The directors present the strategic report for the year ended 31 December 2022.
The principal activity of the Company continues to be the operation of a biomass energy plant for the generation of electricity.
The key financial and other performance indicators during the year were as follows:
| 2022 | 2021 |
| £ | £ |
Revenue | 42,669,704 | 42,150,219 |
Operating profit/(loss) | 12,702,604 | 12,811,829 |
Earnings before interest, tax, and depreciation | 20.601,850 | 20,544,059 |
Electricity generated | 242,035MWh | 270,669MWh |
Revenue increased in the year by £519,485 (1.2%). Revenue has increased on the prior year following high brown power prices.
Future outlook
Waste wood arisings have continued at pre-pandemic levels throughout 2022. Arisings tend to follow GDP, so a recession in 2023 might impact waste wood availability, albeit that the supplier maintains strategic stocks across the country.
The key value driver affecting operating UK renewable energy generators is the wholesale power price.
The directors do not expect any material change to its business as a result of the UK exiting the EU. A significant change in exchange rates could impact the power price. Further, the nature of the UK’s electricity market and relationship with that of the EU remains unclear.
The company intends to continue operation as a biomass energy plant, generating electricity from waste wood supply.
In the ordinary course of business, the company is exposed to and manages a variety or risks in relation to its operating activities. The management of risk is fundamental to the company, with the board of directors having responsibility for the overall system of internal control and for reviewing its effectiveness.
The principal risks and uncertainties facing the company are broadly grouped as such as regulatory, fuel, technical and financial instrument risk.
Regulatory risk
Regulatory risk may arise from a change in regulations and law that might affect industry or business. Renewable energy projects are dependent for their commercial viability on a suitable regulatory regime. There is a risk that the government may introduce retrospective changes to the regime that was agreed at the time the project commenced. This is unusual in the market and changes to the regulatory regime are more typically for future projects.
Both legislative and regulatory risk are managed by awareness of industry news, publications and regular communication with industry experts and the regulator.
Fuel risk
The availability of woodchip in the market is subject to the ongoing operations of the UK construction industry and Household Waste Recycling Centres (HWRC). The company has mechanisms and processes in place that seek to mitigate the risk of insufficient volumes being available by ensuring buffer stocks are held by the fuel supplier and maintaining the ability to source fuel from European markets.
Technical risks
The company is exposed to technical risks with the operation of its biomass plant that could reduce availability for electricity generation, particularly with long lead times for certain components. To mitigate against this technical risk the company has contracted a team of experienced engineers who are responsible for monitoring and managing performance. Additionally, a store of key spare parts for the plant is maintained.
Macroeconomic
Russia's invasion of Ukraine during 2022 created geopolitical instability which impacted commodity prices, inflation rates and interest rates after the year end. At the time of signing these financial statements the macroeconomic environment has begun to stabilise, with inflation rates falling.
Financial instrument risks
Financial instrument risks are described in Notes 16 and 17.
In carrying out their roles, the directors have acted in a manner that promotes the success of the Company for the benefit of our stakeholders, following the principles set out in section 172(1)(a)-(f) of the Companies Act 2006.
They have considered the long-term financial and operational impacts of their decisions to ensure the health and longevity of the business.
They have worked to maintain strong relationships with all stakeholders, including, operational and maintenance contractors, fuel suppliers, and energy buyers.
The board strictly adheres to environmental policies and the directors consider how the company's activities affect the environment and the community.
The board acknowledges its responsibilities towards the health and safety of contractors engaged by the company. The board strives to ensure that contractors and site visitors abide by rigorous health and safety guidelines in line with best practices and relevant legislation.
The directors display a commitment to fair and transparent dealings with our members and wider investors.They ensure the ultimate shareholders are regularly informed about the company’s performance and any key developments.
On behalf of the board
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
No preference dividends were paid. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The Directors have prepared cash flow forecasts for the period to 30 September 2024, including undertaking plausible sensitivity analysis to those forecasts considering both the risk of reductions in revenues due to reduced output from the plant and lower energy prices. These forecasts and sensitivities indicate that the Company will generate sufficient cash to meet its obligation.
The Directors have concluded that the Company will be able to continue in operational existence for the foreseeable future. Consequently, the Directors have concluded that it is appropriate to prepare these financial statements on a going concern basis. Accordingly, these financial statements do not include any adjustments to the carrying amount or classification of assets and liabilities that would result if the Company was unable to continue as a going concern.
The company has chosen to present information on its financial risk management policies in the Strategic report in accordance with Section 414 C (11) of the Companies Act 2006.
Azets Audit Services were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
In accordance with the Streamlined Energy and Carbon Reporting (SECR) regulations, the directors present the Company’s energy usage, related emissions, and energy efficiency actions:
Metrics
Renewable energy generators avoid CO2 emissions on a net basis at a rate of approximately 0.40 tonnes of CO2/MWh. This conversion factor may vary depending on geography. In 2022, the asset’s CO2 emission reductions are approximately 106,467 tonnes per annum. The asset is also generating sufficient electricity to power 91,782 homes, at 2.9MWh per annum per home in the UK.
