REGISTERED NUMBER: 05757350 (England and Wales)

Strategic Report,

Report of the Directors and

Audited Financial Statements

for the year ended

31 March 2025

for

Moelogan 2 C.C.C.

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

Mr C J Tanner

Mr M Ma

Mr J P Hardy

SECRETARY:

Moelogan 2 (O&M) Cyfyngedig

REGISTERED OFFICE:

Cae Sgubor

Ffordd Pennant

Eglwysbach

Conwy

LL28 5UN

REGISTERED NUMBER:

05757350 (England and Wales)

AUDITORS:

Azets Audit Services

Statutory Auditors

Chartered Accountants

First Floor

Unit 55 Ffordd William Morgan

St Asaph Business Park

St Asaph

Denbighshire

LL17 0JG

ACCOUNTANTS:

Powell Chartered Accountants

Market Street

Ruthin

Denbighshire

LL15 1AU

The directors present their strategic report for the year ended 31 March 2025.

REVIEW OF BUSINESS

Moelogan 2 CCC owns and operates nine 1.3MW wind turbines on Moel Moelogan, North Wales. Electricity generation commenced after commissioning in October 2008.

The company's main customer is Engie Power Limited.

At 31 March 2025 the balance sheet shows total net assets of £10,051,581 (2024: £9,634,969).

KEY PERFORMANCE INDICATORS

Year ending

Year ending

31/3/2025

31/3/2024

£

£

Turnover

5,146,273

6,413,212

Gross profit

4,533,570

88%

5,836,781

91%

Earnings before interest, charges, tax and depreciation

4,045,548

79%

5,397,204

84%

Net profit after tax

3,163,586

5,446,936

PRINCIPAL RISKS AND UNCERTAINTIES

The principle risks facing the company are fluctuating wind levels, changes in electricity market prices and mechanical failure of the turbines.

The potential impact of the Euro is considered to be minimal. All day to day purchases and sales are invoiced in Sterling.

ON BEHALF OF THE BOARD:

Mr J P Hardy - Director

29 September 2025

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

DIVIDENDS

Interim dividends totalling £1,450,224 were paid during the year under review (2024: £3,940,611). No final dividend has been paid for the year ended 31 March 2025 (2024: Nil).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report.

Mr C J Tanner

Mr M Ma

Mr J P Hardy

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Azets Audit Services, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr J P Hardy - Director

29 September 2025

Opinion

We have audited the financial statements of Moelogan 2 C.C.C. (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Strategic Report or the Report of the Directors.

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Ward (Senior Statutory Auditor)

for and on behalf of Azets Audit Services

Statutory Auditors

Chartered Accountants

First Floor

Unit 55 Ffordd William Morgan

St Asaph Business Park

St Asaph

Denbighshire

LL17 0JG

29 September 2025

TURNOVER

3

5,146,273

6,413,212

Cost of sales

612,703

576,431

GROSS PROFIT

4,533,570

5,836,781

Administrative expenses

488,243

439,793

OPERATING PROFIT

5

4,045,327

5,396,988

Amounts written off intercompany loan

6

-

(1,019,602

)

4,045,327

6,416,590

Interest payable and similar expenses

7

235,123

229,389

PROFIT BEFORE TAXATION

3,810,204

6,187,201

Tax on profit

8

646,618

740,265

PROFIT FOR THE FINANCIAL YEAR

3,163,586

5,446,936

PROFIT FOR THE YEAR

3,163,586

5,446,936

OTHER COMPREHENSIVE INCOME

Impairment of plant and machinery

(1,729,000

)

(768,000

)

Deferred tax movement on revalued assets

432,250

192,000

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(1,296,750

)

(576,000

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,866,836

4,870,936

FIXED ASSETS

Tangible assets

10

13,862,000

15,591,000

CURRENT ASSETS

Stocks

11

102,415

-

Debtors: amounts falling due within one year

12

1,464,788

1,481,560

Debtors: amounts falling due after more than one year

12

39,500

39,500

Cash at bank

1,245,412

1,335,235

2,852,115

2,856,295

CREDITORS

Amounts falling due within one year

13

565,589

2,305,867

NET CURRENT ASSETS

2,286,526

550,428

TOTAL ASSETS LESS CURRENT LIABILITIES

16,148,526

16,141,428

CREDITORS

Amounts falling due after more than one year

14

(2,735,021

)

(2,735,021

)

PROVISIONS FOR LIABILITIES

17

(3,361,924

)

(3,771,438

)

NET ASSETS

10,051,581

9,634,969

CAPITAL AND RESERVES

Called up share capital

18

50,000

50,000

Revaluation reserve

19

6,095,397

7,392,147

Retained earnings

19

3,906,184

2,192,822

SHAREHOLDERS' FUNDS

10,051,581

9,634,969

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

Mr J P Hardy - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

50,000

686,497

7,968,147

8,704,644

Changes in equity

Total comprehensive income

-

5,446,936

(576,000

)

4,870,936

Dividends

-

(3,940,611

)

-

(3,940,611

)

Balance at 31 March 2024

50,000

2,192,822

7,392,147

9,634,969

Changes in equity

Total comprehensive income

-

3,163,586

(1,296,750

)

1,866,836

Dividends

-

(1,450,224

)

-

(1,450,224

)

Balance at 31 March 2025

50,000

3,906,184

6,095,397

10,051,581

Cash flows from operating activities

Cash generated from operations

1

4,255,170

5,386,252

Interest paid

(226,098

)

(259,389

)

