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Registered number: 14628974









HOLLYWOOD BORROWER LIMITED









FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2023

 
HOLLYWOOD BORROWER LIMITED
 
 
 
COMPANY INFORMATION


 
Directors
S Klos 
L Cooper 




Registered number
14628974



Registered office
Leytonstone House
3 Hanbury Drive

London

E11 1GA




Independent auditors
Barnes Roffe LLP
Chartered Accountants & Statutory Auditor

Leytonstone House

Leytonstone

London





 
HOLLYWOOD BORROWER LIMITED
 
 
 
CONTENTS



Page
Group strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Consolidated Statement of Profit or Loss and Other Comprehensive Income
 
9
Consolidated statement of financial position
 
10 - 11
Company statement of financial position
 
12 - 13
Consolidated statement of changes in equity
 
14
Company statement of changes in equity
 
15
Consolidated statement of cash flows
 
16
Company statement of cash flows
 
17
Notes to the consolidated financial statements
 
18 - 42
Company detailed profit and loss account and summaries
 
42
 

 
HOLLYWOOD BORROWER LIMITED
 
 
 
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

Introduction
 
Overview of the Entity: Hollywood Borrower Limited was established 31 January 2023 as a special purpose vehicle to develop, own, and operate solar photovoltaic (PV) installations across the UK. The group’s primary purpose is to generate clean energy and contribute to the UK’s renewable energy targets.

Business Model
 
Mission and Vision: Our mission is to harness solar energy to provide sustainable and affordable electricity. Our vision is to be a leading provider of renewable energy solutions, driving the transition to a low-carbon future.
Operational Structure: Hollywood Borrower Limited and its subsidiaries operate through partnerships with local contractors for the installation and maintenance of solar panels. We collaborate with financial institutions for funding and work closely with the Distribution Network Operators for energy distribution.
Revenue Model: Revenue will primarily be generated through the sale of electricity to the grid under long-term Power Purchase Agreements (PPAs). Additional revenue streams include Contract for Difference (CfD) and Renewable Energy Guarantees of Origin (REGO).
Market Environment
Industry Overview:
 The UK solar energy market has seen significant growth over the past decade, driven by government incentives and declining costs of solar PV technology. As of 2023, solar capacity in the UK stands at 14 GW, with continued growth expected.
Regulatory Environment: Key regulations include the Contracts for Difference (CfD) scheme, the Renewable Obligation (RO), and the Smart Export Guarantee (SEG), which provide financial incentives for solar energy production.
Competitive Landscape: Major players in the UK solar market include British Solar Renewables, Lightsource BP, and NextEnergy Capital. Hollywood Borrower Limited positions itself as a mid-sized operator with a focus on efficiency and sustainability.
Strategic Objectives
Short-term Goals:
1. Expand capacity to 230 MWp within the next two years. 
2. Achieve operational cost reduction of 10% through efficiency improvements.
Long-term Goals:
1. Expand capacity to 1,000 MWp by 2030.
2. Develop energy storage solutions to enhance grid stability and reliability.

Performance Analysis
 
The Group's financial key performance indicators for the year are as follows:
Net assets £7,021,212
Gross loss £9,673
Profit before taxation £5,039,771
Assets under construction £16,140,440

Page 1

 
HOLLYWOOD BORROWER LIMITED
 
 
 
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
Market Risks: Fluctuations in electricity prices and changes in government incentives could impact revenue.
Operational Risks: Potential technical failures and maintenance issues could affect energy production.
Financial Risks: Exposure to interest rate changes and refinancing risks for existing debt.
Regulatory Risks: Changes in renewable energy policies could affect the viability of existing projects.
Future Outlook
Market Trends:
 The solar energy market is expected to grow over the next five years, driven by technological advancements and increasing demand for clean energy.
Growth Opportunities: Potential for expansion into energy storage and hybrid renewable energy systems.
Strategic Initiatives: Planned investments in new solar projects and exploration of battery storage solutions to complement solar installations.
Sustainability and Corporate Responsibility
Environmental Initiatives:
 Initiatives include adopting more efficient solar technologies and reducing waste in the installation process.
Social Responsibility: Engagement with local communities through educational programs and support for local renewable energy initiatives.
Governance Practices: Commitment to transparency, ethical business practices, and compliance with regulatory requirements.
Conclusion
Summary of Key Points:
 Hollywood Borrower Limited. is well-positioned for growth in the UK solar market, with a clear strategy focused on expanding capacity, improving efficiency, and contributing to environmental sustainability.
Management’s Statement: The management team is confident in our strategic direction and remains committed to delivering long-term value for our stakeholders through sustainable and responsible business practices.


