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REGISTERED NUMBER: SC369199 (Scotland)















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: D M Mackay
A McCormack
E F MacGregor
D S McDonald
I A Irvine
N Mackenzie
C A Macdonald





REGISTERED OFFICE: 26 Lewis Street
Stornoway
Isle of Lewis
HS1 2JF





REGISTERED NUMBER: SC369199 (Scotland)





AUDITORS: Mann Judd Gordon Ltd
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 9,730,877 10,298,072

CURRENT ASSETS
Debtors 6 1,264,831 1,038,183
Cash at bank and in hand 2,723,992 2,871,865
3,988,823 3,910,048
CREDITORS
Amounts falling due within one year 7 2,278,653 1,081,053
NET CURRENT ASSETS 1,710,170 2,828,995
TOTAL ASSETS LESS CURRENT
LIABILITIES

11,441,047

13,127,067

CREDITORS
Amounts falling due after more than one year 8 9,229,083 10,013,686
NET ASSETS 2,211,964 3,113,381

CAPITAL AND RESERVES
Called up share capital 2 2
Retained earnings 2,211,962 3,113,379
SHAREHOLDERS' FUNDS 2,211,964 3,113,381

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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 23 February 2024 and were signed on its behalf by:




N Mackenzie - Director



D M Mackay - Director


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 private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


The financial statements are rounded to the nearest £1.

2. STATEMENT OF COMPLIANCE

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 4% depreciation on cost
Fixtures and fittings - 33% depreciaton on cost

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 13,917,320 715 2,257 13,920,292
Disposals (10,578 ) - - (10,578 )
At 31 May 2023 13,906,742 715 2,257 13,909,714
DEPRECIATION
At 1 June 2022 3,619,248 715 2,257 3,622,220
Charge for year 556,617 - - 556,617
At 31 May 2023 4,175,865 715 2,257 4,178,837
NET BOOK VALUE
At 31 May 2023 9,730,877 - - 9,730,877
At 31 May 2022 10,298,072 - - 10,298,072

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.5.23 31.5.22
£    £   
Other debtors - 1,464
Prepaid expenses 264,318 95,592
Accrued income 855,295 772,551
Prepaid lender arrangement
fees 145,218 168,576
1,264,831 1,038,183

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.5.23 31.5.22
£    £   
Bank loans and overdrafts 767,470 604,457
Trade creditors 237,814 -
Amounts owed to group undertakings 17,133 16,308
Tax 185 185
VAT 201,415 184,623
Other creditors 81,027 570
Accrued expenses 973,609 274,910
2,278,653 1,081,053

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 845,749 767,470
Senior debt 2-5 years 2,682,897 2,707,488
Senior debt > 5 years by
instalments 5,682,439 6,503,597
Amounts owed to group undertakings 17,998 35,131
9,229,083 10,013,686

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 9,978,555 10,583,012

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.

Andrew Cumming CA (Senior Statutory Auditor)
for and on behalf of Mann Judd Gordon Ltd

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.