Company registration number 9743887 (England and Wales)
LOW CARBON HUB SANDFORD HYDRO LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
LOW CARBON HUB SANDFORD HYDRO LIMITED
COMPANY INFORMATION
Directors
Dr B A Hammond
S Drummond
Secretary
Teresa Paterson
Company number
9743887
Registered office
Holywell House
Osney Mead
Oxford
OX2 0ES
Accountants
Critchleys Audit LLP
Beaver House
23-38 Hythe Bridge Street
Oxford
OX1 2EP
LOW CARBON HUB SANDFORD HYDRO LIMITED
CONTENTS
Page
Directors' report
1
Accountants' report
2
Profit and loss account
3
Balance sheet
4
Statement of changes in equity
5
Notes to the financial statements
6 - 10
LOW CARBON HUB SANDFORD HYDRO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company is the operation of a Hydro Electric power plant located in Sanford-on-Thames, Oxfordshire, and the sale of the electricity generated from that plant.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
L C Marion
(Resigned 31 October 2023)
Dr B A Hammond
S Drummond
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Dr B A Hammond
Director
9 October 2024
LOW CARBON HUB SANDFORD HYDRO LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF LOW CARBON HUB SANDFORD HYDRO LIMITED FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Low Carbon Hub Sandford Hydro Limited for the year ended 31 March 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the Board of Directors of Low Carbon Hub Sandford Hydro Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Low Carbon Hub Sandford Hydro Limited and state those matters that we have agreed to state to the Board of Directors of Low Carbon Hub Sandford Hydro Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Low Carbon Hub Sandford Hydro Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Low Carbon Hub Sandford Hydro Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Low Carbon Hub Sandford Hydro Limited. You consider that Low Carbon Hub Sandford Hydro Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Low Carbon Hub Sandford Hydro Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Critchleys Audit LLP
9 October 2024
Beaver House
23-38 Hythe Bridge Street
Oxford
OX1 2EP
LOW CARBON HUB SANDFORD HYDRO LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
2024
2023
£
£
Turnover
172,298
176,133
Administrative expenses
(311,107)
(324,314)
Operating loss
(138,809)
(148,181)
Interest receivable and similar income
2,546
1,147
Interest payable and similar expenses
(131,339)
275,012
Write-off of intercompany loans
1,775,764
-
Profit before taxation
1,508,162
127,978
Tax on profit
Profit for the financial year
1,508,162
127,978
LOW CARBON HUB SANDFORD HYDRO LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 4 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
2,926,976
3,031,987
Current assets
Debtors
5
7,197
75,489
Cash at bank and in hand
47,997
105,906
55,194
181,395
Creditors: amounts falling due within one year
6
(289,443)
(233,771)
Net current liabilities
(234,249)
(52,376)
Total assets less current liabilities
2,692,727
2,979,611
Creditors: amounts falling due after more than one year
7
(1,747,826)
(3,542,872)
Net assets/(liabilities)
944,901
(563,261)
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
944,900
(563,262)
Total equity
944,901
(563,261)
For the financial year ended 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 9 October 2024 and are signed on its behalf by:
Dr B A Hammond
Director
Company registration number 9743887 (England and Wales)
LOW CARBON HUB SANDFORD HYDRO LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
1
(691,240)
(691,239)
Year ended 31 March 2023:
Profit and total comprehensive income
-
127,978
127,978
Balance at 31 March 2023
1
(563,262)
(563,261)
Year ended 31 March 2024:
Profit and total comprehensive income
-
1,508,162
1,508,162
Balance at 31 March 2024
1
944,900
944,901
LOW CARBON HUB SANDFORD HYDRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
1
Accounting policies
Company information
Low Carbon Hub Sandford Hydro Limited is a private company limited by shares incorporated in England and Wales. The registered office is Holywell House, Osney Mead, Oxford, OX2 0ES.
1.1
Accounting convention
These financial statements have been 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. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 principal accounting policies adopted are set out below.
The financial statements have been prepared on a going concern basis as despite the net liabilities on the balance sheet and losses in the profit and loss account, assets are being funded by loan term loans, the company is being supported by its parent entity (The Low Carbon Hub IPS Limited) and it is anticipated that the net income generation will improve in future years.
1.2
Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of electricity generated in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
Grants to fund the acquisition of tangible fixed assets (both government grants and grants from other entities) are credited to deferred income upon receipt. They are then released to income (to match against the related depreciation charge) over the useful life of the asset funded by the grant.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Hydro plant
40 Years
Fixtures and fittings
4 Years
Hydro machinery
10 years
Solar panels
not yet in use
1.4
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
LOW CARBON HUB SANDFORD HYDRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 7 -
Recoverable amount is the higher of fair value less costs to sell 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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
LOW CARBON HUB SANDFORD HYDRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 8 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
LOW CARBON HUB SANDFORD HYDRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
4
Tangible fixed assets
Hydro plant
Fixtures and fittings
Hydro machinery
Solar panels
Total
£
£
£
£
£
Cost
At 1 April 2023
3,029,475
307
797,320
3,827,102
Additions
969
49,942
50,911
At 31 March 2024
3,029,475
1,276
797,320
49,942
3,878,013
Depreciation and impairment
At 1 April 2023
387,192
307
407,616
795,115
Depreciation charged in the year
75,944
27
79,951
155,922
At 31 March 2024
463,136
334
487,567
951,037
Carrying amount
At 31 March 2024
2,566,339
942
309,753
49,942
2,926,976
At 31 March 2023
2,642,283
389,704
3,031,987
Within tangible assets are capitalised borrowing costs with a cost of £410,239 (2023 - £410,239).
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,200
Other debtors
65,467
Prepayments
7,197
8,822
7,197
75,489
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
43,176
Trade creditors
9,340
10,395
Amounts owed to group undertakings
100,000
123,412
Taxation and social security
1,810
Other creditors
38,746
Accruals and deferred income
141,357
54,978
289,443
233,771
LOW CARBON HUB SANDFORD HYDRO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
7
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
761,828
Amounts owed to group undertakings
1,643,844
2,674,177
Deferred income
103,982
106,867
1,747,826
3,542,872
On 23 September 2016, a £2,000,000 loan facility was signed between Low Carbon Hub Sandford Hydro Limited and The Charity Bank as long term finance for the construction of the Sanford Hydro Project. This finance has an interest rate of 3.5% over Bank of England Base rate and is repayable by instalments until September 2034. This loan is secured against the Sandford Hydro asset.
After capital repayments the amount of the loan outstanding at year end was £nil (2023: £805,004).
Deferred income represents grants to fund acquisition of tangible fixed assets. This is released to income (to match against the related depreciation charge) over the useful life of the asset funded by the grant.
8
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
302,250
320,250
9
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
42,508
-
10
Relationship between entity and parents
The parent of the largest group in which these financial statements are consolidated is The Low Carbon Hub IPS Limited.
The address of The Low Carbon Hub IPS Limited is:
Holywell House
Osney Mead
Oxford
OX2 OES
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