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COMPANY REGISTRATION NUMBER: SC079314
SPE Energy Limited
Filleted Financial Statements
31 December 2023
SPE Energy Limited
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Intangible assets
5
2,578,396
2,834,199
Tangible assets
6
1,080,383
1,032,614
Investments
7
101
101
------------
------------
3,658,880
3,866,914
Current assets
Stocks
1,075,433
621,276
Debtors
8
329,492
196,455
Cash at bank and in hand
62,785
428,969
------------
------------
1,467,710
1,246,700
Creditors: amounts falling due within one year
9
1,230,711
1,322,574
------------
------------
Net current assets/(liabilities)
236,999
( 75,874)
------------
------------
Total assets less current liabilities
3,895,879
3,791,040
Creditors: amounts falling due after more than one year
10
2,445,337
2,802,723
Provisions
Taxation including deferred tax
( 122,000)
------------
------------
Net assets
1,450,542
1,110,317
------------
------------
Capital and reserves
Called up share capital
15,000
15,000
Profit and loss account
1,435,542
1,095,317
------------
------------
Shareholders funds
1,450,542
1,110,317
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
SPE Energy Limited
Statement of Financial Position (continued)
31 December 2023
These financial statements were approved by the board of directors and authorised for issue on 16 September 2024 , and are signed on behalf of the board by:
Mr J C Skipper
Director
Company registration number: SC079314
SPE Energy Limited
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered and incorporated in Scotland. The address of the registered office is 6 Union Plaza (6th Floor), 1 Union Wynd, Aberdeen, AB10 1DQ.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The nature of the company's business is that there can be considerable unpredictable variation in the timing and amounts of cash inflows. The working capital is provided by a bank overdraft. The continuance of the company is therefore dependent on the ongoing support of the bank. These financial statements have been prepared on a going concern basis which assumes that this support will continue.
Research and development
Research and Development costs incurred on specific projects are capitalised when recoverability can be assessed with reasonable certainty and are amortised in line with expected sales arising from the project. All other development costs are written off in the year of expenditure.
Consolidation
The entity has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the entity and its subsidiary undertakings comprise a small group.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Develpment costs
-
10% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold Property
-
2% straight line
Plant & Machinery
-
10% straight line
Motor Vehicles
-
25% straight line
Equipment
-
20% straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Construction contracts
Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end. Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred. The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 20 (2022: 18 ).
5. Intangible assets
Development costs
£
Cost
At 1 January 2023
2,834,199
Additions
30,685
------------
At 31 December 2023
2,864,884
------------
Amortisation
Charge for the year
286,488
------------
At 31 December 2023
286,488
------------
Carrying amount
At 31 December 2023
2,578,396
------------
At 31 December 2022
2,834,199
------------
6. Tangible assets
Freehold property
Plant and machinery
Motor vehicles
Equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
1,131,287
95,899
78,520
47,504
1,353,210
Additions
38,007
85,145
3,965
127,117
------------
---------
---------
--------
------------
At 31 December 2023
1,131,287
133,906
163,665
51,469
1,480,327
------------
---------
---------
--------
------------
Depreciation
At 1 January 2023
215,852
58,104
1,636
45,004
320,596
Charge for the year
14,390
21,220
40,916
2,822
79,348
------------
---------
---------
--------
------------
At 31 December 2023
230,242
79,324
42,552
47,826
399,944
------------
---------
---------
--------
------------
Carrying amount
At 31 December 2023
901,045
54,582
121,113
3,643
1,080,383
------------
---------
---------
--------
------------
At 31 December 2022
915,435
37,795
76,884
2,500
1,032,614
------------
---------
---------
--------
------------
7. Investments
Shares in group undertakings
£
Cost
At 1 January 2023 and 31 December 2023
101
----
Impairment
At 1 January 2023 and 31 December 2023
----
Carrying amount
At 31 December 2023
101
----
At 31 December 2022
101
----
8. Debtors
2023
2022
£
£
Trade debtors
325,700
192,664
Other debtors
3,792
3,791
---------
---------
329,492
196,455
---------
---------
9. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
106,000
122,500
Trade creditors
207,959
190,865
Amounts owed to group undertakings and undertakings in which the company has a participating interest
1
1
Corporation tax
10,274
Social security and other taxes
63,183
136,398
Other creditors
843,294
872,810
------------
------------
1,230,711
1,322,574
------------
------------
The bank overdraft and loan is secured by a bond and floating charge over the assets of the company.
10. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
184,599
449,857
Other creditors
2,260,738
2,352,866
------------
------------
2,445,337
2,802,723
------------
------------
The bank loan is secured by a bond and floating charge over the assets of the company.
11. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Later than 1 year and not later than 5 years
14,289
----
--------
12. Summary audit opinion
The auditor's report dated 16 September 2024 was unqualified .
The senior statutory auditor was Andrew B Wilson CA , for and on behalf of Nelson Gilmour Smith .
13. Related party transactions
There are no transactions with related parties were entered into in the year that are required to be disclosed under the terms of FRS 102 Section 1A.
14. Ethical standards
In common with many other businesses of our size and nature we use our auditors to assist with the preparation of the financial statements.