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REGISTERED NUMBER: 13951868 (England and Wales)















FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

FOR

CCR ENERGY LIMITED

CCR ENERGY LIMITED (REGISTERED NUMBER: 13951868)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


CCR ENERGY LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2024







DIRECTORS: O R Thomas
Cllr B Brooks
D James
Cllr M Symonds
T Davies
H Thomas
J Evans



REGISTERED OFFICE: Aberthaw Power Station
The Leys
Aberthaw
Barry
CF62 4ZW



REGISTERED NUMBER: 13951868 (England and Wales)



SENIOR STATUTORY AUDITOR: Richard Phillips FCCA



AUDITORS: Baker Knoyle Audit Limited
Chartered Certified Accountants
Orbit Business Centre
Rhydycar Business Park
Merthyr Tydfil
CF48 1DL

CCR ENERGY LIMITED (REGISTERED NUMBER: 13951868)

BALANCE SHEET
31 MARCH 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 41,693 34,420
Investment property 5 37,639,724 36,992,820
37,681,417 37,027,240

CURRENT ASSETS
Debtors 6 1,923,830 3,167,360
Cash at bank 3,471,274 4,094,709
5,395,104 7,262,069
CREDITORS
Amounts falling due within one year 7 1,707,093 727,467
NET CURRENT ASSETS 3,688,011 6,534,602
TOTAL ASSETS LESS CURRENT
LIABILITIES

41,369,428

43,561,842

CREDITORS
Amounts falling due after more than one
year

8

(16,864,920

)

(15,769,889

)

PROVISIONS FOR LIABILITIES 10 (24,708,092 ) (27,847,646 )
NET LIABILITIES (203,584 ) (55,693 )

CAPITAL AND RESERVES
Called up share capital 1 1
Retained earnings (203,585 ) (55,694 )
(203,584 ) (55,693 )

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 4 September 2024 and were signed on its behalf by:





O R Thomas - Director


CCR ENERGY LIMITED (REGISTERED NUMBER: 13951868)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1. STATUTORY INFORMATION

CCR Energy Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

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

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery etc - 25% on reducing balance

Investment property
It is considered that a reliable measure of fair value is not available, and therefore the investment property at Aberthaw has been valued at costs incurred to date, plus a provision for estimated future costs that will be required to bring the site back to a safe, usable condition.

This method of valuation will be used until a more reliable measure of fair value becomes available.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Capitalisation of borrowing costs
Loan interest is being incurred on a loan, which has been drawn down for the sole purpose of the purchase and remediation of the site known as Aberthaw Power Station. These borrowing costs have therefore been capitalised.

Borrowing costs of £1,095,031 have been incurred during the period, and have been capitalised. Additional borrowing costs will occur over the lifetime of the project, on the existing loan funding unless the loan is converted to equity in the future. Future funding drawdowns may be by loan or equity. Due to the uncertainty of the form of future funding drawdowns, only loan interest accrued to the balance sheet date has been capitalised and no amount has been provided for future loan interest within the provision for future development costs of £24.7m

CCR ENERGY LIMITED (REGISTERED NUMBER: 13951868)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

2. ACCOUNTING POLICIES - continued

Stock
The site at Aberthaw contains a significant quantity of Pulverised Fuel Ash (PFA) which was acquired as part of the initial consideration of £8m. There is a ready market for this PFA, and is considered by the company as being stock for resale.

The PFA is registered landfill, which is monitored by Natural Resources Wales (NRW).

From the information available, it has not been possible to allocate any part of the purchase consideration to the PFA, and consequently no value for the PFA has been recognised within these financial statements.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 8 (2023 - 1 ) .

4. TANGIBLE FIXED ASSETS
Plant and
machinery
etc
£   
COST
At 1 April 2023 34,420
Additions 19,471
Disposals (1,029 )
At 31 March 2024 52,862
DEPRECIATION
Charge for year 11,169
At 31 March 2024 11,169
NET BOOK VALUE
At 31 March 2024 41,693
At 31 March 2023 34,420

5. INVESTMENT PROPERTY
Total
£   
COST
At 1 April 2023 36,992,820
Additions 646,904
At 31 March 2024 37,639,724
NET BOOK VALUE
At 31 March 2024 37,639,724
At 31 March 2023 36,992,820

CCR ENERGY LIMITED (REGISTERED NUMBER: 13951868)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

6. DEBTORS
2024 2023
£    £   
Amounts falling due within one year:
Trade debtors 1,800 -
Other debtors 366,234 1,753,600
368,034 1,753,600

Amounts falling due after more than one year:
Other debtors 1,555,796 1,413,760

Aggregate amounts 1,923,830 3,167,360

Included within debtors is an amount receivable after more than one year of £1,555,796 (2023 £1,413,760). A bond has been deposited with Natural Resources Wales, and this will be retained until the company has fulfilled various obligations pertaining to the remediation of the site at Aberthaw.

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 1,348,433 453,179
Taxation and social security 7,380 -
Other creditors 351,280 274,288
1,707,093 727,467

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Other creditors 16,864,920 15,769,889

Amounts falling due in more than five years:

Repayable otherwise than by instalments
Other loans more than 5 years -
Non-instalments

16,864,920

15,769,889

CCR ENERGY LIMITED (REGISTERED NUMBER: 13951868)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

9. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Other loans 16,864,920 15,769,889

Borrowings were secured from The County Council of the City and County of Cardiff on behalf of Cardiff Capital Region in March 2023. These borrowings were secured via a fixed and floating charge on the assets of CCR Energy Limited.

The terms of the borrowing do not contain a repayment schedule. The borrowings will become due for repayment, as and when the company has generated sufficient profits, to enable it to commence repayment. This is not expected to be within 5 years.

Interest charged on the borrowings is not repayable when incurred, but will be repaid together with the loan capital, when repayments commence.

On 18th March 2024, Cardiff Capital Region Regional Cabinet agreed to novate Cardiff Council's rights and obligations under the funding agreement, security agreement and loan note instrument with CCR Energy to the South East Wales Corporate Joint Committee (CJC), and to direct Cardiff Council to transfer its shareholding in CCR Energy to the CJC.

On 3rd June 2024 the CJC Committee approved the rescinding of the existing £15.7m of loan notes (plus accrued interest) previously issued to CCR Energy Limited under an Interim Funding Arrangement with Cardiff Council. On the same date, the CJC Committee also approved a global loan note instrument of £38.15m. (plus accrued interest) to CCR Energy Limited, of which £15.7m replaces the previous loan notes, and a further £22.45m of new loan notes will be drawn down based on the cash flow requirements of the Company in demolishing and remediating the site according to the approved 3-year business plan.

10. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Other provisions 24,708,092 27,847,646

Remediatio
n at
Aberthaw
£   
Balance at 1 April 2023 27,847,646
Movement during year (3,139,554 )
Balance at 31 March 2024 24,708,092

CCR Energy Limited has an obligation to remediate the site at Aberthaw Power Station, and to return the land to a safe, reusable condition.

Latest calculations suggest that the cost of these works, including the cost of acquiring the site, will be in the region of £38m.

Some of these costs have been defrayed in this and the previous financial year, with a provision being recognised for the balance of the remaining estimated costs.

CCR ENERGY LIMITED (REGISTERED NUMBER: 13951868)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

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

The Report of the Auditors was unqualified.

Richard Phillips FCCA (Senior Statutory Auditor)
for and on behalf of Baker Knoyle Audit Limited

12. ULTIMATE CONTROLLING PARTY

On 18th March 2024, Cardiff Capital Region Regional Cabinet agreed to novate Cardiff Council's rights and obligations under the funding agreement, security agreement and loan note instrument with CCR Energy to the South East Wales Corporate Joint Committee (CJC), and to direct Cardiff Council to transfer its shareholding in CCR Energy Limited to the CJC.

As a result, the CJC is the sole shareholder in CCR Energy Limited, which it in turn will hold the share on behalf of its 10 Constituent Councils. On the same date, a Governance Policy was approved by the CJC containing the essential terms of a Shareholder' Agreement.

13. GOING CONCERN

The company agreed financing in March 2023 with The County Council of the City and County of Cardiff on behalf of Cardiff Capital Region, which is allowing it to carry out the purchase, demolition and remediation work at the site at Aberthaw.

This work is likely to be carried out over several years, and the maximum funding initially agreed upon from The County Council of the City and County of Cardiff on behalf of Cardiff Capital Region is in the region of £38 million.

As stated in note 10, Secured Debts, Cardiff Council's rights and obligations under the funding agreement, security agreement and loan note instrument with CCR Energy were novated to the South East Wales Corporate Joint Committee (CJC) in March 2024. In addition, the existing £15.7m of loan notes (plus accrued interest) were rescinded in June 2024 and a global loan note instrument of £38.15m (plus accrued interest) to CCR Energy Limited was approved by the CJC. New loan notes will be drawn down based on the cash flow requirements of the Company in demolishing and remediating the site according to the approved 3-year business plan