Company registration number 10125876 (England and Wales)
WILLINGTON POWER LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
WILLINGTON POWER LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
WILLINGTON POWER LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
4
20,000
20,000
Current assets
Debtors
5
2
7
Cash at bank and in hand
20
17
22
24
Creditors: amounts falling due within one year
6
(22,116)
(22,109)
Net current liabilities
(22,094)
(22,085)
Net liabilities
(2,094)
(2,085)
Capital and reserves
Called up share capital
-
0
-
0
Share premium account
17,000
17,000
Profit and loss reserves
(19,094)
(19,085)
Total equity
(2,094)
(2,085)

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 31 March 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
8 November 2023
08 November 2023
08 November 2023
and are signed on its behalf by:
Mr J J Holder
Director
Company Registration No. 10125876
WILLINGTON POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information

Willington Power Limited is a private company limited by shares incorporated in England and Wales. The registered office is Severn Power Station, West Nash Road, Newport, United Kingdom, NP18 2BZ.

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 £'000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

WILLINGTON POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.2
Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern.

On 24 June 2020 Calon Energy Limited (‘the Group’) – the parent company of Willington Power Limited (‘the Company’) entered administration.

The Directors have prepared a cash flow forecast for the period to 31 March 2025 which represents the Directors’ best estimate of the future development of the Company.

Having consulted with the secured lender, the Directors have put in place a flexible funding arrangement which provideds funding on a month-by-month basis.

Based on the ongoing positive relationship with the secured lender and following preparation of detailed forecasts, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and as such believe that it remains appropriate to prepare the financial statements on a going concern basis. In making this judgement, the Directors expect that the company’s principal activity of the development of land at the former Willington gas-fired power station site will continue.

The Directors also recognise that from an accounting perspective the absence of any formal long term funding arrangement creates a small level of uncertainty and therefore risk that the required level of support may not be received for the necessary timescales.

This constitutes a material uncertainty related to the assumptions described above which may cast doubt on the Company’s ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern. In the event the Company ceased to be a going concern, the adjustments would include writing down the carrying value of assets, to their recoverable amount and providing for any further liabilities that might arise.

In addition to the third party funding the directors have confirmation from the Group companies that the intercompany amounts due to them will not be requested within 12 months of the approval date of these accounts.   The Group companies have confirmed that it is not currently their intention to demand repayment.  Due to the relationship with the Group companies the directors are of the view that the intercompany amounts will not be requested in the next 12 months, however the confirmation received does create a material uncertainty as it is not a guarantee that the intercompany creditors will not be recalled within 12 months from the approval dates of these accounts.

Notwithstanding the material uncertainties described above, on the basis of sensitivities applied to the cash flow forecast and that further support can be agreed in the relevant timescale, the Directors have a reasonable expectation that the company can continue to meet its liabilities as they fall due, for a period of at least 12 months from the date of approval of this report.

1.3
Tangible fixed assets

Tangible fixed assets are included on the statement of financial position at historical cost, less accumulated depreciation and provision for impairment. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.

 

Capitalisation begins when expenditure for the asset is being incurred and activities that are necessary to prepare the asset for use are in progress. Capitalisation ceases when substantially all the activities necessary to prepare the asset for use are complete. Depreciation commences when the asset is available for use.

WILLINGTON POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -

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:

Freehold land
Not depreciated
Plant and equipment
20% straight line

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.

1.4
Impairment of fixed assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each statement of financial position date. If there is objective evidence of impairment, an impairment loss is recognised in the statement of income and retained earnings as described below:

Non-financial assets

An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. The recoverable amount is calculated based on the directors’ best estimate of the present value of the future cash flows of the business.

Financial assets

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

1.5
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.

1.6
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 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.

Basic financial assets

Basic financial assets, including trade and other receivables, cash and bank balances are initially recognised at transaction price

Financial assets are derecognised when substantially all the risks and rewards of the ownership of the asset are transferred to another party.

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.

WILLINGTON POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow Group companies are initially recognised at transaction price. Debt is initially stated at the amount of the net proceeds after deduction of issue costs. The carrying amount is increased by the finance cost in respect of the accounting year and reduced by payments made in the year.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, which are described above, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years

Critical judgements

The following are the critical judgements that the director made in the process of applying the company's accounting policies and that have had the most significant effect on amounts recognised in the financial statements.

