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Registered number: NI691158
NORTHERN GRID SERVICES LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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NORTHERN GRID SERVICES LIMITED
CONTENTS
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Notes to the Financial Statements
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NORTHERN GRID SERVICES LIMITED
REGISTERED NUMBER: NI691158
BALANCE SHEET
AS AT 30 SEPTEMBER 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current (liabilities)/assets
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Total assets less current liabilities
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 2 to 8 form part of these financial statements.
Page 1
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NORTHERN GRID SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Northern Grid Services Limited is a private company limited by shares incorporated in Northern Ireland. The registered office is 21 Arthur Street, Belfast, BT1 4GA.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
These financial statements have been prepared on a going concern basis. Additional information to support the use of the going concern basis is stated in note 11.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Page 2
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NORTHERN GRID SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Tax is recognised in profit or loss 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.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Short-term debtors are measured at transaction price, less any impairment.
Short-term creditors are measured at the transaction price.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
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NORTHERN GRID SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Deferred development costs
Where the company acts as developer for flexible power plant, grid stability or battery projects with
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NORTHERN GRID SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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the intention of those assets being owned and built by our partners, development costs such as site identification, land acquisition, design and consents are deferred where it is probable that future economic benefits will flow to the company at least equivalent to the costs incurred. Costs not expected to be recovered are expensed in the period incurred or when it becomes apparent that proposed projects will not go ahead.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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In applying the company's accounting policies, the directors make judgements, estimates and assumptions concerning the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on historical experience and other relevant factors. 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgment, which does not involve estimation uncertainty, has had the most significant effect on amounts recognised in the financial statements:
Deferred development costs
At 30 September 2024 the Company had deferred £218,991 (2023: £113,809) of development costs relating to site identification, land acquisition, design and consents on projects intended for development by partner organisations. Costs are deferred where it is probable that future economic benefits will flow to the company at least equivalent to the costs incurred. The assets are regarded as current assets as the Company intends to undertake the activities on behalf of other entities which will ultimately own and operate the assets.
Additional information relating to a non-adjusting post-balance sheet event associated with these development costs is provided in note 13.
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NORTHERN GRID SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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The average monthly number of employees, including directors, during the year was 2 (2023 - 2).
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Called up share capital not paid
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Deferred development costs
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Creditors: Amounts falling due within one year
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Amounts owed to group companies
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Accruals and deferred income
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Allotted, called up and fully paid
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204 (2023 - 204) Ordinary shares of £1.00 each
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Page 6
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NORTHERN GRID SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
8.Share capital (continued)
Profit and loss account
The profit and loss account is a fully distributable reserve and includes all current and prior year retained profits and losses.
The financial statements have been prepared on a going concern basis.
As at the reporting date, the company’s balance sheet shows net liabilities and includes certain illiquid assets, such as deferred development costs. Despite this, the directors consider the going concern basis of preparation to be appropriate.
The directors have received written confirmation from the holding company and the company’s lenders that financial support will be provided to enable the company to meet its obligations as they fall due. Furthermore, they have confirmed that they will not seek repayment of any loans due to them if such repayment would place undue financial pressure on the company. This support is expected to continue for a period of at least 12 months from the date of approval of these financial statements.
Based on this support and the directors’ assessment of the company’s forecasts and cash flow projections, the directors believe that the company will have adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis and do not include any adjustments that would be required if the company were unable to continue as a going concern.
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Post balance sheet events
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On 14 July 2025, a regulatory consultation document indicated that a specific site would be ineligible for participation in a proposed tender process. As a result, the Directors reassessed the carrying value of the related development cost asset in August 2025.
It was determined that £140,635 of the total capitalised costs of £209,960, as at August 2025, should be written off, as the original project will no longer proceed. The remaining £69,325 has been retained to reflect the site's repurposing for an alternative energy development.
As this event provides evidence of conditions that arose after the reporting date, it is classified as a non-adjusting event under FRS 102 Section 32: Events After the End of the Reporting Period. Accordingly, no adjustment has been made to these financial statements.
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NORTHERN GRID SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The immediate parent company is Welsh Power Group Limited, a company incorporated in the United Kingdom with the registered office being Fourth Floor, 2 Kingsway, Cardiff, CF10 3FD.
The intermediate parent company is Carron Energy Limited, a company incorporated in the United Kingdom with the registered office being Fourth Floor, 2 Kingsway, Cardiff, CF10 3FD. Carron Energy Limited is the parent of the largest and smallest group of which the company is a member and for which consolidated financial statements are prepared.
Copies of the consolidated financial statements of Carron Energy Limited are available from the company's registered office.
The ultimate parent company is CEL Trustee Limited, a company incorporated in the United Kingdom with the registered office being Fourth Floor, 2 Kingsway, Cardiff, CF10 3FD. CEL Trustee Limited is a company limited by guarantee.
There is no ultimate controlling party.
The auditors' report on the financial statements for the year ended 30 September 2024 was unqualified.
The audit report was signed on 17 September 2025 by Scott McCullough FCA (Senior Statutory Auditor) on behalf of UHY Hacker Young Fitch Limited.
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