Company Registration No. SC440892 (Scotland)
Biosus Energy Ltd
unaudited financial statements
for the year ended 31 January 2023
Pages for filing with Registrar
Biosus Energy Ltd
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
Biosus Energy Ltd
Balance sheet
as at 31 January 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
666,641
360,670
Investments
4
75,862
75,862
742,503
436,532
Current assets
Debtors
5
439,526
210,926
Cash at bank and in hand
400,890
460,533
840,416
671,459
Creditors: amounts falling due within one year
6
(637,920)
(641,252)
Net current assets
202,496
30,207
Total assets less current liabilities
944,999
466,739
Creditors: amounts falling due after more than one year
7
(379,312)
(250,395)
Provisions for liabilities
(134,925)
(92,865)
Net assets
430,762
123,479
Capital and reserves
Called up share capital
2
2
Profit and loss reserves
430,760
123,477
Total equity
430,762
123,479
Biosus Energy Ltd
Balance sheet (continued)
as at 31 January 2023
- 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 January 2023 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.
The 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 11 October 2023 and are signed on its behalf by:
Mr Duncan Paterson
Mr Garth Way
Director
Director
Company Registration No. SC440892
Biosus Energy Ltd
Notes to the financial statements
for the year ended 31 January 2023
- 3 -
1
Accounting policies
Company information
Biosus Energy Ltd is a private company limited by shares incorporated in Scotland. The registered office is Burnhead Croft, Kingswell, Aberdeen, AB15 8RA.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
The company has a strong balance sheet, and the directors have locked in contractual energy sales business for up to 5 to 12 years.
Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Biosus Energy Ltd
Notes to the financial statements (continued)
for the year ended 31 January 2023
1
Accounting policies (continued)
- 4 -
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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
25% reducing balance, 50% straight line and 14% straight line
Computer equipment
33% straight line
Motor vehicles
25% reducing balance
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.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities 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.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
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.
Biosus Energy Ltd
Notes to the financial statements (continued)
for the year ended 31 January 2023
1
Accounting policies (continued)
- 5 -
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.
1.7
Cash and cash equivalents
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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
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 and cash and bank balances, 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.
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, bank loans, loans from fellow group companies and preference shares 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.
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.
Biosus Energy Ltd
Notes to the financial statements (continued)
for the year ended 31 January 2023
1
Accounting policies (continued)
- 6 -
1.9
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.
1.10
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.
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. 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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Biosus Energy Ltd
Notes to the financial statements (continued)
for the year ended 31 January 2023
1
Accounting policies (continued)
- 7 -
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leases asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
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 in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
16
10
Biosus Energy Ltd
Notes to the financial statements (continued)
for the year ended 31 January 2023
- 8 -
3
Tangible fixed assets
Plant and machinery
Computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 February 2022
475,090
8,114
22,310
505,514
Additions
433,086
9,030
13,995
456,111
At 31 January 2023
908,176
17,144
36,305
961,625
Depreciation and impairment
At 1 February 2022
121,483
7,324
16,037
144,844
Depreciation charged in the year
141,618
3,455
5,067
150,140
At 31 January 2023
263,101
10,779
21,104
294,984
Carrying amount
At 31 January 2023
645,075
6,365
15,201
666,641
At 31 January 2022
353,607
790
6,273
360,670
4
Fixed asset investments
2023
2022
£
£
Other investments other than loans
75,862
75,862
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
269,880
76,001
Corporation tax recoverable
17,490
Other debtors
3,746
10,680
Prepayments and accrued income
148,410
124,245
439,526
210,926
Biosus Energy Ltd
Notes to the financial statements (continued)
for the year ended 31 January 2023
- 9 -
6
Creditors: amounts falling due within one year
2023
2022
as restated
£
£
Bank loans
20,000
220,000
Obligations under finance leases
109,878
57,242
Trade creditors
173,665
67,618
Taxation and social security
86,997
54,268
Other creditors
12,880
8,492
Accruals and deferred income
234,500
233,632
637,920
641,252
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
55,000
75,000
Other creditors
324,312
175,395
379,312
250,395
The long-term loans are secured by a floating charge over the assets of the company.
Hire purchase and finance lease liabilities are secured over the assets to which they relate.
8
Pension commitments
The company operate a defined contribution pension scheme. The assets are held separately from those of the company in an independently administered fund. The pension cost and charge represents contributions payable by the company to the fund and amounted to £14,945 (2022: £11,973). At 31 January 2023 contributions amounting to £2,999 (2022: £2,024) were payable to the fund.
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
19,486
20,426
10
Related party transactions
Transactions with related parties
Biosus Energy Ltd
Notes to the financial statements (continued)
for the year ended 31 January 2023
10
Related party transactions (continued)
- 10 -
Balring Energy Limited
A company in which Biosus Energy Limited own 20% of the issue share capital.
At the balance sheet date £55,520 (2022 - £67,174) was due from Balring Energy Limited. This balance is included in trade debtors at the year-end.
In 2022, Biosus Energy Limited loaned Balring Energy Limited £13,500.
At the balance sheet date £3,375 (2022 - £10,125) was due from Balring Energy Limited. This loan is to be repaid in full by 1 June 2023 and interest is charged at 3.6%.
11
Directors' transactions
Dividends totalling £127,000 (2022 - £88,400) were paid in the year in respect of shares held by the company's directors.
At the year-end £6,218 (2022: £6,218) was due to the directors. These loans are interest free with no fixed terms of repayment.
12
Prior period adjustment
There are two prior year adjustments, the first being in relation to income received in 2022 which should have been deferred. The second is in relation to the purchase of equipment for resale.
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Jan 2022
£
£
£
Fixed assets
Tangible assets
378,066
(17,396)
360,670
Creditors due within one year
Taxation
(71,758)
17,490
(54,268)
Other creditors
(79,918)
(229,824)
(309,742)
Net assets
353,209
(229,730)
123,479
Capital and reserves
Profit and loss reserves
353,207
(229,730)
123,477
Biosus Energy Ltd
Notes to the financial statements (continued)
for the year ended 31 January 2023
12
Prior period adjustment (continued)
- 11 -
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 January 2022
£
£
£
Turnover
1,361,523
(193,157)
1,168,366
Cost of sales
(784,531)
(56,962)
(841,493)
Administrative expenses
(362,353)
2,899
(359,454)
Taxation
(94,405)
17,490
(76,915)
Profit/(loss) for the financial period
115,674
(229,730)
(114,056)
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