Registered number
13160086
Black Brook CHP Limited
Filleted Accounts
for the year ended 31 December 2023
Pages for filing with the Registrar
Black Brook CHP Limited
Registered number: 13160086
Statement of financial position
as at 31 December 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 5 2,241,578 2,251,664
Current assets
Debtors 6 102,407 79,393
Deferred tax asset 9 64,277 -
Cash at bank and in hand 447,635 104,341
614,319 183,734
Creditors: amounts falling due within one year 7 (437,048) (40,709)
Net current assets 177,271 143,025
Total assets less current liabilities 2,418,849 2,394,689
Creditors: amounts falling due after more than one year 8 (2,617,079) (2,440,151)
Net liabilities (198,230) (45,462)
Capital and reserves
Called up share capital 10,000 10,000
Profit and loss account (208,230) (55,462)
Shareholders' funds (198,230) (45,462)
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The profit and loss account has not been delivered to the Registrar of Companies.
The financial statements were approved by the board of directors and authorised for issue and are signed on its behalf by:
Graham Mackenzie
Director
Approved by the board on 24 June 2024
Black Brook CHP Limited
Notes to the Accounts
for the year ended 31 December 2023
1 Accounting policies
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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. The principal accounting policies adopted are set out below.
Going concern
At the date of approval of the financial statements, the company have prepared and approved up-
to-date management accounts, budgets and cash flow projections which include key revenue and cost assumptions that the directors consider reasonable and prudent. The shareholders have stated that they will not will not seek early repayment of the loan where this would be detrimental to the going concern status of the company.
Having considered the matters above, the company is of the view that it will have sufficient resources to continue to operate and meet debts as they fall due for the foreseeable future. The financial statements have therefore been prepared on a going concern basis.
Turnover
Turnover represents amounts receivable from the generation of electricity and heat from combined heat and power engines, net of VAT. Turnover from the sale of electricity is recognised when electricity is exported to the grid, that being the point at which the significant risks and rewards of ownership have passed to the buyer.
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Revenue and costs during commissioning of the asset that are directly attributable to the construction of the asst are added to the cost of that asset until such time as the assets are substantially ready for their intended use.
Once commissioned, depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Plant and equipment straight line over a 15 year period
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Borrowing costs related to fixed assets
Borrowing costs directly attributable to the construction of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use.
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
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.
Basic financial liabilities
Basic financial liabilities, including creditors and loan notes, 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. Financial liabilities classified as payable within one year are not amortised.
Loan notes 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. 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.
Tax
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 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.

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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
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 are included in the income statement for the period.
2 Critical accounting judgements and key sources of estimation uncertainty
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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Impairment of fixed assets
At each reporting period end, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication of impairment. If there is any such indication, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Deferred Tax
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.
3 Operating profit
2023 2022
£ £
Operating profit for the year is stated after charging:
Fees payable to the company's auditor for the audit of the company's financial statements 7,000 -
4 Employees
2023 2022
Average number of persons employed by the company - -
5 Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023 2,251,664
Additions 103,019
At 31 December 2023 2,354,683
Depreciation
At 1 January 2023 -
Charge for the year 113,105
At 31 December 2023 113,105
Net book value
At 31 December 2023 2,241,578
At 31 December 2022 2,251,664
Included within the carrying amount of plant and machinery is loan interest totalling £274,719 (2022: £216,554).
6 Debtors 2023 2022
£ £
Trade debtors 74,070 35,035
Other debtors 28,337 44,358
102,407 79,393
7 Creditors: amounts falling due within one year 2023 2022
£ £
Loan notes due within one year 361,268 13,462
Trade creditors 37,909 15,735
Other creditors 37,871 11,512
437,048 40,709
The company has granted securities to Iona Resource & Energy Efficiency (Strathclyde) LP, including a fixed charge, floating charge and negative pledge, secured over the assets of the company.
8 Creditors: amounts falling due after one year 2023 2022
£ £
Loan notes due within 1 - 5 years 487,763 305,580
Loan notes due after 5 years 2,129,316 2,134,571
2,617,079 2,440,151
Interest of 12% per annum is payable on loan notes of £2,978,347 (2022: £2,453,614). During the year £341,875 (2022: £202,518) was charged of which £269,275 (2022: £Nil) was paid and £72,600 (2022: £202,518) was capitalised.
9 Deferred Taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
2023 2022
£ £
Balances:
Opening balance - -
Movement for the year 64,277 -
Closing balance 64,277 -
10 Called up share capital 2023 2022
£ £
Ordinary share capital Issued and fully paid
10,000 Ordinary shares of £1 each 10,000 10,000
11 Related party transactions
During the period, loans of £452,133 (2022: £1,331,828) were advanced by Iona Resource & Energy Efficiency (Strathclyde) LP. Interest of £341,875 (2022: £202,518) was charged of which £269,275 (2022: £Nil) was paid and £72,600 (2022: £202,518) was capitalised. At the period end, loan notes of £2,978,347 (2022: £2,453,614) was due, and interest of £979 (2022: £807) was accrued and included in "Other creditors" in note 7. Iona Resource & Energy Efficiency (Strathclyde) LP is the sole shareholder in the company.
Iona Capital Limited charged financial management service fees, directors fees and recharged expenses of £59,733 (2022: £44,177). At the period end £9,760 (2022: £7,174) was due to Iona Capital Limited. Iona Capital Limited is a member of Iona EI (General Partner) 3 LLP which is the General Partner of Iona Resource & Energy Efficiency (Strathclyde) LP.
12 Capital Commitments
The company has entered into a contract for the design and construction of a gas-powered generation plant as a purchaser. Subject to the contractor meeting contract conditions, remaining milestone payments total £183,896 at year end.
13 Parent Company
In the opinion of the directors, the immediate controlling party is Iona Resource & Energy Efficiency (Strathclyde) LP due to it being the sole shareholder of the company. Further details of the general partner is disclosed in note 11.
14 Other information
Black Brook CHP Limited is a private company limited by shares and incorporated in England. Its registered office is:
123 Pall Mall
London
SW1Y 5EA
15 Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Kenneth McDowell.
The auditor was Saffery Champness LLP.
The audit report was signed on 26/06/2024
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