Company registration number 10791074 (England and Wales)
LISARB ENERGY GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
LISARB ENERGY GROUP LIMITED
COMPANY INFORMATION
Directors
Mr J Macdonald Murrray
Mr L G L Savelli
Ms S Taylor-Jago
(Appointed 1 July 2022)
Company number
10791074
Registered office
Median House Fishleigh Court
Fishleigh Road
Barnstaple
Devon
EX31 3UD
LISARB ENERGY GROUP LIMITED
CONTENTS
Page
Directors' report
1
Statement of comprehensive income
2
Statement of financial position
3
Statement of changes in equity
4
Statement of cash flows
5
Notes to the financial statements
6 - 18
LISARB ENERGY GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Results and dividends
The results for the year are set out on page 2.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J Macdonald Murrray
Mr L G L Savelli
Ms S Taylor-Jago
(Appointed 1 July 2022)
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr J Macdonald Murrray
Director
29 March 2024
LISARB ENERGY GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
2023
2022
Notes
£
£
Continuing operations
Revenue
4,059,528
3,000,000
Administrative expenses
(1,293,740)
(823,660)
Operating profit
5
2,765,788
2,176,340
Investment revenues
224,828
Finance costs
7
(1,073,916)
(677,191)
Other gains and losses
8
104,286,556
28,384,198
Profit before taxation
105,978,428
30,108,175
Income tax expense
9
(422,968)
(327,594)
Profit and total comprehensive income for the year
105,555,460
29,780,581
LISARB ENERGY GROUP LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
31 March 2023
- 3 -
2023
2022
Notes
£
£
Non-current assets
Property, plant and equipment
10
18,383
Investments
11
207,738,244
103,451,688
Other receivables
14
5,434,057
3,100,066
213,190,684
106,551,754
Current assets
Trade and other receivables
14
9,750,148
5,132,949
Cash and cash equivalents
17,079
266
9,767,227
5,133,215
Current liabilities
Trade and other payables
16
6,353,158
2,373,341
Current tax liabilities
799,601
374,233
Borrowings
15
2,099,207
3,025,074
9,251,966
5,772,648
Net current assets/(liabilities)
515,261
(639,433)
Non-current liabilities
Borrowings
15
3,395,695
1,157,531
Net assets
210,310,250
104,754,790
Equity
Called up share capital
17
11,250,002
11,250,002
Retained earnings
199,060,248
93,504,788
Total equity
210,310,250
104,754,790
These financial statements have been prepared 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 29 March 2024 and are signed on its behalf by:
Mr J Macdonald Murrray
Director
Company registration number 10791074 (England and Wales)
LISARB ENERGY GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 April 2021
11,250,002
63,724,207
74,974,209
Year ended 31 March 2022:
Profit and total comprehensive income
-
29,780,581
29,780,581
Balance at 31 March 2022
11,250,002
93,504,788
104,754,790
Year ended 31 March 2023:
Profit and total comprehensive income
-
105,555,460
105,555,460
Balance at 31 March 2023
11,250,002
199,060,248
210,310,250
Retained earnings include a revaluation surplus of £196,136,556 (2022: £91,850,000) which is not available for distribution to the shareholders of Lisarb Energy Group Limited.
LISARB ENERGY GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(202,904)
(67,226)
Interest paid
(1,073,916)
(728,251)
Income taxes refunded
2,400
-
Net cash outflow from operating activities
(1,274,420)
(795,477)
Investing activities
Purchase of property, plant and equipment
(19,064)
Acquisition of subsidiaries
(200)
Repayment of loans
(2,000)
Purchase of other investments
(225,002)
Net cash used in investing activities
(21,064)
(225,202)
Financing activities
Funds from borrowings
2,245,760
2,844,586
Repayment of borrowings
(933,463)
(1,962,272)
Net cash generated from financing activities
1,312,297
882,314
Net increase/(decrease) in cash and cash equivalents
16,813
(138,365)
Cash and cash equivalents at beginning of year
266
138,631
Cash and cash equivalents at end of year
17,079
266
LISARB ENERGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
1
Accounting policies
Company information
Lisarb Energy Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit B2 Fishleigh Court, Fishleigh Road, Barnstaple, Devon, EX31 3UD.
The principle activity of the company and its subsidiaries is that of the development and promotion of solar power developments.
1.1
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
The company has taken advantage of the exemption under section 399 of the companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group.
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, except for the revaluation of investments. The principal accounting policies adopted are set out below.
1.2
Going concern
As of 31 March 2023, the company reported net current assets amounting to £true515,261. However, subsequent to the year-end, the Directors undertook a number of asset rotations, entered into joint ventures and identified a route to restructure the companies existing capital structure. Upon approving the financial statements, the directors expressed confidence in the company's ability to sustain its operations in the foreseeable future, as they believe it possesses sufficient resources. Accordingly, the directors have prepared the accounts on a going concern basis, taking into consideration the company's outlook and believe it to continue as a going concern.
1.3
Turnover
Turnover is measured at the fair value of the consideration received or receivable for services rendered to other group companies, net of discounts and Value Added Tax.
1.4
Property, plant and equipment
Property, plant and equipment 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:
Computer equipment
33% straight line
Artwork
No depreciation is provided on artwork held by the company on the basis that the life of the artwork is so long and their residual value is so high that depreciation is unnecessary
IFRS 13 establishes a single source of guidance for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. The resulting calculations under IFRS 13 affected the principles that the company uses to assess the fair value, but the assessment of fair value under IFRS 13 has not materially changed the fair values recognised or disclosed. IFRS 13 mainly impacts the disclosures of the company. It requires specific disclosures about fair value measurements and disclosures of fair values, some of which replace existing disclosure requirements in other standards.
LISARB ENERGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 7 -
1.5
Impairment of tangible and intangible assets
At each reporting 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.
1.6
Cash and cash equivalents
Cash and cash equivalents 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 assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.
Impairment of financial assets
Financial assets carried at amortised cost are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.8
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
LISARB ENERGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 8 -
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
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.
1.11
'Fair value' is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Company has access at that date. The fair value of a liability reflects its non-performance risk.
The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price - i.e. the fair value of the consideration given or received. If the Company determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identifiable asset or liability nor based on a valuation technique for which an unobservable inputs are judged to be insignificant in relation to the measurement, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out.
LISARB ENERGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 9 -
1.12
Non financial assets
At each reporting date, the Company reviews the carrying amounts of it non-financial assets (other than biological assets, investment property, inventories, contract assets and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets. Goodwill arising from a business combination is allocated to CGU's or groups of CGUs that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs of disposals. Value in use is based on the estimated future cash flows, 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 or CGU.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying amount for any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed. For other assets, impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net depreciation or amortisation, if no impairment loss had been recognised.
2
Adoption of new and revised standards and changes in accounting policies
Certain new accounting standards and interpretations have been published that are not mandatory for the 31 March 2023 reporting periods and have not been early adopted by the Company. These are as follows:
Amendments to IAS 1 and IFRS Practice Statement 2 'Disclosure of Accounting Policies' (effective for annual periods beginning on or after 1 January 2023)
IFRS 17 'Insurance Contracts' (Effective for annual reporting periods beginning on or after 1 January 2023)
Amendments to IAS 1 'Classification of liabilities as Current or Non-current' (Effective for annual reporting periods beginning on or after 1 January 2023)
Amendments to IAS 8 'Definition of Accounting Estimates' (effective for annual periods beginning on or after 1 January 2023)
Amendments to IAS 12 'Deferred Tax related to Assets and Liabilities arising from a Single Transaction' (effective for annual periods beginning on or after 1 January 2023)
There are no standards that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.
LISARB ENERGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
3
Critical accounting estimates and judgements
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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Fair value investments
The key estimation judgement is the fair value assessment of the company's investments in its subsidiaries which have been based on a internal valuation carried out by directors of the value of the key solar power sites and other assets and liabilities owned by the company's subsidiaries. This value included at 31 March 2023 is £207,386,756.
4
Revenue
The Company generates revenue primarily from the management of solar power contracts
2023
2022
£
£
Management charges
4,059,528
3,000,000
5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
2
993
Fees payable to the company's auditor for the audit of the company's financial statements
18,000
Depreciation of property, plant and equipment
681
-
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
4
LISARB ENERGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
7
Finance costs
2023
2022
£
£
Other interest payable
1,073,916
677,191
8
Other gains and losses
2023
2022
£
£
Change in value of financial assets at fair value through profit or loss
104,286,556
28,384,198
LISARB ENERGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
9
Income tax expense
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
422,968
327,594
The charge for the year can be reconciled to the profit per the income statement as follows:
2023
2022
£
£
Profit before taxation
105,978,428
30,108,175
Expected tax charge based on a corporation tax rate of 25.00% (2022: 19.00%)
26,494,607
5,720,554
Effect of expenses not deductible in determining taxable profit
38
Fair value adjustment
(26,071,639)
(5,392,998)
Taxation charge for the year
422,968
327,594
10
Property, plant and equipment
Computer equipment
Artwork
Total
£
£
£
Cost
At 1 April 2021 and 1 April 2022
-
Additions
2,064
17,000
19,064
At 31 March 2023
2,064
17,000
19,064
Accumulated depreciation and impairment
At 1 April 2021 and 1 April 2022
Charge for the year
681
681
At 31 March 2023
681
681
Carrying amount
At 31 March 2023
1,383
17,000
18,383
LISARB ENERGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
11
Investments
Movements in non-current investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 April 2022
103,100,200
351,488
103,451,688
Valuation changes
104,286,556
-
104,286,556
At 31 March 2023
207,386,756
351,488
207,738,244
Carrying amount
At 31 March 2023
207,386,756
351,488
207,738,244
At 31 March 2022
103,100,200
351,488
103,451,688
12
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Construdtora Habplan Ltda
Brazil
Ordinary
90.00
Lisard Distributed Energy Portfolio No. 1 Ltd
UK
Ordinary
100.00
Lisarb Energias SA
Brazil
Ordinary
99.90
Lisarb Energy Europe Limited
UK
Ordinary
100.00
Lisarb Offshore Limited
UK
Ordinary
100.00
LISARB ENERGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
13
Associates
Details of the company's associates at 31 March 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Iguana Energy Group Limited
UK
Ordinary
40.00
14
Trade and other receivables
Current
Non-current
2023
2022
2023
2022
£
£
£
£
Trade receivables
4,630,002
1,630,000
-
-
VAT recoverable
37,166
19,446
-
-
Amounts owed by fellow group undertakings
5,434,057
3,100,066
Other receivables
17,600
-
-
-
Prepayments
5,065,380
3,483,503
-
-
9,750,148
5,132,949
5,434,057
3,100,066
15
Borrowings
Current
Non-current
2023
2022
2023
2022
£
£
£
£
Unsecured other loans
-
1,099,935
-
50,000
Secured bond issue
-
1,925,139
4,395,695
1,107,531
Loans from related parties
1,099,207
-
-
-
2,099,207
3,025,074
3,395,695
1,157,531
16
Trade and other payables
2023
2022
£
£
Trade payables
331,719
83,025
Amounts owed to fellow group undertakings
1,836,086
1,974,744
Accruals
1,509,233
315,572
Other payables
2,676,120
6,353,158
2,373,341
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
11,250,002
11,250,002
11,250,002
11,250,002
LISARB ENERGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
18
Financial commitments, guarantees and contingent liabilities
(1) Vague Group Limited holds a deed of charge against the Company in relation to its debentures. The deed of charges contains a legal mortgage and fixed and floating charges over any freehold, leasehold, commonhold land; any estate or interest in, and any rights attaching or relating to, that land; and any buildings, fixtures and fittings (including trade fixtures and fittings) and other equipment attached to, situated on, or forming part of that land now or in the future owned by the chargor and all of its intellectual property.
(2) The Company has a deed of charge with Blue Water Capital Limited in relation to its debentures. The deed contains fixed and floating charges.
Both charges were outstanding as at the date of approval of these financial statements.
19
Capital risk management
The company is not subject to any externally imposed capital requirements.
20
Events after the reporting date
After the year end, the company incorporated the following subsidiary companies, subscribing for share capital at par value;
Lisarb Engineering Ltd on 7 September 2023 - 100 Ordinary £1.00 shares
Lisarb Energy UK & Ireland Ltd on 28 November 2023 - 100 Ordinary £1.00 shares
21
Related party transactions
During the year the company entered into the following transactions with related parties:
Sale of services
2023
2022
£
£
Subsidiaries
4,059,528
3,000,000
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Entities with joint control or significant influence over the company
1,299,368
1,725,451
At the year end, the company owed £536,717 (2022: £249,203) to Lisarb Energy Portfolio No. 1 Limited.
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Entities with joint control or significant influence over the company
3,497,503
2,008,458
LISARB ENERGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
21
Related party transactions
(Continued)
- 16 -
At the year end, the company was owed £296,066 (2022: £1,630,000) from Lisarb Energias S.A.
At the year end, the company was owed £1,163,704 (2022: £873,352) from Lisarb Development Limited. Interest was received of £107,020 during the year.
At the year end, the company was owed £292 (2022: £21,023) from Lisarb Energy Portugal Solar 101 Limited.
At the year end, the company was owed £35,193 (2022: £90,214) from Lisarb Energy Europe Limited.
At the year end, the company was owed £420,429 (2022: £Nil) from Lisarb Offshore Limited.
At the year end, the company was owed £18,403 (2022: £Nil) from Lisarb Energy Portgual Solar 101 Lda.
At the year end, the company was owed £2,468 (2022: £Nil) from River Bend Limited, a company under common control by Jamie Mcdonald Murray.
None of the balances are secured. No expense has been recognised in the current year or prior year for bad or doubtful debts in respect of amounts owed by related parties. No guarantees have been given or received.