The third-party operations and maintenance (“O&M”) service providers report to the board asset on a monthly basis on a standard set of KPIs and qualitative factors, such as health and safety compliance of O&M providers, compliance with relevant laws and regulations, local community engagement and habitat management, where relevant. Any material ESG incidents are communicated to the directors.
KPI data is supplemented by specialist external advisers such as environmental consultants, as required.
Emissions disclosures
|
| Period ended 31 December 2022 |
Scope 1 – Direct emissions (tonnes CO2) |
| 10,332 |
Scope 2 – Indirect emissions (tonnes CO2)* |
| - |
Scope 3 – Indirect emissions (tonnes CO2) |
| 13,158 |
Total Scope 1, 2 and 3 emissions (tonnes CO2) |
| 23,490 |
*The underlying investment does not import any electricity, but uses energy produced on site. As this energy is classed as a renewable source, under the GHG Protocol, this is considered to have zero scope 2 emissions.
Carbon footprint indicators are measured in line with the industry standard GHG Protocol based on an equity control approach, meaning emissions from the Company’s operations are weighted according to the SPV’s ownership interest. Scope emissions calculations will be verified by third party consultants. The sustainability indicators are subject to an annual review to ensure continuous improvement and transparency on ESG matters.
Scope 3 emissions are the result of activities from assets not owned or controlled by the Company, but that the Company indirectly impacts in its value chain. Scope 3 emissions include all sources not within the Company’s Scope 1 and 2 boundary and include, inter alia, emissions arising from the construction of assets acquired in the period, including those emissions associated with the manufacturing and transport of all equipment and material, before the asset was commissioned.
We have audited the financial statements of Margam Green Energy Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The Statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
The notes on pages 13 to 29 are an integral part of these financial statements.
Margam Green Energy Limited is a private company limited by shares incorporated in England and Wales. The company is domiciled in England having its registered address at 4th Floor The Peak, 5 Wilton Road, London, England, SW1V 1AN. The company's principal activities and nature of its operations are disclosed in the directors' report. |
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 £.
Revenue comprises amounts received and receivable in respect of generated electricity and Renewable Obligation Certificates (ROCs). Revenue in respect of both energy generation and ROCs is recognised over time. Under the terms of its Power Purchase Agreements (PPA) with customers, ROCs are immediately transferable to the customer.
Revenue from PPAs with customers is recognised when control of the goods are transferred to the customer at an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods. Revenue on the generation of energy is recognised based upon the value of units supplied during the year at the price under the PPA, with the number of units determined by energy volumes recorded on the plant meters and market settlement systems. The company has concluded that it is the principle in its revenue arrangements because it typically controls the goods before they are transferred to the PPA counterparty.
All revenue recognised in the year relates to performance obligations satisfied in the year. There are no significant judgements taken in respect of the recognition of revenues.
While the performance obligation is satisfied as the electricity is generated, payment is generally invoiced within 30 days from supply of the energy or 90 days from transfer of the ROCs, with the related amount recognised as a trade receivable or accrued income until payment is received from the customer. Payment terms under the Power Purchase Agreement are 10 business days from invoice date.
The company has no material contract assets or liabilities other than trade debtors and accrued income as disclosed in note 11. There is only one operating activity and all revenue is generated within the United Kingdom.
Freehold land is not depreciated.
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 recognised in the income statement.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
The tax expense represents the sum of the tax currently payable and deferred tax.
In the current year, the following new and revised Standards and Interpretations have been adopted by the company and have an effect on the current period or a prior period or may have an effect on future periods:
Changes to other Standards or Interpretations issued by the IASB and effective for an annual period that begins on or after 1 January 2022 and omitted because they are not relevant to the company.
At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been adopted by the EU):
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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
In the course of preparation of these financial statements, no judgements or estimates have been made in the application of accounting policies.
The average monthly number of persons (including directors) employed by the company during the year was:
No remuneration was paid out to Directors of the company as they provided negligible qualifying services to the company (2021: £nil). The company has no employees other than the Directors (2021: none).
The charge for the year can be reconciled to the profit/(loss)before taxation per the Statement of comprehensive income as follows:
Included within Property, Plant and Equipment is a total of £33,805,480 (2021: £33,805,480) of interest capitalised, of which £17,760,330 (2021: £17,760,330) relates to the bank loan and facility charges and £16,045,150 (2021: £16,045,150) relates to intercompany loan interest.
Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.
Included in other debtors due after more than one year is the sum of £1,750,000. This reflects a requirement in the purchase power agreement between Margam Green Energy and its priciple customer that this level of credit support is maintained to the end of the contract period.
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
A provision for doubtful debts of £0 (2021: £1,760,682 ) is included in the above.
No significant receivable balances are impaired at the reporting end date.
