Company registration number 11978158 (England and Wales)
INNOVA RENEWABLES DEVELOPMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
INNOVA RENEWABLES DEVELOPMENTS LIMITED
COMPANY INFORMATION
Directors
R Dummett
R Adams
S Gamage
(Appointed 20 December 2023)
M Allworth
(Appointed 14 February 2024)
Company number
11978158
Registered office
3rd Floor, St George's House
13-14 Ambrose Street
Cheltenham
GL50 3LG
Auditor
Arnold Hill & Co LLP
6th Floor Capital Tower
91 Waterloo Road
London
SE1 8RT
INNOVA RENEWABLES DEVELOPMENTS LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Statement of changes in equity
8
Notes to the financial statements
9 - 17
INNOVA RENEWABLES DEVELOPMENTS LIMITED
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's principal activity during the year continued to be the provision of renewable energy consultation services.

Results and dividends

The loss for the year amounted to £1,860,567 (2022: £963,443 loss). The directors do not recommend payment of any dividend.

Fair review of the business

The majority of renewable energy projects continued to be in planning and development. The company has net liabilities at 31 December 2023 of £2,128,877 (2022: £268,310 net liabilities).

Directors

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

R Dummett
R Adams
S Gamage
(Appointed 20 December 2023)
M Allworth
(Appointed 14 February 2024)
Qualifying third party indemnity provisions

As permitted by the Companies Act 2006, the ultimate parent of the company, has indemnified the directors of the company in respect of proceedings brought by third parties and qualifying third party indemnity insurance was in place throughout the year and up to the date of approval of the financial statements.

Statement of directors' responsibilities

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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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, the directors are required to:

 

 

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.

INNOVA RENEWABLES DEVELOPMENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

 

 

 

On behalf of the board
R Adams
Director
31 October 2024
INNOVA RENEWABLES DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF INNOVA RENEWABLES DEVELOPMENTS LIMITED
- 3 -
Opinion

We have audited the financial statements of Innova Renewables Developments Limited (the 'company') 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 notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 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.

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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

INNOVA RENEWABLES DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF INNOVA RENEWABLES DEVELOPMENTS LIMITED (CONTINUED)
- 4 -
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, 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's 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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

INNOVA RENEWABLES DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF INNOVA RENEWABLES DEVELOPMENTS LIMITED (CONTINUED)
- 5 -

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available 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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Dipesh Giri BSc (Hons) BFP ACA
Senior Statutory Auditor
For and on behalf of Arnold Hill & Co LLP
31 October 2024
Chartered Accountants
Statutory Auditor
6th Floor Capital Tower
91 Waterloo Road
London
SE1 8RT
INNOVA RENEWABLES DEVELOPMENTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Year
Year
ended
ended
31 December
31 December
2023
2022
Notes
£
£
Turnover
6,272,875
3,206,761
Cost of sales
(4,134,628)
(2,746,321)
Gross profit
2,138,247
460,440
Administrative expenses
(3,682,592)
(1,359,650)
Operating loss
3
(1,544,345)
(899,210)
Interest receivable and similar income
6
560
-
0
Interest payable and similar expenses
7
(316,782)
(64,233)
Loss before taxation
(1,860,567)
(963,443)
Tax on loss
8
-
0
-
0
Loss for the financial year
(1,860,567)
(963,443)

The income statement has been prepared on the basis that all operations are continuing operations.

The notes on pages 9 to 17 form part of these financial statements.

INNOVA RENEWABLES DEVELOPMENTS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 7 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
66,245
93,085
Current assets
Stocks
10
1,010,689
1,206,532
Debtors
11
3,153,129
934,519
Cash at bank and in hand
64,468
39,817
4,228,286
2,180,868
Creditors: amounts falling due within one year
12
(6,423,408)
(2,542,263)
Net current liabilities
(2,195,122)
(361,395)
Net liabilities
(2,128,877)
(268,310)
Capital and reserves
Called up share capital
14
18,530
18,530
Share premium account
1,834,443
1,834,443
Profit and loss reserves
(3,981,850)
(2,121,283)
Total equity
(2,128,877)
(268,310)

The notes on pages 9 to 17 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 31 October 2024 and are signed on its behalf by:
R Adams
Director
Company registration number 11978158 (England and Wales)
INNOVA RENEWABLES DEVELOPMENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
18,530
1,834,443
(1,157,840)
695,133
Period ended 31 December 2022:
Loss and total comprehensive income
-
-
(963,443)
(963,443)
Balance at 31 December 2022
18,530
1,834,443
(2,121,283)
(268,310)
Period ended 31 December 2023:
Loss and total comprehensive income
-
-
(1,860,567)
(1,860,567)
Balance at 31 December 2023
18,530
1,834,443
(3,981,850)
(2,128,877)

The notes on pages 9 to 17 form part of these financial statements.

INNOVA RENEWABLES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
1
Accounting policies
Company information

Innova Renewables Developments Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, St George's House, 13-14 Ambrose Street, Cheltenham, GL50 3LG.

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.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Innova Capital Limited. These consolidated financial statements are available from its registered office, 3rd Floor, St George's House, 13-14 Ambrose Street, Cheltenham, GL50 3LG.

