| REGISTERED NUMBER: SC520342 (Scotland) |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MARCH 2025 |
| FOR |
| LDV HARBURNHEAD HOLDINGS LIMITED |
| REGISTERED NUMBER: SC520342 (Scotland) |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MARCH 2025 |
| FOR |
| LDV HARBURNHEAD HOLDINGS LIMITED |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| for the year ended 31 March 2025 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 5 |
| Consolidated Statement of Comprehensive Income | 8 |
| Consolidated Balance Sheet | 9 |
| Company Balance Sheet | 10 |
| Consolidated Statement of Changes in Equity | 11 |
| Company Statement of Changes in Equity | 12 |
| Consolidated Cash Flow Statement | 13 |
| Notes to the Consolidated Cash Flow Statement | 14 |
| Notes to the Consolidated Financial Statements | 15 |
| LDV HARBURNHEAD HOLDINGS LIMITED |
| COMPANY INFORMATION |
| for the year ended 31 March 2025 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| 16 Davy Court |
| Castle Mound Way |
| Rugby, CV23 0UZ |
| Magma Audit LLP is part |
| Of the Dains Group |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| GROUP STRATEGIC REPORT |
| for the year ended 31 March 2025 |
| REVIEW OF BUSINESS |
| Principal activity |
| The principal activity of the Group in the year under review was that of operation of a UK onshore wind farm for the production and sale of renewable energy. |
| Performance in the year |
| Turnover for the year has increased from £14,942,764 to £16,865,966. Around 46% of income was received from wholesale power prices. Turnover has increased mainly due to increased generation in the year with an extra 3GWh produced compared to the year ended 31 March 2024. |
| The Group has met all banking facility covenants and has made bank facility repayments due under this facility. The Group has also used excess cash to make dividend payments in the year. The Group has accrued retained earnings in the year and will continue to make payments of excess cash in the form of dividends. |
| Position at the year-end |
| At the year end the Group has net current assets of £14,594,850 (2023: £15,084,728) and net assets of £18,898,490 (2023: £17,904,708). The increase in the net asset position being primarily due to paydown of the debt £3,822,893 (2024: £3,686,258) offset by depreciation of the tangible assets £1,518,868 (2024: £1,518,869). |
| Key performance indicators |
| - Volume of electricity produced by the wind farm |
| - Price achieved for the electricity produced |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| Strategic |
| The principal risks facing the Group are the volume of electricity produced and the prices achieved when this electricity is sold on wholesale power markets. The availability of the windfarm remains in line with expectations and the windfarm generated 123,358 MWh of electricity in the year. This was below the budget of 130,400 MWh. |
| Financial |
| The company is partially exposed to movements in wholesale power prices. The Group continues to consider if wholesale power prices should be fixed on a periodic basis to reduce this risk. Due to commercial sensitivity, further detail is not provided in this Strategic Report. The Group continues to manage its exposure to interest rate risk in respect of its bank loan by hedging this risk with an interest rate swap, which fixes its interest rate and mitigates the risk of changes in the interest rates. |
| The Group applied to amend its planning consent and extend the life of the windfarm by a further 25 years. This was approved by Scottish Ministers in January 2024. The Group has the option to increase the various leases in line with extended planning consent. |
| The Group has put in place a decommissioning letter of credit with BLB for £2,413,327, to cover any future potential decommissioning liability costs. This replaces the decommissioning bond that was in place with the council. |
| The Group is exposed to financing risk through our debt and our need to make principal and interest payments as planned. We are comfortably meeting all cover ratios and revenue would need to fall considerably and stay at those levels before it becomes a problem. |
| Operational |
| The volume of electricity produced is dependent on wind speeds and the availability of turbines. The turbine manufacturer is now much more appropriately resourced and is responding to faults and ongoing maintenance in a timely manner as is demonstrated with availability for the year above 98%. |
| ON BEHALF OF THE BOARD: |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| REPORT OF THE DIRECTORS |
