Company registration number 13583670 (England and Wales)
GCRE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
GCRE LIMITED
COMPANY INFORMATION
Directors
J Davies
D Evans-Williams
D Jones
S Hawkins
S Blanchflower
G Hawthorne
Company number
13583670
Registered office
Global Centre Of Rail Excellence
Onllwyn
Neath
Port Talbot
SA10 9HN
Auditor
Azets Audit Services
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
Cardiff
South Glamorgan
United Kingdom
CF23 8AB
GCRE LIMITED
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
GCRE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

The directors present their annual report and financial statements for the year ended 31 March 2025.

Principal activities

The principal activity of GCRE LIMITED is a special purpose vehicle (SPV) company established by, and wholly owned by Welsh Government.

 

GCRE LIMITED has benefitted from funding from both the Welsh and UK Governments.

 

The Global Centre of Rail Excellence (GCRE) facility aims to provide a world-class purpose-built mobility innovation site that will allow for research, testing and proving of cutting-edge new technologies. Combining on-site renewable energy generation and high quality commercial property, The Global Centre of Rail Excellence (GCRE) will become a global leader in sustainable mobility.

 

Delivery of our vision will generate positive impacts for transport, the planet and local communities.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

 

Going concern

 

The company has net assets of £33,487,062 and made a loss for the financial year of £1,048,555. The directors have reviewed the forecasts covering a period of at least 12 months from the date of approval of the financial statements and have confidence in the continued support from its shareholders, the Welsh Government, to meet its liabilities.

 

In July 2025, the Welsh Government provided a letter of support to GCRE LIMITED confirming it would continue to provide sufficient funding to ensure all liabilities could be met as they fall due, at least for 12 months from the date of financial statements approval.

 

On this basis the directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Directors

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

J Davies
D Evans-Williams
D Jones
S Hawkins
S Blanchflower
G Hawthorne
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

GCRE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

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

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

On behalf of the board
S Hawkins
Director
31 July 2025
GCRE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -

The directors are responsible for preparing the annual report 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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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 of the profit or loss of the company for that period. In preparing these financial statements, International Accounting Standard 1 requires that directors:

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

GCRE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GCRE LIMITED
- 4 -
Opinion

We have audited the financial statements of GCRE LIMITED (the 'company') for the year ended 31 March 2025 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion the financial statements:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

GCRE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GCRE LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 directors are responsible for assessing the 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 company 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.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

GCRE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GCRE LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Joelene Swart (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
31 July 2025
Chartered Accountants
Statutory Auditor
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
Cardiff
South Glamorgan
United Kingdom
CF23 8AB
GCRE LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
- 7 -
2025
2024
as restated
Notes
£
£
Cost of sales
(414,217)
(482,857)
Gross loss
(414,217)
(482,857)
Other operating income
130,129
172,508
Administrative expenses
(764,467)
(686,411)
Operating loss
4
(1,048,555)
(996,760)
Income tax expense
7
-
-
Loss and total comprehensive income for the year
(1,048,555)
(996,760)
GCRE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2025
31 March 2025
- 8 -
2025
2024
as restated
Notes
£
£
Non-current assets
Property, plant and equipment
8
52,164,067
48,125,548
Other receivables
10
4,239,956
3,723,086
56,404,023
51,848,634
Current assets
Trade and other receivables
10
905,745
1,614,091
Cash and cash equivalents
1,917,455
4,392,460
2,823,200
6,006,551
Current liabilities
Trade and other payables
13
984,725
2,816,304
Provisions
14
515,480
693,828
Deferred revenue
15
-
0
14,000
1,500,205
3,524,132
Net current assets
1,322,995
2,482,419
Non-current liabilities
Long term provisions
14
4,239,956
4,755,436
Deferred revenue
15
20,000,000
20,000,000
24,239,956
24,755,436
Net assets
33,487,062
29,575,617
Equity
Called up share capital
17
36,560,100
31,600,100
Retained earnings
(3,073,038)
(2,024,483)
Total equity
33,487,062
29,575,617

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

The financial statements were approved by the board of directors and authorised for issue on 31 July 2025 and are signed on its behalf by:
S Hawkins
Director
Company registration number 13583670
GCRE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 9 -
Share capital
Retained earnings
Total
Notes
£
£
£
As restated for the period ended 31 March 2024:
Balance at 1 April 2023
18,600,100
(1,027,723)
17,572,377
Balance at 1 April 2023
18,600,100
(1,027,723)
17,572,377
Year ended 31 March 2024:
Loss and total comprehensive income for the year
-
(996,760)
(996,760)
Transactions with owners in their capacity as owners:
Issue of share capital
17
13,000,000
-
13,000,000
Balance at 31 March 2024
31,600,100
(2,024,483)
29,575,617
Year ended 31 March 2025:
Loss and total comprehensive income for the year
-
(1,048,555)
(1,048,555)
Transactions with owners in their capacity as owners:
Issue of share capital
17
4,960,000
-
4,960,000
Balance at 31 March 2025
36,560,100
(3,073,038)
33,487,062
GCRE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
2025
2024
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
21
(3,358,574)
8,485,133
Net cash (outflow)/inflow from operating activities
(3,358,574)
8,485,133
Investing activities
Purchase of property, plant and equipment
(4,076,431)
(17,636,678)
Net cash used in investing activities
(4,076,431)
(17,636,678)
Financing activities
Proceeds from issue of shares
4,960,000
13,000,000
Net cash generated from financing activities
4,960,000
13,000,000
Net (decrease)/increase in cash and cash equivalents
(2,475,005)
3,848,455
Cash and cash equivalents at beginning of year
4,392,460
544,005
Cash and cash equivalents at end of year
1,917,455
4,392,460
GCRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
1
Accounting policies
Company information

GCRE LIMITED is a private company limited by shares incorporated in England and Wales. The registered office is Global Centre Of Rail Excellence, Onllwyn, Neath, Port Talbot, SA10 9HN. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

1.2
Going concern

The company has net assets of £33,487,062 and made a loss for the financial year of £1,048,555. The directors have reviewed the forecasts covering a period of at least 12 months from the date of approval of the financial statements and have confidence in the continued support from its shareholders, the Welsh Government, to meet its liabilities.true

 

In July 2025, the Welsh Government provided a letter of support to GCRE LIMITED confirming it would continue to provide sufficient funding to ensure all liabilities could be met as they fall due, at least for 12 months from the date of financial statements approval.

 

On this basis the directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

1.3
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
0%
Plant and equipment
10-25%
IT equipment
33%
Motor vehicles
25%
Restoration asset
0%
Rolling stock
0% until brought into use
1.4
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

GCRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 12 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

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

1.5
Cash and cash equivalents

Cash and cash equivalents 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 assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

GCRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 13 -
Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.7
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

GCRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability. A derivative is presented as a non-current asset or liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realised or settled within 12 months. Other derivatives are classified as current.

1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

 

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

GCRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 15 -

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.14
Grants

Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Adoption of new and revised standards and changes in accounting policies

There have been no standards, amendments and interpretations to IFRSs that were effective for the first time in the current accounting period and have been adopted.

3
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

There are no key judgements or estimates included within the financial statements

4
Operating loss
2025
2024
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses
20
-
0
Fees payable to the company's auditor for the audit of the company's financial statements
19,150
22,900
Depreciation of property, plant and equipment
37,912
28,228
GCRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 16 -
5
Employees

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

2025
2024
Number
Number
22
23

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,364,900
1,422,312
Social security costs
150,206
157,031
Pension costs
127,250
131,583
1,642,356
1,710,926
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
409,114
400,091
Company pension contributions to defined contribution schemes
35,800
34,866
444,914
434,957

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2). Included within directors' remuneration is £268,500 (2024: £258,904) of capitalised salaries.

GCRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 17 -
7
Income tax expense
2025
2024
£
£

The charge for the year can be reconciled to the loss per the income statement as follows:

2025
2024
£
£
Loss before taxation
(1,048,555)
(996,760)
Expected tax credit based on a corporation tax rate of 25.00% (2024: 25.00%)
(262,139)
(249,190)
Effect of expenses not deductible in determining taxable profit
1,655
3,235
Unutilised tax losses carried forward
260,484
245,955
Taxation charge for the year
-
-
GCRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 18 -
8
Property, plant and equipment
Freehold land and buildings
Assets under construction
Plant and equipment
IT equipment
Motor vehicles
Restoration asset
Rolling stock
Total
as restated
£
£
£
£
£
£
£
£
Cost
At 1 April 2023
6,234,881
23,168,405
-
0
28,908
63,000
1,030,000
-
0
30,525,194
Additions (as restated)
880,472
16,157,108
579,028
8,854
-
0
11,216
-
0
17,636,678
Transfer to held for sale
-
0
-
0
-
0
-
0
-
0
-
0
572,742
572,742
Other
-
0
(572,742)
-
0
-
0
-
0
-
0
-
0
(572,742)
At 31 March 2024 (as restated)
7,115,353
38,752,771
579,028
37,762
63,000
1,041,216
572,742
48,161,872
Additions
33,154
3,198,360
15,917
769
7,100
780,830
40,301
4,076,431
At 31 March 2025
7,148,507
41,951,131
594,945
38,531
70,100
1,822,046
613,043
52,238,303
Accumulated depreciation and impairment
At 1 April 2023
-
0
-
0
-
0
5,248
2,848
-
0
-
0
8,096
Charge for the year
-
0
-
0
589
11,889
15,750
-
0
-
0
28,228
At 31 March 2024
-
0
-
0
589
17,137
18,598
-
0
-
0
36,324
Charge for the year
-
0
-
0
10,465
11,697
15,750
-
0
-
0
37,912
At 31 March 2025
-
0
-
0
11,054
28,834
34,348
-
0
-
0
74,236
Carrying amount
At 31 March 2025
7,148,507
41,951,131
583,891
9,697
35,752
1,822,046
613,043
52,164,067
At 31 March 2024
7,115,353
38,752,771
578,439
20,625
44,402
1,041,216
572,742
48,125,548
GCRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 19 -
9
Financial assets and liabilities
2025
2024
£
£
Trade receivables
30,557
77,407
Other receivables
54,375
7,092
Prepayments
180,556
172,187
Loans and receivables
265,488
256,686
Total financial assets
265,488
256,686
Trade payables
244,944
1,154,120
Accruals
732,632
1,641,054
Other payables
7,149
20,813
Financial liabilities at amortised cost
984,725
2,815,987
Total financial liabilities
984,725
2,815,987
All of the above amounts are due within one year.
The company faces credit risk and liquidity risk as a result of its financial assets and liabilities. There have been no significant changes in the risks, the objectives, processes and policies for managing the risks or the methods used to measure the risks since the last financial year.
Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The company faces limited credit risk as it has not commenced sales yet.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company's financial liabilities include its trade and other payables and amounts owed to related parties.
GCRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 20 -
10
Trade and other receivables
Current
Non-current
2025
2024
2025
2024
as restated
as restated
£
£
£
£
Trade receivables
30,557
77,407
-
-
VAT recoverable
124,777
663,577
-
-
Other receivables
569,855
700,920
4,239,956
3,723,086
Prepayments
180,556
172,187
-
-
905,745
1,614,091
4,239,956
3,723,086

Included within “Other Receivables” above are amounts of £4,755,436 (2024: £4,416,914) relating to cash held by the local authority in Escrow on behalf of the company to finance the restoration of the previous mining site to the required specifications from when the coaling operations ceased in 2021.

As at 31 March 2025, the amount held by the local authority in Escrow was confirmed to be £5,415,611.85. However, in accordance with IFRIC 5, the balance is limited to the amount of the remaining liability and has therefore been capped at the restoration liability amount.

 

11
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

No significant receivable balances are impaired at the reporting end date.

12
Fair value of financial liabilities

The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

13
Trade and other payables
2025
2024
£
£
Trade payables
244,944
1,154,120
Accruals
732,632
1,641,054
Social security and other taxation
-
0
317
Other payables
7,149
20,813
984,725
2,816,304
GCRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 21 -
14
Provisions for liabilities
2025
2024
as restated
£
£
Restoration provision
4,755,436
5,449,264
Current liabilities
515,480
693,828
Non-current liabilities
4,239,956
4,755,436
4,755,436
5,449,264
Movements on provisions:
Restoration provision
£
At 1 April 2024
5,449,264
Additional provisions in the year
(693,828)
At 31 March 2025
4,755,436

The restoration provision is the estimated amount payable required to complete the S106 restoration works over and above contributions made by the previous owner of the site.

15
Deferred revenue
2025
2024
£
£
Arising from government grants
20,000,000
20,000,000
Arising from Deferred revenue
-
14,000
20,000,000
20,014,000

Deferred revenues are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2025
2024
£
£
Current liabilities
-
0
14,000
Non-current liabilities
20,000,000
20,000,000
20,000,000
20,014,000
GCRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 22 -
16
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
9,792
9,612

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
36,560,100
31,600,100
36,560,100
31,600,100
18
Other leasing information
Lessee

Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:

2025
2024
£
£
Expense relating to short-term leases
55,000
55,000

Set out below are the future cash outflows to which the lessee is potentially exposed that are not reflected in the measurement of lease liabilities:

2025
2024
Land and buildings
£
£
Within one year
27,726
13,863
19
Capital risk management

The company is not subject to any externally imposed capital requirements.

GCRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 23 -
20
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

2025
2024
£
£
Short-term employee benefits
444,160
432,265
Other transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Purchases
2025
2024
2025
2024
£
£
£
£
Other related parties
-
0
-
0
250,666
299,839
Grants received
Share capital acquisition
2025
2024
2025
2024
£
£
£
£
Parent company
-
5,000,000
4,960,000
13,000,000

The following amounts were outstanding at the reporting end date: £nil.

21
Cash (absorbed by)/generated from operations
2025
2024
£
£
Loss for the year before income tax
(1,048,555)
(996,760)
Adjustments for:
Depreciation and impairment of property, plant and equipment
37,912
28,228
(Decrease)/increase in provisions
(693,828)
4,419,264
Movements in working capital:
Increase in trade and other receivables
(347,324)
(1,441,096)
(Decrease)/increase in trade and other payables
(1,292,779)
1,503,497
(Decrease)/increase in deferred revenue outstanding
(14,000)
4,972,000
Cash (absorbed by)/generated from operations
(3,358,574)
8,485,133
GCRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 24 -
22
Prior period adjustment

The adjustment relates to recognition of the restoration obligation inherited with the site and a matching escrow receivable, in line with IFRIC 5.

 

In the restated accounts to 31 March 2024, the escrow receivable appears lower than the restoration obligation,  as a top -up payment made by the company in the sum of £1,460,814.63 was made shortly after the year end, following a revision of the obligation by the council.

 

The obligation to make the payment existed at 31 March 2024 and this obligation was recognised. The related asset had been originally recorded  within Tangible Fixed Assets as a cost of restoring the land, rather than within receivable assets.  This adjustment has been made in the restated accounts at 31 March 2024.

Changes to the statement of financial position
At 31 March 2024
Previously reported
Adjustment
As restated
£
£
£
Fixed assets
Property, plant and equipment
48,554,013
(428,465)
48,125,548
Other receivables
-
3,723,086
3,723,086
Current assets
Debtors due within one year
920,263
693,828
1,614,091
Provisions for liabilities
Other provisions
(1,460,815)
(3,988,449)
(5,449,264)
Net assets
29,575,617
-
29,575,617
Capital and reserves
Total equity
29,575,617
-
29,575,617
Changes to the income statement
Period ended 31 March 2024
Previously reported
Adjustment
As restated
£
£
£
Loss for the financial period
(996,760)
-
(996,760)
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in loss for the previous financial period
2024
£
Loss as previously reported
(996,760)
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