Limited Liability Partnership registration number SO304720 (Scotland)
STAKIS HYDRO LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2023
STAKIS HYDRO LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
A Stakis
G Christie
Reo Stakis Hydro Limited
LLP registration number
SO304720
Registered office
Glentyan House Burntshields Road
Kilbarchan
Johnstone
Renfrewshire
United Kingdom
PA10 2PA
Auditor
Azets Audit Services
Exchange Place 3
Semple Street
Edinburgh
United Kingdom
EH3 8BL
STAKIS HYDRO LLP
CONTENTS
Page
Members' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Balance sheet
7
Reconciliation of members' interests
8 - 9
Notes to the financial statements
10 - 16
STAKIS HYDRO LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 5 APRIL 2023
- 1 -

The members present their annual report and financial statements for the year ended 5 April 2023.

Principal activities

The principal activity of the limited liability partnership continued to be that of the generation of hydro-electric power.

Members' drawings, contributions and repayments

The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.

 

A member's capital requirement is linked to their share of profit and the financing requirement of the limited liability partnership. There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par".

Designated members

The designated members who held office during the year and up to the date of signature of the financial statements were as follows:

A Stakis
G Christie
Reo Stakis Hydro Limited
Auditor

In accordance with the limited liability partnership's membership agreement, a notice proposing that Azets Audit Services be reappointed as auditor of the limited liability partnership will be put at a general meeting.

Statement of members' responsibilities

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members 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 limited liability partnership and of the profit or loss of the limited liability partnership for that period.

 

In preparing these financial statements, the members are required to:

 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STAKIS HYDRO LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2023
- 2 -
Statement of disclosure to auditor

Each of the members in office at the date of approval of this annual report confirms that:

 

Small LLPs exemption

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

Approved by the members on 2 November 2023 and signed on behalf by:
02 November 2023
A Stakis
Designated Member
STAKIS HYDRO LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STAKIS HYDRO LLP
- 3 -
Opinion

We have audited the financial statements of Stakis Hydro LLP (the 'limited liability partnership') for the year ended 5 April 2023 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Reconciliation of Members' Interests and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the limited liability partnership 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 members' 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 limited liability partnership’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 members with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The members are responsible for the other information contained within the annual report. 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. 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 course of 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.

STAKIS HYDRO LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STAKIS HYDRO LLP
- 4 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnership (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 requires us to report to you if, in our opinion:

 

Responsibilities of members

As explained more fully in the members' responsibilities statement set out on page 1, the members 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 members determine is 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 members are responsible for assessing the limited liability partnership'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 members either intend to liquidate the limited liability partnership or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

STAKIS HYDRO LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STAKIS HYDRO LLP
- 5 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.

James McBride (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
13 November 2023
Chartered Accountants
Statutory Auditor
Exchange Place 3
Semple Street
Edinburgh
United Kingdom
EH3 8BL
STAKIS HYDRO LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 5 APRIL 2023
- 6 -
2023
2022
as restated
£
£
Turnover
1,865,619
822,850
Cost of sales
(109,654)
(109,885)
Gross profit
1,755,965
712,965
Administrative expenses
(213,784)
(149,914)
Other operating income
-
9,308
Operating profit
1,542,181
572,359
Interest receivable and similar income
75,000
50,000
Interest payable and similar expenses
(17,562)
(20,011)
Profit for the financial year before members' remuneration and profit shares
1,599,619
602,348
Members' remuneration charged as an expense
(1,599,619)
(602,348)
Result for the financial year available for discretionary division among members
-
-
Other comprehensive income
Revaluation of hydro schemes
1,383,658
4,216,837
Total comprehensive income for the year
1,383,658
4,216,837
STAKIS HYDRO LLP
BALANCE SHEET
AS AT
5 APRIL 2023
05 April 2023
- 7 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
12,100,000
9,662,400
Investments
4
1,050,000
1,050,000
13,150,000
10,712,400
Current assets
Debtors
5
149,616
467,121
Cash at bank and in hand
338,508
346,127
488,124
813,248
Creditors: amounts falling due within one year
6
(588,513)
(1,473,314)
Net current liabilities
(100,389)
(660,066)
Total assets less current liabilities and net assets attributable to members
13,049,611
10,052,334
Represented by:
Loans and other debts due to members within one year
7
Other amounts
7,272,446
5,567,370
Members' other interests
Members' capital classified as equity
100,000
100,000
Revaluation reserve
5,677,165
4,384,964
13,049,611
10,052,334

These financial statements have been prepared in accordance with the provisions applicable to limited liability partnerships subject to the small limited liability partnerships regime.