This report was approved by the board on 19 June 2024 and signed on its behalf.



S Klos
Director

Page 2

 
HOLLYWOOD BORROWER LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the period ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, Directors' report and the consolidated financial statements, in accordance with applicable law.

Company law requires the directors to prepare consolidated financial statements for each financial year. Under that law they have elected to prepare the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.

Under company law the directors must not approve the consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period. In preparing the consolidated financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

make judgments and estimates that are reasonable and prudent;

state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;

assess the Group and Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

use the going concern basis of accounting unless they either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Parent Company's transactions and disclose with reasonable accuracy at any time the financial position of the Parent Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

Principal activity

The principal activity of the Company is that of a holding company.

Results and dividends

The profit for the period, after taxation, amounted to £7,021,112.

At 31 December 2023, the Group had net assets of £7,021,212.
The directors do not recommend the payment of a final dividend.
 
Page 3

 
HOLLYWOOD BORROWER LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Directors

The directors who served during the period were:

J Mustarde (appointed 31 March 2023, resigned 21 March 2023)
M Winter (appointed 31 January 2023, resigned 2 April 2024)
S Klos (appointed 31 January 2023)
N Krane (appointed 31 January 2023, resigned 2 April 2024)
K Covill (appointed 2 April 2024, resigned 8 May 2024)

L Cooper was appointed as director on 8 May 2024.


Future developments

The Group is looking to further develop the projects within the subsidiary companies and push towards energisation of the solar farms.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

The auditorsBarnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 19 June 2024 and signed on its behalf.
 



S Klos
Director
Page 4

 
HOLLYWOOD BORROWER LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOLLYWOOD BORROWER LIMITED
 

Opinion


We have audited the financial statements of Hollywood Borrower Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the period ended 31 December 2023 which comprise the Consolidated statement of profit or loss and other comprehensive incomethe Consolidated statement of financial position, the Company statement of financial positionthe Consolidated statement of cash flows, the Company statement of cash flowsthe Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policies set out on pages 19 - 26. The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.

In our opinion:

the financial statements give a true and fair view of the state of the Group's and the Parent Company's affairs as at 31 December 2023 and of the Group's profit for the period then ended;

the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the United Kingdomand

the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

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 auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.



Page 5

 
HOLLYWOOD BORROWER LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOLLYWOOD BORROWER LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual report, other than the financial statements and our auditors' report thereon.  The directors are responsible for the other information contained within the Annual reportOur 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.

Opinion on other matters prescribed by the Companies Act 2006


In our opinion, based on the work undertaken in the course of the audit: 

the information given in the Group strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

the Parent Company 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.


Page 6

 
HOLLYWOOD BORROWER LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOLLYWOOD BORROWER LIMITED (CONTINUED)


Responsibilities of directors

As explained more fully in the directors' responsibilities statement on page 3, 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 Group's and the Parent 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 Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 auditors' 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with the applicable laws and regulations;
we identified the laws and regulations applicable to the group through discussions with the director and other management, and from our commercial knowledge and experience of the relevant sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006;
we assessed the extent of the compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the suspecitibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was suspecitibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
We also assessed whether judgments and assumptions made in determining the accounting estimates were indicative of potenial bias, and investigated the rationale behind significant or unusual transactions.

The areas we identified as being suspectible to misstatement through fraud were:

Management bias in the estimates and judgments made; and 
Management override of controls.

Page 7

 
HOLLYWOOD BORROWER LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOLLYWOOD BORROWER LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements (continued)

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's wesbite at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.



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 auditors' 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.




 
 
Graham Wallace (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants & Statutory Auditor
Leytonstone House
Leytonstone
London

 
Date: 
19 June 2024
Page 8

 
HOLLYWOOD BORROWER LIMITED
 
 
 
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023


2023
Note
£

Cost of sales
  
(9,673)

Gross loss
  
(9,673)

Other operating income
 6 
78,240

Administrative expenses
  
(1,632,112)

Loss from operations
  
(1,563,545)

Finance income
8
671

Finance expense
8
(768,282)

Gain on sale of investment
 22 
7,370,927

Profit before tax
  
5,039,771

Tax credit
 9 
1,981,341

Profit for the period
  
7,021,112


Total comprehensive income
  
7,021,112

The notes on pages 17 to 41 form part of these financial statements.

Page 9

 
HOLLYWOOD BORROWER LIMITED
REGISTERED NUMBER: 14628974
 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023


31 December
2023
Note
£

Assets

Non-current assets
  

Property, plant and equipment
 10 
19,014,392

Intangible assets
 11 
5,296,069

Deferred tax assets
 9 
1,981,341

  
26,291,802

Current assets
  

Trade and other receivables
 12 
2,039,334

Cash and cash equivalents
 23 
9,138,007

  
11,177,341

Total assets

  

37,469,143

Liabilities

Non-current liabilities
  

Trade and other payables
 13 
503,297

Loans and borrowings
 14 
7,821,704

Provisions
 15 
771,395

  
9,096,396

Current liabilities
  

Trade and other payables
 13 
21,283,212

Loans and borrowings
 14 
68,323

  
21,351,535

Total liabilities
  
30,447,931

Net assets
  
7,021,212


Issued capital and reserves attributable to owners of the parent
  

Share capital
 16 
100

Retained earnings
  
7,021,112

TOTAL EQUITY
  
7,021,212

Page 10

 
HOLLYWOOD BORROWER LIMITED
REGISTERED NUMBER: 14628974
 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023


The financial statements on pages 9 to 42 were approved and authorised for issue by the board of directors on 19 June 2024 and were signed on its behalf by:




S Klos
Director

The notes on pages 17 to 41 form part of these financial statements.

Page 11

 
HOLLYWOOD BORROWER LIMITED
REGISTERED NUMBER: 14628974
 
 
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023


31 December
2023
Note
£

Assets

Non-current assets
  

Investments
 11,21 
5,220,300

  
5,220,300

Current assets
  

Trade and other receivables
 12 
15,971,996

Cash and cash equivalents
 23 
7,308,754

  
23,280,750

Total assets

  

28,501,050

Liabilities

Non-current liabilities
  

Loans and borrowings
 14 
4,987,587

Current liabilities
  

Trade and other payables
 13 
17,004,818

Loans and borrowings
 14 
68,323

  
17,073,141

Total liabilities
  
22,060,728

Net assets
  
6,440,322


Issued capital and reserves attributable to owners of the parent
  

Share capital
 16 
100

Retained earnings
  
6,440,222

TOTAL EQUITY
  
6,440,322

Page 12

 
HOLLYWOOD BORROWER LIMITED
REGISTERED NUMBER: 14628974
 
 
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023

The Company's profit for the period was £6,440,222.

The financial statements on pages 9 to 42 were approved and authorised for issue by the board of directors on 19 June 2024 and were signed on its behalf by:




S Klos
Director

The notes on pages 17 to 41 form part of these financial statements.

Page 13

 
HOLLYWOOD BORROWER LIMITED

 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023



Share capital
Retained earnings
Total attributable to equity holders of parent
Total equity


£
£
£
£

Comprehensive income for the period



Profit for the period
-
7,021,112
7,021,112
7,021,112

Total comprehensive income for the period
-
7,021,112
7,021,112
7,021,112

Contributions by and distributions to owners





Issue of share capital
100
-
100
100

Total contributions by and distributions to owners
100
-
100
100

At 31 December 2023
100
7,021,112
7,021,212
7,021,212

The notes on pages 17 to 41 form part of these financial statements.

Page 14

 
HOLLYWOOD BORROWER LIMITED

 
 
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023



Share capital
Retained earnings
Total equity


£
£
£

Comprehensive income for the period



Profit for the period
-
6,440,222
6,440,222

Total comprehensive income for the period
-
6,440,222
6,440,222

Issue of share capital
100
-
100

Total contributions by and distributions to owners
100
-
100

At 31 December 2023
100
6,440,222
6,440,322

The notes on pages 17 to 41 form part of these financial statements.

