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REGISTERED NUMBER: 08155306 (England and Wales)















MICHCO 1205 LIMITED

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023






MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023










Page

Company Information 1

Report of the Directors 2

Report of the Independent Auditors 3

Consolidated Income Statement 6

Consolidated Other Comprehensive Income 7

Consolidated Balance Sheet 8

Company Balance Sheet 9

Consolidated Statement of Changes in Equity 10

Company Statement of Changes in Equity 11

Notes to the Consolidated Financial Statements 12


MICHCO 1205 LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 JUNE 2023







DIRECTORS: R J H Randall
D M Friend





REGISTERED OFFICE: The Long Barn
Manor Courtyard
Stratton-On-The-Fosse
Radstock
BA3 4QF





REGISTERED NUMBER: 08155306 (England and Wales)





AUDITORS: Rothmans Audit LLP
Statutory Auditors
Chartered Accountants
Fryern House
125 Winchester Road
Chandlers Ford
Hampshire
SO53 2DR

MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2023


The directors present their report with the financial statements of the company and the group for the year ended 30 June 2023.

RESULTS
The consolidated income statement is set out on page 6 and shows the profit for the year.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report.

R J H Randall
D M Friend

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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS
The auditors, Rothmans Audit 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:





D M Friend - Director


12 December 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MICHCO 1205 LIMITED


Opinion
We have audited the financial statements of Michco 1205 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity 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 group's and of the parent company affairs as at 30 June 2023 and of the group's profit 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 group 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 group's and the parent 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.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 take advantage of the small companies' exemption from the requirement to prepare a Group Strategic Report or in preparing the Report of the Directors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MICHCO 1205 LIMITED


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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

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:

We obtained an understanding of the legal and regulatory framework that the Group operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect of the operations of the Group. The key laws and relations we considered in this context included the UK Companies Act and Health & Safety regulations.

Discussions were held within the engagement team regarding how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion, we identified potential risk areas such as the completeness of revenue. Audit procedures were designed to ensure the risks were addressed.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

o enquiring of management as to actual and potential litigation and claims; and

o reviewing any correspondence with regulators and the Group's legal advisors.

o reviewing certificates of registration for quality management systems

To address the risk of fraud through management bias and override of controls, we:

o performed analytical procedures to identify any unusual or unexpected relationships;

o tested journal entries to identify unusual transactions; and

o assessed whether judgements and assumptions contained any indication of potential bias.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MICHCO 1205 LIMITED


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.




Robin Lloyd FCA (Senior Statutory Auditor)
for and on behalf of Rothmans Audit LLP
Statutory Auditors
Chartered Accountants
Fryern House
125 Winchester Road
Chandlers Ford
Hampshire
SO53 2DR

12 December 2023

MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

CONSOLIDATED
INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023

2023 2022
Notes £ £

TURNOVER 3 5,892,539 4,878,289

Cost of sales 776,592 795,247
GROSS PROFIT 5,115,947 4,083,042

Administrative expenses 868,458 911,692
OPERATING PROFIT 4 4,247,489 3,171,350

Interest receivable and similar income 139,252 93,530
4,386,741 3,264,880

Interest payable and similar expenses 5 3,153,321 2,989,515
PROFIT BEFORE TAXATION 1,233,420 275,365

Tax on profit 6 336,123 56,197
PROFIT FOR THE FINANCIAL YEAR 897,297 219,168
Profit attributable to:
Owners of the parent 897,297 219,168

MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

CONSOLIDATED
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023

2023 2022
Notes £ £

PROFIT FOR THE YEAR 897,297 219,168


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

897,297

219,168

Total comprehensive income attributable to:
Owners of the parent 897,297 219,168

MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

CONSOLIDATED BALANCE SHEET
30 JUNE 2023

2023 2022
Notes £ £ £ £
FIXED ASSETS
Tangible assets 8 11,977,232 12,833,842
Investments 9 - -
11,977,232 12,833,842

CURRENT ASSETS
Debtors 10 4,998,919 4,284,723
Cash at bank 11 7,184,372 6,204,916
12,183,291 10,489,639
CREDITORS
Amounts falling due within one year 12 1,728,738 1,129,307
NET CURRENT ASSETS 10,454,553 9,360,332
TOTAL ASSETS LESS CURRENT
LIABILITIES

22,431,785

22,194,174

CREDITORS
Amounts falling due after more than one
year

13

(35,670,759

)

(36,431,205

)

PROVISIONS FOR LIABILITIES 16 (1,093,691 ) (992,932 )
NET LIABILITIES (14,332,665 ) (15,229,963 )

CAPITAL AND RESERVES
Called up share capital 17 1,103,120 1,103,120
Merger reserve 18 (17,484,122 ) (17,484,122 )
Retained earnings 18 2,048,337 1,151,039
SHAREHOLDERS' FUNDS (14,332,665 ) (15,229,963 )

The financial statements were approved by the Board of Directors and authorised for issue on 12 December 2023 and were signed on its behalf by:





D M Friend - Director


MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

COMPANY BALANCE SHEET
30 JUNE 2023

2023 2022
Notes £ £ £ £
FIXED ASSETS
Tangible assets 8 - -
Investments 9 4,656,771 4,656,771
4,656,771 4,656,771

CURRENT ASSETS
Cash at bank 11 2,740,571 2,434,649

CREDITORS
Amounts falling due within one year 12 2,723,330 2,417,408
NET CURRENT ASSETS 17,241 17,241
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,674,012

4,674,012

CAPITAL AND RESERVES
Called up share capital 17 1,103,120 1,103,120
Retained earnings 18 3,570,892 3,570,892
SHAREHOLDERS' FUNDS 4,674,012 4,674,012

Company's profit for the financial year - -

The financial statements were approved by the Board of Directors and authorised for issue on 12 December 2023 and were signed on its behalf by:




........................................................................
D M Friend - Director


MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023

Called up
share Retained Merger Total
capital earnings reserve equity
£ £ £ £
Balance at 1 July 2021 1,103,120 931,871 (17,484,122 ) (15,449,131 )

Changes in equity
Total comprehensive income - 219,168 - 219,168
Balance at 30 June 2022 1,103,120 1,151,039 (17,484,122 ) (15,229,963 )

Changes in equity
Total comprehensive income - 897,297 - 897,297
Balance at 30 June 2023 1,103,120 2,048,336 (17,484,122 ) (14,332,666 )

MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023

Called up
share Retained Total
capital earnings equity
£ £ £
Balance at 1 July 2021 1,103,120 3,570,892 4,674,012

Changes in equity
Balance at 30 June 2022 1,103,120 3,570,892 4,674,012

Changes in equity
Balance at 30 June 2023 1,103,120 3,570,892 4,674,012

MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023


1. COMPANY INFORMATION

Michco 1205 Limited was incorporated on 24 July 2012 under the Companies Act 2006, as a private limited company and is registered in England and Wales. The company is a holding company and the Group's principal activity is that of production of electricity through solar parks. The address of its registered office is The Long Barn, Manor Courtyard, Stratton-On-The Fosse, Radstock, England, BA3 4QF.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentation currency is £ sterling.

Going concern
The financial statements are prepared on the going concern basis. Management have prepared cashflow forecasts extending at least 12 months from approval of the financial statements which support that the group can meet its liabilities as they fall due.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

- the requirements of Section 7 Statement of Cash Flows;
- the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);
- the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44, 11.45, 11.47,
11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
- the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Basis of consolidation
The consolidated financial statements incorporate the results of Michco 1205 Limited and all of its subsidiary undertakings as at 30 June 2023 using the acquisition method of accounting as required. Where the acquisition method is used, the results of subsidiary undertakings are included from the date of acquisition.

In 2012, the group purchased a business which was accounted for as a merger. See note 18 for more details.

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Indication of impairment of investments

Management must use judgement to determine if there any indicators of impairment, triggering an
impairment review.

Leases

A lease that does not transfer substantially all of the risks and rewards of ownership is classified as an
operating lease and is therefore not included in the statement of financial position.


Other key sources of estimation uncertainty

Recoverable amount of investments

In the event of an impairment review, there are various estimates involved in calculating the
recoverable amount of an investment, including expected future cash flows.

Decommissioning costs



As part of the measurement and recognition of assets and liabilities in the year, the company has
recognised a provision for decommissioning obligations associated with the solar parks. In determining
the present value of the provision, assumptions and estimates are made in relation to the expected cost
to dismantle the solar parks, the expected timing and the discount rates.