The financial statements were approved by the members and authorised for issue on 2 November 2023 and are signed on their behalf by:
02 November 2023
A Stakis
Designated member
Limited Liability Partnership Registration No. SO304720
STAKIS HYDRO LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 5 APRIL 2023
- 8 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Revaluation
reserve
Total
Other amounts
Total
Total
2023
£
£
£
£
£
£
Members' interests at 6 April 2022 as previously reported
100,000
4,045,937
4,145,937
5,906,397
5,906,397
10,052,334
Prior year adjustment
-
339,027
339,027
(339,027)
(339,027)
-
Members' interests at 6 April 2022 as restated
100,000
4,384,964
4,484,964
5,567,370
5,567,370
10,052,334
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
-
-
1,599,619
1,599,619
1,599,619
Result for the financial year available for discretionary division among members
-
-
-
-
-
-
Members' interests after loss and remuneration for the year
100,000
4,384,964
4,484,964
7,166,989
7,166,989
11,651,953
Surplus arising on revaluation of fixed assets
-
1,383,658
1,383,658
-
-
1,383,658
Introduced by members
-
-
-
1,950,000
1,950,000
1,950,000
Drawings
-
-
-
(1,936,000)
(1,936,000)
(1,936,000)
Transfers
-
(91,457)
(91,457)
91,457
91,457
-
Members' interests at 5 April 2023
100,000
5,677,165
5,777,165
7,272,446
7,272,446
13,049,611
STAKIS HYDRO LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2023
- 9 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Revaluation
reserve
Total
Other amounts
Total
Total
2022
£
£
£
£
£
£
Members' interests at 6 April 2021 as previously reported
100,000
(116,525)
(16,525)
5,288,007
10,291,362
5,271,482
Prior year adjustment
-
284,652
284,652
(284,652)
284,652
-
Members' interests at 6 April 2021 as restated
100,000
168,127
268,127
5,003,355
5,003,355
5,271,482
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
-
-
602,348
602,348
602,348
Result for the financial year available for discretionary division among members
-
-
-
-
-
-
Members' interests after loss and remuneration for the year
100,000
168,127
268,127
5,605,703
5,605,703
5,873,830
Surplus arising on revaluation of fixed assets
-
4,216,837
4,216,837
-
-
4,216,837
Drawings
-
-
-
(38,333)
(38,333)
(38,333)
Members' interests at 5 April 2022
100,000
4,384,964
4,484,964
5,567,370
5,567,370
10,052,334
STAKIS HYDRO LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2023
- 10 -
1
Accounting policies
Limited liability partnership information

Stakis Hydro LLP is a limited liability partnership incorporated in Scotland. The registered office is Glentyan House Burntshields Road, Kilbarchan, Johnstone, Renfrewshire, United Kingdom, PA10 2PA.

 

The limited liability partnership's principal activities are disclosed in the Members' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2018, together 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 LLPs subject to the small LLPs 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 limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, subject to the revaluation of certain fixed assets. The principal accounting policies adopted are set out below.

1.2
Going concern

The designated members have considered a period of at least twelve months from the date on which these financial statements have been signed and having considered all information available to them, believe it appropriate to prepare the financial statements on a going concern basis.

1.3
Turnover

Turnover represents the amounts recoverable for the services provided to clients, excluding value added tax, under contractual obligations which are performed gradually over time.

If, at the balance sheet date, completion of contractual obligations is dependent on external factors (and thus outside the control of the Limited Liability Partnership), then revenue is recognised only when the event occurs. In such cases, costs incurred up to the balance sheet date are carried forward as work in progress.

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

 

Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.

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:

Hydro Schemes
1% straight line
Energy Storage Project
not depreciated
STAKIS HYDRO LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2023
1
Accounting policies
(Continued)
- 11 -

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 recognised in the profit and loss account.

Hydro Schemes whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

 

1.5
Fixed asset investments

Investments 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.

1.6
Impairment of fixed assets

At each reporting period end date, the limited liability partnership 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 limited liability partnership 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.

 

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.

STAKIS HYDRO LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2023
1
Accounting policies
(Continued)
- 12 -
1.8
Financial instruments

The limited liability partnership 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 limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third 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 limited liability partnership after deducting all of its liabilities.