| for the year ended 31 March 2025 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 March 2025. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of operation of a UK onshore wind farm for the production and sale of renewable energy. |
| DIVIDENDS |
| Total interim dividends of £5,650,000 (2024: £12,740,000) have been declared and paid in the year ended 31 March 2025. |
| FUTURE DEVELOPMENTS |
| Information relating to future developments is given in the Strategic Report. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report. |
| Other changes in directors holding office are as follows: |
| FINANCIAL INSTRUMENTS |
| The group uses financial instruments, which include cash borrowings, hedging, cash and other liquid resources. The main risks arising from the group's financial instruments are interest rate changes and liquidity risk. The directors regularly review and agree policies for the mitigation of these risks. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors 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 company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| REPORT OF THE DIRECTORS |
| for the year ended 31 March 2025 |
| AUDITORS |
| The auditors, Magma Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| LDV HARBURNHEAD HOLDINGS LIMITED |
| Opinion |
| We have audited the financial statements of LDV Harburnhead Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 '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 group's and of the parent company affairs as at 31 March 2025 and of the group's profit for the year then 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. |
| 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 directors' 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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. |
| Opinions on other matters 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| LDV HARBURNHEAD HOLDINGS LIMITED |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors 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 directors determine 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 directors are responsible for assessing the group's and the parent company'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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| Auditors' 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 a Report of the Auditors 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Based on our understanding of the company and the industry, we have identified the principal risks of non-compliance with laws and regulations, and considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries, and management bias in accounting estimates. |
| Audit procedures performed by the engagement team included: |
| - discussions with management, including consideration of known or suspected instances of non-compliance with |
| laws and regulation, and fraud; and |
| - identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, journal entries crediting revenue, journal entries crediting cash and entries with unusual description; and |
| - challenging assumptions made by management in their significant accounting estimates, such as those in relation to the fair value of derivatives, impairment of tangible fixed assets, deferred tax, accrued income and decommissioning provision |
| There are inherent limitations in the audit procedures described above and the further removed non-compliance with |
| laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting in error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through 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 Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| LDV HARBURNHEAD HOLDINGS LIMITED |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| 16 Davy Court |
| Castle Mound Way |
| Rugby, CV23 0UZ |
| Magma Audit LLP is part |
| Of the Dains Group |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| CONSOLIDATED |
| STATEMENT OF COMPREHENSIVE |
| INCOME |
| for the year ended 31 March 2025 |
| 2025 | 2024 |
| Notes | £ | £ |
| TURNOVER | 3 | 16,865,966 | 14,942,764 |
| Administrative expenses | (6,529,431 | ) | (6,501,426 | ) |
| OPERATING PROFIT | 5 | 10,336,535 | 8,441,338 |
| Interest receivable and similar income | 6 | 254,375 | 409,998 |
| 10,590,910 | 8,851,336 |
| Interest payable and similar expenses | 7 | (1,516,229 | ) | (1,658,343 | ) |
| PROFIT BEFORE TAXATION | 9,074,681 | 7,192,993 |
| Tax on profit | 8 | (2,385,344 | ) | (1,873,201 | ) |
| PROFIT FOR THE FINANCIAL YEAR |
| OTHER COMPREHENSIVE INCOME |
| Change in value of hedging instrument | (60,741 | ) | (688,426 | ) |
