Silverfin false false 31/08/2024 01/09/2023 31/08/2024 Dr Elaine Janet Booth 22/08/2012 Irene May Fowlie 22/08/2012 James Hendry Fowlie 22/08/2012 Michael Thomas Macaulay 23/02/2021 18 February 2025 The principal activity of the Company during the financial year was that of the production and sale of wind energy. 08132383 2024-08-31 08132383 bus:Director1 2024-08-31 08132383 bus:Director2 2024-08-31 08132383 bus:Director3 2024-08-31 08132383 bus:Director4 2024-08-31 08132383 2023-08-31 08132383 core:CurrentFinancialInstruments 2024-08-31 08132383 core:CurrentFinancialInstruments 2023-08-31 08132383 core:Non-currentFinancialInstruments 2024-08-31 08132383 core:Non-currentFinancialInstruments 2023-08-31 08132383 core:ShareCapital 2024-08-31 08132383 core:ShareCapital 2023-08-31 08132383 core:OtherCapitalReserve 2024-08-31 08132383 core:OtherCapitalReserve 2023-08-31 08132383 core:RetainedEarningsAccumulatedLosses 2024-08-31 08132383 core:RetainedEarningsAccumulatedLosses 2023-08-31 08132383 core:OtherPropertyPlantEquipment 2023-08-31 08132383 core:OtherPropertyPlantEquipment 2024-08-31 08132383 core:CostValuation 2023-08-31 08132383 core:CostValuation 2024-08-31 08132383 core:DeferredTaxation 2024-08-31 08132383 core:DeferredTaxation 2023-08-31 08132383 core:EnvironmentalCosts 2024-08-31 08132383 core:EnvironmentalCosts 2023-08-31 08132383 core:AcceleratedTaxDepreciationDeferredTax 2024-08-31 08132383 core:AcceleratedTaxDepreciationDeferredTax 2023-08-31 08132383 core:OtherDeferredTax 2024-08-31 08132383 core:OtherDeferredTax 2023-08-31 08132383 bus:OrdinaryShareClass1 2024-08-31 08132383 2023-09-01 2024-08-31 08132383 bus:FilletedAccounts 2023-09-01 2024-08-31 08132383 bus:SmallEntities 2023-09-01 2024-08-31 08132383 bus:AuditExemptWithAccountantsReport 2023-09-01 2024-08-31 08132383 bus:PrivateLimitedCompanyLtd 2023-09-01 2024-08-31 08132383 bus:Director1 2023-09-01 2024-08-31 08132383 bus:Director2 2023-09-01 2024-08-31 08132383 bus:Director3 2023-09-01 2024-08-31 08132383 bus:Director4 2023-09-01 2024-08-31 08132383 core:OtherPropertyPlantEquipment core:BottomRangeValue 2023-09-01 2024-08-31 08132383 core:OtherPropertyPlantEquipment core:TopRangeValue 2023-09-01 2024-08-31 08132383 2022-09-01 2023-08-31 08132383 core:OtherPropertyPlantEquipment 2023-09-01 2024-08-31 08132383 core:CurrentFinancialInstruments 2023-09-01 2024-08-31 08132383 core:Non-currentFinancialInstruments 2023-09-01 2024-08-31 08132383 core:DeferredTaxation 2023-09-01 2024-08-31 08132383 core:EnvironmentalCosts 2023-09-01 2024-08-31 08132383 bus:OrdinaryShareClass1 2023-09-01 2024-08-31 08132383 bus:OrdinaryShareClass1 2022-09-01 2023-08-31 iso4217:GBP xbrli:pure xbrli:shares

Company No: 08132383 (England and Wales)

GWEL OPERATING COMPANY LIMITED

UNAUDITED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2024
PAGES FOR FILING WITH THE REGISTRAR

GWEL OPERATING COMPANY LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2024

Contents

GWEL OPERATING COMPANY LIMITED

BALANCE SHEET

AS AT 31 AUGUST 2024
GWEL OPERATING COMPANY LIMITED

BALANCE SHEET (continued)

AS AT 31 AUGUST 2024
Note 2024 2023
£ £
Fixed assets
Tangible assets 3 4,346,346 4,606,607
Investments 4 50 50
4,346,396 4,606,657
Current assets
Debtors 5 971,048 726,004
Cash at bank and in hand 3,834,080 4,015,628
4,805,128 4,741,632
Creditors: amounts falling due within one year 6 ( 1,385,318) ( 1,491,717)
Net current assets 3,419,810 3,249,915
Total assets less current liabilities 7,766,206 7,856,572
Creditors: amounts falling due after more than one year 7 ( 1,834,976) ( 2,709,611)
Provision for liabilities 8 ( 909,458) ( 953,897)
Net assets 5,021,772 4,193,064
Capital and reserves
Called-up share capital 9 1 1
Other reserves 85,963 143,824
Profit and loss account 4,935,808 4,049,239
Total shareholder's funds 5,021,772 4,193,064

For the financial year ending 31 August 2024 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These financial statements have been prepared in accordance with the provisions of FRS 102 Section 1A – small entities. The financial statements of GWEL Operating Company Limited (registered number: 08132383) were approved and authorised for issue by the Board of Directors on 18 February 2025. They were signed on its behalf by:

Dr Elaine Janet Booth
Director
Irene May Fowlie
Director
GWEL OPERATING COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2024
GWEL OPERATING COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2024
1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Gwel Operating Company Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Cannon Place, 78 Cannon Street, London, EC4N 6AF, United Kingdom. The principal place of business is Ednie House, St Fergus, Peterhead, AB42 3BU.

The financial statements have been prepared under the historical cost convention and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Profit and Loss Account in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for electricity 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.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than a decommissioning provision of £180,750, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:

Plant and machinery etc. 5 - 20 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

Assets in the course of construction are not depreciated.

Leases

The Company as lessee
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 systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Non-financial assets
At each balance sheet date, the company reviews 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). The recoverable amount of an asset is the higher of its fair value less costs to sell and its 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. 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. 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.

Fixed asset investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either 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 measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Basic financial liabilities
Basic financial liabilities, including creditors and bank loans 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.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Decommissioning costs

The net present value of the cost of decommissioning the windfarm at the end of its useful economic life has been recognised in the accounts as an additional asset and associated provision. The annual unwinding of the discounted balance is recognised as an addition within tangible fixed assets in the period in which it arises.

2. Employees

2024 2023
Number Number
Monthly average number of persons employed by the Company during the year, including directors 4 4

3. Tangible assets

Plant and machinery etc. Total
£ £
Cost
At 01 September 2023 8,781,806 8,781,806
Additions 157,954 157,954
At 31 August 2024 8,939,760 8,939,760
Accumulated depreciation
At 01 September 2023 4,175,199 4,175,199
Charge for the financial year 418,215 418,215
At 31 August 2024 4,593,414 4,593,414
Net book value
At 31 August 2024 4,346,346 4,346,346
At 31 August 2023 4,606,607 4,606,607

4. Fixed asset investments

Other investments Total
£ £
Cost or valuation before impairment
At 01 September 2023 50 50
At 31 August 2024 50 50
Carrying value at 31 August 2024 50 50
Carrying value at 31 August 2023 50 50

5. Debtors

2024 2023
£ £
Trade debtors 276,140 240,354
Other debtors 694,908 485,650
971,048 726,004

6. Creditors: amounts falling due within one year

2024 2023
£ £
Bank loans 944,813 907,694
Trade creditors 25,774 12,664
Taxation and social security 294,367 460,215
Other creditors 120,364 111,144
1,385,318 1,491,717

The bank loans and lease agreements held are secured by a standard security and a floating charge over the whole of the property (including uncalled share capital) and undertaking.

7. Creditors: amounts falling due after more than one year

2024 2023
£ £
Bank loans 242,131 1,186,944
Amounts owed to Group undertakings 1,592,845 1,522,667
1,834,976 2,709,611

The bank loans and lease agreements held are secured by a standard security and a floating charge over the whole of the property (including uncalled share capital) and undertaking.

8. Provision for liabilities

2024 2023
£ £
Deferred tax 656,286 709,993
Environmental provision 253,172 243,904
909,458 953,897
Deferred taxation Environmental Total
£ £ £
At 01 September 2023 709,993 243,904 953,897
Charged/(credited) to the Profit and Loss Account ( 53,707) 0 ( 53,707)
Unwinding of discount 0 9,268 9,268
At 31 August 2024 656,286 253,172 909,458

The decommissioning provision anticipates the costs associated with the planning consent obligation to remove the turbines and associated equipment at the end of their operation, discounted to today's value. Whilst it is expected that a market for the expired assets will exist, the provision cannot, and does not, anticipate any associated future income.

Deferred tax

2024 2023
£ £
Accelerated capital allowances 709,993 755,777
Other timing differences ( 53,707) ( 45,784)
Provision for deferred tax 656,286 709,993

9. Called-up share capital

2024 2023
£ £
Allotted, called-up and fully-paid
1 Ordinary share of £ 1.00 1 1

10. Related party transactions

The company has taken advantage of the exemptions included in FRS 102 33.1A not to disclose transactions with wholly owned group companies.

The company has leases in place in respect of land owned by directors and members of a director's immediate family. The total rent charged under the leases in the year is £134,723 (2023 £115,745) and included in accruals at the year end is £78,900 (2023 £72,422).

As part of the project funding arrangement, Greenside Wind Energy has given Triodos Bank security over the shares held in the subsidiary undertaking GWEL Operating Company Limited.

11. Other reserves

Other reserves represent a capital contribution from the company's parent.

12. Operating lease commitments

2024 2023
£ £
Lease payments 1,306,476 1,099,580

Outstanding operating lease commitments run until 2038.

At the reporting date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases as above.