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REGISTERED NUMBER: SC367490 (Scotland)















Achnacarry Hydro Ltd

Financial Statements

for the period

1 October 2021 to 31 March 2023






Achnacarry Hydro Ltd (Registered number: SC367490)

Contents of the Financial Statements
for the period 1 October 2021 to 31 March 2023










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Achnacarry Hydro Ltd

Company Information
for the period 1 October 2021 to 31 March 2023







Directors: C Arnoult
J M Hick





Secretary: Hanway Advisory Limited





Registered office: Inveralmond Road
Inveralmond Industrial Estate
Perth
PH1 3TW





Registered number: SC367490 (Scotland)





Auditors: Cooper Parry Group Limited
Statutory Auditor
250 Fowler Avenue
Farnborough
Hampshire
GU14 7JP

Achnacarry Hydro Ltd (Registered number: SC367490)

Balance Sheet
31 March 2023

2023 2021
Notes £ £ £ £
Fixed assets
Tangible assets 4 6,409,328 6,758,548

Current assets
Debtors 5 820,066 311,553
Cash at bank 220,532 412,841
1,040,598 724,394
Creditors
Amounts falling due within one year 6 403,659 968,589
Net current assets/(liabilities) 636,939 (244,195 )
Total assets less current liabilities 7,046,267 6,514,353

Creditors
Amounts falling due after more than one
year

7

(5,991,709

)

(2,725,515

)

Provisions for liabilities 9 (649,220 ) (634,681 )
Net assets 405,338 3,154,157

Capital and reserves
Called up share capital 10 200 200
Capital reserve 11 697,508 697,508
Retained earnings 11 (292,370 ) 2,456,449
Shareholders' funds 405,338 3,154,157

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 29 February 2024 and were signed on its behalf by:





C Arnoult - Director


Achnacarry Hydro Ltd (Registered number: SC367490)

Notes to the Financial Statements
for the period 1 October 2021 to 31 March 2023


1. Statutory information

Achnacarry Hydro Ltd 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.

2. Accounting policies

Basis of preparation
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 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 pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies are set out below.

Going concern
The directors have prepared a funding model which covers the period to 31 March 2081 and models income and expenditure as well as cash flows for this period. As the cost base of the company is stable, sensitivities have been applied to the income levels to assess the level of headroom available should income fall by up to 30%. The directors consider the probability of a fall of 30% in income to be remote. Even in this unlikely event, there would be sufficient funds for the company to meet all liabilities as they fall due for at least a period of 12 months from the date of approval of these financial statements.

As a result of these factors, the directors do not consider there to be a material uncertainty arising over the going concern basis of preparation.

Turnover
Revenue is recognised by the company in respect of electricity generation during the period. Revenue is recorded net of discounts and value added taxes.

Revenue from electricity generation is recognised when all of the following conditions are satisfied:
- the company has transferred the significant risks and rewards of ownership to the buyer;
- the company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably;
- it is probable that the company will receive the consideration due under the transaction; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Hydro facilities plantover lease term
Motor vehicles4 years
Restoration assetover lease term

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 balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets
Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.


Achnacarry Hydro Ltd (Registered number: SC367490)

Notes to the Financial Statements - continued
for the period 1 October 2021 to 31 March 2023


2. Accounting policies - continued
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 and loans from fellow group companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

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.

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.

Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.

Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing 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.

Current tax
The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported in the profit and loss account 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.

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.

Finance costs
Finance costs incurred on loans directly attributable to the construction of the hydro facilities plant are capitalised during the period of construction.

When construction is complete, finance costs are charged to the statement of comprehensive income over the term of the debt using the effective interest rate method.

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.

Operating lease: the company as lessee
Rentals paid under operating leases are charged to the statement of comprehensive income on a straight line basis over the lease term, except where they are incurred in the period of construction of the hydro facility plant, and capitalised.

Interest income
Interest income is recognised in the statement of comprehensive income when income is receivable.


Achnacarry Hydro Ltd (Registered number: SC367490)

Notes to the Financial Statements - continued
for the period 1 October 2021 to 31 March 2023


2. Accounting policies - continued
Restoration cost
The total cost of land restoration is recognised as a provision when the obligation arises. The amount provided represents the directors' estimate of the present value of the future expected costs. Costs are charged to the provision as incurred and the unwinding of the discount is included in the interest charge for the year. An asset is created for an amount equivalent to the initial provision and depreciated according to the policy above.

3. Employees and directors

The average number of employees during the period was NIL (2021 - NIL).

4. Tangible fixed assets
Hydro
facilities Restoration Motor
plant asset vehicles Totals
£ £ £ £
Cost
At 1 October 2021
and 31 March 2023 7,811,576 126,753 15,099 7,953,428
Depreciation
At 1 October 2021 1,156,873 22,908 15,099 1,194,880
Charge for period 343,329 5,891 - 349,220
At 31 March 2023 1,500,202 28,799 15,099 1,544,100
Net book value
At 31 March 2023 6,311,374 97,954 - 6,409,328
At 30 September 2021 6,654,703 103,845 - 6,758,548

Included in hydro facilities plant are capitalised finance costs of £541,204 (2021 - £541,204).

