REGISTERED NUMBER: |
Financial Statements |
for the Year Ended 31 December 2023 |
for |
WKE (Middlesbrough) Ltd |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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 |
CURRENT ASSETS |
Stocks |
Debtors | 5 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 6 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
7 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | ( |
) | ( |
) |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 8 |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
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 |
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 |
The presentation currency of the financial statements is the Pound Sterling (£), rounded to the nearest £. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
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 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 |
Other debtors |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Other creditors |
7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Amounts owed to group undertakings |
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 undertakings | 12,181,453 | 11,035,796 |
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: | £ | £ |
Ordinary | 1 | 1 | 1 |
9. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
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: |
2023 | 2022 |
£ | £ |
Not later than 1 year | 667,872 | 667,872 |
Later than 1 year and not later than 5 years | 2,671,488 | 2,671,488 |
Later than 5 years | 11,437,308 | 12,105,180 |
14,776,668 | 15,444,540 |
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. |