Page 15

 
HOLLYWOOD BORROWER LIMITED

 
 
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023


31 December
2023
Note
£

Cash flows from operating activities
  

Profit for the period
  
7,021,112

Adjustments for
  

Depreciation of property, plant and equipment
 10 
40,781

Finance income
8
(671)

Finance expense
8
768,282

  
7,829,504

Movements in working capital:
  

Increase in trade and other receivables
  
(2,032,230)

Deferred tax movement
  
(1,981,341)

Increase in trade and other payables
  
3,187,573

Movement in balances from connected companies
  
19,363,327

Leases
  
2,834,117

Cash generated from operations
  
29,200,950

  

Net cash from operating activities

  
29,200,950

Cash flows from investing activities
  

Purchases of property, plant and equipment
 10 
(19,055,173)

Goodwill on acquisition
 11 
(5,296,069)

Interest received
8
671

Net cash used in investing activities

  
(24,350,571)

Cash flows from financing activities
  

Interest paid
8
(768,282)

Proceeds from bank borrowings
  
5,055,910

Net cash from financing activities
  
4,287,628

Net increase in cash and cash equivalents
  
9,138,007

  

Cash and cash equivalents at the end of the period
 23 
9,138,007

The notes on pages 17 to 41 form part of these financial statements.

Page 16

 
HOLLYWOOD BORROWER LIMITED

 
 
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023


31 December
2023
Note
£

Cash flows from operating activities
  

Profit for the period
  
6,440,222

Adjustments for
  

Finance income
  
(564,219)

Finance expense
  
907,931

  
6,783,934

Movements in working capital:
  

Increase in trade and other receivables
 12 
(619,780)

Increase in trade and other payables
 13 
1,652,702

Cash generated from operations
  
7,816,856

Net cash from operating activities

  
7,816,856

Cash flows from investing activities
  

Acquisition of subsidiary, net of cash acquired
 21 
(5,220,300)

Interest received
  
564,219

Net cash used in investing activities

  
(4,656,081)

Cash flows from financing activities
  

Interest paid
  
(907,931)

Proceeds from bank borrowings
  
5,055,910

Net cash from financing activities
  
4,147,979

Net increase in cash and cash equivalents
  
7,308,754

  

Cash and cash equivalents at the end of the period
 23 
7,308,754

The notes on pages 17 to 41 form part of these financial statements.

Page 17

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

1.


Reporting entity

Hollywood Borrower Limited (the 'Company') is a limited company incorporated in Engalnd and Wales. The Company's registered office is at Leytonstone House, 3 Hanbury Drive, London, E11 1GA. These consolidated financial statements comprise the Company and its subsidiaries (collectively the 'Group' and individually 'Group companies'). The Group is primarily involved in the production of electricity.


2.


Basis of preparation

The Group's consolidated and the Company's individual financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs). They were authorised for issue by the Company's board of directors on 19 June 2024.

Details of the Group's accounting policies, including changes during the period, are included in note 4.

The Company has taken advantage of the exemption available under section 408 of the Companies Act 2006 and elected not to present its own Statement of comprehensive income in these financial statements.

In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Group accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

The areas where judgments and estimates have been made in preparing the consolidated financial statements and their effects are disclosed in note 5.


2.1 Basis of measurement

The financial statements have been prepared on the historical cost basis.


2.2 Changes in accounting policies

i) New standards, interpretations and amendments effective from 31 January 2023

There are not expected to be any new or amended accounting standards that are not yet in effect that will have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions.


3.


Functional and presentation currency

These consolidated financial statements are presented in pound sterling, which is the Company's functional currency. All amounts have been rounded to the nearest pound, unless otherwise indicated.

Page 18

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

4.Accounting policies

 
4.1

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company:
has power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:
the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
potential voting rights held by the Company, other vote holders or other parties;
rights arising from other contractual arrangements; and
any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at this time that decisions need to be made, including voting patterns at previous shareholders' meetings.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group's accounting policies.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

Page 19

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

4.Accounting policies (continued)


4.1
Basis of consolidation (continued)


Changes in the Group's ownership interests in existing subsidiaries

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the Company.

When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and its calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent account under IAS 39, when applicable, the cost on initial recognition of an investment in an associate or a joint venture.


4.2

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements. Creditors consist of balances due to the ultimate controlling party, and other companies under common control. Assurances have been obtained from these parties that they will continue to support the Group for a period of not less than 12 months from the date of approval of the annual report and financial statements.

  
4.3

Business combinations


Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are generally recognised in profit or loss as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value.
Goodwill is measured as the excess of the sum of the consideration transferred over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.

Page 20

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

4.Accounting policies (continued)

 
4.4

Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business (see note 4.3) less accumulated impairment losses, if any.

For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or groups of cash-generating units) that is expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.

On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

  
4.5

Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

 
4.6

Foreign currency

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for:
 
exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings;
exchange differences on transactions entered into, in order to hedge certain foreign currency risks (see 4.14 for hedging accounting policies); and
 
For the purposes of presenting these consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated into pounds using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in equity (and attributed to non-controlling interests as appropriate).
The financial statements are prepared in Sterling, which is considered to be the functional currency of the Group. Monetary amounts in these financial statements are rounded to the nearest £1.
 
Page 21

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

4.Accounting policies (continued)


4.7

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

 
4.8

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.


(i) Current tax

The tax currently payable is based on taxable profit for the period. Taxable profit differs from ‘profit before tax’ as reported in the consolidated Consolidated statement of profit or loss and other comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Page 22

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

4.Accounting policies (continued)


4.8
Taxation (continued)


(ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.


(iii) Current and deferred tax for the period

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

Page 23

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

4.Accounting policies (continued)

 
4.9

Tangible fixed assets

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.
Depreciation on assets under construction does not commence until they are complete and available for use. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term.
Borrowing costs are apportioned between the loan utilised for overhead expenditure or for the cost of assets under construction. Included within fixed assets is capitalised interest of £368,892 and capitalised upfront fees of £438,093. Interest is charged at the rates implicit of the loan agreements.

  
4.10

Impairment of tangible and intangible assets other than goodwill

At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs of disposal 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 (see note 4.9).


4.11

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments maturing within 90 days from the date of acquisition that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

Page 24

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

4.Accounting policies (continued)

 
4.12

Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, if it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

 
4.13

Financial instruments

Financial assets and financial liabilities are recognised when a Group entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Page 25

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

4.Accounting policies (continued)

 
4.14

Hedge accounting

The Group designates certain derivatives as hedging instruments in respect of foreign currency risk as fair value hedges, as appropriate. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges.

At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk, which is when the hedging relationships meet all of the following hedge effectiveness requirements.

there is an economic relationship between the hedged item and the hedging instrument;
the effect of credit risk does not dominate the value changes that result from that economic relationship; and
the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that it uses to hedge that quantity of hedged item.

If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk management objective for that designated hedging relationship remains the same, the Group adjusts the hedge ratio of the hedging relationship (i.e. rebalances the hedge) so that it meets the qualifying criteria again.

The Group designates the full change in the fair value of a forward contract (i.e. including the forward elements) as the hedging instrument for all of its hedging relationships involving forward contracts.


Fair value hedges

The fair value change on qualifying hedging instruments is recognised in profit or loss except when the hedging instrument hedges an equity instrument designated at FVOCI in which case it is recognised in other comprehensive income.

The carrying amount of a hedged item not already measured at fair value is adjusted for the fair value change attributable to the hedged risk with a corresponding entry in profit or loss. For debt instruments measured at FVOCI, the carrying amount is not adjusted as it is already at fair value, but the hedging gain or loss is recognised in profit or loss instead of other comprehensive income. When the hedged item is an equity instrument designated at FVOCI, the hedging gain or loss remains in other comprehensive income to match that of the hedging instrument.

Where hedging gains or losses are recognised in profit or loss, they are recognised in the same line as the hedged item.

The Group discontinues hedge accounting only when the hedging relationship (or a part thereof) ceases to meet the qualifying criteria (after rebalancing, if applicable). This includes instances when the hedging instrument expires or is sold, terminated or exercised. The discontinuation is accounted for prospectively. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortised to profit or loss from that date.

Page 26

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

5.


Accounting estimates and judgments

The preparation of the financial statements in accordance with UK adopted international accounting standards required the use of certain critical accounting estimates. It aslo requires management to exercise its judgment in the process of applying the Group's accounting policies. 
Estimates and judgments are continually evaluated, and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
No significant judgments have had to be made by management in preparing these financial statements.
The key sources of estimation uncertainty at the reporting date that have significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the financial year are:
i) Present value calculations
Given the nature of the subsidiary companies, the Group have entered in to long-term lease agreements which has been capitalised within the financial statements based on future expected cash flows. The fixed asset and lease liability have been subsequently discounted at a rate which was determined by the Group based on historic knowledge of the industry, comparative knowledge of similar projects which have taken place in the wider group and by making use of independent discounting tools.
ii) Decommissioning provisions
Given the nature of the principal activity of the subsidiary companies, provisions have been included in the financial statements for decommissioning the site at the end of the lease tenure. An external independent company was consulted to provide the expected valuation of costs to decommission the site. The valuation has subsequently also been discounted over the life of the lease using the implicit discounting rate noted above.
iii) Useful economic life of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets.


6.


Other operating income

2023
£

Gain on hedging activities
78,240

Page 27

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

7.


Auditors' remuneration

During the period, the Group obtained the following services from the Company's auditors:


2023
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
25,000

Fees payable to the Group's auditors for other non-audit services
42,751


8.


Finance income and expense

Recognised in profit or loss


2023
£
Finance income

Other interest receivable
671

Finance expense

Other loan interest payable
(768,282)

Net finance expense recognised in profit or loss
(767,611)






Page 28

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

9.


Tax credit

9.1 Income tax recognised in profit or loss



2023
£

Current tax


Deferred tax credit

Origination and reversal of timing differences
(1,981,341)


Total tax credit

Tax expense excluding tax on sale of discontinued operation and share of tax of equity accounted associates and joint ventures
(1,981,341)

The reasons for the difference between the actual tax charge for the period and the standard rate of corporation tax in the United Kingdom applied to profits for the period are as follows:


2023
£

Profit for the period
7,021,112

Income tax credit (including income tax on associate, joint venture and discontinued operations)
(1,981,341)

Profit before income taxes

5,039,771


Tax using the Company's domestic tax rate of 25%
1,259,943

Expenses not deductible for tax purposes, other than goodwill, amortisation and impairment
(8,127,719)

Capital allowances for the year in excess of depreciation
(5,558,025)

Other timing differences leading to an increase/(decrease) in taxation
(1,981,341)

Change in tax rates
45,361

Unrelieved tax losses carried forward
12,380,440

Total tax credit
(1,981,341)

Changes in tax rates and factors affecting the future tax charges

There were no factors that may affect future tax charges.

Page 29

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

9.Tax credit (continued)

9.2 Deferred tax balances

The following is the analysis of deferred tax assets/(liabilities) presented in the consolidated statement of financial position:


2023
£

Deferred tax assets
1,981,341



Recognised in profit or loss
Closing balance
        £
        £
2023
Tax losses carried forward

1,981,341

1,981,341


Page 30

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

10.


Property, plant and equipment


Group







Right of use assets
Assets under construction
Total

£
£
£



Cost or valuation





Additions
2,914,733
16,140,440
19,055,173



At 31 December 2023
2,914,733
16,140,440
19,055,173


Right of use assets
Assets under construction
Total

£
£
£



Accumulated depreciation and impairment





Charge owned for the period
40,781
-
40,781



At 31 December 2023
40,781
-
40,781



Net book value


At 30 January 2023
-
-
-


At 31 December 2023
2,873,952
16,140,440
19,014,392


10.1. Assets held under leases


The net book value of owned and leased assets included as "Property, plant and equipment" in the Consolidated statement of financial position is as follows:

31 December 2023
£


Property, plant and equipment owned
16,140,440

Right-of-use assets, excluding investment property
2,873,952

19,014,392

Page 31

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

10.Property, plant and equipment (continued)


10.1 Assets held under leases (continued)

Information about right-of-use assets is summarised below:

Net book value

31 December 2023
£

Plant and machinery
2,873,952




11.