22
Controlling party
The company is ultimately controlled by its director, Jamie Mcdonald Murray.
23
Basis of measurement
The financial statements have been prepared on the historical cost basis except for the following items, which area measure on an alternative basis on each reporting date.
Debt and equity securities at FVTPL will be measured at fair value
LISARB ENERGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
24
Financial instruments and risk
Interest rate risk
The company utilizes a range of providers in the debt capital markets to fund its operations. These financing arrangements involve fixed interest rates that remain unchanged throughout the duration of the loans and bonds. As a result, the company considers the risk associated with these fixed interest rates to be low.
Market risk
The company holds investments in subsidiary companies that own a diverse portfolio of solar PV power plants and projects. The directors maintain a vigilant oversight of the energy sector in every jurisdiction where the company operates. They closely monitor Power Purchase Agreements, ensuring they are adjusted for energy inflation and remain aligned with any increases in debt finance interest rates. Regular reviews of the energy market in Latin America and Europe are conducted by the directors, who make well-informed decisions guided by comprehensive economic and environmental analyses.
Credit risk
Credit risk is the risk that a related company will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities.
The Company consider that the carrying amount of trade and other receivables is approximately equal to their fair value. No significant receivable balances are impaired at the reporting end date.
The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses, represents the Company's maximum exposure to credit risk. The company does not hold any collateral or other credit enhancements to cover this credit risk.
The Company consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.
Investments into subsidiaries must meet criteria approved by the Board.
Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Liquidity risk
The company manages its cash and borrowing requirements to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business. The monitoring of liquidity plays an important role in both the company's smooth operation and the continuation of its activities. On the period end date, the Company has sufficient cash available to cover its operating activities.
The Company holds bonds and loans with third party providers. The company manages its cash and borrowing requirements to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Price risk
Price risk is the risk that the fair value of energy prices included in the valuations and expected in the subsidiaries will fluctuate due to a change in the market quoted prices. The Company is exposed to price risk with regards to its investments, which is mitigated by having agreements in place with customers.
Capital Risk Management
The capital structure of the company consists of equity investments, debt, cash and cash equivalents and equity comprising share capital, reserves and retained earnings. The company is not subject to externally imposed capital requirements.
LISARB ENERGY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
25
Cash absorbed by operations
2023
2022
£
£
Profit for the year before income tax
105,978,428
30,108,175
Adjustments for:
Finance costs
1,073,916
677,191
Investment income
(224,828)
Depreciation and impairment of property, plant and equipment
681
-
Other gains and losses
(104,286,556)
(28,384,198)
Movements in working capital:
Increase in trade and other receivables
(6,949,190)
(2,758,841)
Increase in trade and other payables
3,979,817
515,275
Cash absorbed by operations
(202,904)
(67,226)
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.300Mr J Macdonald MurrrayMr L G L SavelliMs S Taylor-Jago2024-03-29Daniel Rose107910742022-04-012023-03-3110791074bus:Director12022-04-012023-03-3110791074bus:Director22022-04-012023-03-3110791074bus:Director32022-04-012023-03-3110791074bus:RegisteredOffice2022-04-012023-03-31107910742023-03-3110791074core:ContinuingOperations2022-04-012023-03-31107910742021-04-012022-03-3110791074core:ContinuingOperations12022-04-012023-03-3110791074core:ContinuingOperations12021-04-012022-03-3110791074core:ContinuingOperations2021-04-012022-03-3110791074core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3110791074core:RetainedEarningsAccumulatedLosses2021-04-012022-03-31107910742022-03-3110791074core:Non-currentFinancialInstruments2023-03-3110791074core:Non-currentFinancialInstruments2022-03-3110791074core:CurrentFinancialInstruments2023-03-3110791074core:CurrentFinancialInstruments2022-03-31107910742022-03-3110791074core:ShareCapital2023-03-3110791074core:ShareCapital2022-03-3110791074core:RetainedEarningsAccumulatedLosses2023-03-3110791074core:RetainedEarningsAccumulatedLosses2022-03-3110791074core:OtherMiscellaneousReserve2021-03-3110791074core:FinancialInstrumentsFairValueThroughProfitOrLoss2022-04-012023-03-311079107412022-04-012023-03-311079107412021-04-012022-03-3110791074core:ComputerEquipment2022-03-3110791074core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-03-3110791074core:ComputerEquipment2023-03-3110791074core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-03-3110791074core:ComputerEquipment2022-04-012023-03-3110791074core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-04-012023-03-3110791074core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2023-03-3110791074core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2022-03-3110791074bus:PrivateLimitedCompanyLtd2022-04-012023-03-3110791074bus:Audited2022-04-012023-03-3110791074bus:FullIFRS2022-04-012023-03-3110791074bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP