Company registration number 10306226 (England and Wales)
BROADLEY ENERGY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
BROADLEY ENERGY LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
BROADLEY ENERGY LIMITED
BALANCE SHEET
AS AT 29 MARCH 2024
29 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
3,980,383
3,796,655
Current assets
Stocks
27,367
377,807
Debtors
5
243,314
555,188
Cash at bank and in hand
20,900
116,487
291,581
1,049,482
Creditors: amounts falling due within one year
6
(1,014,241)
(1,321,897)
Net current liabilities
(722,660)
(272,415)
Total assets less current liabilities
3,257,723
3,524,240
Creditors: amounts falling due after more than one year
7
(28,124,494)
(25,841,865)
Net liabilities
(24,866,771)
(22,317,625)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(24,866,871)
(22,317,725)
Total equity
(24,866,771)
(22,317,625)

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 17 March 2025 and are signed on its behalf by:
Mr R F M Humphreys
Director
Company registration number 10306226 (England and Wales)
BROADLEY ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 MARCH 2024
- 2 -
1
Accounting policies
Company information

Broadley Energy Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Old School, High Street, Stretham, Ely, CB6 3LD. The principal place of business is Broadley Copse Farm, Downs Road, Funtingdon, Chichester, PO18 9BT.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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, modified to include the revaluation of the AD plant. The principal accounting policies adopted are set out below.

1.2
Going concern

As at 29 March 2024 the company has net current liabilities of £722,600 (2023: £272,415) and net liabilities of £24,866,771 (2023: £22,317,625). These balances include a loan from its parent company of £28,124,494, as described in note 7. The parent company has confirmed that they will continue to provide financial support for a period of at least twelve months from the date of the approval of the financial statements. The loan facility was extended after the year end. For this reason the directors continue to prepare the financial statements on a going concern basis.

1.3
Turnover

Turnover represents sales of feedstock, electricity units generated, and the value of Renewable Heat Incentives and other subsidies which are recognised upon generation of the electricity.

 

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the Revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales tax. The following criteria must also be met before revenue is recognised:

 

Sale of energy:

 

 

Turnover represents amounts receivable for energy generated in the period net of any applicable value added tax. Any uninvoiced income is accrued in the period in which it has been generated.

1.4
Tangible fixed assets

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:

AD plant
Straight line over 20 years
Plant and equipment
Straight line between 20 and 5 years
Motor Vehicles
Straight line between 3 and 5 years
BROADLEY ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2024
1
Accounting policies
(Continued)
- 3 -

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.

Borrowing costs associated with financing capital expenditure on construction of the plant and machinery are capitalise as part of the cost of the asset. The anaerobic digestion plant was completed on 31 March 2020 at which point the plant became operational. Further costs are only capitalised to the extent that can be classified as tangible fixed assets under FRS 101 Section 1A.

1.5
Impairment of fixed assets

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Stock represents 'feed stock' held for consumption by the anaerobic digestion plant.

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 balance sheet 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.

BROADLEY ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
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
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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorted.

The interest element of these obligation is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

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.

BROADLEY ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2024
- 5 -
3
Employees

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

2024
2023
Number
Number
Total
3
3
4
Tangible fixed assets
AD plant
Plant and equipment
Motor Vehicles
Total
£
£
£
£
Cost
At 30 March 2023
9,755,034
64,621
137,435
9,957,090
Additions
691,124
-
0
40,000
731,124
Disposals
(23,706)
-
0
-
0
(23,706)
At 29 March 2024
10,422,452
64,621
177,435
10,664,508
Depreciation and impairment
At 30 March 2023
6,031,409
10,742
118,284
6,160,435
Depreciation charged in the year
497,824
12,924
16,067
526,815
Eliminated in respect of disposals
(3,125)
-
0
-
0
(3,125)
At 29 March 2024
6,526,108
23,666
134,351
6,684,125
Carrying amount
At 29 March 2024
3,896,344
40,955
43,084
3,980,383
At 29 March 2023
3,723,625
53,879
19,151
3,796,655

During the year £nil (2023 - £nil) of interest costs directly attributable to the financing of freehold property developments were capitalised at the weighted average cost of the related borrowings. The total capitalised interest at 30 March 2024 was £3,153,334 (2023 - £3,153,334).

5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
151,612
187,391
Other debtors
91,702
367,797
243,314
555,188
BROADLEY ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2024
- 6 -
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
514,202
621,222
Other creditors
500,039
700,675
1,014,241
1,321,897
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
28,124,494
25,841,865

At the year end, Privilege Project Finance Limited, a parent company was owed a balance of £28,124,494 (2023: £25,837,829). The parent company holds a fixed and floating charge over the assets of this company under the security charge codes 0613 2280 0001, 0613 2280 0002 and 0613 2280 0003.

 

On 15 January 2025 a deed of amendment was agreed by both parties which extended the loan maturity date to 30 June 2026.

8
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 is qualified and includes the following:

Qualified opinion on financial statements

In our opinion, except for the possible effects on the corresponding figures of the matter described in the basis for qualified opinion paragraph, the financial statements:

BROADLEY ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2024
8
Audit report information
(Continued)
- 7 -

Basis for qualified opinion

With respect to the opening position for the comparative period, stock had a carrying amount of £349,960 at 29 March 2022. The audit evidence available was limited as a result of non-attendance of the stock count at 29 March 2022, due to the auditors being appointed after the balance sheet date. Owing to the nature of the company's records, we have been unable to obtain sufficient appropriate audit evidence regarding the stock quantities by using other procedures. Consequently we were unable to determine whether there was a consequential effect on the cost of sales for the year ended 29 March 2023. The audit opinion on the financial statements for the year ended 29 March 2023 was modified accordingly. Our opinion on the current period's financial statements is also modified because of the possible effect of this matter on the comparability of the current period's figures and the corresponding figures

 

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 qualified opinion.

Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to stock, described above:

 

Senior Statutory Auditor:
Jayson Lawson
Statutory Auditor:
Ensors Accountants LLP
Date of audit report:
27 March 2025
9
Operating lease commitments
Lessee

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

2024
2023
£
£
1,599,000
1,689,000

The company is committed under a feedstock purchase and digestate removal contract until 2 December 2042, 26 years from the commencement date, whereby the company is committed to purchase a minimum tonnage of feedstock from the landlord.

10
Parent company

At the year end the company was under the immediate control of Privilege Investments Limited, a company registered in England and Wales. The company’s ultimate parent undertaking is Privilege Holdings Limited, which is the only consolidation in which the results of Broadley Energy Limited are consolidated. Privilege Holdings Limited is registered at The Old School, High Street, Stretham, Ely, England, CB6 3LD. The controlling party is Craig Reeves by virtue of a majority shareholding in Privilege Holdings Limited.

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