Restricted cash of £Nil (2021: £3,434,265 ) and cash equivalents £33,721,965 (2021: £13,436,935 ) relate to project bank accounts that have restrictions put in place by the company’s lender with regard to the nature of proceeds and payments that can be lodged or withdrawn.
Borrowings at 31 December 2022 consists of a loan due from the company's immediate parent, it is repayable on 31 March 2042 and bears interest at 6.5%.
Fair value
The company uses the hierarchy as set out in IFRS 7 Financial Instruments: Disclosure for determining the fair value of derivatives by valuation technique. Assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1: quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2: valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and
Level 3: valuation techniques for which the lowest level input that is significant to the fair value measurement is not observable.
The fair value of all financial assets and liabilities is based on the present value of the cash flows discounted at prevailing market rates at each balance sheet date and are considered to fall within the level 2 techniques of IFRS 13 “Fair Value Measurement”.
Financial assets
Financial assets that are debt instruments measured at amortised cost
|
| Carrying value |
| Fair value |
| 2022 |
| 2021 |
| 2022 |
| 2021 | |
| £ |
| £ |
| £ |
| £ | |
Cash and cash equivalents | 33,721,965 |
| 13,436,935 |
| 33,721,965 |
| 13,436,935 | |
Restricted cash and cash equivalents | - |
| 3,434,265 |
| - |
| 3,434,265 | |
Trade and other receivables | 12,461,114 |
| 12,866,901 |
| 12,461,114 |
| 12,866,901 | |
Total | 46,183,079 |
| 29,738,101 |
| 46,183,079 |
| 29,738,101 |
Current receivables which are level 2 assets, all due within one year, and have been provided for where impaired, have a carrying value that is considered to be materiality in line with their fair value due to the short-term maturity of these items.
Financial liabilities
Derivative financial liabilities
| Carrying value |
| Fair value | ||||||
| 2022 |
| 2021 |
| 2022 |
| 2021 | ||
| £ |
| £ |
| £ |
| £ | ||
Interest rate swap | - |
| 1,969,381 |
| - |
| 1,969,381 | ||
Total | - |
| 1,969,381 |
| - |
| 1,969,381 |
The fair value of interest rate swaps has been valued calculating the present value of future cash flows estimated using forward rates from third part market price quotations. The models incorporate various inputs including the credit quality of counterparties and interest rate curves. At 31 December 2021, the marked-to-market value of the derivatives was calculated, using significant variable inputs.
The following table details the remaining contractual maturity for the company's financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the company may be required to pay.
The company is exposed to market risk, credit risk and liquidity risk. The company’s senior management oversees the management of these risks, and the Directors review and agree policies for managing each of these risks, which are summarised below.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise a number of types of risk, the following are discussed below: interest rate risk and currency risk. Financial instruments affected by market risk include: loans and borrowings, deposits and derivative financial instruments.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. At 31 December 2022 the company's borrowings were at a fixed rate of interest.
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The company manage this exposure through active monitoring of exchange rate movements.
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily for other receivables) and from its financing activities, including deposits with banks and financial institutions, and other financial instruments. The maximum exposure to credit risk, in the event that counterparties’ fail to perform their obligations as at period end (in relation to each class of recognised financial assets), is the carrying amount of those assets as indicated in the Statement of Financial Position.
Liquidity risk
Liquidity risk is the risk that the company may not be able to generate sufficient cash resources to settle its obligations in full as they fall due. The Board holds regular meetings with management to ensure sufficient cash is available for operations.
Management of capital
The primary objective of the company’s management of capital is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value. The company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. No changes were made in the objectives, policies or processes during the year ended 31 December 2022.
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Deferred tax provision
Deferred tax has not been recognised on restricted interest of £24,364,863 (2021: £32,279,797) under Corporate Interest Restriction rules. This has not been recognised as the current criteria have not been met but may be in the future.
Factors that may affect future tax charges
Increase in the UK corporation tax rate from 19% to 25% was substantively enacted on 1 April 2023. Any deferred tax balance at 31 December 2022 has been calcuated using 25%.
The balances classified as share capital and share premium represents the proceeds (both nominal value and share premium) on issue of the company’s equity share capital comprising £0.01 ordinary shares.
The company has entered into contracts of which there are outstanding contractual commitments of £nil as at 31 December 2022 (2021: £97,213) for the replacement of fuel conveyors.
As at 31 December 2022, the company had a loan payable of £151,259,803 to the new Parent company, Greencoat Brecon Limited. During the period, the company accrued total interest payable on the loan of £6,397,744. The accrued interest remained payable at the end of the period and has been added to the loan principal balance.
The company had a change of ownership on 27 April 2022, the company settled the loan and accrued interest payable to the previous owners CEP Biomass Energy Limited. At 31 December 2021 company had a loan payable to CEP Biomass Energy Limited of £57,447,585 and accrued interest of £5,197,800. CEP Biomass Energy Limited owed the Company unpaid share capital totalling £100
During the year there was a receivable of expenses paid on behalf of Greencoat Breacon Limited totalling £43,241.