5. Debtors
2023 2021
£ £
Amounts falling due within one year:
Trade debtors 35,589 2,361
Other debtors - 73,127
Prepayments and accrued income 659,648 202,838
695,237 278,326

Amounts falling due after more than one year:
Restoration account 36,386 33,227
Other debtors 88,443 -
124,829 33,227

Aggregate amounts 820,066 311,553

As part of being granted their lease, the Company is required to place funds in a ring fenced account which is to be used solely for the restoration of the land to its original condition at the end of the project. These funds are inaccessible until the completion of the project and therefore have been segregated from cash at bank and current assets.

Achnacarry Hydro Ltd (Registered number: SC367490)

Notes to the Financial Statements - continued
for the period 1 October 2021 to 31 March 2023


6. Creditors: amounts falling due within one year
2023 2021
£ £
Other loans - 389,286
Trade creditors 75,638 77,104
Amounts owed to group undertakings 1,236 -
Tax 116,801 90,992
VAT 34,028 80
Other creditors 70,569 70,569
Accruals and deferred income 105,387 340,558
403,659 968,589

7. Creditors: amounts falling due after more than one year
2023 2021
£ £
Secured loans 5,991,709 2,725,515

8. Secured debts

The following secured debts are included within creditors:

2023 2021
£ £
Secured loans 5,991,709 2,725,515

The loan from TENT Holdings Limited, formerly TEEC Holdings Limited, is secured by a fixed and floating charge over the assets of the company. During the period, the loans from Triple Point Income VCT plc and Triple Point VCT 2011 plc have been repaid. The existing loan is repayable the earlier of either 10 December 2036, or when the lender ceases to own shares in the company.

9. Provisions for liabilities
2023 2021
£ £
Deferred tax 483,724 484,557
Other provisions 165,496 150,124
649,220 634,681

Deferred Other
tax provisions
£ £
Balance at 1 October 2021 484,557 150,124
(Decrease)/increase in period (833 ) 15,372
Increase in deferred tax rate
Balance at 31 March 2023 483,724 165,496

Other provisions
This provision relates to the obligation to restore the land on which the hydro facilities plant has been constructed in accordance with the terms of the lease.

Achnacarry Hydro Ltd (Registered number: SC367490)

Notes to the Financial Statements - continued
for the period 1 October 2021 to 31 March 2023


10. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2021
value: £ £
18,938 Ordinary £0.001 19 19
81,463 A Ordinary £0.001 81 81
100,000 B Ordinary £0.001 100 100
200 200

The Ordinary, A Ordinary and B Ordinary shares rank pari passu in all respects.

11. Reserves
Retained Capital
earnings reserve Totals
£ £ £

At 1 October 2021 2,456,449 697,508 3,153,957
Deficit for the period (600,623 ) - (600,623 )
Dividends (2,148,196 ) - (2,148,196 )
At 31 March 2023 (292,370 ) 697,508 405,138

The capital reserve balance brought forward represents the balance on the share premium account following cancellation of the share premium in the year ending 30 September 2016. This reserve is distributable.

12. Disclosure under Section 444(5B) of the Companies Act 2006

The Auditors' Report was unqualified.

Roz McFarlane (Senior Statutory Auditor)
for and on behalf of Cooper Parry Group Limited

13. Financial commitments

At 31 March 2023 the company had future minimum lease payments due under non-cancellable operating leases, as follows:
20232021
£ £
Total future minimum payments under non-cancellable operating leases833,159717,800

There are operating leases in connection with the rental of the land. These are represented by an annual base rent of £32,186 (2021 - £22,500) which is linked to the retail price index and based on the annual gross revenue of Achnacarry Hydro Ltd. These leases are due to expire in 2040 and 2054.

Community benefit
20232021
£ £
Total future minimum payments497,456248,562

This agreement is due to expire in 2040.

Achnacarry Hydro Ltd (Registered number: SC367490)

Notes to the Financial Statements - continued
for the period 1 October 2021 to 31 March 2023


14. Related party disclosures

At the period end the company owed £Nil (2021: £1,206,146) of loan principal to Triple Point Income VCT PLC. During the period interest of £Nil (2021: £298,028) was charged to profit or loss.

At the period end the company owed £5,991,709 (2021: £Nil) of loan principal to TENT Holdings Limited, formerly TEEC Holdings Limited. During the period interest of £390,692 (2021: £Nil) was charged to profit or loss.

15. Ultimate controlling party

The ultimate controlling party is Triple Point Energy Transition Plc, formerly Triple Point Energy Efficiency Infrastructure Company Plc, whose registered office is 1 King William Street, London, EC4N 7AF.