Tax paid

(2,668,671

)

-

Net cash from operating activities

1,360,401

5,126,863

Cash flows from financing activities

Equity dividends paid

(1,450,224

)

(3,940,611

)

Net cash from financing activities

(1,450,224

)

(3,940,611

)

(Decrease)/increase in cash and cash equivalents

(89,823

)

1,186,252

Cash and cash equivalents at beginning of year

2

1,335,235

148,983

Cash and cash equivalents at end of year

2

1,245,412

1,335,235

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

3,810,204

6,187,201

Holding company loan write off

-

(1,019,602

)

Finance costs

235,123

229,389

4,045,327

5,396,988

Increase in stocks

(102,415

)

-

Decrease in trade and other debtors

344,361

65,338

Decrease in trade and other creditors

(32,103

)

(76,074

)

Cash generated from operations

4,255,170

5,386,252

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

1,245,412

1,335,235

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

1,335,235

148,983

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank

1,335,235

(89,823

)

1,245,412

1,335,235

(89,823

)

1,245,412

Debt

Debts falling due after 1 year

(2,735,021

)

-

(2,735,021

)

(2,735,021

)

-

(2,735,021

)

Total

(1,399,786

)

(89,823

)

(1,489,609

)

1.	STATUTORY INFORMATION

Moelogan 2 C.C.C. is a private company , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

Moelogan 2 CCC is a wholly owned subsidiary of Moelogan (Holdings) Cyfyngedig, a private company registered in England and Wales (company registration number 06517525).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Judgements and key sources of estimation uncertainty

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 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying

amount of assets and liabilities are as follows.

Going concern

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, being a period of twelve months after the date on which the annual report and financial statements are signed. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

Turnover represents revenue recognised by the company in respect of services supplied during the period, excluding value added tax.

Tangible fixed assets

On 31 March 2021 the accounting policy for plant and machinery was changed from depreciated cost (straight line over 20 years) to fair value measurement resulting in the creation of the revaluation reserve and consequential adjustment to the deferred tax provision. Annual impairment reviews are carried out in lieu of a fixed depreciation charge. The most recent impairment review was carried out on 31 March 2025, further details of the valuation can be found in the 'Tangible Fixed Assets' note overleaf.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

The company's principal source of income is the sale of electricity and related incomes. The company's main customer is Engie Power Limited.

There are no distinguishable segments on which to report within the company.

4.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31 March 2025 nor for the year ended 31 March 2024.

The average number of employees during the year was NIL (2024 - NIL).

2025

2024

£

£

Directors' remuneration

-

-

5.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Auditors' remuneration

9,800

13,250

6.

AMOUNTS WRITTEN OFF INTERCOMPANY LOAN

2025

2024

£

£

Loan write off- parent company

-

(1,019,602

)

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

JLEAG loan interest

218,802

218,802

Interest on taxation

16,321

10,587

235,123

229,389

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

623,882

712,538

Deferred tax

22,736

27,727

Tax on profit

646,618

740,265

UK corporation tax has been charged at 25% .

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

3,810,204

6,187,201

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

952,551

1,546,800

Effects of:

Capital allowances in excess of depreciation

(22,736

)

(27,727

)

Deferred tax movement

22,736

27,727

Tax loss surrendered from group companies y/e 31/3/2024

(305,933

)

(551,634

)

Loan from Parent company written off

-

(254,901

)

Total tax charge

646,618

740,265

Tax effects relating to effects of other comprehensive income

2025

Gross

Tax

Net

£

£

£

Impairment of plant and machinery

(1,729,000

)

-

(1,729,000

)

Deferred tax movement on revalued assets

432,250

-

432,250

(1,296,750

)

-

(1,296,750

)

2024

Gross

Tax

Net

£

£

£

Impairment of plant and machinery

(768,000

)

-

(768,000

)

Deferred tax movement on revalued assets

192,000

-

192,000

(576,000

)

-

(576,000

)

9.

DIVIDENDS

2025

2024

£

£

Interim

1,450,224

3,940,611

10.	TANGIBLE FIXED ASSETS

Plant and

machinery

£

COST OR VALUATION

At 1 April 2024

15,591,000

Impairments

(1,729,000

)

At 31 March 2025

13,862,000

NET BOOK VALUE

At 31 March 2025

13,862,000

At 31 March 2024

15,591,000

Plant and machinery represents the fair value of nine wind turbines.

Cost or valuation at 31 March 2025 is represented by:

Plant and

machinery

£

Valuation in 2021

16,359,000

Valuation in 2024

(768,000

)

Valuation in 2025

(1,729,000

)

13,862,000

If plant and machinery had not been revalued they would have been included at the following historical cost:

2025

2024

£

£

Cost

13,480,943

13,480,943

Aggregate depreciation

7,746,139

7,746,139

Plant and machinery were valued on an open market basis on 31 March 2025 by Foresight Group .

Historically, plant and machinery had been recognised at cost less accumulated depreciation (straight line over 20 years). On 31 March 2021 the accounting policy was changed to fair value measurement. An impairment of the wind turbines' value was considered appropriate on 31 March 2025, the valuation and impairment adjustment are shown above.

11.

STOCKS

2025

2024

£

£

Stocks

102,415

-

12.

DEBTORS

2025

2024

£

£

Amounts falling due within one year:

Trade debtors

308,389

321,596

Tax

327,589

-

Accrued income and other debtors

762,070

1,027,665

Prepayments

66,740

132,299

1,464,788

1,481,560