Company Registration No. SC698787 (Scotland)
GREEN VOLT OFFSHORE WINDFARM LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
GREEN VOLT OFFSHORE WINDFARM LTD
COMPANY INFORMATION
Directors
A Quarta
(Appointed 1 June 2024)
C Af Geijerstam
(Appointed 30 October 2023)
J Dobson
(Appointed 30 October 2023)
T Fujishiro
(Appointed 30 October 2023)
C J Hill
(Appointed 30 October 2023)
Lord N Stephen
Company number
SC698787
Registered office
12 Alva Street
Edinburgh
United Kingdom
EH2 4QG
Auditor
Ernst & Young LLP
4th Floor
2 Marischal Square
Broad Street
Aberdeen
AB10 1BL
GREEN VOLT OFFSHORE WINDFARM LTD
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 19
GREEN VOLT OFFSHORE WINDFARM LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The company was previously dormant and began operating as a developer of Green Volt Offshore Windfarm from 30 October 2023.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid (2022: £nil). The directors do not recommend payment of a final dividend (2022: £nil).

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A Quarta
(Appointed 1 June 2024)
C Af Geijerstam
(Appointed 30 October 2023)
C De Santis
(Appointed 30 October 2023 and resigned 1 June 2024)
J Dobson
(Appointed 30 October 2023)
T Fujishiro
(Appointed 30 October 2023)
C J Hill
(Appointed 30 October 2023)
Lord N Stephen
Post reporting date events

In April 2024, Green Volt Offshore Windfarm Ltd was granted both onshore and offshore planning consents, marking an important milestone in the development of the project. On 3 September 2024, Green Volt Offshore Windfarm Ltd was awarded a Contract for Difference (CfD) with the Low Carbon Contracts Company (LCCC), a UK government-owned company. This contract, signed on 25 September 2024, does not affect the financial position as at 31 December 2023, and no adjustments have been made to the financial statements as at 31 December 2023.

Auditor

Ernst & Young LLP were appointed as auditor to the company and will continue in office as auditor until such time as a resolution to the contrary is passed in accordance with legislation and the Memorandum and Articles of Association.

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

Small companies exemption

In preparing this report, the directors have taken advantage of the small companies' exemptions provided by section 415A of the Companies Act 2006.

 

The company has also taken advantage of the small companies' exemption to prepare a strategic report as per section 414B of the Companies Act 2006.

GREEN VOLT OFFSHORE WINDFARM LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence until 30 September 2025.

 

The company has received a letter of financial support from its ultimate shareholders, Flotation Energy Limited and Vårgrønn AS, stating their current intention to continue to provide such funding to the company as is necessary to enable the company to continue in operational existence and to meet their liabilities as they fall due, until 30 September 2025. The directors have assessed that Flotation Energy Limited and Vårgrønn AS have the financial means necessary to provide this support.

 

Having considered the company's financial projections together with the above confirmed financial support, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

On behalf of the board
A Quarta
J Dobson
Director
Director
30 September 2024
GREEN VOLT OFFSHORE WINDFARM LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with UK adopted international accounting standards. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, International Accounting Standard 1 requires that directors:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

GREEN VOLT OFFSHORE WINDFARM LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GREEN VOLT OFFSHORE WINDFARM LTD
- 4 -
Opinion

We have audited the financial statements of Green Volt Offshore Windfarm Ltd for the year ended 31 December 2023 which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity, and the related notes 1 to 20, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion, the financial statements:

 

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period to 30 September 2025.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company’s ability to continue as a going concern.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.

 

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this 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 the other information, we are required to report that fact.

 

We have nothing to report in this regard.

GREEN VOLT OFFSHORE WINDFARM LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GREEN VOLT OFFSHORE WINDFARM LTD
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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:

 

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out 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 company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so

Auditor 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 auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

GREEN VOLT OFFSHORE WINDFARM LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GREEN VOLT OFFSHORE WINDFARM LTD
- 6 -

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud (continued)

