Company registration number 12520333 (England and Wales)
FENLAND GLASSHOUSE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
FENLAND GLASSHOUSE LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
FENLAND GLASSHOUSE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Unaudited
Notes
£
£
£
£
Fixed assets
Tangible assets
5
79,234,145
63,671,582
Current assets
Debtors
6
6,022,612
5,004,645
Cash at bank and in hand
5,554,030
8,714,445
11,576,642
13,719,090
Creditors: amounts falling due within one year
7
(5,763,650)
(4,899,595)
Net current assets
5,812,992
8,819,495
Total assets less current liabilities
85,047,137
72,491,077
Creditors: amounts falling due after more than one year
8
(97,858,490)
(74,702,972)
Net liabilities
(12,811,353)
(2,211,895)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(12,811,453)
(2,211,995)
Total equity
(12,811,353)
(2,211,895)

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

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 23 January 2024 and are signed on its behalf by:
J A Reid
Director
Company Registration No. 12520333
FENLAND GLASSHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information

Fenland Glasshouse Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4th Floor The Peak, 5 Wilton Road, London, United Kingdom, SW1V 1AN.

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 certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The company has incurred a loss of £10,559,458 for the year ended 31 December 2022 and at 31 December 2022 had net liabilities of £12,811,353. The company is reliant on the financial support of its parent. As set out in note 10 the parent company has confirmed that it will require any repayment prior to a date earlier than 12 months from the date on which the financial statements are approved. On this basis the directors have prepared the financial statements on the going concern basis.

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.

Revenue is recognised when the significant risks and rewards of ownership have passed to the buyer, 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 the supply of power is recognised when the supply is completed.

Rents receivable are recognised in the period to which they relate.

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 equipment
20 years straight line

Assets in the course of construction are not depreciated.

FENLAND GLASSHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
1.5
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.

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.

1.6
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.

1.7
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, 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.

Financial assets held at fair value through profit or loss

Other financial assets, including derivative instruments are recognised at the point when the company becomes party to the contract, and are subsequently remeasured to fair value, or 'marked-to-market', at each reporting date. Gains or losses arising on such derivatives are recognised through profit or loss.

FENLAND GLASSHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
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.

1.8
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.

1.9
Derivatives

The Company enters into forward contract agreements for the supply of natural gas, in order to manage its exposure to fluctuations in market prices.

The contracts are marked to market at the reporting date, with the fair value movement on the derivative passing through the profit and loss account.

1.10
Leases

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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

FENLAND GLASSHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

In preparing the financial statements, the directors have made the following judgements and estimates:

 

 

 

 

3
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
18,750
-
0
4
Employees

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

2022
2021
Number
Number
Total
-
0
-
0
FENLAND GLASSHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
5
Tangible fixed assets
Assets under construction
Plant and equipment
Total
£
£
£
Cost
At 1 January 2022
63,671,582
-
0
63,671,582
Additions
18,293,197
-
0
18,293,197
Transfers
(75,087,874)
75,087,874
-
0
At 31 December 2022
6,876,905
75,087,874
81,964,779
Depreciation and impairment
At 1 January 2022
-
0
-
0
-
0
Depreciation charged in the year
-
0
2,730,634
2,730,634
At 31 December 2022
-
0
2,730,634
2,730,634
Carrying amount
At 31 December 2022
6,876,905
72,357,240
79,234,145
At 31 December 2021
63,671,582
-
0
63,671,582
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,834,103
-
0
Derivative assets
657,896
791,631
Other debtors
1,964,914
2,889,616
4,456,913
3,681,247
2022
2021
Amounts falling due after more than one year:
£
£
Derivative assets
1,565,699
1,323,398
Total debtors
6,022,612
5,004,645

The Company uses derivatives to hedge its exposure to gas price fluctuation risk and the fair value of the derivative assets recognised in respect of such derivatives at the balance sheet date was £2,223,595 (2021: £2,115,029).

FENLAND GLASSHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
250
793
Trade creditors
547,414
768,452
Amounts owed to group undertakings
-
0
3,041,829
Other creditors
5,215,986
1,088,521
5,763,650
4,899,595

Included within amounts owed to group undertakings is £nil (2021: £3,041,829) of accrued loan interest payable to Greencoat Fenland Limited, who hold security by way of fixed and floating charges over all the property or undertaking of the Company.

8
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Other borrowings
97,858,490
74,702,972

Included within other borrowings are secured loans of £97,858,490 (2021: £74,702,972) due to the parent undertaking, Greencoat Fenland Limited, who holds security by way of fixed and floating charges over all the property or undertaking of the Company. The loans carry interest of 7% per annum.

 

The loans are repayable on the earlier of a disposal, listing or 20 years from the initiation of the loan. The lender has confirmed that they will not seek settlement of any amounts prior to a date 12 months from the date on which the financial statements for the year ended 31 December 2022 are approved.

Amounts included above which fall due after five years are as follows:
Payable other than by instalments
97,858,490
74,702,972
9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Andrew Howells (Senior Statutory Auditor)
Statutory Auditor:
Azets Audit Services
FENLAND GLASSHOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
10
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:

2022
2021
£
£
65,310
65,310
11
Capital commitments

Amounts contracted for but not provided in the financial statements:

2022
2021
£
£
Acquisition of tangible fixed assets
8,706,564
9,348,834
12
Parent company

The parent company is Greencoat Fenland Limited, for which the registered office is 4th Floor The Peak, 5 Wilton Road, London, United Kingdom, SW1V 1AN.

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