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REGISTERED NUMBER: 08884838 (England and Wales)
















Report of the Directors and

Financial Statements for the Year Ended 31 December 2021

for

Decoy Farm Power Limited

Decoy Farm Power Limited (Registered number: 08884838)






Contents of the Financial Statements
for the Year Ended 31 December 2021




Page

Company Information 1

Report of the Directors 2

Report of the Independent Auditors 3

Statement of Income and Retained Earnings 6

Statement of Financial Position 7

Notes to the Financial Statements 8


Decoy Farm Power Limited

Company Information
for the Year Ended 31 December 2021







DIRECTORS: E W Bastow
H Unwin
J P Samworth





SECRETARY: H L Miles





REGISTERED OFFICE: The Watering Farm
Creeting St Mary
Ipswich
Suffolk
IP6 8ND





REGISTERED NUMBER: 08884838 (England and Wales)





AUDITORS: Hardcastle Burton LLP
Lake House
Market Hill
Royston
Hertfordshire
SG8 9JN

Decoy Farm Power Limited (Registered number: 08884838)

Report of the Directors
for the Year Ended 31 December 2021

The directors present their report with the financial statements of the company for the year ended 31 December 2021.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of an anaerobic digestion plant.

DIRECTORS
E W Bastow has held office during the whole of the period from 1 January 2021 to the date of this report.

Other changes in directors holding office are as follows:

H Unwin and J P Samworth were appointed as directors after 31 December 2021 but prior to the date of this report.

S Trivellato ceased to be a director after 31 December 2021 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Report of the Directors 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Hardcastle Burton LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:





E W Bastow - Director


22 August 2022

Report of the Independent Auditors to the Members of
Decoy Farm Power Limited

Opinion
We have audited the financial statements of Decoy Farm Power Limited (the 'company') for the year ended 31 December 2021 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Directors has been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Decoy Farm Power Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Decoy Farm Power Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach was as follows:-

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that related to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the jurisdictions that the company operates.

In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements being those relating to the environment and occupational health and safety.

We obtained an understanding to how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of Board minutes and any correspondence received from regulatory bodies.

We assessed the susceptivity of the company's financial statements to material misstatement, including how fraud might occur by meeting with management from various parts of the business to understand the systems and controls of the company.

Based on our understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified in the paragraphs above. Our procedures involved; journal entry testing; focusing on manual journals and journals indicating large or unusual transactions based on our understanding of the business; enquiries of management and focused testing in relation to revenue and management override.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Denise Lindsell FCA (Senior Statutory Auditor)
for and on behalf of Hardcastle Burton LLP
Lake House
Market Hill
Royston
Hertfordshire
SG8 9JN

8 September 2022

Decoy Farm Power Limited (Registered number: 08884838)

Statement of Income and
Retained Earnings
for the Year Ended 31 December 2021

31.12.21 31.12.20
Notes £    £   

TURNOVER 3,486,113 3,818,896

Cost of sales 2,673,814 2,569,341
GROSS PROFIT 812,299 1,249,555

Administrative expenses 897,105 981,682
OPERATING (LOSS)/PROFIT (84,806 ) 267,873


Interest payable and similar expenses 385,986 392,275
LOSS BEFORE TAXATION (470,792 ) (124,402 )

Tax on loss 4 - -
LOSS FOR THE FINANCIAL YEAR (470,792 ) (124,402 )

Retained earnings at beginning of year (86,152 ) 38,250

RETAINED EARNINGS AT END OF
YEAR

(556,944

)

(86,152

)

Decoy Farm Power Limited (Registered number: 08884838)

Statement of Financial Position
31 December 2021

31.12.21 31.12.20
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 5 3,278,793 3,452,007

CURRENT ASSETS
Stocks 6 1,446,425 1,384,850
Debtors 7 899,844 1,224,348
Cash at bank 252,401 -
2,598,670 2,609,198
CREDITORS
Amounts falling due within one year 8 1,365,949 1,443,317
NET CURRENT ASSETS 1,232,721 1,165,881
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,511,514

4,617,888

CREDITORS
Amounts falling due after more than one
year

9

5,068,456

4,704,038
NET LIABILITIES (556,942 ) (86,150 )

CAPITAL AND RESERVES
Called up share capital 12 2 2
Retained earnings 13 (556,944 ) (86,152 )
SHAREHOLDERS' FUNDS (556,942 ) (86,150 )

The 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 22 August 2022 and were signed on its behalf by:





E W Bastow - Director


Decoy Farm Power Limited (Registered number: 08884838)

Notes to the Financial Statements
for the Year Ended 31 December 2021

1. STATUTORY INFORMATION

Decoy Farm Power Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The principal place of business is Decoy Farm, Spalding Road, Crowland, Lincolnshire, PE6 0LX.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements have been prepared on the going concern basis. The directors consider that the company's operations for the year ended 31 December 2021 and onwards indicate that the operations are planned to be cash flow positive, and no further furnishing of financing is expected to be necessary. The directors note that there are net liabilities as at the year end, due to a significant intercompany creditor due to MC Asset Co Ltd of £5,068,456. The directors do not expect MC Asset Co Ltd to demand repayment of the intercompany creditor within 12 months of the balance sheet date.