| Income tax relating to other comprehensive income |
15,185 |
172,106 |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(45,556 |
) |
(516,320 |
) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
6,643,781 |
4,803,472 |
| Profit attributable to: |
| Owners of the parent | 6,689,337 | 5,319,792 |
| Total comprehensive income attributable to: |
| Owners of the parent | 6,643,781 | 4,803,472 |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| CONSOLIDATED BALANCE SHEET |
| 31 March 2025 |
| 2025 | 2024 |
| Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 11 | 61,804,168 | 63,323,036 |
| Investments | 12 | - | - |
| 61,804,168 | 63,323,036 |
| CURRENT ASSETS |
| Debtors: amounts falling due within one year | 13 | 14,499,905 | 13,502,921 |
| Debtors: amounts falling due after more than one year |
13 |
- |
2,518,947 |
| Cash at bank | 5,746,653 | 4,536,004 |
| 20,246,558 | 20,557,872 |
| CREDITORS |
| Amounts falling due within one year | 14 | (5,651,708 | ) | (5,473,144 | ) |
| NET CURRENT ASSETS | 14,594,850 | 15,084,728 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
76,399,018 |
78,407,764 |
| CREDITORS |
| Amounts falling due after more than one year |
15 |
(42,540,182 |
) |
(45,924,843 |
) |
| PROVISIONS FOR LIABILITIES | 20 | (14,960,346 | ) | (14,578,213 | ) |
| NET ASSETS | 18,898,490 | 17,904,708 |
| CAPITAL AND RESERVES |
| Called up share capital | 21 | 1 | 1 |
| Cash flow hedge reserve | 22 | 6,296,229 | 6,341,784 |
| Retained earnings | 22 | 12,602,260 | 11,562,923 |
| SHAREHOLDERS' FUNDS | 18,898,490 | 17,904,708 |
| The financial statements were approved by the Board of Directors and authorised for issue on 17 June 2025 and were signed on its behalf by: |
| W Cranstone - Director |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| COMPANY BALANCE SHEET |
| 31 March 2025 |
| 2025 | 2024 |
| Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 11 |
| Investments | 12 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 21 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 5,650,000 | 12,740,000 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| for the year ended 31 March 2025 |
| Called up | Cash flow |
| share | Retained | hedge | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 April 2023 | 1 | 18,983,131 | 6,858,104 | 25,841,236 |
| Changes in equity |
| Dividends | - | (12,740,000 | ) | - | (12,740,000 | ) |
| Total comprehensive income | - | 5,319,792 | (516,320 | ) | 4,803,472 |
| Balance at 31 March 2024 | 1 | 11,562,923 | 6,341,784 | 17,904,708 |
| Changes in equity |
| Dividends | - | (5,650,000 | ) | - | (5,650,000 | ) |
| Total comprehensive income | - | 6,689,337 | (45,556 | ) | 6,643,781 |
| Balance at 31 March 2025 | 1 | 12,602,260 | 6,296,228 | 18,898,489 |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| for the year ended 31 March 2025 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 April 2023 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 March 2024 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 March 2025 |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| CONSOLIDATED CASH FLOW STATEMENT |
| for the year ended 31 March 2025 |
| 2025 | 2024 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 13,531,771 | 8,384,172 |
| Interest paid | (1,516,229 | ) | (1,658,343 | ) |
| Tax paid | (1,586,375 | ) | (3,222,256 | ) |
| Net cash from operating activities | 10,429,167 | 3,503,573 |
| Cash flows from investing activities |
| Interest received | 254,375 | 409,998 |
| Net cash from investing activities | 254,375 | 409,998 |
| Cash flows from financing activities |
| Bank loan repayments in year | (3,822,893 | ) | (3,686,257 | ) |
| Equity dividends paid | (5,650,000 | ) | (12,740,000 | ) |
| Net cash from financing activities | (9,472,893 | ) | (16,426,257 | ) |
| Increase/(decrease) in cash and cash equivalents | 1,210,649 | (12,512,686 | ) |
| Cash and cash equivalents at beginning of year |
2 |
4,536,004 |
17,048,690 |
| Cash and cash equivalents at end of year | 2 | 5,746,653 | 4,536,004 |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| for the year ended 31 March 2025 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2025 | 2024 |
| £ | £ |
| Profit before taxation | 9,074,681 | 7,192,993 |
| Depreciation charges | 1,518,868 | 1,518,869 |
| Increase in provisions | 382,133 | 286,109 |
| Tax charge | (2,385,344 | ) | (1,873,201 | ) |
| Finance costs | 1,516,229 | 1,658,343 |
| Finance income | (254,375 | ) | (409,998 | ) |
| 9,852,192 | 8,373,115 |
| Decrease/(increase) in trade and other debtors | 1,476,408 | (288,538 | ) |
