REGISTERED NUMBER: |
LAPWING ENERGY LIMITED |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
REGISTERED NUMBER: |
LAPWING ENERGY LIMITED |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
LAPWING ENERGY LIMITED (REGISTERED NUMBER: 09537639) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
Page |
Company Information | 1 |
Statement of Financial Position | 2 |
Notes to the Financial Statements | 3 | to | 6 |
LAPWING ENERGY LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
3 Castlegate |
Grantham |
Lincolnshire |
NG31 6SF |
SOLICITORS: |
10 Spalding Road |
Holbeach |
Lincolnshire |
PE12 7LP |
LAPWING ENERGY LIMITED (REGISTERED NUMBER: 09537639) |
STATEMENT OF FINANCIAL POSITION |
31 MAY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 4 |
CURRENT ASSETS |
Debtors | 5 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 6 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) |
CREDITORS |
Amounts falling due after more than one year | 7 |
NET (LIABILITIES)/ASSETS | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 8 |
Retained earnings | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
LAPWING ENERGY LIMITED (REGISTERED NUMBER: 09537639) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
1. | STATUTORY INFORMATION |
Lapwing Energy Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Related party exemption |
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. |
Revenue |
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue is recognised based on actual meter readings of energy generated in the period. |
Project income received to carry out a reverse coal project has been recognised using the accrual model. Revenue is recognised on a systematic basis over the periods in which the entity recognises the related costs for which the project income is intended to compensate. |
Property, plant and equipment |
Plant and machinery | - |
Plant and machinery relating to plant required to fulfil the research and development contract with the Department for Energy, Security and Net Zero has been recognised in full at the start of the project and is being depreciated on a straight line basis over the remaining term of the project. The asset will not have a residual value at the end of the contract given it is a prototype and will not be used on an ongoing basis after the project has ended. |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is any indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount and an impairment loss is recognised immediately in the income statement. |
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment is recognised immediately in the income statement. |
LAPWING ENERGY LIMITED (REGISTERED NUMBER: 09537639) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has chosen to adopt the FRS 102A in respect of financial instruments. |
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement. |
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. Accounts 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date, including capital gains rolled into the company's assets.. |
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. |
LAPWING ENERGY LIMITED (REGISTERED NUMBER: 09537639) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
2. | ACCOUNTING POLICIES - continued |
Departure from frs 102 |
The company has entered into a contract with the Department for Energy, Security and Net Zero to carry out a research and development project. The company has entered into a separate contract with a supplier to provide the plant required to fulfil the project. The asset totalling £2,389,107 has been recognised in full at the start of the contract, in the year ended 31 May 2023, with a corresponding liability included in other creditors. The liability is then reduced once invoices are received based on milestones per the contract. This is not in accordance with 17.4 of FRS 102 where the asset is recognised based on amounts billed by the year end. The asset recognised is depreciated on a straight line basis over the remaining term of the project. This is not in accordance with 17.20 of FRS 102 given that the asset was not available for use at 31 May 2023 or 2024. However, the asset was being worked on insofar as design and development is concerned and this aspect is an integral part of the funded project. |
Management has concluded that compliance with requirements 17.4 and 17.20 of FRS 102 are inconsistent with the requirement to give a true and fair view. Management have recognised both the asset and liability at the start given that there is an unconditional liability to pay for the asset as part of the project's terms and conditions and the company is committed to pay for it as it cannot fulfil its contract with the Department for Energy, Security and Net Zero without designing, building and acquiring the asset. Management has concluded that depreciating the full cost of the asset over the remaining term of the project at the start of the contract will result in the cost of the asset and income being recognised in a more even manner over the length of the project. This more accurately reflects the reality of the time input by employees and contractors into the project. |
Management has concluded that the financial statements give a true and fair view of the company's financial position and financial performance. The company has complied with FRS 102 and applicable legislation, except that it has departed from a particular requirement of FRS 102 or applicable legislation to the extent necessary to give a true and fair view. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | PROPERTY, PLANT AND EQUIPMENT |
Plant and |
machinery |
£ |
COST |
At 1 June 2023 |
Additions |
At 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
VAT |
Prepayments and accrued income |
LAPWING ENERGY LIMITED (REGISTERED NUMBER: 09537639) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
VAT | - | 1,843 |
Other creditors |
Accruals and deferred income |
7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Other creditors |
8. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 1 | 1 |
9. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
The financial statements comply with accounting standards and applicable legislation subject to the departure detailed in note 2. Management have departed from a particular requirement of FRS 102 and applicable legislation to the extent necessary to give a true and fair view. |
Our opinion is not modified with respect to this matter. |
for and on behalf of |
10. | GOING CONCERN |
The financial statements have been prepared on a going concern basis which assumes the company will continue in operational existence for the foreseeable future. The directors believe that this basis is appropriate because the company has a contract to fulfil the research and development project to 30 June 2025. The project is fully funded and expected to cover all costs incurred on the project and the energy generation side of the business is profitable. There are net current liabilities of £952,702 (2023 - £1,370,291), however this is because the contract for the asset has been recognised in full as a liability at the start and this will be recovered in full over the term of the project. |