Amortised cost of loans

The amortised cost is calculated using estimated future cash flows, which include an estimated rate for
future inflation. The rate is based on economic information available at the time.

Turnover
Turnover represents consideration receivable for electricity generated in the ordinary course of the group's activities. Revenue is recognised when the electricity is generated. Revenue is shown net of VAT, discounts and rebates.

Tangible fixed assets
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

The cost of fixed assets recognised includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in a manner intended by management.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over it's useful economic life as follows:

Solar parks- 4% per annum straight line
Decommissioning provision- straight line over the remaining life of the operating lease
Motor vehicles- 20% per annum straight line

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is adjusted for prospectively.

Fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between net disposal proceeds and the carrying amount is recognised in the Consolidated Income Statement.


MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in Consolidated Other Comprehensive Income or directly in equity.

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 balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Investment in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Financial instruments
Financial instruments are classified and accounted for according to the substance of the contractual arrangements as either financial assets, financial liabilities or equity instruments, and are held at amortised cost. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all its liabilities.

Finance costs
Finance costs are charged to the Consolidated Income Statement over the term of the debt using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Operating lease commitments
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the Consolidated Income Statement on a straight line basis over the period of the lease. Any incentives related to the lease have been spread over the life of the lease.

3. TURNOVER

All revenue comprises income generated from electricity generation by means of photovoltaic cells solely in the UK.

4. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£ £
Depreciation - owned assets 856,610 856,609
Auditors' remuneration 8,960 7,300
Operating leases 470,483 422,460

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£ £
Eurobond interest 3,107,330 2,946,331
Decommissioning interest 45,991 43,184
3,153,321 2,989,515

MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£ £
Current tax:
UK corporation tax 282,761 80,839
Over/under provision in prior
year (1,406 ) -
Total current tax 281,355 80,839

Deferred tax 54,768 (24,642 )
Tax on profit 336,123 56,197

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£ £
Profit before tax 1,233,420 275,365
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2022 - 19 %)

308,355

52,319

Effects of:
Expenses not deductible for tax purposes - 133
Utilisation of tax losses (28,130 ) (17,771 )
Adjustments to tax charge in respect of previous periods (1,406 ) -
Permanent differences 15,674 21,516
Period taxed at 19% (55,413 ) -
Deferred tax change due to change in tax rate 97,043 -
Total tax charge 336,123 56,197

7. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


8. TANGIBLE FIXED ASSETS

Group
Motor
Solar Parks vehicles Totals
£ £ £
COST
At 1 July 2022
and 30 June 2023 20,899,596 48,000 20,947,596
DEPRECIATION
At 1 July 2022 8,096,154 17,600 8,113,754
Charge for year 847,010 9,600 856,610
At 30 June 2023 8,943,164 27,200 8,970,364
NET BOOK VALUE
At 30 June 2023 11,956,432 20,800 11,977,232
At 30 June 2022 12,803,442 30,400 12,833,842

The solar parks are secured under a fixed charge in favour of US Bank Trustees Limited, the security trustee to the Eurobond.

Included within the solar parks net book value is the capitalised decommissioning provision which is depreciated over the remaining life of the operating lease.

9. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£
COST
At 1 July 2022
and 30 June 2023 4,656,771
NET BOOK VALUE
At 30 June 2023 4,656,771
At 30 June 2022 4,656,771


MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


9. FIXED ASSET INVESTMENTS - continued


Subsidiary undertakings

The principal undertakings in which the company's interest at the period end is 20% or more are as follows:



Subsidiary undertakings
Country of
incorporation or
registration
Class of share
capital held
Proportion
of share
capital held
Nature of
business
Michco 1204 Limited England Ordinary 100% Operation of
solar parks and
provision of
finance
Higher Hill Farm (Solar Power) Limited England Ordinary 100%* Dormant
Park Wood (Solar Power) Limited England Ordinary 100%* Dormant

*- Indirectly held through Michco 1204 Limited.

The total cost above represents the shares in Michco 1204 Limited which are secured by a fixed charge in respect of Eurobond debt provided to the subsidiary undertaking.

The registered office for all of the above companies is The Long Barn, Manor Courtyard, Stratton-On-The-Fosse, Radstock, BA3 4QF.

