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REGISTERED NUMBER: 12294393 (England and Wales)













Financial Statements

for the Year Ended 31 December 2023

for

WKE (Middlesbrough) Ltd

WKE (Middlesbrough) Ltd (Registered number: 12294393)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


WKE (Middlesbrough) Ltd

Company Information
for the Year Ended 31 December 2023







DIRECTORS: M A Green
I Jones
C T Jones
R K Murray
C M Coulton





REGISTERED OFFICE: Waste Knot Energy
Riverside Park Road
Middlesbrough
Cleveland
TS2 1UT





REGISTERED NUMBER: 12294393 (England and Wales)





AUDITORS: Anderson Barrowcliff Limited
Statutory Auditors
Chartered Accountants
3 Kingfisher Court
Bowesfield Park
Stockton on Tees
TS18 3EX

WKE (Middlesbrough) Ltd (Registered number: 12294393)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 47,787,301 44,613,951

CURRENT ASSETS
Stocks 62,055 5,313
Debtors 5 2,030,566 1,169,493
Cash at bank and in hand 1,732,545 2,776,094
3,825,166 3,950,900
CREDITORS
Amounts falling due within one year 6 1,964,702 1,587,372
NET CURRENT ASSETS 1,860,464 2,363,528
TOTAL ASSETS LESS CURRENT LIABILITIES 49,647,765 46,977,479

CREDITORS
Amounts falling due after more than one
year

7

(60,744,887

)

(45,618,200

)

PROVISIONS FOR LIABILITIES (1,426,587 ) (1,426,587 )
NET LIABILITIES (12,523,709 ) (67,308 )

CAPITAL AND RESERVES
Called up share capital 8 1 1
Retained earnings (12,523,710 ) (67,309 )
SHAREHOLDERS' FUNDS (12,523,709 ) (67,308 )

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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 9 August 2024 and were signed on its behalf by:





M A Green - Director


WKE (Middlesbrough) Ltd (Registered number: 12294393)

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

1. STATUTORY INFORMATION

WKE (Middlesbrough) Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£), rounded to the nearest £.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty
As part of their annual review of the impairment of fixed assets, the directors have estimated the net present value of the company's future cash flows to calculate the value in use of the fixed assets, and consequently whether any impairment is required.

The directors also assess, based on estimated future costs, what the anticipated outlays will be in relation to the decommissioning of the company's fixed assets.

Turnover
Turnover represents amounts invoiced in respect of the intake of Solid Recovered Fuel (SRF) and the sale of Solid Improved Recovered Fuel (SIRF) pellets, excluding discounts, rebates, value added tax and other sales taxes. Turnover is recognised upon receipt of SRF and despatch of SIRF.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Long leasehold - Straight line over the term of the lease
Plant and machinery - 15 to 25 years straight line
Fixtures and fittings - 5 years straight line
Decommissioning asset - 25 years straight line

No depreciation was charged while the plant and machinery was under construction.

While the plant and machinery was under construction, interest was capitalised which was charged on loans taken out specifically for the purpose of constructing the plant.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.


WKE (Middlesbrough) Ltd (Registered number: 12294393)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Taxation
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

WKE (Middlesbrough) Ltd (Registered number: 12294393)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price. Such assets are subsequently carried at amortised cost using the effective interest method.

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.

Other financial assets, including investments in equity instruments of entities which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is nominally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in the profit and loss account.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow Group companies and preference shares that are classified as debt, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables 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 payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss unless they are included in a hedging arrangement.

Financial liabilities are derecognised when the liability is extinguished, that is when the associated contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

Financial assets and liabilities are offset and 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.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 7 (2022 - 6 ) .

WKE (Middlesbrough) Ltd (Registered number: 12294393)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

4. TANGIBLE FIXED ASSETS
Fixtures
Long Plant and and Decommissioning
leasehold machinery fittings Asset Totals
£    £    £    £    £   
COST
At 1 January 2023 643,858 42,501,642 41,864 1,426,587 44,613,951
Additions 86,847 6,278,430 13,211 - 6,378,488
Disposals - (391,553 ) (22,505 ) - (414,058 )
At 31 December 2023 730,705 48,388,519 32,570 1,426,587 50,578,381
DEPRECIATION
Charge for year 26,943 2,721,887 8,956 57,063 2,814,849
Eliminated on disposal - (20,393 ) (3,376 ) - (23,769 )
At 31 December 2023 26,943 2,701,494 5,580 57,063 2,791,080
NET BOOK VALUE
At 31 December 2023 703,762 45,687,025 26,990 1,369,524 47,787,301
At 31 December 2022 643,858 42,501,642 41,864 1,426,587 44,613,951

Included within plant and machinery at 31 December 2023 are capitalised borrowing costs of £8,442,563 (2022 - £8,142,563).

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 277,590 6,331
Other debtors 1,752,976 1,163,162
2,030,566 1,169,493

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 1,391,454 1,323,096
Amounts owed to group undertakings 140,270 170,037
Other creditors 432,978 94,239
1,964,702 1,587,372

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Amounts owed to group undertakings 60,744,887 45,618,200

WKE (Middlesbrough) Ltd (Registered number: 12294393)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR - continued

As at 31 December 2023 the company owed £48,197,491 (2022 - £34,182,404) to its parent company, Waste Knot Energy (Finance) Ltd. The loan accrues interest at 10% per annum compounding at each calendar quarter end. The loan is unsecured and, together with accrued interest, is repayable on demand, although this is not expected to be within one year from the balance sheet date.

Amounts falling due in more than 5 years:

Repayable otherwise than by instalments
Amounts owed to group undertakings12,181,45311,035,796

As at 31 December 2023 the company owed £12,181,453 (2022 - £11,035,796) to TPF Co-Investment BSI LP, an entity with a common ultimate controlling party to the company. The loan accrues interest at 10% per annum, compounding at each calendar quarter end. The loan is secured against the assets of the company. The loan is repayable at the earlier of (i) a sale, (ii) a listing, (iii) or 3 June 2030.

8. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1 Ordinary 1 1 1

9. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

David Shawcross FCA (Senior Statutory Auditor)
for and on behalf of Anderson Barrowcliff Limited

10. OTHER FINANCIAL COMMITMENTS

At 31 December 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

20232022
£   £   

Not later than 1 year667,872667,872
Later than 1 year and not later than 5 years2,671,4882,671,488
Later than 5 years11,437,30812,105,180
14,776,66815,444,540

WKE (Middlesbrough) Ltd (Registered number: 12294393)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

11. ULTIMATE CONTROLLING PARTY

The immediate controlling party is Waste Knot Energy (Finance) Limited, an entity registered in the UK.

The smallest group within which the company belongs and for which group financial statements are prepared is Gresham House Limited, an entity registered in the UK. The financial statements of Gresham House Limited can be obtained from Companies House.

The ultimate controlling party is Searchlight Capital Partners III SED, L.P., a Cayman Limited Partnership.