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REGISTERED NUMBER: 09892557 (England and Wales)








Unaudited Financial Statements

For The Year Ended 30 June 2024

for

Ernesettle Community Solar Limited

Ernesettle Community Solar Limited (Registered number: 09892557)






Contents of the Financial Statements
For The Year Ended 30 June 2024




Page

Balance Sheet 1

Notes to the Financial Statements 3


Ernesettle Community Solar Limited (Registered number: 09892557)

Balance Sheet
30 June 2024

30.6.24 30.6.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 2,407,792 2,612,800

CURRENT ASSETS
Debtors 5 544,772 201,875
Cash at bank 785,035 907,262
1,329,807 1,109,137
CREDITORS
Amounts falling due within one year 6 408,349 353,416
NET CURRENT ASSETS 921,458 755,721
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,329,250

3,368,521

CREDITORS
Amounts falling due after more than one
year

7

(2,481,814

)

(2,842,359

)

PROVISIONS FOR LIABILITIES 11 (117,037 ) (85,831 )
NET ASSETS 730,399 440,331

CAPITAL AND RESERVES
Called up share capital 1 1
Shareholder loan capital
contribution 12 429,276 429,276
Retained earnings 301,122 11,054
SHAREHOLDERS' FUNDS 730,399 440,331

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

Ernesettle Community Solar Limited (Registered number: 09892557)

Balance Sheet - continued
30 June 2024


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 7 October 2024 and were signed on its behalf by:




C J Penberthy - Director



L Richards - Director


Ernesettle Community Solar Limited (Registered number: 09892557)

Notes to the Financial Statements
For The Year Ended 30 June 2024

1. STATUTORY INFORMATION

Ernesettle Community Solar Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number: 09892557

Registered office: Plymouth City Council
Ballard House
West Hoe Road
Plymouth
Devon
PL1 3BJ

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.

Turnover
Turnover represents net sales of electricity from units generated at the site and by selling back into the national grid at an agreed rate. Income is recognised on an accruals basis when the company first has right to the consideration.

Capital grant income has been deferred and released in accordance with the company's depreciation policy.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful economic life.

Plant and machinery - 5% straight line

Tangible fixed assets relate to the capital equipment and associated costs incurred to get the site ready and equipped with solar panels necessary to generate income.

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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Provisions
Provisions are recognised only when the outcome is unavoidable and can be reliably measured. They are recognised in the accounts as a non-tax deductible expense.

Ernesettle Community Solar Limited (Registered number: 09892557)

Notes to the Financial Statements - continued
For The Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

Long term loans below market rate
Long term loans received with an interest rate below market value have been discounted to present value at the market rate less the actual rate of interest. The amount discounted will be unwound over the term of the loan by way of an annual transfer between reserves.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2023 - 3 ) .

4. TANGIBLE FIXED ASSETS
Plant and
machinery
etc
£   
COST
At 1 July 2023
and 30 June 2024 4,100,174
DEPRECIATION
At 1 July 2023 1,487,374
Charge for year 205,008
At 30 June 2024 1,692,382
NET BOOK VALUE
At 30 June 2024 2,407,792
At 30 June 2023 2,612,800

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Trade debtors 149,826 -
Other debtors 394,946 201,875
544,772 201,875

Included in other debtors is accrued income to the sum of £361,769 (2023: £184,077).

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Trade creditors 9,691 23,226
Taxation and social security 79,145 891
Other creditors 319,513 329,299
408,349 353,416

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
30.6.24 30.6.23
£    £   
Other creditors 2,481,814 2,842,359

Amounts falling due in more than five years:

Repayable by instalments
Other loans more 5yrs instal 1,526,633 1,841,162

Ernesettle Community Solar Limited (Registered number: 09892557)

Notes to the Financial Statements - continued
For The Year Ended 30 June 2024

8. LOANS

Included in creditors are loans from PEC Renewables Limited, the parent company, at a value of £301,532 (2023: £491,820 ). Part of this is a 20 year loan received at below market rate and has been discounted by £429,276 (2023: £429,276 ) from the total amount repayable of £730,808 (2023:£921,096). The agreed market rate for the loan was 10% and actual interest is 6%. This discount is reflected in the equity as a capital contribution and will be unwound over the term of the loan.

9. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
30.6.24 30.6.23
£    £   
Within one year 21,766 21,766
Between one and five years 87,064 87,064
In more than five years 239,426 261,192
348,256 370,022

10. SECURED DEBTS

The following secured debts are included within creditors:

30.6.24 30.6.23
£    £   
Plymouth City Council Loan 2,423,776 2,589,493

The loan is secured by way of a fixed charge over: the lease of the land, the solar project in its entirety, its present and future uncalled capital and goodwill (including the share capital), all present and future contracts or insurance policies and any other plant and machinery owned by the company.

In addition there is a floating charge on the debtors of the business, including any other interests it may own not previously recognised.

11. PROVISIONS FOR LIABILITIES
30.6.24 30.6.23
£    £   
Deferred tax 39,393 19,187
Inverter replacement reserve 77,644 66,644
117,037 85,831

Deferred Inverter
tax reserve
£    £   
Balance at 1 July 2023 19,187 66,644
Provided during year - 11,000
Reversal of 20,206 -
accelerated capital allowances
Corporation tax losses
utilised
Change in tax rate
Balance at 30 June 2024 39,393 77,644

The inverter replacement provision is for the cost of replacing the key component of the solar arrays across the site. This expenditure is compulsory for the site to remain operational.

Ernesettle Community Solar Limited (Registered number: 09892557)

Notes to the Financial Statements - continued
For The Year Ended 30 June 2024

12. RESERVES
Shareholder
loan
capital
contribution
£   
At 1 July 2023
and 30 June 2024 429,276

13. RELATED PARTY DISCLOSURES

A separate loan existed between the company and its parent PEC Renewables Limited. At the end of the period the fair value of the loan was £301,532 (2023 :£491,820). This is a 20 year loan and has been discounted by £429,276 from the total repayments of £730,808 (2023: £921,096). Interest is chargeable on this loan at 6%.

Interest has been paid on the above loans to the sum of £53,650 (2023: £53,035).