Intangible assets

Group


31 December
2023
£

Goodwill
5,296,069

31 December
2023
£

Cost

Additions
5,296,069

At 31 December

5,296,069

Accumulated impairment

At 31 December
-


Company

31 December
2023
£

Investments in subsidiary companies
5,220,300

Page 32

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

12.


Trade and other receivables



Group

31 December
2023
£


Current

Trade receivables
51,883

Prepayments and accrued income
1,808,695

Other receivables
178,756

Total current trade and other receivables
2,039,334


Company

31 December
2023
£


Current

Receivables from related parties
15,812,680

Prepayments and accrued income
210

Other receivables
159,106

Total current trade and other receivables
15,971,996

Page 33

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

13.


Trade and other payables



Group

31 December
2023
£

Trade payables
865,239

Payables to related parties
15,352,116

Payables to participating interests
4,011,211

Other payables
503,297

Accruals
1,047,642

Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
21,779,505

Other payables - tax and social security payments
7,004

Total trade and other payables
21,786,509

Less: current portion - trade payables
(865,239)

Less: current portion - payables to related parties
(15,352,116)

Less: current portion - payables to participating interests
(4,011,211)

Less: current portion - other payables
(7,004)

Less: current portion - accruals
(1,047,642)

Total current portion
(21,283,212)

Total non-current position
503,297

Page 34

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

Company

31 December
2023
£

Trade payables
708,303

Payables to related parties
15,352,116

Other payables
400

Accruals
943,999

Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost
17,004,818

Less: current portion - trade payables
(708,303)

Less: current portion - payables to related parties
(15,352,116)

Less: current portion - other payables
(400)

Less: current portion - accruals
(943,999)

Total current portion
(17,004,818)

Total non-current position
-


14.


Loans and borrowings


Group

31 December
2023
£

Non-current

Bank loans
4,987,587

Lease liabilities
2,834,117

7,821,704

Current

Bank loans
68,323

68,323

Total loans and borrowings
7,890,027

Page 35

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

Company

31 December
2023
£

Non-current

Bank loans
4,987,587

4,987,587

Current

Bank loans
68,323

68,323

Total loans and borrowings
5,055,910

The bank loan is cross guaranteed by all companies in the Group and is secured on assets held by such companies.



15.


Provisions

Group



Decommissioning provision

£





Charged to profit or loss
771,395



At 31 December 2023
771,395



Due after more than one year
771,395

16.


Share capital

Authorised

31 December
31 December
2023
2023
Number
£

Shares treated as equity
Ordinary shares of £1.00 each

100

100

100

100


Page 36

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

16.Share capital (continued)

Issued and fully paid

31 December
31 December
2023
2023
Number
£

Ordinary shares of £1.00 each

Shares issued

100

100

At 31 December
100

100



17.


Reserves

Retained earnings
This reserve relates to cumulative retained earnings less amounts distributed to shareholders.

Page 37

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

18.


Leases


Group




(i) Leases as a lessee



The Group has leases in place for the land on which the subsidiary companies are constructing the solar farms.


Lease liabilities are due as follows:

31 December
2023
£

Contractual undiscounted cash flows due

Not later than one year
58,779

Between one year and five years
602,370

Later than five years
4,680,059

5,341,208



The Group has incurred £8,456 (Company - £1,159) of expenses in the profit or loss account in relation to short-term leases.

Extension options and termination options


The Group has extension options in place in line with each of the lease agreements. Future cash outflows in periods after the date on which an extension option may be exercised are only included in lease liabilities if it is reasonably certain that a lease will be extended or will not be terminated.



19.


Related party transactions

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.

Included within creditors are amounts of £19,866,624 owed to companies under common control. Interest is charged on these loans at the rates implicit on the loan agreements.

Page 38

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

20.


Controlling party

The immediate parent company is UK Hollywood Holding Limited. The ultimate controlling party is considered to be ILOS Projects GmbH.


21.


Business combinations during the period

21.1 Subsidiaries acquired


Name
Principal activity
Date of acquisition
Proportion of voting equity interests acquired
Consideration transferred




%
£


Spring Dev 01 Limited

Production of electricity

20/04/23

100

100


Spring Dev 02 Limited

Production of electricity

20/04/23

100

100


Spring Dev 03 Limited

Production of electricity

20/04/23

100

100


Spring Dev 07 Limited

Production of electricity

20/04/23

100

5,220,000






5,220,300

Spring Dev 05 Limited and Spring Dev 08 Limited were also acquired by the company on 20 April 2023 for £100 each for 100% of the shares. The principal activities of these companies were the production of electricity.
These two companies were subsequently disposed of 100% on 5 September 2023 for £3,669,435 each.

