CEDAR ENERGY LIMITED

Company Registration Number:
06973738 (England and Wales)

Unaudited statutory accounts for the year ended 31 July 2024

Period of accounts

Start date: 1 August 2023

End date: 31 July 2024

CEDAR ENERGY LIMITED

Contents of the Financial Statements

for the Period Ended 31 July 2024

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

CEDAR ENERGY LIMITED

Directors' report period ended 31 July 2024

The directors present their report with the financial statements of the company for the period ended 31 July 2024

Principal activities of the company

The company supplies heat and power across the Harper Adams University campus, to the University and its tenants. The company operates a CHP (Combined Heat and Power) engine, with a generating capacity of 3,400,000 kWh, photovoltaic roof mounted panels with the ability to deliver 580,000 kWh of electricity and a 3,600,000 kWh capacity Biomass boiler during the reporting period. The turnover reported during the year is in relation to the sale of heat, power, and green energy incentive grants. The energy industry is characterised by volatile pricing movements in recent years driven by factors such as geopolitical tensions, supply-demand dynamics, and macroeconomic movements. Fluctuating input costs have been managed by flexible price plans for customers thus maintaining margin and business stability.

Political and charitable donations

The company made a charitable donation of £208,401 (2023: £18,880) in the year to its parent company, Harper Adams University.

Additional information

Future prospects The Company is working with the University to consider how on campus energy production can be developed to improve efficiency of heat and power generated and reduction of footprint There are likely to be a range of investment options across the campus with the Company and the University working in partnership to consider these. Going Concern The activities of the Company, together with the factors likely to affect its future growth and performance, are financial statements and accompanying notes. Management has prepared an operational budget and cash-flow forecast for the 2024/25 financial year. The Company has sufficient financial resources and the directors believe that the Company can manage its business activity successfully. The Harper Adams University (as ultimate holding company) has provided a letter of support to the directors which confirms that it will extend short-term working capital facilities if required, to provide further assurance that the company is in a position to settle its liabilities for at least 12 months of the date of signing these financial statements. Accordingly, the directors have a reasonable expectation that the Company has sufficient resources to continue its operations, and funds to meet its liabilities, as they fall due for at least 12 months from the date of approval of the financial statements, and for this reason will continue to adopt a going concern basis in the preparation of its financial statements. Directors The directors of the Company during the year, and up to the date of signing of these financial statements, were as follows: Mrs S E Furey Ms J L Horsburgh No director received any remuneration through Cedar Energy Limited for their position as a director of the company.



Directors

The directors shown below have held office during the whole of the period from
1 August 2023 to 31 July 2024

Susan Elizabeth Furey
Joanna Louise Horsburgh


Secretary Richard John Heath

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
26 November 2024

And signed on behalf of the board by:
Name: Susan Elizabeth Furey
Status: Director

CEDAR ENERGY LIMITED

Profit And Loss Account

for the Period Ended 31 July 2024

2024 2023


£

£
Turnover: 1,187,323 1,042,125
Cost of sales: ( 555,036 ) ( 507,379 )
Gross profit(or loss): 632,287 534,746
Administrative expenses: ( 333,961 ) ( 283,015 )
Operating profit(or loss): 298,326 251,731
Interest payable and similar charges: ( 91,437 ) ( 71,411 )
Profit(or loss) before tax: 206,889 180,320
Tax: 25,245 7,000
Profit(or loss) for the financial year: 232,134 187,320

CEDAR ENERGY LIMITED

Balance sheet

As at 31 July 2024

Notes 2024 2023


£

£
Fixed assets
Tangible assets: 3 3,268,159 3,549,256
Total fixed assets: 3,268,159 3,549,256
Current assets
Stocks: 4 178 178
Debtors: 5 59,546 37,014
Cash at bank and in hand: 238,700 236,441
Total current assets: 298,424 273,633
Creditors: amounts falling due within one year: 6 ( 329,526 ) ( 404,320 )
Net current assets (liabilities): (31,102) (130,687)
Total assets less current liabilities: 3,237,057 3,418,569
Creditors: amounts falling due after more than one year: 7 ( 835,000 ) ( 1,015,000 )
Provision for liabilities: ( 108,749 ) ( 133,994 )
Total net assets (liabilities): 2,293,308 2,269,575
Capital and reserves
Called up share capital: 1,000,000 1,000,000
Profit and loss account: 1,293,308 1,269,575
Total Shareholders' funds: 2,293,308 2,269,575

The notes form part of these financial statements

CEDAR ENERGY LIMITED

Balance sheet statements

For the year ending 31 July 2024 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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

This report was approved by the board of directors on 26 November 2024
and signed on behalf of the board by:

Name: Susan Elizabeth Furey
Status: Director

The notes form part of these financial statements

CEDAR ENERGY LIMITED

Notes to the Financial Statements

for the Period Ended 31 July 2024

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

    Turnover policy

    Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of value added taxes and trade discounts. Revenue from services are recognised when the following conditions are satisfied: The company has provided the buyer with provision of services as agreed between both parties; The amount of revenue can be measured and calculated reliably; It is probable that the economic benefits associated with the transaction will flow to the entity

    Tangible fixed assets depreciation policy

    Tangible fixed assets are recorded at cost or valuation less depreciation. Depreciation is charged on all tangible fixed assets except freehold land, to write off the cost or revalued amount of an asset over its useful life. The following rates are normally applied on a straight-line basis. Minor Plant and Equipment 5 to 10 Years Major Plant and Equipment 20 to 25 Years Combined heat and power unit (CHP) 8 to 10 Years District Heat Main 40 Years

    Intangible fixed assets amortisation policy

    Impairments of assets are calculated as the difference between the carrying value of the asset and its recoverable amount if lower. Recoverable amount is defined as the higher of fair value less costs to sell and the estimated value in use at the date the impairment review is undertaken. Material impairments are recognised in the profit and loss account as material items. identified the need to accelerate its depreciation due to updated assumptions about its useful life. The CHP unit had an estimated useful economic life of 10 years. However, due to factors such as evolving industry standards, projected operational wear, it was deemed appropriate to reduce this estimate to 8 years. Following the annual reassessment, the CHP was changed to 8 years from 10 years during the year, has led to an increase in the depreciation expense of £52,117 and reduction in the carrying amount of the asset by the same amount.

    Valuation information and policy

    Basic financial instruments Financial Assets - Trade and other debtors Trade and other debtors are recognised initially at transaction price less attributable transaction costs. The assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period the financial assets are assessed for evidence of impairment. If an asset is impaired, the impairment loss is recognised in the profit and loss. Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. Financial Liabilities - Trade and other creditors Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method. Financial Liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. Cash and cash equivalents : Cash and cash equivalents comprise cash balances.

    Other accounting policies

    Deferred taxation Deferred taxation is recognised on all timing differences at the balance sheet date where transactions or events that gives the company an obligation to pay more tax in the future, or right to pay less tax in the future, have occurred. Deferred tax assets are recognised when it is more likely than not that they will be recovered. Deferred tax is measured using rates of tax that have enacted or substantively enacted by the balance sheet date. Deferred tax assets and liabilities are not discounted. Gift Aid No provision has been made for corporation taxation on the grounds that the company transfers its taxable profits by Gift Aid to its parent undertaking, Harper Adams University. Therefore, no corporation tax debtor or liability will be realised in the company for the year ending 31 July 2024. Gift-aid payments are accounted for in the year which they are paid. These are charged to the profit and loss reserve as disclosed in the Statement Of Changes In Equity. Material items : Material items are non-recurring material items which are outside the normal scope of the company's ordinary activities. Such items are disclosed separately within the financial statements. Provisions: Provisions are recognised in the financial statements when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that a transfer or economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. 1. Accounting estimates and judgements Depreciation : The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of assets. The useful economic lives and residual values are reassessed annually. Tangible fixed assets are reviewed annually and consideration given as to whether further impairment is required.

CEDAR ENERGY LIMITED

Notes to the Financial Statements

for the Period Ended 31 July 2024

  • 2. Employees

    2024 2023
    Average number of employees during the period 0 0

CEDAR ENERGY LIMITED

Notes to the Financial Statements

for the Period Ended 31 July 2024

3. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 August 2023 4,650,654 4,650,654
Additions
Disposals ( 8,146 ) ( 8,146 )
Revaluations
Transfers
At 31 July 2024 4,642,508 4,642,508
Depreciation
At 1 August 2023 1,101,398 1,101,398
Charge for year 272,951 272,951
On disposals
Other adjustments
At 31 July 2024 1,374,349 1,374,349
Net book value
At 31 July 2024 3,268,159 3,268,159
At 31 July 2023 3,549,256 3,549,256

CEDAR ENERGY LIMITED

Notes to the Financial Statements

for the Period Ended 31 July 2024

4. Stocks

2024 2023
£ £
Stocks 178 178
Total 178 178

CEDAR ENERGY LIMITED

Notes to the Financial Statements

for the Period Ended 31 July 2024

5. Debtors

2024 2023
£ £
Trade debtors 27,099 12,462
Other debtors 32,447 24,552
Total 59,546 37,014

CEDAR ENERGY LIMITED

Notes to the Financial Statements

for the Period Ended 31 July 2024

6. Creditors: amounts falling due within one year note

2024 2023
£ £
Trade creditors 11,656 9,496
Accruals and deferred income 7,300 19,771
Other creditors 310,570 375,053
Total 329,526 404,320

CEDAR ENERGY LIMITED

Notes to the Financial Statements

for the Period Ended 31 July 2024

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

2024 2023
£ £
Other creditors 835,000 1,015,000
Total 835,000 1,015,000