31 December 2021 424,121 2,521,037 5,325
NET BOOK VALUE
At 31 December 2021 76,483 794,713 646
At 31 December 2020 83,965 900,416 905

Assets
Motor under
vehicles construction Totals
£    £    £   
COST
At 1 January 2021 185,281 3,649,346 7,660,953
Additions 2,250 1,810,675 1,815,641
Disposals - - (6,717 )
At 31 December 2021 187,531 5,460,021 9,469,877
DEPRECIATION
At 1 January 2021 162,264 - 3,003,304
Charge for year 6,318 - 117,875
Eliminated on disposal - - (2,114 )
At 31 December 2021 168,582 - 3,119,065
NET BOOK VALUE
At 31 December 2021 18,949 5,460,021 6,350,812
At 31 December 2020 23,017 3,649,346 4,657,649

Included in cost of land and buildings is freehold land of £ 55,000 (2020 - £ 55,000 ) which is not depreciated.

LOWER REULE BIOENERGY LIMITED (REGISTERED NUMBER: 06759707)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

5. TANGIBLE FIXED ASSETS - continued

Included within the net book value of £6,350,812 is £248,466 (2020 - £428,990) relating to assets held under hire purchase agreements. The depreciation charged to the income statement in the period in respect of such assets amounted to £26,006 (2020 - £43,785)

6. DEBTORS
2021 2020
£    £   
Amounts falling due within one year:
Trade debtors 218,539 136,823
Other debtors 124,035 98,045
342,574 234,868

Amounts falling due after more than one year:
Other debtors 3,910,195 3,910,195

Aggregate amounts 4,252,769 4,145,063

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Hire purchase contracts 40,760 113,614
Trade creditors 1,171,569 528,747
Taxation and social security 4,216 33,430
1,216,545 675,791

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2021 2020
£    £   
Hire purchase contracts - 40,760
Other creditors 13,746,897 10,393,694
13,746,897 10,434,454

9. SECURED DEBTS

The following secured debts are included within creditors:

2021 2020
£    £   
Hire purchase contracts 40,760 154,374
Privilege Project Finance 13,746,897 10,393,694
13,787,657 10,548,068

The hire purchase liabilities are secured against the assets to which they relate.

The loan from Privilege Project Finance is secured by a debenture containing a fixed and floating charge over the company's assets and also by charges over the property at Brookfield Farm and part of Lower Reule Farm, Gnosall, Stafford.

10. ULTIMATE PARENT COMPANY

The ultimate parent company is Lower Reule Bidco Limited, whose registered office is The Old School High Street, Stretham, Ely, England, CB6 3LD.