21.2 Consideration transferred





Spring Dev 01 Limited
Spring Dev 02 Limited
Spring Dev 03 Limited
Spring Dev 07 Limited
£
£
£
£





Cash

100

100

100

5,220,000


Page 39

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

21.Business combinations during the period (continued)

21.3 Assets acquired and liabilities recognised at the date of acquisition






Spring Dev 01 Limited
Spring Dev 02 Limited
Spring Dev 03 Limited
Spring Dev 07 Limited
Total
£
£
£
£
        £
Non-current assets







Assets under construction

516,564

783,934

807,785

596,290

2,704,573

Current assets







Trade and other receivables

228,816

99,369

47,081

200,051

575,317

Non-current liabilities







Current liabilities







Trade and other payables

(128,484)

(39,362)

(86,576)

(437,473)

(691,895)

Loans and borrowings

(630,844)

(864,339)

(790,256)

(378,324)

(2,663,763)


(13,948)
(20,398)
(21,966)
(19,456)
(75,768)

21.4 Goodwill arising on acquisition






Spring Dev 01 Limited
Spring Dev 02 Limited
Spring Dev 03 Limited
Spring Dev 07 Limited
Total
£
£
£
£
        £
Consideration transferred

100

100

100

5,220,000

5,220,300

Fair value of identifiable net assets acquired

13,948

20,398

21,967

19,456

75,769

Goodwill arising on acquisition


14,048
20,498
22,067
5,239,456
5,296,069

Goodwill is reviewed annually for impairment. An impairment review has been conducted and it is the opinion of the directors that the goodwill is considered to be valued at fair value and no impairment is required.


21.5 Net cash outflow on acquisition

31 December
2023
£


Consideration paid in cash
5,220,300

Page 40

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

22.


Disposal of subsidiaries

22.1 Subsidiaries disposed


Name
Principal activity
Date of disposal
Consideration received




£


Spring Dev 05 Limited

Production of electricity

5/09/23

3,669,435


Spring Dev 08 Limited

Production of electricity

5/09/23

3,669,435





7,338,870

22.2 Consideration received



Spring Dev 05 Limited
Spring Dev 08 Limited
        £
        £
Consideration received in cash and cash equivalents

3,669,435

3,669,435

Total consideration received


3,669,435
3,669,435

A gain has been recognised in the consolidated financial statements of £7,370,927.

22.3 Analysis of assets and liabilities over which control was lost




Spring Dev 05 Limited
Spring Dev 08 Limited
Total
        £
        £
        £
Non-current assets





Property, plant and equipment

444,251

544,689

988,940

Current assets





Trade and other receivables

24,105

63,781

87,886

Non-current liabilities





Current liabilities





Trade and other payables

(38,169)

(64,591)

(102,760)

Loans and borrowings

(459,169)

(568,294)

(1,027,463)


(28,982)
(24,415)
(53,397)

Page 41

 
HOLLYWOOD BORROWER LIMITED
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

23.

Notes supporting statement of cash flows

Group


31 December
2023
£


Cash at bank available on demand
9,138,007

Cash and cash equivalents in the statement of financial position
9,138,007

Cash and cash equivalents in the statement of cash flows
9,138,007

Company


31 December
2023
£


Cash at bank available on demand
7,308,754

Cash and cash equivalents in the statement of financial position
7,308,754


Cash and cash equivalents in the statement of cash flows
7,308,754


24.


Capital risk management

The Group manages its capital to ensure its ability to continue as a going concern and to maintain an optimal capital structure to reduce cost of capital. The capital structure of the Group comprises equity attributable to equity holders of the Group consisting of issued ordinary share capital, reserves and retained earnings as disclosed in the statement of changes of equity.


25.


Financial risk management

The quantitative data disclosed in the financial statements as at the end of the reporting period is considered to be sufficiently representative of the entity's exposure to risk and its concentration.

Page 42