1.2
Going concern

The directors have have considered a period of 12 months from the date of approval of thesetrue financial statements in preparing their going concern assessment. The going concern assessment is dependent on the ultimate parent, Innova Capital Limited, not seeking repayment of the amounts due to other group entities that are controlled by Innova Capital Limited for a period of at least 12 months from the date of signing these financial statements. Innova Capital Limited has indicated its intention to continue to make available such funds as are needed by the company and that it does not intend to seek repayment of the amounts due during the going concern assessment period.

 

Consequently, the directors have are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. Turnover includes revenue earned from the rendering of services, including the provision of management and support services and the passthrough of development costs.

1.4
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.

Computers
Over 3 years straight line
INNOVA RENEWABLES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 10 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
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.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
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 statement of financial position 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.

INNOVA RENEWABLES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

1.9
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.

1.10
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 income statement 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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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 income statement, 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.

 

Group relief is charged on the surrender of tax losses between group companies at a rate of 75% of the tax value.

INNOVA RENEWABLES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of work in progress

Management assess each project to identify indicators of impairment of the work in progress. Factors taken into consideration in reaching such a decision include the economic viability of the project resulting from access to land, grid and obtaining necessary consents.

Key sources of estimation uncertainty

The directors do not consider there to be any material key sources of estimation uncertainty.

3
Operating loss
2023
2022
Operating loss for the period is stated after charging:
£
£
Exchange losses
209
163
Fees payable to the company's auditor for the audit of the company's financial statements
6,000
-
0
Depreciation of owned tangible fixed assets
33,448
9,704
Operating lease charges
140,605
7,139
INNOVA RENEWABLES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
29
25

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
4,049,619
1,504,092
Social security costs
280,069
148,700
Pension costs
64,998
26,237
4,394,686
1,679,029

Included in wages and salaries is a £1.19m salary recharge from Innova Renewables Limited for finance, support and development staff salaries.

5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
370,261
176,304
Company pension contributions to defined contribution schemes
5,400
4,000
375,661
180,304
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
280,161
176,304
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
560
-
0
INNOVA RENEWABLES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
114
1
Other interest on financial liabilities
316,668
64,232
316,782
64,233
8
Taxation

From 5 April 2023, the main rate of corporation tax increased from 19% to 25%, and a new 19% small profits rate of corporation tax was introduced for companies whose profits do not exceed £50,000. The main rate applies to companies with profits in excess of £250,000.

 

The hybrid rate calculated for the 12 month period is 23.5%.

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(1,860,567)
(963,443)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
(437,233)
(183,054)
Unutilised tax losses carried forward
437,233
183,054
Taxation charge for the period
-
-
INNOVA RENEWABLES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
9
Tangible fixed assets
Computers
£
Cost
At 1 January 2023
107,377
Additions
12,525
Disposals
(5,917)
At 31 December 2023
113,985
Depreciation and impairment
At 1 January 2023
14,292
Depreciation charged in the year
33,448
At 31 December 2023
47,740
Carrying amount
At 31 December 2023
66,245
At 31 December 2022
93,085
10
Stocks
2023
2022
£
£
Work in progress
1,010,689
1,206,532
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
-
0
497,174
Other debtors
225,082
53,556
Prepayments and accrued income
2,928,047
383,789
3,153,129
934,519
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
148,069
90,715
Amounts owed to related parties
3,817,229
-
0
Other creditors
94,708
1,349,663
Accruals and deferred income
2,363,402
1,101,885
6,423,408
2,542,263
INNOVA RENEWABLES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Creditors: amounts falling due within one year
(Continued)
- 16 -

Other creditors at 31 December 2022 are amounts due to Innova Renewables Limited on which interest of 12.5% is charged and is repayable on demand. As of September 2023 the amount owed to Innova Renewables Limited no longer attracted interest and the outstanding balance at 31 December 2023 was £3.7m.

13
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
64,998
26,237

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

14
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
1,852,972
1,852,972
18,530
18,530
A1 Ordinary shares of 1p each
10
10
-
-
A2 Ordinary shares of 1p each
20
20
-
-
A3 Ordinary shares of 1p each
20
20
-
-

Ordinary shares hold full rights regarding voting, payment of dividends and distributions. Ordinary A1, A2 and A3 class of shares have equal rights to dividends but do not convey the right to vote to the holder. The shares are redeemable and on winding up of the business the shareholder is entitled to a portion of the capital as determined by the shareholders agreement in place.

15
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
96,000
78,712
Between two and five years
328,500
424,500
424,500
503,212
INNOVA RENEWABLES DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
16
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Entities with control, joint control or significant influence over the company
4,448,878
1,629,826
958,677
90,753
Other related parties
-
0
-
0
45,870
-
Loans from
2023
2022
£
£
Entities with control, joint control or significant influence over the company
2,423,609
1,220,000
2023
2022
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
3,817,229
1,290,059
2023
2022
Amounts due from related parties
£
£
Other related parties
-
497,174

Transactions with related parties were done at market rate and are repayable on demand. The amounts outstanding at 31 December 2023 are unsecured and do not attract interest.

17
Ultimate controlling party

As at 31 December 2023 the company's immediate parent is Innova Renewables Limited and ultimate parent entity is Innova Capital Limited where the company's results are consolidated. Innova Capital Limited was incorporated in England and Wales and its registered address is 3rd Floor, St George's House, 13-14 Ambrose Street, Cheltenham, GL50 3LG.

 

There is no ultimate controlling party as no one individual is considered to have a majority shareholding.

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