| Increase in trade and other creditors | 2,203,171 | 299,595 |
| Cash generated from operations | 13,531,771 | 8,384,172 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 March 2025 |
| 31/3/25 | 1/4/24 |
| £ | £ |
| Cash and cash equivalents | 5,746,653 | 4,536,004 |
| Year ended 31 March 2024 |
| 31/3/24 | 1/4/23 |
| £ | £ |
| Cash and cash equivalents | 4,536,004 | 17,048,690 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1/4/24 | Cash flow | At 31/3/25 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 4,536,004 | 1,210,649 | 5,746,653 |
| 4,536,004 | 1,210,649 | 5,746,653 |
| Debt |
| Debts falling due within 1 year | (3,751,355 | ) | 366,694 | (3,384,661 | ) |
| Debts falling due after 1 year | (45,924,843 | ) | 3,384,661 | (42,540,182 | ) |
| (49,676,198 | ) | 3,751,355 | (45,924,843 | ) |
| Total | (45,140,194 | ) | 4,962,004 | (40,178,190 | ) |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| for the year ended 31 March 2025 |
| 1. | STATUTORY INFORMATION |
| LDV Harburnhead Holdings Limited is a group, registered in Scotland. Its registered office address is 13 Queen's Road, Aberdeen, United Kingdom, AB15 4YL and the registered number is SC520342. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value. |
| The financial statements are presented in Sterling (£). The financial statements have been rounded to the nearest £1. |
| Basis of consolidation |
| The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings. |
| A subsidiary is a controlled entity of the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
| Summary of significant accounting policies |
| The principal accounting policies applied in the preparation of these financial statements are set out below. |
| The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the notes to the financial statements. |
| Critical accounting estimates and assumptions |
| The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
| (i) Useful economic lives of tangible assets |
| The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
| (ii) Fair value of derivatives |
| The directors measure derivatives at fair value, which is determined using valuation techniques that utilise observable inputs. The key assumption used in valuing the swaps at 31 March 2025 is the 6 month SONIA rate (2024: 6 month SONIA rate). |
| (iii) Provisions |
| Provision is made for asset decommissioning obligations, dilapidations and contingencies. These provisions require management's best estimate of the costs that will be incurred based on legislative and contractual requirements. In addition, the timing of the cash flows and the discounts rates used to establish net present value of the obligations require management's judgement. |
| (iv) Accrued income |
| Accrued income is estimated based on the value of unbilled wind revenue at the reporting date. Management estimate accrued income based on output of the wind farms multiplied by the average for the period. |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2025 |
| 2. | ACCOUNTING POLICIES - continued |
| Turnover |
| Turnover represents the fair value of the consideration received or receivable for goods rendered during the period, exclusive of Value Added Tax, derived from the generation of electricity. |
| In the case of 'Brown' energy and revenue on Renewable Obligation Certificates (ROCs), revenue is recognised in the month that it is generated. In the case of Renewable Energy Guarantees of Origin (REGOs), revenue is recognised when it falls due. |
| Tangible fixed assets |
| Tangible fixed assets are stated at cost less depreciation. Cost represents purchase price together with any incidental costs of acquisition. Expenditure on construction of tangible fixed assets is included in assets under construction within the Balance Sheet, at cost, until the asset is brought into use at which point it is transferred to the appropriate fixed asset category. Such costs include all costs directly attributable to bringing the tangible fixed asset into working condition for the intended use. |
| Finance costs are included in the cost of tangible assets when they are directly attributable to the construction of tangible fixed assets. Following the completion of the asset, depreciation is provided to write off the asset over the life of the lease from the date it is brought into use. |
| Depreciation is provided at the following annual rates in order to write off each asset, net of anticipated disposal proceeds, over its estimated useful economic life. Depreciation is charged at the following rates: |
| Plant and machinery - over the term of the lease. |