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Gordon Edwards (Senior statutory auditor)
30 September 2024
for and on behalf of Ernst & Young LLP, Statutory Auditor
Aberdeen
GREEN VOLT OFFSHORE WINDFARM LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Administrative expenses
(20,105)
-
0
Operating loss
(20,105)
-
Income tax expense
7
-
-
Loss and total comprehensive expense for the year
(20,105)
-
0
GREEN VOLT OFFSHORE WINDFARM LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
31 December
31 December
14 May
2023
2022
2021
Notes
£
£
£
Non-current assets
Intangible assets
8
27,097,997
-
0
-
0
Current assets
Trade and other receivables
9
1,401,983
100
100
Cash and cash equivalents
9,077,791
-
0
-
0
10,479,774
100
100
Current liabilities
Trade and other payables
10
5,350,892
-
0
-
0
Borrowings
11
32,246,884
-
0
-
0
37,597,776
-
-
Net current (liabilities)/assets
(27,118,002)
100
100
Net (liabilities)/assets
(20,005)
100
100
Equity
Called up share capital
14
100
100
100
Retained earnings
15
(20,105)
-
0
-
0
Total equity
(20,005)
100
100
The financial statements were approved by the board of directors and authorised for issue on
30 September 2024
30 September 2024
and were signed on its behalf by:
A Quarta
J Dobson
Director
Director
Company Registration No. SC698787
GREEN VOLT OFFSHORE WINDFARM LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2022
100
-
0
100
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
0
-
0
Balance at 31 December 2022
100
-
0
100
Year ended 31 December 2023:
Loss and total comprehensive expense for the year
-
(20,105)
(20,105)
Balance at 31 December 2023
100
(20,105)
(20,005)
GREEN VOLT OFFSHORE WINDFARM LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash used in operations
20
(22)
-
Net cash outflow from operating activities
(22)
-
Financing activities
Proceeds from borrowings
9,077,813
-
0
Net cash generated from financing activities
9,077,813
-
Net increase in cash and cash equivalents
9,077,791
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
9,077,791
-
0
GREEN VOLT OFFSHORE WINDFARM LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Green Volt Offshore Windfarm Ltd is a private company limited by shares incorporated and domiciled in Scotland. The registered office is 12 Alva Street, Edinburgh, United Kingdom, EH2 4QG. The principal place of business is Hobart House, 80 Hanover Street, Edinburgh EH 2 1EL. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with UK-adopted International Accounting Standards ("IFRS") and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

 

Previously the financial statements were prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies’ regime. There are no transition adjustments on adoption of IFRS to be disclosed due to the nature of the balances of the company at transition date (date of incorporation of 14 May 2021). As there are no transition adjustments, the company has not prepared a reconciliation of equity and a reconciliation of total comprehensive income.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The material accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence until 30 September 2025.true

 

The company has received a letter of financial support from its ultimate shareholders, Flotation Energy Limited and Vårgrønn AS, stating their current intention to continue to provide such funding to the company as is necessary to enable the company to continue in operational existence and to meet their liabilities as they fall due, until 30 September 2025. The directors have assessed that Flotation Energy Limited and Vårgrønn AS have the financial means necessary to provide this support.

 

Having considered the company's financial projections together with the above confirmed financial support, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Intangible assets other than goodwill

Expenditure on development activities is capitalised as intangible assets if the project is considered to be technically and commercially feasible and the company intends to complete the project for use or for sale. Development projects consist of offshore wind farm developments. Costs incurred in bringing these projects to the consent stage include planning, environmental, and other costs, including costs incurred during the bidding and consenting phase.

 

Externally acquired intangible assets are recognised at cost.

 

The company assesses at each reporting date, whether there is an indication that an intangible asset may be impaired. If any indication exists, the company estimates the asset’s recoverable amount which is the higher of an asset’s fair value less costs to sell and its value in use. When the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

1.4
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks.

GREEN VOLT OFFSHORE WINDFARM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

1.6
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments.

Financial liabilities held at amortised cost

Financial liabilities, including borrowings, trade and other payables, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

1.8
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

GREEN VOLT OFFSHORE WINDFARM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2
Adoption of new and revised standards and changes in accounting policies

The company has adopted all the standards and amendments to existing standards which are mandatory for accounting periods beginning on 1 January 2023, in particular:

 

 

There are no amendments to accounting standards or IFRS interpretations that are effective for the year ended 31 December 2023 that have had a material impact on the financial statements. Furthermore, there are no amendments to accounting standards or IFRS interpretations for periods commencing 1 January 2024 that the directors of the company expect to have a material impact on the financial statements.

3
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements
Capitalisation of internally generated development costs

Accounting judgement is required in determining whether expenditure relating to the development of a project constitutes an intangible asset, i.e., it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the cost or value of the asset can be measured reliably; or if this expenditure pertains to a research phase of the project and therefore should be expensed. The company has processes and controls to evaluate the classification of such expenditure. £4,966,037 (2022: £nil) of development costs were capitalised during the period. This includes costs incurred in the bidding and consent phases of projects, where the directors have assessed that a successful outcome is probable.

4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
10,000
-
0
5
Employees

The average number of persons employed by the company during the year was nil (2022: nil).

 

GREEN VOLT OFFSHORE WINDFARM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
6
Directors' remuneration

 

The directors of the company are employed by and receive remuneration from joint venture partners. The directors’ emoluments are not paid to them due to their capacity as the directors of this company but are payable for services wholly attributable to other undertakings.

 

Accordingly, no details in respect of their emoluments have been included in the financial statements as no payments and no apportionment for qualifying services have been made.

7
Income tax expense
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
-
0

 

The charge for the year can be reconciled to the loss per the statement of comprehensive income as follows:

2023
2022
£
£
Loss before taxation
(20,105)
-
Expected tax credit based on a corporation tax rate of 23.52% (2022: 19.00%)
(4,729)
-
0
Unrecognised deferred tax assets
4,729
-
0
Taxation charge for the year
-
-

The company had gross UK corporation tax losses carried forward of £4,729 at 31 December 2023 (31 December 2022: £nil). No deferred tax asset has been recognised on these losses due to uncertainty around the generation of future taxable profits that will utilise these losses. From 1 April 2023, the rate of corporation tax in the United Kingdom increased from 19% to 25%. Deferred tax has been calculated at 25%.

8
Intangible assets
Development costs
£
Cost
Additions - internally generated
4,966,037
Additions - purchased
22,131,960
At 31 December 2023
27,097,997
Carrying amount
At 31 December 2023
27,097,997
GREEN VOLT OFFSHORE WINDFARM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Intangible assets
(Continued)
- 15 -

On 30 October 2023, the company acquired intellectual property and work product from both joint venture partners in relation to 'Green Volt' offshore wind farm project.

 

Further capitalised development costs relate to continued planning, environmental, and other costs incurred in the development of this project.

 

Development costs have not yet been completed and therefore the amortisation of these assets has not yet begun. Consequently, no amortisation charge has been recognised in the statement of comprehensive income.

9
Trade and other receivables
2023
2022
£
£
VAT recoverable
1,401,983
-
0
Amounts owed by fellow group undertakings
-
0
100
1,401,983
100
10
Trade and other payables
2023
2022
£
£
Trade payables
2,189,132
-
0
Accruals
3,161,760
-
0
5,350,892
-
11
Borrowings
Current
2023
2022
£
£
Borrowings held at amortised cost:
Loans from parent undertaking
31,209,773
-
Loans from joint ventures
1,037,111
-
32,246,884
-

Loans from parent undertaking and joint venture partners are unsecured, interest-free and repayable on demand.

GREEN VOLT OFFSHORE WINDFARM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
12
Financial risk review and management
An analysis of the carrying value of the company's financial assets and liabilities is as follows:
2023
2022
£
£
Financial assets at amortised cost
Cash and cash equivalents
9,077,791
-
Amounts owed by fellow group undertakings
-
100
9,077,791
100
Financial liabilities at amortised cost
Trade and other payables
5,350,892
-
Borrowings
32,246,884
-
37,597,776
-

The carrying amounts of financial assets and financial liabilities recorded at amortised cost approximate their fair values due to their short term nature or contractual cash flow characteristics.

 

Risk management framework 

 

The company is reliant upon the funding from its ultimate joint venture shareholders, Flotation Energy Limited and Vårgrønn AS. 

 

Its business activities expose the company to operational risk and financial risks such as credit risk and liquidity risk. Market risk is considered not significant for the company. The company's principal financial liabilities comprise trade and other payables as well as borrowings. The main purpose of these financial liabilities is to finance the company's operations. Financial assets include cash held at bank. 

 

The board is responsible for setting and monitoring the company’s exposure to risk and for the setting of appropriate policies, controls and parameters. The company’s objective is to have comprehensive and timely control and disclosure of risk measures and exposures. The evaluation of these risks is the responsibility of senior internal management. The company seeks to manage financial risk, to ensure sufficient liquidity is available to meet foreseeable needs and to invest cash safely and profitably. 

 

Credit risk 

 

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the company and the risk that any receivables of the company may default on amounts due to the company. The company does not have trade receivables and therefore is not exposed to significant credit risk.

