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Registered number: 09022229












DARROCH POWER LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

 

DARROCH POWER LIMITED

CONTENTS



Page
Company information
 
1
Balance sheet
 
2 - 3
Notes to the financial statements
 
4 - 12


 

DARROCH POWER LIMITED
 
COMPANY INFORMATION


Directors
S Watson 
M Hubbard 




Registered number
09022229



Registered office
C/O Temporis Capital Limited 7th Floor, Wellington House
125 -130 Strand

London

WC2R 0AP




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1


 
REGISTERED NUMBER:09022229
DARROCH POWER LIMITED

BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible fixed assets
  
8,286,334
8,482,668

  
8,286,334
8,482,668

Current assets
  

Debtors: amounts falling due after more than one year
 5 
1,279,328
676,261

Debtors: amounts falling due within one year
 5 
699,878
841,689

Cash at bank and in hand
  
653,653
246,802

  
2,632,859
1,764,752

Creditors: amounts falling due within one year
 6 
(675,554)
(740,947)

Net current assets
  
 
 
1,957,305
 
 
1,023,805

Total assets less current liabilities
  
10,243,639
9,506,473

Creditors: amounts falling due after more than one year
 7 
(8,099,000)
(8,563,753)

Provisions for liabilities
  

Deferred tax
 8 
(594,066)
(287,636)

  
 
 
(594,066)
 
 
(287,636)

Net assets
  
1,550,573
655,084


Capital and reserves
  

Called up share capital 
 9 
15,000
15,000

Profit and loss account
  
1,535,573
640,084

Total equity
  
1,550,573
655,084


Page 2


 
REGISTERED NUMBER:09022229
DARROCH POWER LIMITED
    
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




S Watson
Director

Date: 7 March 2024

The notes on pages 4 to 12 form part of these financial statements.

Page 3

 

DARROCH POWER LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

Darroch Power Limited is a private company limited by shares incorporated in England and Wales. The address of its registered office is 7th Floor, Wellington House, 125 -130 Strand, London, England, WC2R 0AP.
The financial statements are presented in Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Going concern

Having considered post year-end trading and financial results, cash reserves and committed borrowing facilities, and after making enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and will continue to be supported by its principal lenders to meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements are approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Sterling (£).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses are presented in the profit and loss account within 'administrative costs'.

Page 4

 

DARROCH POWER LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue represents amounts receivable from the generation and sale of electricity and associated benefits, net of VAT and is recognised on a receivable basis according to the quantity of electricity generated, once this can be reliably measured and it is probable that the economic benefits associated with the transactions will flow to the entity.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest 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.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 5

 

DARROCH POWER LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Power Station
-
50 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.11

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 6

 

DARROCH POWER LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.12

Financial instruments

The Company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the Company becomes party to the contractual provisions of the instrument. 

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.
.
The Company’s policies for its major classes of financial assets and financial liabilities are set out below. 

Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Financial liabilities
Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.


Page 7

 

DARROCH POWER LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

  

Financial instruments (continued)

Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the Company would receive for the asset if it were to be sold at the reporting date. 
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

 
2.13

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Employees

The average monthly number of employees, including directors, during the year was 2 (2022 - 2).

Page 8

 

DARROCH POWER LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

4.


Tangible fixed assets





Plant and machinery

£



Cost


At 1 April 2022
9,731,552



At 31 March 2023

9,731,552



Depreciation


At 1 April 2022
1,248,884


Charge for the year on owned assets
194,334


Disposals
2,000



At 31 March 2023

1,445,218



Net book value



At 31 March 2023
8,286,334



At 31 March 2022
8,482,668

Included within power station costs are capitalised historic interest and finance costs of £746,169 (2022- £746,169). 


5.


Debtors

2023
2022
£
£

Due after more than one year

Interest rate SWAP
1,279,328
676,261


2023
2022
£
£

Due within one year

Trade debtors
1,450
75,512

Other debtors
4,837
1,222

Prepayments and accrued income
693,591
764,955

699,878
841,689


Page 9

 

DARROCH POWER LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

6.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
437,542
482,055

Other loans
111,111
111,111

Trade creditors
8,213
7,915

Other taxation and social security
33,380
30,247

Other creditors
85,308
109,619

675,554
740,947


The following liabilities were secured:

2023
2022
£
£



Bank loans
437,542
482,055



Page 10

 

DARROCH POWER LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

7.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
6,473,752
6,911,238

Other loans
1,625,248
1,652,515

8,099,000
8,563,753


The following liabilities were secured:

2023
2022
£
£



Bank loans
6,473,752
6,911,328

Details of security provided:

Included in bank loans is £437,452 (2022 - £482,055) due within one year and £5,473,295 (2022 - £6,911,328) due after more than one year, which is secured by way of a fixed legal charge over the generating asset and leasehold at Darroch Power, Glenfalloch Estate, Crianlarich, Perthshire and all other company assets.
Included in other loans is £111,111 (2022 - £111,111) due within one year and £1,192,956 (2022 - £1,222,223) due after more than one year, which is payable to the shareholders. Interest on the shareholders' loans is charged at 10.5% per annum and is payable quarterly. Overdue interest is subject to an additional 3% interest charge per annum. 
Also included in other loans is £430,292 (2022 - £430,292) due after more than one year which is payable to Osspower Limited, a company with common directors. This amount is payable when Darroch Power Limited shareholders have achieved a specified Hurdle Return of 14% IRR. This amount is also interest free.


8.


Deferred taxation




2023


£






At beginning of year
(287,636)


Charged to profit or loss
(306,430)



At end of year
(594,066)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(594,066)
(287,636)

Page 11

 

DARROCH POWER LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

9.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



300,000 (2022 - 300,000) Ordinary shares of £0.01 each
3,000
3,000
1,200,000 (2022 - 1,200,000) Ordinary 'B' shares of £0.01 each
12,000
12,000

15,000

15,000

The holders of all ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.



10.


Commitments under operating leases

At 31 March 2023 the company had future minimum lease payments due under non-cancellable operating leases amounting to £675,675 (2022 - £697,125).



11.


Directors' fees

J T Watson as director of the Company (resigned 23 December 2021) was paid £nil (2022 - £5,088) during the year as remuneration in respect of services performed in his capacity as director.


12.


Auditor's information

The auditor's report on the financial statements for the year ended 31 March 2023 was unqualified.

The audit report was signed on 7 March 2024 by Russell Tenzer (FCA) (senior statutory auditor) on behalf of Blick Rothenberg Audit LLP.

 
Page 12