Should the company be unable to continue trading, adjustments would have to be made to adjust the value of the assets to their recoverable amount and to provide for any further liabilities which might arise.

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.

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 sales of electricity units generated, and the value of Renewable Heat Incentives which are recognised upon generation of the electricity.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Depreciation calculated on a straight line basis over 20 years on the cost, or more recent valuation of the plant and equipment.

The AD plant included under plant and machinery used for the purpose of the trade of the company is revalued periodically and any aggregate surplus or deficit arising from changes in market value is transferred to a revaluation reserve.

The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Decoy Farm Power Limited (Registered number: 08884838)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' 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.

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 loans 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

Decoy Farm Power Limited (Registered number: 08884838)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

3. EMPLOYEES AND DIRECTORS

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

4. TAXATION

No liability to UK corporation tax arose for the year ended 31 December 2021 nor the year ended 31 December 2020, due to losses of approximately £7.36m (2020: £8.26m).

5. TANGIBLE FIXED ASSETS
Plant and
machinery
£   
COST OR VALUATION
At 1 January 2021 4,472,797
Additions 112,611
At 31 December 2021 4,585,408
DEPRECIATION
At 1 January 2021 1,020,790
Charge for year 285,825
At 31 December 2021 1,306,615
NET BOOK VALUE
At 31 December 2021 3,278,793
At 31 December 2020 3,452,007

The company's AD plant and equipment were impaired to a value of £4m by the directors on the acquisition of the company from its former owners on 21 December 2017. This impairment review was in line with funding models and loans made available to the company.

Cost or valuation at 31 December 2021 is represented by:

Plant and
machinery
£   
Valuation in 2018 (6,829,079 )
Cost 11,414,487
4,585,408

6. STOCKS
31.12.21 31.12.20
£    £   
Stocks 1,446,425 1,384,850

Decoy Farm Power Limited (Registered number: 08884838)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.21 31.12.20
£    £   
Amounts owed by group undertakings 20 -
Other debtors 105,540 35,148
VAT 9,494 227,607
Prepayments and accrued income 784,790 961,593
899,844 1,224,348

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.21 31.12.20
£    £   
Bank loans and overdrafts - 138,058
Trade creditors 1,316,753 1,250,137
Amounts owed to group undertakings 18,534 -
Accruals and deferred income 30,662 55,122
1,365,949 1,443,317

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.21 31.12.20
£    £   
Amounts owed to group undertakings 5,068,456 4,704,038

10. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.21 31.12.20
£    £   
Within one year 151,877 144,177
Between one and five years 580,016 543,720
In more than five years 1,885,051 1,903,020
2,616,944 2,590,917

11. SECURED DEBTS

The following secured debts are included within creditors:

31.12.21 31.12.20
£    £   
Owed to group undertakings 5,068,456 4,682,470

The amounts due to group undertakings relate to 8% loan notes due for repayment on 30 June 2028. The loan notes are secured by way of a fixed and floating charge over the assets of the company.

An unlimited guarantee has been given by Material Change Composting Limited, Helmdon Blackpits Power Limited and MC Asset Co Limited dated 30 January 2020.

Decoy Farm Power Limited (Registered number: 08884838)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

12. CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:
Number: Class: Nominal 31.12.21 31.12.20
value: £    £   
90 Ordinary 0.01 1 1
1 Ordinary 1 1 1
2 2

All shares have attached to them full voting, dividend and capital distribution (including on winding up) rights.

13. RESERVES
Retained
earnings
£   

At 1 January 2021 (86,152 )
Deficit for the year (470,792 )
At 31 December 2021 (556,944 )

14. OTHER FINANCIAL COMMITMENTS

31.12.2131.12.20
£   £   
Within one year488,125456,329
Between one and five years1,789,1571,673,343
After five years447,289836,672
2,724,5712,966,344

Under operator management fee arrangements, the company is committed to paying operator, management and service fees until 21 December 2027.

15. ULTIMATE CONTROLLING PARTY

The immediate parent company is MC Asset Co Limited, a company incorporated in England and Wales. The ultimate parent company is AD Aggregator Platform Limited, a company incorporated in England and Wales.The smallest group of undertakings for which group accounts have been drawn up is that headed by MC Asset Co Limited and copies are available from the Registrar of Companies (www.companieshouse.gov.uk).