Company Registration No. 13569939 (England and Wales)
ARISE RENEWABLE ENERGY UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
Celixir House
Stratford Business & Technology Park
Innovation Way, Banbury Road
Stratford-upon-Avon
Warwickshire
United Kingdom
CV37 7GZ
ARISE RENEWABLE ENERGY UK LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Balance sheet
4
Notes to the financial statements
5 - 13
ARISE RENEWABLE ENERGY UK LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr P Eriksson
Mr M Larsson
Mr N Pascoe
Mr D P Cambridge
Secretary
Amesto Corporate Secreterial Limited
Company number
13569939
Registered office
78 York Street
London
United Kingdom
W1H 1DP
Auditor
TC Group
Celixir House
Stratford Business & Technology Park
Innovation Way, Banbury Road
Stratford-upon-Avon
Warwickshire
United Kingdom
CV37 7GZ
ARISE RENEWABLE ENERGY UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the Business
Arise Renewable Energy UK Limited is a wholly owned subsidiary of Arise Wind HoldCo 5 AB. The company is part of the Arise Group, which develops, constructs and sells solar and wind farms and asset management of these farms. Arise AB (publ) is a Swedish public limited liability company listed on Nasdaq Stockholm.
The results for the year and financial position of the Company are shown in the annexed financial statements.
During the year, the company incurred development costs for future sales and thus shows a negative result of £1,729,076 (2023: Loss £1,111,711).
The company has required intra-group loans, which at the end of the year amounts to £7,061,061 (2023: £3,840,156).
Principal Risks and Uncertainties
Arise’s activities primarily relate to the acquisition, development, construction, financing and operation of wind, solar, and battery storage. The company is exposed to several key risks that could impact its ability to develop and commercialize projects successfully. These include regulatory, financial, operational, and market risks.
Arise proactively manages these risks through a combination of strategic foresight, financial discipline, and operational excellence. The company continuously monitors the external environment to adapt to emerging risks and opportunities, ensuring long-term resilience and competitiveness in the renewable energy sector.
Market and Competitive Risks
The renewable energy market is evolving rapidly, with technological advancements, shifting policy frameworks, and increased competition potentially affecting project viability and profitability. While wind and solar power remain cost-competitive, emerging energy technologies could disrupt the market landscape. Additionally, competition for land and grid connections continues to intensify. Arise expects however that there will continue to be demand for electricity supplied from green sources for the foreseeable future and addresses these risks through diversification across different technologies and maintaining strong relationships with landowners / stakeholders to maintain a competitive project pipeline.
Regulatory and Project Planning Risks
Arise operates in a highly regulated environment, with projects subject to extensive permitting, environmental assessments, and grid connection approvals. Delays or failures in securing planning consents, changing government policies, or increased regulatory burdens could significantly impact project timelines and financial outcomes. Arise proactively engages with stakeholders to ensure smooth planning processes and employs in-house expertise in planning and regulatory aspects to follow known and established practices when developing its projects.
Financial Risks
Arise is exposed to financial risks, including fluctuations in energy prices, project financing constraints, interest rate movements, currency exchange rate volatility, parent company funding risk and liquidity risk. Unfavourable market conditions could impact the company's ability to secure investment for projects or achieve targeted returns. Arise maintains robust cost control over expenditure and benefits from parent company support resources in respect of these risks.
ARISE RENEWABLE ENERGY UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Operational and Execution Risks
The successful development and operation of renewable energy projects depend on efficient project execution, cost control, and supply chain reliability. Challenges such as rising material costs, contractor performance issues, and unforeseen technical difficulties could impact project delivery and profitability. Arise employs strong project management capabilities and undertakes rigorous risk assessment through the projects life cycle and regularly engages with suppliers to monitor supply chain stability and cost predictability.
Key Personnel and Organizational Risks
The expertise and experience of key individuals within Arise are critical to the company’s success. The loss of senior management or technical specialists could disrupt operations and strategic execution.
