REGISTERED NUMBER: |
POINT AND SANDWICK POWER LIMITED |
Audited Financial Statements for the Year Ended 31 May 2023 |
REGISTERED NUMBER: |
POINT AND SANDWICK POWER LIMITED |
Audited Financial Statements for the Year Ended 31 May 2023 |
POINT AND SANDWICK POWER LIMITED (REGISTERED NUMBER: SC369199) |
Contents of the Financial Statements |
for the Year Ended 31 May 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
POINT AND SANDWICK POWER LIMITED |
Company Information |
for the Year Ended 31 May 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
26 Lewis Street |
Stornoway |
Isle of Lewis |
HS1 2JF |
POINT AND SANDWICK POWER LIMITED (REGISTERED NUMBER: SC369199) |
Balance Sheet |
31 May 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 5 |
CURRENT ASSETS |
Debtors | 6 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 8 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital |
Retained earnings |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
POINT AND SANDWICK POWER LIMITED (REGISTERED NUMBER: SC369199) |
Notes to the Financial Statements |
for the Year Ended 31 May 2023 |
1. | STATUTORY INFORMATION |
Point And Sandwick Power Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The financial statements are rounded to the nearest £1. |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis under the historical cost convention. The significant accounting policies applied in the preparation of these financial statements are set out below. |
Significant judgements and estimates |
The area of the accounts susceptible to the use of significant judgements or estimates is that of the area of Tangible Fixed Assets and the estimation of both useful economic life and residual value. |
Useful economic life and residual value impact on the carrying value of the assets in the accounts and on the depreciation charged to the profit and loss account in the period. |
The directors have used an estimate of 25 years for the estimated useful economic life and of £nil residual value as the terms of the planning consent require the site to be restored to its pre wind farm state when the planning consent expires. |
Turnover |
Turnover represents the value of all income received in connection with the operation of the Beinn Ghrideag Wind Farm - Electricity Generation, ROC's and LEC income receivable - excluding Value Added Tax. |
Income from government and other grants, whether capital grants or revenue grants, is recognised when the company has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Finance costs incurred during the construction phase of the project are capitalised and amortised over the useful economic life of the wind farm. |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
POINT AND SANDWICK POWER LIMITED (REGISTERED NUMBER: SC369199) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
Interest free intercompany loan balances between group members have been included at the net present value of the repayment expected when the loan will be repaid using an annual commercial interest rate of 3.75%. |
The difference between cash cost of the loan and the net present value has been credited to other reserves. |
On an annual basis the notional interest charge based on 3.75% of the net present value of the loan is charged to the profit and loss account. A corresponding transfer is made between other reserves and retained earnings so that the balance of other reserves equals the calculated interest to be charged in future years. |
Loans and other financial liabilities are initially recognised at cash value net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
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 |
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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Debtors and creditors |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account. |
4. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was NIL (2022 - NIL). |
POINT AND SANDWICK POWER LIMITED (REGISTERED NUMBER: SC369199) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2023 |
5. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2022 |
Disposals | ( |
) | ( |
) |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.23 | 31.5.22 |
£ | £ |
Other debtors |
Prepaid expenses |
Accrued income |
Prepaid lender arrangement |
fees |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.23 | 31.5.22 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Amounts owed to group undertakings |
Tax |
VAT | 201,415 | 184,623 |
Other creditors |
Accrued expenses |
POINT AND SANDWICK POWER LIMITED (REGISTERED NUMBER: SC369199) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2023 |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.5.23 | 31.5.22 |
£ | £ |
Senior debt - 1-2 years |
Senior debt 2-5 years |
Senior debt > 5 years by |
instalments |
Amounts owed to group undertakings |
Amounts falling due in more than five years: |
Repayable by instalments |
Senior debt > 5 years by |
instalments | 5,682,439 | 6,503,597 |
5,682,439 | 6,503,597 |
9. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.5.23 | 31.5.22 |
£ | £ |
Bank loans |
The bank loans are secured by way of a fixed and floating charge over the entire assets of the company in favour of Santander UK Plc. |
Point and Sandwick Development Trust have also entered into a Share Pledge in respect of its share holding in Point and Sandwick Power Ltd in favour of Santander UK Plc as security for the loan finance. |
Subsidiary loan funders, Renewable Energy Investment Fund, Social Investment Scotland and Social Investment Scotland Community Finance also hold security over the company assets ranking behind that of Santander UK Plc. |
10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
POINT AND SANDWICK POWER LIMITED (REGISTERED NUMBER: SC369199) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2023 |
11. | OTHER FINANCIAL COMMITMENTS |
In order to secure planning consent for the project and to secure access to the land that the wind farm sits on the company entered into a number of leases and agreements with land owners and tenants. |
The annual commitment, which is subject to indexation, over the 25 year expected operating life of the wind farm is £164,848 per year. |
This value is subject to variation as the landlord rent and crofter compensation is dependant on the value of both the electricity generation income and ROC income in the year. |
12. | RELATED PARTY DISCLOSURES |
The Company is a wholly owned subsidiary of Point & Sandwick Development Trust, a Charitable Company registered in Scotland. |
At the balance sheet date the amount owed to Point and Sandwick Development Trust was £36,578 (2022 : £51,439). |
At 31 May 2023, the balance related entirely to funds loaned to Point and Sandwick Development Trust by Social Investment Scotland Community Finance, the funds for which were loaned to the company to develop the Beinn Ghrideag community wind farm. Interest is charged to the company at cost. The balance of funds does not attract interest. The interest charged in the year in the profit and loss account amounted to £3,412 and this is included within the sub-debt interest payable figure. |
Loan repayments amounting to £14,861 were repaid to Point and Sandwick Development Trust. |
During the year the company paid a Donation to Point and Sandwick Development Trust of £3,800,000 (2022: £533,000). |
During the year the company paid management, administration and project development services to Beinn a Bhuna LTD, whom a director of Point and Sandwick Power also acts on behalf of as a director. This is as provided for in the service agreement between Beinn a Bhuna LTD and Point and Sandwick Power Limited amounting to £72,600 (2022: £63,600). |
13. | FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES |
In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. |
14. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is the Parent Company - Point and Sandwick Development Trust. Point and Sandwick Development Trust has the same registered office as Point and Sandwick Power Limited. |