Critical judgements - impairment assumptions

An estimation is required as to the valuation of the land at the Willington site. The directors obtained third party valuations to substantiate the value being held. In completing the impairment review, the directors have satisfied themselves that the estimates made are reasonable.

Critical judgements - going concern

In order to assess whether it is appropriate for the company to be reported as a going concern, the directors apply judgement, having considered the business activities, the company's principal risks and uncertainties, cash flow projections and external factors. In arriving at this judgement there are a large number of assumptions and estimates involved in calculating these future cash flow projections and the prospect of securing the additional support that will be required.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
-
0
-
0
WILLINGTON POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
4
Tangible fixed assets
Freehold land
Plant and equipment
Total
£'000
£'000
£'000
Cost
At 1 April 2022 and 31 March 2023
20,243
9
20,252
Depreciation and impairment
At 1 April 2022 and 31 March 2023
243
9
252
Carrying amount
At 31 March 2023
20,000
-
0
20,000
At 31 March 2022
20,000
-
0
20,000
5
Debtors
2023
2022
Amounts falling due within one year:
£'000
£'000
Other debtors
2
7
6
Creditors: amounts falling due within one year
2023
2022
£'000
£'000
Trade creditors
2
33
Other creditors
22,114
22,076
22,116
22,109

The Company owes interest of £3,200,000 (2022: £3,200,000) on loans received and this amount is included in amounts owed to Group companies of £22,104,000 (2022: £22,051,000) within other creditors. Amounts owed to Group companies are unsecured and bear no interest as they are mostly with companies that are in administration.

7
Commitments

On 31 May 2016 Calon Energy Limited drew on an existing facility in place with Beal Bank. The facilities agreement provided debt to purchase the Willington C Power Station site. The shares in Willington Power Limited and the asset purchased were provided as security for the facilities.

8
Related party transactions

In accordance with section 33 of FRS 102 ‘Related party disclosures’, the Company is exempt from disclosing transactions with entities that are part of the Group or investees of the Group qualifying as related parties, as it is a wholly-owned subsidiary of a parent, Calon Energy Limited.

WILLINGTON POWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
9
Parent undertaking and controlling party

The immediate parent of the Company is Calon Energy Limited, a company incorporated in England and Wales, which owns 100% of the ordinary share capital.

Calon Energy Limited is regarded as the Group’s ultimate parent company and controlling party. On 24 June 2020 Calon Energy Limited entered administration and therefore there is no requirement to file consolidated financial statements for Calon Energy Limited.

2023-03-312022-04-01false08 November 2023CCH SoftwareCCH Accounts Production 2023.300No description of principal activityMr J J HolderMr S M MagieMr J J HolderMr S M Magiefalse101258762022-04-012023-03-31101258762023-03-31101258762022-03-3110125876core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3110125876core:PlantMachinery2023-03-3110125876core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3110125876core:PlantMachinery2022-03-3110125876core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3110125876core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3110125876core:CurrentFinancialInstruments2023-03-3110125876core:CurrentFinancialInstruments2022-03-3110125876core:ShareCapital2023-03-3110125876core:ShareCapital2022-03-3110125876core:SharePremium2023-03-3110125876core:SharePremium2022-03-3110125876core:RetainedEarningsAccumulatedLosses2023-03-3110125876core:RetainedEarningsAccumulatedLosses2022-03-3110125876bus:Director12022-04-012023-03-3110125876core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-3110125876core:LeaseholdImprovements2022-04-012023-03-31101258762021-04-012022-03-3110125876core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3110125876core:PlantMachinery2022-03-31101258762022-03-3110125876core:WithinOneYear2023-03-3110125876core:WithinOneYear2022-03-3110125876bus:PrivateLimitedCompanyLtd2022-04-012023-03-3110125876bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3110125876bus:FRS1022022-04-012023-03-3110125876bus:AuditExemptWithAccountantsReport2022-04-012023-03-3110125876bus:Director22022-04-012023-03-3110125876bus:Director32022-04-012023-03-3110125876bus:Director42022-04-012023-03-3110125876bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP