Limited Liability Partnership registration number OC396817 (England and Wales)
HGPE ASG2 ASSETCO LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
HGPE ASG2 ASSETCO LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
HGPE Steel Limited
HGPE Steel Nominee Limited
Limited liability partnership number
OC396817
Registered office
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
Auditor
Albert Goodman LLP
Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX
HGPE ASG2 ASSETCO LLP
CONTENTS
Page
Members' report
1 - 2
Members' responsibilities statement
3
Independent auditor's report to the members of HGPE ASG2 Assetco LLP
4 - 7
Profit and loss account
8
Balance sheet
9
Reconciliation of members' interests
10 - 11
Notes to the financial statements
12 - 17
HGPE ASG2 ASSETCO LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The members present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

HGPE ASG2 Assetco LLP ("the LLP") leases fixed assets to A Shade Greener (F8) LLP ("ASG (F8) LLP") and Empower Community Solar LLP ("ECS LLP"), and receives fixed lease payments. Collectively with HGPE Steel Limited and HGPE Steel Nominee Limited, these entities form the "Group".

 

Going Concern

The LLP's loss for the year was £15,561 (2023: £19,559) and it has net liabilities of £2,049,980 (2023: £2,034,419). The LLP will continue to be supported by both the Group and its investor Atrato Onsite Energy Holdco Limited, from whom a letter of support has been obtained to corroborate the investor's intentions in this regard. The Group remains profitable, generating a significant cash surplus each year above its group liabilities. Noting this, the members believe that the Group and the investor both have the financial resources to support the LLP as a going concern. Accordingly, the members continue to adopt the going concern basis in preparing the financial statements.

 

Future developments

Other than continuing operations there are presently no plans to expand the operations of the LLP nor are there undertakings of research and development. There have been no significant events since the balance sheet date to the date of signing of the Annual Report and Financial Statements.

Members' drawings, contributions and repayments

The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.

 

Profit will be allocated to each members current account in proportion to their capital commitment upon the annual audited accounts being approved. Members may take drawings from the Partnership provided that this does not cause their current account to become negative. Any such amounts causing the member's current accounts to become negative would be due back to the LLP. The members have no entitlement to interest on capital contributions and have no entitlement to receive back any part of this contribution.

Designated members

The designated members who held office during the year and up to the date of signature of the financial statements were as follows:

HGPE Steel Limited
HGPE Steel Nominee Limited
Auditor

Albert Goodman was appointed as auditor to the limited liability partnership and in accordance with section 485 of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), a resolution proposing that they be re-appointed will be put at a general meeting.

Statement of disclosure to auditor

Each of the members in office at the date of approval of this annual report confirms that:

 

Small LLPs exemption

This report has been prepared in accordance with the special provisions relating to small limited liability partnerships within Part 15 of the Companies Act 2006.

HGPE ASG2 ASSETCO LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Approved by the members on 4 July 2025 and signed on behalf by:
04 July 2025
G S Gujral, for and on behalf of HGPE Steel Limited
Designated Member
HGPE ASG2 ASSETCO LLP
STATEMENT OF MEMBERS' RESPONSIBILITIES IN RESPECT OF THE MEMBERS' REPORT AND THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The members are responsible for preparing the Members’ Report and the financial statements in accordance with applicable law and regulations.

The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with applicable law and Section 1A of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Under Regulation 8 of the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the LLP and of the profit or loss of the LLP for that period. In preparing these financial statements, the members are required to:

Under Regulation 6 of the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 the members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP’s transactions and disclose with reasonable accuracy at any time the financial position of the LLP and enable them to ensure that the financial statements comply with those regulations. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the LLP and to prevent and detect fraud and other irregularities.

 

HGPE ASG2 ASSETCO LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HGPE ASG2 ASSETCO LLP
- 4 -
Opinion

We have audited the financial statements of HGPE ASG2 AssetCo LLP (the 'LLP') for the year ended 31 December 2023, which comprise Statement of comprehensive income, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 Section 1A 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the LLP’s affairs as at 31 December 2023 and of its profit for the year ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.

Basis for opinion

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 responsibilities for the audit of the financial statements section of our report. We are independent of the LLP 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 opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the member's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the LLP's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.

Other information

The members are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

 

HGPE ASG2 ASSETCO LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HGPE ASG2 ASSETCO LLP
- 5 -

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the for the financial period for which the financial statements are prepared is consistent with the financial statements; and

the has been prepared in accordance with applicable legal requirements.

In the light of our knowledge and understanding of the LLP and its environment obtained in the course of the audit, we have not identified material misstatements in the Members’ Report.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of Director's remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit; or

The Members were not entitled to prepare the financial statements in accordance with the small limited liability partnerships’ regime and take advantage of the small partnership’ exemptions in preparing the Members’ report and from the requirement to prepare a strategic report.

Responsibilities of members

As explained more fully in the set out on page 3, the members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the members are responsible for assessing the LLP's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the members either intend to liquidate the LLP or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

HGPE ASG2 ASSETCO LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HGPE ASG2 ASSETCO LLP
- 6 -

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

we identified the laws and regulations applicable to the LLP through discussions with members and other management, and from our commercial knowledge and experience of the renewable energy sector;

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the LLP, including the Companies Act 2006, taxation legislation, health and safety legislation;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and examining legal expenditure; and

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the LLP’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;

tested journal entries to identify unusual transactions;

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the members and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

HGPE ASG2 ASSETCO LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HGPE ASG2 ASSETCO LLP
- 7 -

Use of our report

This report is made solely to the LLP’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, as required by Regulation 39 of the Limited Liability Partnerships (Accounts and Audit) (Application of companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the LLP and the LLP’s members as a body, for our audit work, for this report, or for the opinions we have formed.

 

 

 

Christopher Walford BSc ACA (Senior Statutory Auditor)

For and on behalf of Albert Goodman LLP, Statutory Auditor

 

Goodwood House

Blackbrook Park Avenue

Taunton

Somerset

TA1 2PX

 

7 July 2025
HGPE ASG2 ASSETCO LLP
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
1,120,044
1,177,900
Administrative expenses
(23,006)
(25,019)
Operating profit
1,097,038
1,152,881
Interest receivable and similar income
22,845
53,268
Interest payable and similar expenses
3
(1,135,444)
(1,225,708)
Loss for the financial year before members' remuneration and profit shares
(15,561)
(19,559)
Members' remuneration charged as an expense
-
-
Loss for the financial year available for division among members
(15,561)
(19,559)
HGPE ASG2 ASSETCO LLP
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Current assets
Debtors falling due after more than one year
5
19,091,510
19,073,531
Debtors falling due within one year
5
2,647,644
2,327,407
Cash at bank and in hand
6,946
1,311,158
2,654,590
3,638,565
Creditors: amounts falling due within one year
6
(9,700,258)
(9,974,001)
Net current liabilities
(7,045,668)
(6,335,436)
Creditors: amounts falling due after more than one year
7
(14,095,822)
(14,772,514)
Net liabilities attributable to members
(2,049,980)
(2,034,419)
Represented by:
Loans and other debts due to members within one year
Other amounts
(2,050,980)
(2,035,419)
Members' other interests
Members' capital classified as equity
1,000
1,000
(2,049,980)
(2,034,419)

These financial statements have been prepared in accordance with the provisions applicable to limited liability partnerships subject to the small limited liability partnerships regime.

The financial statements were approved by the members and authorised for issue on 4 July 2025 and are signed on their behalf by:
04 July 2025
G S Gujral, for and on behalf of HGPE Steel Limited
Designated Member
Limited Liability Partnership Registration No. OC396817
HGPE ASG2 ASSETCO LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital (classified as equity)
Other reserves
Total
Other amounts
Total
Total
2024
£
£
£
£
£
£
Members' interests at 1 January 2024
1,000
-
1,000
(2,035,419)
(2,035,419)
(2,034,419)
Loss for the financial year available for division among members
-
(15,561)
(15,561)
-
-
(15,561)
Members' interests after loss for the year
1,000
(15,561)
(14,561)
(2,035,419)
(2,035,419)
(2,049,980)
Other division of profits/(loss)
-
15,561
15,561
(15,561)
(15,561)
-
Members' interests at 31 December 2024
1,000
-
1,000
(2,050,980)
(2,050,980)
(2,049,980)
HGPE ASG2 ASSETCO LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital (classified as equity)
Other reserves
Total
Other amounts
Total
Total
2023
£
£
£
£
£
£
Members' interests at 1 January 2023
1,000
-
1,000
(2,015,860)
(2,015,860)
(2,014,860)
Loss for the financial year available for division among members
-
(19,559)
(19,559)
-
-
(19,559)
Members' interests after loss for the year
1,000
(19,559)
(18,559)
(2,015,860)
(2,015,860)
(2,034,419)
Other division of profits/(loss)
-
19,559
19,559
(19,559)
(19,559)
-
Members' interests at 31 December 2023
1,000
-
1,000
(2,035,419)
(2,035,419)
(2,034,419)
HGPE ASG2 ASSETCO LLP
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Limited liability partnership information

HGPE ASG2 AssetCo LLP is an LLP incorporated in England and Wales. The registered office is Sixth Floor, Capital Tower, 91 Waterloo Road, London, SE1 8RT.

 

The LLP's principal activities are disclosed in the Members' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2018, together with Section 1A of 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 financial statements are prepared in sterling, which is the functional currency of HGPE ASG2 AssetCo LLP. Monetary amounts in these financial statements are rounded to the nearest GBP.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The LLP leases fixed assets to ASG (F8) LLP and ECS LLP and receives fixed lease payments. The Company’s cash flows are therefore dependent on the continuation of those operations. Notwithstanding net current liabilities of £7,045,668 as at 31 December 2024 and loss for the year ended 31 December 2024 of £15,561, the financial statements have been prepared on a going concern basis which the Members consider to be appropriate for the following reasons.

The Members have prepared a going concern assessment for a period of 12 months from the date of approval of these financial statements which indicate that, taking account of plausible downsides, HGPE ASG2 AssetCo LLP will have sufficient funds to meet its liabilities as they fall due during that period.

The going concern assessment is dependent on the ultimate parent, Atrato Onsite Energy Holdco Limited not seeking repayment of the amounts currently due to other group entities that are controlled by Atrato Onsite Energy Holdco Limited, which at 31 December 2024 amounted to £23,776,017 and providing additional financial support during that period. Atrato Onsite Energy Holdco Limited has indicated its intention to continue to make available such funds as are needed by HGPE ASG2 AssetCo LLP, and that it does not intend to seek repayment of the amounts due at 31 December 2024 during the going assessment period.

As with any company placing reliance on other group entities for financial support, the Members acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.

Consequently, the Members are confident that HGPE ASG2 AssetCo LLP will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

1.3
Turnover

Revenue is generated from interest payments on fixed assets that have been leased to ASG (F8) LLP and ECS LLP.

 

It is recognised net of VAT and accrues on a daily basis at the interest rate specified in the lease agreement.

HGPE ASG2 ASSETCO LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Members' participating interests

Members' participation rights are the rights of a member against HGPE ASG2 AssetCo LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of HGPE ASG2 AssetCo LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless HGPE ASG2 AssetCo LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

 

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members'. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

1.5
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.

1.6
Financial instruments

The LLP 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 HGPE ASG2 AssetCo LLP's statement of financial position when the LLP becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

 

Trade and other debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade or other debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

HGPE ASG2 ASSETCO LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

 

Trade and other creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Borrowing

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the year of the relevant borrowing.

 

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

 

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.

1.7
Taxation

No provision has been made in the financial statements of HGPE ASG2 AssetCo LLP for taxation. Each Member is liable for any tax liability arising out of their interest in the LLP.

2
Judgements and key sources of estimation uncertainty

Due to the nature of HGPE ASG2 AssetCo LLP's business and having considered the key sources of income and expenditure, Balance Sheet items and HGPE ASG2 AssetCo LLP's accounting policies, the members do not believe there are any critical accounting judgements or key sources of estimation uncertainty, other than the going concern basis of preparation as set out above.

HGPE ASG2 ASSETCO LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
3
Interest payable and similar expenses
2024
2023
£
£
Interest payable and similar expenses includes the following:
Interest payable to group undertakings
1,135,444
1,225,708
4
Employees

The average number of persons (excluding members) employed by the partnership during the year was nil (2023: nil).

5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
2,086,861
2,325,780
Other debtors
560,783
1,627
2,647,644
2,327,407

Included above within 'Amounts owed by group undertakings' is £1,509,208 (2023: £2,093,808) due on finance leases.

Amounts falling due after more than one year:
Amounts owed by group undertakings
19,091,510
19,073,531
Total debtors
21,739,154
21,400,938

Amounts owed by group undertakings are repayable on demand, but the members will only seek repayment if sufficient funds are available to make the repayment. Repayment may therefore take place after more than one year in certain instances.

 

As a result of two sale and leaseback transactions, capital elements of future lease obligations are recorded as assets. The cost of assets held for the purpose of letting under finance leases totalled £21,167,339 as at 31 December 2024 (2023: £21,167,339). The interest is repayable semi-annually in arrears, and the charge for the year is calculated by applying an effective interest rate of 5.2% and 6.2% to the capital elements of future lease obligations.

 

 

HGPE ASG2 ASSETCO LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,541
2,356
Amounts due to group undertakings
9,119,140
9,954,610
Accruals and deferred income
579,577
17,035
9,700,258
9,974,001

Amounts due to group undertakings are repayable on demand, but the members will only seek repayment if sufficient funds are available to make the repayment. Repayment may therefore take place after more than one year in certain instances

7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Amounts due to group undertakings
14,095,822
14,772,514

There are two loans provided by HGPE Steel Limited, comprising a senior and junior loan agreement payable quarterly in arrears. The interest charged for the period is calculated by applying an effective interest rate of 7% to the loan balances.

 

Amounts payable in greater than one year, by instalments, are as follows:
2024
2023
£
£
Within two and five years
8,593,914
8,151,012
In over five years
5,501,908
6,621,502
14,095,822
14,772,514
8
Financial commitments, guarantees and contingent liabilities

As part of the loan note agreement with HGPE Steel Limited, the LLP has entered into a cross group guarantee with HGPE Steel Nominee Limited, A Shade Greener (F8) LLP and Empower Community Solar LLP. At the balance sheet date, the year end liability under the cross group guarantee for the LLP was £19,178,373 (2023 - £20,865,492).

9
Events after the reporting date

There have been no significant events since the balance sheet date to the date of signing the Annual Report and Financial Statements.

10
Related party transactions

The LLP has taken advantage of the exemption contained within Section 33 of FRS 102 from the requirement to disclose details of transactions entered into between two or more members of a group, where the parties to the transactions are wholly owned subsidiary undertakings of that group.

HGPE ASG2 ASSETCO LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
11
Ultimate controlling party

As at 31 December 2024, the immediate parent company was HGPE Steel Limited. Following a group restructuring post year end, the ultimate controlling party is Brookfield Corporation by virtue of its shareholding, a company registered in Ontario, Canada. The registered office is Brookfield Place, 181 Bay Street, Suite 100, Toronto, Ontario, M5J 2T3.

 

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