STAKIS HYDRO LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2023
1
Accounting policies
(Continued)
- 13 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.9
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 number of persons (excluding members) employed by the LLP during the year was:

2023
2022
Number
Number
Total
-
0
-
0
STAKIS HYDRO LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2023
- 14 -
3
Tangible fixed assets
Hydro Schemes
Energy Storage Project
Total
£
£
£
Cost or valuation
At 6 April 2022
9,600,000
62,400
9,662,400
Additions
1,162,188
-
1,162,188
Revaluation
1,275,412
-
1,275,412
Transfers
62,400
(62,400)
-
At 5 April 2023
12,100,000
-
12,100,000
Depreciation and impairment
At 6 April 2022
-
-
-
Depreciation charged in the year
108,246
-
108,246
Revaluation
(108,246)
-
(108,246)
At 5 April 2023
-
-
-
Carrying amount
At 5 April 2023
12,100,000
-
12,100,000
At 5 April 2022
9,600,000
62,400
9,662,400

Hydro schemes with a carrying amount of £12,100,000 (2022 - £9,600,000) have been pledged to secure borrowings of the limited liability partnership. The limited liability partnership is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Hydro Schemes with a carrying amount of £12,100,000 were revalued in June 2023 by Galbraith, an independent firm of chartered surveyors, on the basis of market value. The valuation conforms to International Valuation Standards and is based on Galbraith's experience and knowledge of the market. In the opinion of management, and of the members, this valuation is not materially different from the value at the reporting date of the financial statements.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Hydro schemes
2023
2022
£
£
Cost
6,778,650
5,554,063
Accumulated depreciation
(355,815)
(288,028)
Carrying value
6,422,835
5,266,035
STAKIS HYDRO LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2023
- 15 -
4
Fixed asset investments
2023
2022
£
£
Unlisted investments
1,050,000
1,050,000
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
149,616
467,121
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
525,000
1,400,000
Trade creditors
4,013
6,970
Taxation and social security
16,861
21,637
Other creditors
42,639
44,707
588,513
1,473,314

The bank loans of £525,000 are secured by a floating charge over the assets and undertakings of the LLP and a charge over the hydro schemes and standard security over the leases of hydro schemes at Greeto and Gogo Water, Halkshill, Ayrshire. The bank loans were repaid post year end.

Included within other creditors is a short term loan from Stakis Forestry LLP totalling £6,752 which is repayable on demand. This is a related party balance.

7
Loans and other debts due to members

In accordance with the LLP agreement, Mr A Stakis is entitled to receive, as a first charge on the net income of the LLP, a share of such net income equal to 1% of the market value of the Fixed Assets and Investments of the LLP provided he meets qualifying criteria as detailed in the LLP agreement. In the event of net expenditure, provided the qualifying criteria are met, this first charge still applies.

 

The remaining net income or expenditure for the period is divided based on the net income/(expenditure) sharing ratio applying for the period. For the year ended 5 April 2023, this remaining net income was allocated proportionately among the members.

 

In the event of a winding up, members' capital and other interests rank after unsecured creditors when discharging the liabilities of the LLP. The amount of capital each equity member is required to subscribe is determined by the members, and under the LLP agreement of Stakis Hydro LLP, capital cannot be repaid but can be transferred/sold.

STAKIS HYDRO LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2023
- 16 -
8
Prior period adjustment

The prior year comparatives have been restated to account for depreciation on the Hydro Schemes since they became operational in 2017.

 

The opening balance on the revaluation reserve and other amounts due to members in the prior year reconciliation of members' interests has been restated to account for £284,652 of depreciation, and the subsequent equal effect on previous revaluations, to keep the carrying amount at the same value.

 

Depreciation of £54,375 has been accounted for through the prior year statement of comprehensive income, along with the subsequent equal effect on the revaluation in the year, to keep the carrying amount at the same value.

 

The total impact on the current year opening balances is an increase in the revaluation reserve and decrease in other amounts due to members of £339,027.

2023-04-052022-04-06falseCCH SoftwareCCH Accounts Production 2023.300falseSO3047202022-04-062023-04-05SO304720bus:PartnerLLP12022-04-062023-04-05SO304720bus:PartnerLLP22022-04-062023-04-05SO304720bus:PartnerLLP32022-04-062023-04-05SO3047202023-04-05SO3047202021-04-062022-04-05SO304720bus:LimitedLiabilityPartnershipLLP2022-04-062023-04-05SO304720bus:FRS1022022-04-062023-04-05SO304720bus:Audited2022-04-062023-04-05SO304720bus:FullAccounts2022-04-062023-04-05xbrli:purexbrli:sharesiso4217:GBP