ACCOUNTS - Final Accounts

Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

Registered number: 02840895

PARC CYNOG WIND FARM LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024


PARC CYNOG WIND FARM LIMITED REGISTERED NUMBER:02840895

BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	5		2,828,713		3,094,047
			2,828,713		3,094,047
Current assets
Debtors: amounts falling due after more than one year	6	1,116,247		-
Debtors: amounts falling due within one year	6	414,847		878,949
Cash at bank and in hand	7	687,834		417,753
		2,218,928		1,296,702
Creditors: amounts falling due within one year	8	(153,236)		(128,572)
Net current assets			2,065,692		1,168,130
Total assets less current liabilities			4,894,405		4,262,177
Provisions for liabilities
Other provisions	10	(178,767)		(178,767)
			(178,767)		(178,767)
Net assets			4,715,638		4,083,410

Capital and reserves
Called up share capital	2	2
Profit and loss account	4,715,636	4,083,408
	4,715,638	4,083,410

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PARC CYNOG WIND FARM LIMITED REGISTERED NUMBER:02840895

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2024

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 income and retained earnings 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:

T Spanggaard

Director

Date: 29 September 2025

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PARC CYNOG WIND FARM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

The company is a private company limited by shares and is incorporated in the United Kingdom under the
Companies Act 2006 and registered in England and Wales. The address of its registered office is Millhouse, 32-38 East Street, Rochford, Essex, SS4 1DB.
The principal activity of the company continued to be that of the operation of a wind farm and a solar farm.

2.Accounting policies

2.1

Basis of preparation of financial statements

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 following principal accounting policies have been applied:

2.2

Going concern

Taking into account a period exceeding 12 months from the date of approval of these financial statements, the Directors have a reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future, and for this reason will continue to adopt the going concern basis in the preparation of its financial statements.

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

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PARC CYNOG WIND FARM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.4

Revenue

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:

Income from the sale of electricity
Income from the sale of electricity is recognised when the performance obligations under the sales contract are met. This occurs when electricity is transferred to the customer at an amount that reflects the consideration the Company expects to be entitled to in exchange for the electricity. Under such arrangements income is recognised according to contract prices per unit of output multiplied by the actual power output delivered in the period, subject to an administrative fee. Income from the sale of electrical energy is recognised net of VAT and other sales taxes.
ROC (Renewable Obligation Certificate) entitlement
A Renewable Obligation Certificate ("ROC") is an environmental credit issued to accredited generators for eligible renewable electricity. One ROC is issued for each 1.00 megawatt hour of eligible renewable electricity generated. Income from the sale of ROCs is recognised once the performance obligation is satisfied at the point of sale of the associated electricity.
An accrued income balance is recognised when the performance obligations are satisfied, yet before consideration is received.

2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Part of the operating lease rental charges for sites used by the Company are based on MWh generation in the period. An accrual is made for this sum as it will not be calculated until after the year end.
The rental commitment is based on an estimation of future revenues calculated by applying a RPI uplift to the current years activity.

2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

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PARC CYNOG WIND FARM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.7

Current and deferred tax

The tax expense for the year comprises current and deferred tax. 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.

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 probable 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.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

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PARC CYNOG WIND FARM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.8

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Wind farm - tower, blades, foundations etc	-	25 years
Wind farm - gearboxes and generators	-	10 years
Plant & machinery	-	5 years
Solar farm	-	30 years
Wind farm decommissioning asset	-	25 years
Solar farm decommissioning asset	-	30 years

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.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Accrued income is measured at transaction price when the performance obligations are satisfied, yet before consideration is received.

2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

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PARC CYNOG WIND FARM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.13

Decommissioning provision

The Company has provided for the present value of estimated decommissioning costs from the time that the Company has an obligation to dismantle and remove a facility and restore the site on which it is located, and when a reasonable estimate of that provision can be made. The amount recognised is the present value of the estimated future expenditure determined in accordance with the local conditions and requirements. A corresponding tangible fixed asset of an amount equivalent to the provision is also created. This is subsequently depreciated as part of tangible assets.
Each year the decommissioning provision is subject to an unwinding of the discounted value in order to bring the provision up to the latest present value. The change is included within interest payable in the Statement of Income and Retained Earnings.
Any change in the present value of the estimated expenditure is reflected as an adjustment to the provision and the fixed asset.

2.14

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.

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.

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

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PARC CYNOG WIND FARM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.14

Financial instruments (continued)

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.

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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PARC CYNOG WIND FARM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Decommissioning
Significant estimates and assumptions are made in determining this provision as there are numerous factors that will affect the ultimate liability payable. These factors include estimates of the extent and costs of rehabilitation activities, regulatory changes, cost increases and changes in discount rates. Those uncertainties may result in future actual expenditure differing from the amounts currently accounted for. The provision at the Balance Sheet date represents management's best estimate of the present value of the future closure costs required.

Employees

The average monthly number of employees, including directors, during the year was 0 (2023 -0).

5.	Tangible fixed assets

	Wind farm assets	Solar farm	Wind farm decommissioning asset	Solar farm decommissioning asset	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2024	2,951,889	3,378,563	125,976	49,285	6,505,713
At 31 December 2024	2,951,889	3,378,563	125,976	49,285	6,505,713
Depreciation
At 1 January 2024	2,699,799	656,220	50,390	5,257	3,411,666
Charge for the year on owned assets	114,155	124,013	25,195	1,971	265,334
At 31 December 2024	2,813,954	780,233	75,585	7,228	3,677,000
Net book value
At 31 December 2024	137,935	2,598,330	50,391	42,057	2,828,713
At 31 December 2023	252,090	2,722,343	75,586	44,028	3,094,047

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PARC CYNOG WIND FARM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

6.	Debtors
		2024	2023
		£	£

Due after more than one year
Amounts owed by group undertakings	1,116,247	-
	1,116,247	-

					2024	2023
					£	£

Due within one year
Trade debtors	80,844	25,501
Amounts owed by group undertakings	-	229,567
Prepayments and accrued income	274,265	365,319
Tax recoverable	1,694	203,090
Deferred taxation	58,044	55,472
	414,847	878,949

The amounts owed by group undertakings is a loan made to the immediate parent company. Interest has been charged on this loan at an average rate of 9.26% (2023: 9.60%), and the interest received amounted to £76,106 (2023: £8,065). There are no repayment terms attached to the loan, but the expectation is that it will not be repaid within the next twelve months and has therefore been classified as due after one year.

7.	Cash and cash equivalents
		2024	2023
		£	£

Cash at bank and in hand	687,834	417,753
	687,834	417,753

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PARC CYNOG WIND FARM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

8.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Trade creditors	33,576	4,171
Other taxation and social security	48,872	52,106
Accruals and deferred income	70,788	72,295
	153,236	128,572

9.	Deferred taxation

		2024
		£

	At beginning of year	55,472
	Charged to profit or loss	2,572
	At end of year	58,044

The deferred tax asset is made up as follows:
	2024	2023
	£	£

Decelerated capital allowances	53,838	51,266
Other temporary differences	4,206	4,206
	58,044	55,472

10.	Provisions

		Decommiss-ioning Costs
		£

	At 1 January 2024	178,767
	At 31 December 2024	178,767

The provision above relates to expected demolitions costs to dismantle and remove the wind and solar farms. An amount equivalent to the discounted provisions is capitalised within fixed assets and is depreciated over the useful lives of the associated assets.

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PARC CYNOG WIND FARM LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Not later than 1 year	66,833	61,233
Later than 1 year and not later than 5 years	171,804	196,915
Later than 5 years	993,541	1,063,006
	1,232,178	1,321,154

The Company has entered into operating leases for two sites used by the Company. For one site the operating lease rentals are based in part, on MWh generation. As such, the rental commitment for the future periods cannot be established with certainty. Therefore a reasonable estimation has been used for the above note.
For the second site the rental commitment is adjusted annually for RPI. The future RPI figure is unknown and therefore an estimate of the RPI has been used. The above commitment could therefore change.

12.	Related party transactions
	The company's parent has bank finance in the form of a 10 year loan, which is secured by a fixed and floating charge over this company’s property, assets and rights and by a cross-guarantee. The bank loan balance at 31 December 2024 was £6,029,414.

13.	Post balance sheet events

The current lease of the wind farm expires in February 2026. The company is currently negotiating an extension of three years to February 2029 and are confident that this will be signed shortly.

14.	Group financial statements

At the year end date the immediate parent undertaking was European Energy UK Yieldco One Limited, a company registered in England and Wales. The parent of the smallest group for which consolidated financial statements are prepared is European Energy A/S, whose registered office is Gyngemose Parkvej 50, 2860 Soborg, Denmark.

15.	Auditors' information

The auditors' report on the financial statements for the year ended 31 December 2024 was unqualified.

The audit report was signed on 29 September 2025 by Louise Watts (Senior statutory auditor) on behalf of Venthams.

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