RENEWABLE CONNECTIONS DEVELOPMENTS LIMITED


Directors	HUGHES, Michael John
	NEWMAN, Andrew


Registered Address	Level 4 Ldn:W
	3 Noble Street
	London
	EC2V 7EE


Registered Number	12351905 (England and Wales)

Notes to the Financial Statements
for the year ended 31 December 2024

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. The principal activity of the company is development of solar and storage projects across the UK.

	Statement of compliance
	The financial statements have been prepared in compliance with FRS 102 Section 1A as it applies to the financial statements for the period and there were no material departures from the reporting standard and the Companies Act 2006.

	Going concern
	During the year ended 31 December 2024 the company made a loss of £2,485,368 (2023: profit of £135,797) and at 31 December 2024 had net liabilities of £3,612,388. The directors believe it is appropriate to adopt the going concern basis of accounting in preparing the annual financial statements because of support from the wider group.

	Revenue from sale of goods
	Revenue from the sale of goods is recognised when the company has transferred to the buyer the significant risks and rewards of ownership of the goods, usually when goods are delivered and legal title has passed. Providing the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transition can be measured reliably.

Revenue from sale of goods

Revenue from the sale of goods is recognised when the company has transferred to the buyer the significant risks and rewards of ownership of the goods, usually when goods are delivered and legal title has passed. Providing the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transition can be measured reliably.

	Employee benefits
	Contributions to defined contribution plans are expensed in the period to which they relate.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

	Current taxation
	Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Deferred tax
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Tangible fixed assets and depreciation
	Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided on all tangible fixed assets as follows:


		Straight line (years)
	Plant and machinery	5

	Investments
	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses.

	Stocks and work in progress
	Stock comprises of work in progress of potential developments and it is valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete).

	Financial instruments
	The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable 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.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable 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.

2.	Average number of employees


		2024		2023
	Average number of employees during the year	29		23

3.	Deferred tax
	Increases in the UK Corporation tax rate from 19% to 25% (25% effective from 1 April 2023) have been substantively enacted. This will impact the company's future tax charge accordingly. The value of the deferred tax assets at the balance sheet date has been calculated using the applicable rate when the asset is expected to be realised.

4.	Tangible fixed assets

	Office Equipment	Total
	£	£
Cost or valuation
At 01 January 24	27,139	27,139
Additions	6,595	6,595
At 31 December 24	33,734	33,734
Depreciation and impairment
At 01 January 24	5,266	5,266
Charge for year	6,216	6,216
At 31 December 24	11,482	11,482
Net book value
At 31 December 24	22,252	22,252
At 31 December 23	21,873	21,873

5.	Fixed asset investments

	Investments in groups¹	Total
	£	£
Cost or valuation
At 01 January 24	239	239
Additions	23	23
At 31 December 24	262	262
Net book value
At 31 December 24	262	262
At 31 December 23	239	239

	Notes
	¹Investments in group undertakings and participating interests

6.	Stocks

	2024	2023
	£	£
Work in progress	573,953	199,376
Total	573,953	199,376

7.	Creditors: amounts due within one year

	2024	2023
	£	£
Trade creditors / trade payables	930,829	310,873
Bank borrowings and overdrafts	37,500	90,000
Amounts owed to related parties	3,588,335	1,581,507
Taxation and social security	296,670	276,123
Other creditors	88,517	55,929
Accrued liabilities and deferred income	297,772	488,825
Total	5,239,623	2,803,257


	Bank borrowings and overdrafts relate to the CBILS loan from RBS. The loan incurs interest at 4.59% over the base rate and is due for repayment in May 2025. The loan is secured over the assets of the company.

8.	Creditors: amounts due after one year

	2024	2023
	£	£
Bank borrowings and overdrafts	-	37,500
Total	-	37,500


	See note 7 for details of loan.

9.	Share capital
	1 Ordinary share of £0.01 is allotted, called up and fully paid (2023 - 1).

10.	Controlling party
	Until 7 April 2025 the ultimate parent undertaking was Rivington Investments Limited. Since 7 April 2025, the Company’s ultimate parent undertaking has been Federated Hermes, Inc. a company incorporated in the United States of America. The immediate parent company is Rivington Energy Limited. The smallest and largest group to consolidate the accounts of the company is Rivington Energy (Management) Limited, whose registered office is Level 4, LDN:W, 3 Noble Street, London, EC2V 7EE. A copy of the group accounts can be obtained from Companies House.

10.

Controlling party

Until 7 April 2025 the ultimate parent undertaking was Rivington Investments Limited. Since 7 April
2025, the Company’s ultimate parent undertaking has been Federated Hermes, Inc. a company
incorporated in the United States of America.

The immediate parent company is Rivington Energy Limited. The smallest and largest group to consolidate the accounts of the company is Rivington Energy (Management) Limited, whose registered office is Level 4, LDN:W, 3 Noble Street, London, EC2V 7EE. A copy of the group accounts can be obtained from Companies House.

11.	Prior period policy changes
	After the year end, as part of their review process, the directors identified an error from prior periods. Work is ongoing to review this matter and directors currently estimate an under accrual of £199,474 in the prior period (2022: £74,719). The impact of these adjustments is to decrease retained earnings as at 1 January 2023 by £74,719, increase exceptional administrative expenses for the year ended 31 December 2023 by £199,474 and increase provisions by £274,193. Retained earnings and net assets have also been decreased by £274,193.

11.

Prior period policy changes

After the year end, as part of their review process, the directors identified an error from prior periods. Work is ongoing to review this matter and directors currently estimate an under accrual of £199,474 in the prior period (2022: £74,719). The impact of these adjustments is to decrease retained earnings as at 1 January 2023 by £74,719, increase exceptional administrative expenses for the year ended 31 December 2023 by £199,474 and increase provisions by £274,193. Retained earnings and net assets have also been decreased by £274,193.

	Notes	2024		2023
		£	£	£	£
Fixed assets
Tangible assets	4		22,252		21,873
Investments	5		262		239
			22,514		22,112
Current assets
Stocks	6	573,953		199,376
Debtors		906,960		605,663
Cash at bank and on hand		123,807		886,584
		1,604,720		1,691,623
Creditors amounts falling due within one year	7	(5,239,623)		(2,803,257)
Net current assets (liabilities)			(3,634,903)		(1,111,634)
Total assets less current liabilities			(3,612,389)		(1,089,522)
Creditors amounts falling due after one year	8		-		(37,500)
Net assets			(3,612,389)		(1,127,022)
Capital and reserves
Profit and loss account			(3,612,389)		(1,127,022)
Shareholders' funds			(3,612,389)		(1,127,022)