 

Credit risk on cash and cash equivalents is considered to be very low as the counterparty is a bank with a high credit rating.   

 

The company's maximum exposure to credit risk relating to its financial assets and financial liabilities is equal to their carrying value. 

 

All financial liabilities of the company are due within one year.

GREEN VOLT OFFSHORE WINDFARM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Financial risk review and management
(Continued)
- 17 -

Liquidity risk 

 

Liquidity risk is the risk that the company will encounter difficulties in meeting obligations associated with financial liabilities. 

 

The company closely monitors its access to borrowings from its parent company in comparison to its outstanding commitments on a regular basis to ensure that it has sufficient funds to meet the obligations as they fall due.

 

The Board receives regular debt management forecasts which estimate the cash inflows and outflows for the next twelve months, so that management can ensure that sufficient funding is in place as it is required. 

 

The following table sets out the maturity profile of the company's financial liabilities, based on undiscounted contractual cash flows, as at the following dates: 

1-3 months
3-12 months
1-5 years
£
£
£
Financial liabilities
Trade payables
2,189,132
-
-
Accruals
3,161,760
-
-
Borrowings
-
1,037,111
31,209,773
5,350,892
1,037,111
31,209,773
13
Changes in liabilities arising from financing activities

The following table details the changes in the company's liabilities arising from financing activities.

At 1January 2023
Non-cash movements
Cash advanced
At 31 December 2023
£
£
£
£
Loans from related parties
-
1,037,111
-
1,037,111
Loans from parent undertaking
-
22,131,960
9,077,813
31,209,773
-
23,169,071
9,077,813
32,246,884
14
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Oridinary shares of £1 each
100
100
100
100

Ordinary shares

Ordinary shares carry the right to vote and are entitled pari passu to dividend payments or any other distributions, including on winding up of the company.

GREEN VOLT OFFSHORE WINDFARM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
15
Retained earnings

The retained earnings present the accumulated profits or losses of the company less distributions made to shareholders.

16
Capital risk management

The company's capital management objectives are:

 

 

The capital structure of the company consists of debt (trade, other payables and borrowings) and equity (comprising issued capital and retained earnings). 

 

The company is not subject to any externally imposed capital requirements. 

 

The company actively and regularly reviews and manages its capital structure to ensure an optimal capital structure and to maximise equity holder returns in the future, taking into consideration the future capital requirements of the company and capital efficiency, prevailing and projected profitability, projected operating cash flows, and projected strategic investment opportunities. The management regard capital as total equity and reserves for capital management purposes.

17
Events after the reporting date

In April 2024, Green Volt Offshore Windfarm Ltd was granted both onshore and offshore planning consents, marking an important milestone in the development of the project. On 3 September 2024, Green Volt Offshore Windfarm Ltd was awarded a Contract for Difference (CfD) with the Low Carbon Contracts Company (LCCC), a UK government-owned company. This contract, signed on 25 September 2024, does not affect the financial position as at 31 December 2023, and no adjustments have been made to the financial statements as at 31 December 2023.

18
Related party transactions

During the year the company received funds of £31,209,773 (2022: £nil) from Green Volt Holdco Ltd to finance the acquisition of intangible assets and operating activities. In addition, the following transactions with related parties were entered into:

Services provided to the company
Acquisition of intangible assets
2023
2022
2023
2022
£
£
£
£
Flotation Energy Limited
4,485,514
-
0
11,065,980
-
0
Vårgrønn AS
480,523
-
0
11,065,980
-
0
4,966,037
-
0
22,131,960
-
0
GREEN VOLT OFFSHORE WINDFARM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Related party transactions
(Continued)
- 19 -

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Green Volt Holdco Ltd
31,209,773
-
0
Flotation Energy Limited
1,037,111
-
0
32,246,884
-
2023
2022
Amounts due from related parties
£
£
Green Volt Holdco Ltd
-
0
100
19
Controlling party

The immediate parent company is Green Volt Holdco Ltd, the smallest group for which consolidated accounts are drawn up of which the company is a member with a registered office at 12 Alva Street, Edinburgh, Scotland, EH2 4QG.

20
Cash flows from operating activities
2023
2022
£
£
Loss for the year after tax
(20,105)
-
0
Movements in working capital:
Increase in trade and other receivables
(1,401,883)
-
Increase in trade and other payables
1,421,966
-
Cash used in operations
(22)
-
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