Company Registration No. SC381814 (Scotland)
TORRENTIAL POTENTIAL LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
PAGES FOR FILING WITH REGISTRAR
James Hair & Co
59 Bonnygate
CUPAR
Fife
UK
KY15 4BY
TORRENTIAL POTENTIAL LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2024
30 September 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,105,086
1,180,647
Current assets
Stocks
2,369
3,635
Debtors
4
93,272
83,027
Cash at bank and in hand
215,282
98,431
310,923
185,093
Creditors: amounts falling due within one year
5
(252,127)
(150,140)
Net current assets
58,796
34,953
Total assets less current liabilities
1,163,882
1,215,600
Creditors: amounts falling due after more than one year
6
(178,613)
(411,653)
Net assets
985,269
803,947
Capital and reserves
Called up share capital
7
450,000
450,000
Share premium account
350,000
350,000
Profit and loss reserves
185,269
3,947
Total equity
985,269
803,947
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 30 September 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
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 4 April 2025 and are signed on its behalf by:
Mr C Frank Spencer-Nairn
Director
Company Registration No. SC381814
TORRENTIAL POTENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
1
Accounting policies
Company information
Torrential Potential Limited is a private company limited by shares incorporated in Scotland. The registered office is 59 Bonnygate, CUPAR, Fife, UK, KY15 4BY.
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. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover comprises the invoiced value of electricity generated and subsidies received by the company, net of Value Added Tax and trade discounts.
1.3
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:
Hydro buildings and civil engineering work
60 years
Power generation plant
20 years
Network assets
60 years
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.
1.4
Stocks
Stocks and work in progress including short term contracts are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks. Cost comprises direct expenditure and an appropriate proportion of fixed and variable overheads.
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.
1.5
Financial instruments
Basic financial instruments are recognised at amortised cost using the effective interest method except for investments in non-convertible preference and non-puttable preference and ordinary shares, which are measured at fair value, with changes recognised in the profit and loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value, with charges recognised in profit and loss.
TORRENTIAL POTENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 3 -
1.6
Taxation
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
FRS102 requires that deferred taxation should be provided on the liability method to take account of timing differences between the treatment of certain items for accounts purposes and their treatment for tax purposes.
The directors have decided to depart from this requirement as they consider that by doing so produces a better matching of the company's distributable profits with its cash generation capacity.
1.7
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
4
4
TORRENTIAL POTENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
3
Tangible fixed assets
Hydro buildings and civil engineering work
Power generation plant
Network assets
Total
£
£
£
£
Cost
At 1 October 2023
258,403
1,437,526
200,175
1,896,104
Additions
3,992
3,992
At 30 September 2024
258,403
1,441,518
200,175
1,900,096
Depreciation and impairment
At 1 October 2023
38,759
646,674
30,024
715,457
Depreciation charged in the year
4,307
71,910
3,336
79,553
At 30 September 2024
43,066
718,584
33,360
795,010
Carrying amount
At 30 September 2024
215,337
722,934
166,815
1,105,086
At 30 September 2023
219,644
790,852
170,151
1,180,647
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,749
Prepayments and accrued income
91,523
83,027
93,272
83,027
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts (secured)
38,702
70,546
Trade creditors
17,457
1,443
Corporation tax
173,869
69,076
Other taxation and social security
12,616
1,515
Accruals and deferred income
9,483
7,560
252,127
150,140
TORRENTIAL POTENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
6
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts (secured)
178,613
411,653
The Bank of Scotland plc hold a floating charge dated 6 November 2013 over the entire assets of the company as security for the bank loan.
The Bank of Scotland plc also hold a charge dated 14 November 2013 over the tenants interest in the lease over Culligran Estate as security for the bank loan.
Amounts included above which fall due after five years are as follows:
Payable by instalments
7,710
100,285
TORRENTIAL POTENTIAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
7
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
450,000 Ordinary of £1 each
450,000
450,000
450,000
450,000
8
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
£
£
The company has an operating lease until 2074 with Culligran Estate and the rental is initially 5% of gross income per annum rising to 8% per annum after ten years. Due to the uncertainty of the income that will be received, the annual commitments cannot be accurately estimated.