Future Developments
Arise has a number of early or late-stage projects in its development pipeline as detailed below:
| | |
| | Grid accepted. Land progressing to option stage. Planning work ongoing. |
| | Grid accepted. Land progressing to option stage. Planning work ongoing. |
| | Grid accepted. Land progressing to option stage. Planning work ongoing. |
| | Grid accepted. Land progressing to option stage. Planning work in start up stage |
| | Grid accepted. Land progressing to option stage. Planning work in start up stage |
| | Grid accepted, land progressed to option stage, EIA drafted & planning submission Q1 2025. |
| | Land under exclusivity, grid accepted. Planning work in start up phase. |
Further, Arise has a number of promising leads in its development pipeline which it is targeting progressing to early stage in 2025.
Mr M Larsson
Director
12 February 2025
ARISE RENEWABLE ENERGY UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 4 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
1,821,171
2,464,572
Investments
6
100
1,821,271
2,464,572
Current assets
Debtors
7
2,412,990
74,416
Cash at bank and in hand
157,092
183,090
2,570,082
257,506
Creditors: amounts falling due within one year
8
(532,436)
(354,990)
Net current assets/(liabilities)
2,037,646
(97,484)
Total assets less current liabilities
3,858,917
2,367,088
Creditors: amounts falling due after more than one year
9
(7,061,061)
(3,840,156)
Net liabilities
(3,202,144)
(1,473,068)
Capital and reserves
Called up share capital
11
100
100
Profit and loss reserves
(3,202,244)
(1,473,168)
Total equity
(3,202,144)
(1,473,068)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered 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 12 February 2025 and are signed on its behalf by:
Mr M Larsson
Director
Company registration number 13569939 (England and Wales)
ARISE RENEWABLE ENERGY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
1
Accounting policies
Company information
Arise Renewable Energy UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 78 York Street, London, United Kingdom, W1H 1DP.
1.1
Accounting convention
Basis of preparing the financial statements
Arise Renewable Energy UK Limited operates in renewable energy production.
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Arise AB. These consolidated financial statements are available from its registered office, Box 808, 301 18 Halmstad, Sweden.
ARISE RENEWABLE ENERGY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 6 -
1.2
Going concern
The financial statements have been prepared on the going concern basis, which assumes that the company will continue in operational existence for the foreseeable future.true
During the year the company made a loss of £1,729,076 (2023: £1,111,711), and as at 31 December 2024 the company had net liabilities of £3,202,144 (2023: £1,473,068), which could indicate that the company has insufficient resources to continue trading for the foreseeable future. However, the directors believe that it is appropriate to prepare the financial statements on the going concern basis due to the ongoing financial support of its ultimate parent entity, Arise AB.
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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
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:
Assets in the course of construction are not depreciated.
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
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
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.
ARISE RENEWABLE ENERGY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 7 -
1.7
Financial instruments
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.
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.
1.8
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 profit and loss account 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.
ARISE RENEWABLE ENERGY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 8 -
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 profit and loss account, 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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Holiday Pay
Holiday pay is recognised as an expense in the period in which the service is received.
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.11
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.
ARISE RENEWABLE ENERGY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
4
4
Administration
6
3
Total
10
7
4
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
525,840
417,948
Company pension contributions to defined contribution schemes
17,250
18,355
543,090
436,303
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
366,840
295,409
Company pension contributions to defined contribution schemes
11,110
10,855
ARISE RENEWABLE ENERGY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
5
Tangible fixed assets
Assets under construction
£
Cost
At 1 January 2024
2,464,572
Additions
1,018,917
Disposals
(1,662,318)
At 31 December 2024
1,821,171
Depreciation and impairment
At 1 January 2024 and 31 December 2024
Carrying amount
At 31 December 2024
1,821,171
At 31 December 2023
2,464,572
6
Fixed asset investments
2024
2023
£
£
Unlisted investments
100
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 January 2024
-
Additions
100
At 31 December 2024
100
Carrying amount
At 31 December 2024
100
At 31 December 2023
-
ARISE RENEWABLE ENERGY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
133,716
74,416
2024
2023
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
2,279,274
Total debtors
2,412,990
74,416
8
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
74,957
63,580
Taxation and social security
296,738
20,100
Other creditors
5,409
4,198
Accruals and deferred income
155,332
267,112
532,436
354,990
9
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Other borrowings
10
7,061,061
3,840,156
10
Loans and overdrafts
2024
2023
£
£
Loans from group undertakings
7,061,061
3,840,156
Payable after one year
7,061,061
3,840,156
ARISE RENEWABLE ENERGY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Loans and overdrafts
(Continued)
- 12 -
At 31 December 2024 the creditor due to the ultimate parent undertaking, Arise AB, is included as an unsecured long-term loan.
The maximum drawn down of the loan is £20 million.
The loan agreement states that interest is charged at the 3 month EURIBOR rate plus 750 bps or any other rate agreed by the borrower and lender. For each amount drawn down interest accrues on a daily basis from the date of the draw down.
For the period ended 31 December 2024 the actual interest rate used was 10%.
The loan including compounded interest is repayable in full on 31 December 2028.
11
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
100 of £1 each
100
100
100
100
Each share has full rights regarding voting, dividends and distribution.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Mark Bullock FCA
Statutory Auditor:
TC Group
Date of audit report:
12 February 2025
13
Related party transactions
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
ARISE RENEWABLE ENERGY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
14
Ultimate controlling party
The company's immediate parent company is Arise Wind Holdco 5 AB, registered in Sweden, by virtue of holding 100% of the company's share capital.
The ultimate parent company is Arise AB, registered in Sweden. The company's financial statements are included in the consolidated accounts of Arise AB and a copy can be obtained from 808 Box 808, Halmstad, Sweden, 30118.
2024-12-312024-01-01false12 February 2025CCH SoftwareCCH Accounts Production 2024.210No description of principal activityThis audit opinion is unqualifiedMr P ErikssonMr M LarssonMr N PascoeMr D P CambridgeAmesto Corporate Secreterial Limitedfalsefalse135699392024-01-012024-12-3113569939bus:Director12024-01-012024-12-3113569939bus:Director22024-01-012024-12-3113569939bus:Director32024-01-012024-12-3113569939bus:Director42024-01-012024-12-3113569939bus:CompanySecretary12024-01-012024-12-3113569939bus:RegisteredOffice2024-01-012024-12-31135699392024-12-31135699392023-12-3113569939core:ConstructionInProgressAssetsUnderConstruction2024-12-3113569939core:ConstructionInProgressAssetsUnderConstruction2023-12-3113569939core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3113569939core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3113569939core:Non-currentFinancialInstrumentscore:AfterOneYear2024-12-3113569939core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3113569939core:CurrentFinancialInstruments2024-12-3113569939core:CurrentFinancialInstruments2023-12-3113569939core:ShareCapital2024-12-3113569939core:ShareCapital2023-12-3113569939core:RetainedEarningsAccumulatedLosses2024-12-3113569939core:RetainedEarningsAccumulatedLosses2023-12-3113569939core:ConstructionInProgressAssetsUnderConstruction2024-01-012024-12-31135699392023-01-012023-12-3113569939core:ConstructionInProgressAssetsUnderConstruction2023-12-3113569939core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2024-12-3113569939core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2023-12-3113569939core:AfterOneYear2024-12-3113569939core:AfterOneYear2023-12-3113569939core:Non-currentFinancialInstruments2024-12-3113569939core:Non-currentFinancialInstruments2023-12-3113569939bus:PrivateLimitedCompanyLtd2024-01-012024-12-3113569939bus:SmallCompaniesRegimeForAccounts2024-01-012024-12-3113569939bus:FRS1022024-01-012024-12-3113569939bus:Audited2024-01-012024-12-3113569939bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP