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Registration number: 06661827

Pentland Road Windfarm Limited

Annual Report and Unaudited Financial Statements

for the year ended 31 December 2023

 

Pentland Road Windfarm Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 10

 

Pentland Road Windfarm Limited

(Registration number: 06661827)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed Assets

 

Tangible Assets

4

10,724,446

11,835,566

Current assets

 

Debtors

5

2,453,864

2,203,101

Cash at bank and in hand

 

1,875,476

2,421,820

 

4,329,340

4,624,921

Creditors: Amounts falling due within one year

6

(2,828,404)

(2,950,326)

Net current assets

 

1,500,936

1,674,595

Total assets less current liabilities

 

12,225,382

13,510,161

Creditors: Amounts falling due after more than one year

6

(7,399,652)

(8,975,922)

Provisions for liabilities

(2,139,934)

(2,299,643)

Net assets

 

2,685,796

2,234,596

Capital and Reserves

 

Called up share capital

8

3

3

Retained Earnings

2,685,793

2,234,593

Shareholders' funds

 

2,685,796

2,234,596

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 12 June 2024 and signed on its behalf by:
 

 

Pentland Road Windfarm Limited

(Registration number: 06661827)
Balance Sheet as at 31 December 2023

Mr M D L Huntingford
Director

Mr P J Crone
Director

 
     
 

Pentland Road Windfarm Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Harpford Farm
Payton
WELLINGTON
Somerset
TA21 0EE

These financial statements were authorised for issue by the Board on 12 June 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention. All amounts are stated in £'s.

Going concern

The financial statements have been prepared on a going concern basis.

 

Pentland Road Windfarm Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Judgements

There are no judgements which management have made in the process of applying the accounting policies.

Key sources of estimation uncertainty

There are no key sources of estimation uncertainty that have a significant risk of causing a material adjustment to assets and liabilities to be disclosed.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of electricity in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The corporation tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

 

Pentland Road Windfarm Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Tangible Assets

Tangible Assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Freehold land is recognised at historic cost and depreciated over the life of the windfarm project (as the land is disposed of at a nominal amount of £1 at the end of this term). Plant and machinery is depreciated over the expected lifetime of the windfarm, as follows:

Asset class

Depreciation method and rate

Land

5% straight line basis

Plant and machinery

5% straight line basis

Motor vehicles

25% reducing balance basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade Debtors

Trade Debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade Debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade Creditors

Trade Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade Creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Pentland Road Windfarm Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Pentland Road Windfarm Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Financial instruments

Classification
Basic financial assets include trade and other debtors, cash and bank balances. Basic financial liabilities include trade and other payables, bank loans and preference shares that are classified as debt.
 Recognition and measurement
Basic financial assets 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. Such assets are subsequently carried at amortised cost using the effective interest method. Other debtors are classified as current assets if payment is due within one year or less and are initially recorded at transaction price and subsequently measured at the undiscounted amount of the cash expected to be received. Trade debtors are referred to above.

Basic financial liabilities 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. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Other creditors are classified as current liabilities if payment is due within one year or less and are recognised initially at transaction price and subsequently measured at the undiscounted amount of the cash expected to be paid. If not, they are presented as non-current liabilities and are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Trade creditors and leases are referred to above.

 Impairment
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is 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.

 

Pentland Road Windfarm Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

3

Staff numbers

The average number of persons employed by the company (including directors under service contract) during the year, was 2 (2022 - 2).

4

Tangible Assets

Land and buildings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

50,000

21,707,878

177,664

21,935,542

At 31 December 2023

50,000

21,707,878

177,664

21,935,542

Depreciation

At 1 January 2023

22,917

9,949,299

127,760

10,099,976

Charge for the year

2,500

1,092,000

16,620

1,111,120

At 31 December 2023

25,417

11,041,299

144,380

11,211,096

Carrying amount

At 31 December 2023

24,583

10,666,579

33,284

10,724,446

At 31 December 2022

27,083

11,758,579

49,904

11,835,566

Included within the net book value of land and buildings above is £24,583 (2022 - £27,083) in respect of freehold land.
 

5

Debtors

Current

2023
£

2022
£

Trade Debtors

127

(1,076)

Prepayments

1,412,790

651,557

Other debtors

1,040,947

1,552,620

 

2,453,864

2,203,101

 

Pentland Road Windfarm Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

6

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

1,576,299

1,475,556

Trade Creditors

 

862,307

828,641

Taxation and social security

 

144,824

408,456

Accruals and deferred income

 

244,867

237,566

Other creditors

 

107

107

 

2,828,404

2,950,326

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

7,399,652

8,975,922

2023
£

2022
£

Due after more than five years

After more than five years by instalments

464,921

2,286,307

-

-

7

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

2,299,643

2,299,643

Increase (decrease) in existing provisions

(159,709)

(159,709)

At 31 December 2023

2,139,934

2,139,934

 

Pentland Road Windfarm Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

8

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary Shares of £1 each

3

3

3

3

         

9

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

7,399,652

8,975,922

2023
£

2022
£

Current loans and borrowings

Bank borrowings

1,576,299

1,475,556

Bank borrowings

Bank loan is denominated in sterling (GBP). The carrying amount at year end is £8,975,951 (2022 - £10,451,478).

The bank loan is secured over the assets of the company and amounts due after more than five years are £464,921 (2022 - £2,286,307).