| The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
| Financial instruments |
| The group has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
| (i) Financial assets |
| Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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. |
| Such assets are subsequently carried at amortised cost using the effective interest method. |
| (ii) Financial liabilities |
| Basic financial liabilities, including trade and other creditors and loans from fellow group companies 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. |
| Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2025 |
| 2. | ACCOUNTING POLICIES - continued |
| 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 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. |
| Non-basic financial liabilities, including 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 the income statement in finance costs or finance income as appropriate. |
| (iii) Hedging arrangements |
| The group applies hedge accounting for transactions entered into to manage the cash flow exposures of borrowings. Interest rate swaps are held to manage the interest rate exposures and are designated as cash flow hedges of floating rate borrowings. |
| Changes in the fair values of derivatives designated as cash flow hedges, and which are effective, are recognised directly in equity. Any ineffectiveness in the hedging relationship (being the excess of the cumulative change in fair value of the hedging instrument since inception of the hedge over the cumulative change in the fair value of the hedged item since inception of the hedge) is recognised in the Statement of Comprehensive Income. |
| The gain or loss recognised in other comprehensive income is reclassified to the Income Statement when the hedge relationship ends. Hedge accounting is discontinued when the hedging instrument expires, no longer meets the hedging criteria, the forecast transaction is no longer highly probable, the hedged debt instrument is derecognised or the hedging instrument is terminated. |
| Taxation |
| The tax expense for the year comprises current and deferred tax. |
| Tax is recognised in the income statement except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. |
| Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that; |
| - The recognition of deferred tax assets is limited to the extent that it is probably that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and |
| - Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
| Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Operating leasing commitments |
| Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line bases over the period of the lease. |
| Investments |
| Investment in the subsidiary company is held at cost less accumulated impairment losses. |
| Decommissioning provision |
| Provision is made for the net present value of the estimated future decommissioning costs at the end of the operating life of the wind farm. This provision is made when construction of the wind farms has reached a stage when decommissioning of the constructed plant would incur material costs. The provision is calculated using estimated costs of decommissioning, and these estimates have been arrived at by consideration of the expected costs of contracts to remove the installed plant. The estimates are discounted at a pre-tax rate that reflects current market assessments of the time value of money. A corresponding asset is recognised and included within the wind farm assets and depreciated over the life of the wind farm. The estimated future cost of decommissioning obligations are regularly reviewed and adjusted as appropriate for new circumstances or changes in law or technology. |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2025 |
| 2. | ACCOUNTING POLICIES - continued |
| Share capital |
| Ordinary shares are classified as equity. |
| Cash and cash equivalents |
| Cash and cash equivalents includes deposits held at call with banks and other short-term highly liquid investments with maturities of three months or less. |
| 3. | TURNOVER |
| The group's turnover is derived from the group's principal activity of production and sale of renewable energy wholly undertaken in the United Kingdom. |
| 4. | EMPLOYEES AND DIRECTORS |
| There were no staff costs for the year ended 31 March 2025 nor for the year ended 31 March 2024. |
| The average number of employees, including directors, in the year was 3 (2024: 3). |
| 2025 | 2024 |
| £ | £ |
| Directors' remuneration | - | - |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging: |
| 2025 | 2024 |
| £ | £ |
| Other operating leases | 1,308,144 | 1,167,631 |
| Depreciation - owned assets | 1,518,868 | 1,518,869 |
| Auditors' remuneration | 18,160 | 17,300 |
| Auditors' remuneration for non audit work | 2,720 | 2,600 |
| 6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
| 2025 | 2024 |
| £ | £ |
| Deposit account interest | 254,375 | 409,998 |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2025 | 2024 |
| £ | £ |
| Bank interest | 1,516,229 | 1,579,058 |
| HMRC Interest Paid | - | 79,285 |
| 1,516,229 | 1,658,343 |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2025 |
| 8. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2025 | 2024 |
| £ | £ |
| Current tax: |
| UK corporation tax | 2,097,635 | 1,498,442 |
| Adjustment to prior years | - | 18,731 |
| Total current tax | 2,097,635 | 1,517,173 |
| Deferred tax | 287,709 | 356,028 |
| Tax on profit | 2,385,344 | 1,873,201 |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2025 | 2024 |
| £ | £ |
| Profit before tax | 9,074,681 | 7,192,993 |
| Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2024 - 25 %) |
2,268,670 |
1,798,248 |
| Effects of: |
| Expenses not deductible for tax purposes | 51,296 | 51,169 |
| Income not taxable for tax purposes | 65,378 | 65,378 |
| Adjustments to tax charge in respect of previous periods | - | (41,594 | ) |
| Total tax charge | 2,385,344 | 1,873,201 |
| Tax effects relating to effects of other comprehensive income |
| 2025 |
| Gross | Tax | Net |
| £ | £ | £ |
| Change in value of hedging instrument | (60,741 | ) | 15,185 | (45,556 | ) |
| 2024 |
| Gross | Tax | Net |
| £ | £ | £ |
| Change in value of hedging instrument | (688,426 | ) | 172,106 | (516,320 | ) |
| 9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| 10. | DIVIDENDS |
| 2025 | 2024 |
| £ | £ |
| Ordinary shares of £0.01 each |
| Interim | 5,650,000 | 12,740,000 |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2025 |
| 11. | TANGIBLE FIXED ASSETS |
| Group |
| Plant and |
| machinery |
| £ |
| COST |
| At 1 April 2024 |
| and 31 March 2025 | 74,147,974 |
| DEPRECIATION |
| At 1 April 2024 | 10,824,938 |
| Charge for year | 1,518,868 |
| At 31 March 2025 | 12,343,806 |
| NET BOOK VALUE |
| At 31 March 2025 | 61,804,168 |
| At 31 March 2024 | 63,323,036 |
| 12. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertaking |
| £ |
| COST |
| At 1 April 2024 |
| and 31 March 2025 |
| NET BOOK VALUE |
| At 31 March 2025 |
| At 31 March 2024 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiary |
| Registered office: United Kingdom |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2025 | 2024 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2025 |
| 13. | DEBTORS |
| Group |
| 2025 | 2024 |
| £ | £ |
| Amounts falling due within one year: |
| Trade debtors | 242 | 142 |
| Fair value of swap | 8,394,971 | 8,455,712 |
| VAT | 21,355 | 16,994 |
| Prepayments and accrued income | 6,083,337 | 5,030,073 |
| 14,499,905 | 13,502,921 |
| Amounts falling due after more than one | year: |
| Other debtors | - | 2,518,947 |
| Aggregate amounts | 14,499,905 | 16,021,868 |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group |
| 2025 | 2024 |
| £ | £ |
| Bank loans and overdrafts (see note 16) | 3,384,661 | 3,751,355 |
| Trade creditors | 714,198 | 703,778 |
| Tax | 1,038,344 | 526,879 |
| Accruals and deferred income | 514,505 | 491,132 |
| 5,651,708 | 5,473,144 |
| 15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group |
| 2025 | 2024 |
| £ | £ |
| Bank loans (see note 16) | 42,540,182 | 45,924,843 |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2025 |
| 16. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group |
| 2025 | 2024 |
| £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank loans | 3,384,661 | 3,751,355 |
| Amounts falling due between one and two | years: |
| Bank loans - 1-2 years | 3,452,953 | 3,384,661 |
| Amounts falling due between two and five | years: |
| Bank loans - 2-5 years | 10,357,647 | 10,337,410 |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans due in more than |
| five years | 28,729,582 | 32,202,772 |
| 28,729,582 | 32,202,772 |
| Group |
| The group's bank loans accrue interest on a 6 monthly basis at the 6 month SONIA rate. The loans are repayable in 6 monthly instalments and are due to be fully repaid by 2038. |
| The Group entered into two interest rate swaps in the prior year to mitigate the interest rate risk of its bank loans. |
| As at 31 March 2025, one interest rate swap fixed the interest at 0.395% and is due for settlement by March 2026, payable by instalments. |
| As at 31 March 2025, the second interest swap fixed the interest at 0.977% and is due for settlement by September 2038, payable by instalments. |
| The interest rate swap is measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key assumptions used in valuing the interest rate swap at 31 March 2025 are the 6 month SONIA rates (2024: 6 month SONIA rates). |
| 17. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Non-cancellable operating | leases |
| 2025 | 2024 |
| £ | £ |
| Within one year | 609,685 | 593,682 |
| Between one and five years | 2,438,741 | 2,374,729 |
| In more than five years | 8,648,340 | 9,015,020 |
| 11,696,766 | 11,983,431 |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2025 |
| 18. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group |
| 2025 | 2024 |
| £ | £ |
| Bank loans | 45,924,843 | 49,676,198 |
| Group |
| The bank loans are secured by fixed and floating charges over the assets, licences, agreements and undertakings of the business. The charges prohibit or restrict the Group from creating further security that will rank equally with or ahead of the charges. |
| The bank holds all of the tenant's interests under the lease agreements held by the group. |
| 19. | FINANCIAL INSTRUMENTS |
| Group and company |
| 2025 | 2024 |
| £ | £ |
| Financial assets at fair value through profit and loss |
| Derivative financial instruments | 8,394,971 | 8,455,712 |
| Cash flows on both the loan and the interest rate swaps are paid on 31 March and 30 September until 2037. During 2025, a hedging loss of £45,556 (2024 hedging loss: £516,320) was recognised in other comprehensive income for changes in the fair value of the interest rate swaps. |
| 20. | PROVISIONS FOR LIABILITIES |
| Group |
| 2025 | 2024 |
| £ | £ |
| Deferred tax | 11,030,636 | 10,758,316 |
| Other provisions | 3,929,710 | 3,819,897 |
| Aggregate amounts | 14,960,346 | 14,578,213 |
| Group |
| Deferred | Other |
| tax | provisions |
| £ | £ |
| Balance at 1 April 2024 | 10,758,316 | 3,819,897 |
| Movement during year | 272,320 | 109,813 |
| Balance at 31 March 2025 | 11,030,636 | 3,929,710 |
| Other provisions relate to the net present value of the estimated future decommissioning costs of the wind farm, which is required at the end of the operating lease. The provision is calculated using estimated costs of decommissioning and an average inflation rate of 3%. This has been discounted at the Group's weighted average cost of capital. |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2025 |
| 21. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2025 | 2024 |
| value: | £ | £ |
| Ordinary | £0.01 | 1 | 1 |
| Ordinary shares have full voting, dividend and capital distribution rights. |
| 22. | RESERVES |
| Group |
| Cash flow |
| Retained | hedge |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 April 2024 | 11,562,923 | 6,341,785 | 17,904,708 |
| Profit for the year | 6,689,337 | - | 6,689,337 |
| Dividends | (5,650,000 | ) | - | (5,650,000 | ) |
| Other comprehensive income | - | (45,556 | ) | (45,556 | ) |
| At 31 March 2025 | 12,602,260 | 6,296,229 | 18,898,489 |
| Company |
| Retained |
| earnings |
| £ |
| Profit for the year |
| Dividends | ( |
) |
| At 31 March 2025 |
| 23. | FINANCIAL COMMITMENTS |
| As at 31 March 2025, the group has a contractual obligation to provide cash collateral of £89,382 every six months in relation to the decommissioning bond with Bayern LB. A total of 27 payments are due up to 31 March 2037, totalling £2,413,327 in letter of credit reserves. |
| 24. | RELATED PARTY DISCLOSURES |
| The Group 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. |
| During the year, administration fees of £221,900 (2024 £207,592) were paid to Gresham House Asset Management Limited, being the investment manager of Gresham House Wind Energy LP, which holds an indirect ownership interest in the company. |
| During the year, consultancy fees of £nil (2024: £3,369) were paid to Lass'n Wind DA GmbH, a company with a common director. At the year end a balance of £nil (2024: £3,369) was due to Lass'n Wind DA GmbH. This was included within trade creditors. |
| During the year, dividends of £2,825,000 (2024: £6,370,000) were paid to connected companies. |
| During the year, dividends of £2,825,000 (2024: £6,370,000) were paid to connected limited partnerships. |
| LDV HARBURNHEAD HOLDINGS LIMITED (REGISTERED NUMBER: SC520342) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| for the year ended 31 March 2025 |
| 25. | ULTIMATE CONTROLLING PARTY |
| There was no ultimate controlling party as no individual shareholder had a controlling holding during the current year or the preceding year. |