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2023 2022
£ £
Trade debtors 390,316 89,682
Other debtors 4,608,603 4,195,041
4,998,919 4,284,723

11. CASH AT BANK

Included within the consolidated cash balances is £6,916,345 (2022: £6,157,272) of cash held in secured restricted accounts with the Facility Agent to the £40m Eurobond debt.

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£ £ £ £
Other loans (see note 14) 761,161 510,240 - -
Trade creditors 279,405 244,056 - -
Amounts owed to group undertakings - - 2,723,330 2,417,408
Corporation tax 282,761 80,839 - -
VAT 67,652 26,735 - -
Other creditors 337,759 267,437 - -
1,728,738 1,129,307 2,723,330 2,417,408

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
2023 2022
£ £
Other loans (see note 14) 35,670,759 36,431,205

MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


14. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£ £
Amounts falling due within one year or on demand:
Eurobond 761,161 510,240
Amounts falling due between one and two years:
Eurobond - 1-2 years 984,037 794,037
Amounts falling due between two and five years:
Eurobond - 2-5 years 4,224,908 3,749,629
Amounts falling due in more than five years:
Repayable by instalments
Eurobond more than 5 years 30,461,814 31,887,539

On 14 November 2012, the company was party to a Eurobond issue of £40m 3.61% Secured RPI-linked notes due 2039 by Solar Financing 2012-1 Plc. The proceeds received through a private listing on the London Stock Exchange were used to provide a £40m facility to the company (the 'Original Opco Borrower') and its immediate parent, Michco 1205 Limited (the 'Parent Borrower'). The debt is secured through fixed and floating charges over the assets and shares of the borrowers.

The Eurobond is repayable in yearly instalments until 2036.

On 8 April 2019 the base rate of the debt was reduced to 3.45%.

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable
operating leases
2023 2022
£ £
Within one year 483,493 456,792
Between one and five years 2,035,768 1,827,167
In more than five years 4,235,621 4,270,065
6,754,882 6,554,024

MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


16. PROVISIONS FOR LIABILITIES

2023 2022
£ £
Deferred tax 362,072 307,304
Decommissioning provision 731,619 685,628
1,093,691 992,932


Decommissioning Deferred
Provision Tax
£ £
As at 1 July 2022 685,628 307,304
Charged to the Income statement 45,991 54,768
731,619 362,072

The deferred tax liability relates to accelerated capital allowances.

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
22,062,398 Ordinary £0.05 1,103,120 1,103,120

The ordinary shares shall be non redeemable but shall hold full rights in respect of voting, and shall entitle the holder to full participation in respect of the entity and in the event of winding up the company, the shares may be considered by the directors when considering dividends from time to time.

18. RESERVES

Group
Retained Merger
earnings reserve Totals
£ £ £

At 1 July 2022 1,151,040 (17,484,122 ) (16,333,082 )
Profit for the year 897,297 897,297
At 30 June 2023 2,048,337 (17,484,122 ) (15,435,785 )

Company
Retained
earnings
£

At 1 July 2022 3,570,892
Profit for the year -
At 30 June 2023 3,570,892

MICHCO 1205 LIMITED (REGISTERED NUMBER: 08155306)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


18. RESERVES - continued

Retained earnings are the accumulated profits and losses to date.

On 21 August 2012 the group acquired the net assets and trade of Clean Energy (UK) LLP as a result of a group reconstruction involving entities with common controlling shareholders. The consideration was the issue by the company of 17,418,871 ordinary shares of £1 each. As the transaction is not an acquisition it would be inappropriate to account for any valuation of the shares consideration nor any goodwill or fair value adjustments to the net assets acquired. Accordingly the net assets have been recognised at book value prior to transfer and the difference between the nominal value of the shares issued and the book value of the assets acquired has been recognised as a merger reserve.

19. CONTINGENT LIABILITIES

The group has entered into an agreement with the Eurobond security agent to cross-guarantee the loans made to the group. At 30 June 2023, these loans amounted to £36,431,920 (2022: £36,941,445) inclusive of indexation.

20. RELATED PARTY DISCLOSURES

During the year, there were loans raised and repaid to Prescient Loans Limited, a company controlled by Mr R Randall, a director. Interest of £133,609 (2022: £93,530) was charged on the loan during the year and at the year-end the balance due from Prescient Loans Limited was £2,113,799 (2022: £2,183,530).

21. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mr R Randall by virtue of his controlling interest in the ultimate parent company.