Sunborn Energy Limited

Notes to the Unaudited Financial Statements
for the Period from 1 July 2023 to 31 December 2024

1	General information

Sunborn Energy Limited (the 'company') is a private company limited by share capital, registered in England and Wales under the Companies Act. The address of the registered office is given on page 1. The nature of the company’s operations and its principal activities are set out in the directors' report on page 2.

2	Accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The functional currency of the company is considered to be pound sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements are presented in pound sterling (£).

Going concern
The directors has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements.

Critical judgements and key sources of estimation uncertainties

There were no key sources of estimation uncertainties or critical judgements made by the directors in the process of applying the company’s accounting policies with significant effect on the amounts recognised in the financial statements.

Government grants

Government grants received are included in deferred income until such time as the asset the grants relate to is ready for its intended use, thereby matching the grant income with the amortisation costs of the asset.

Sunborn Energy Limited

Notes to the Unaudited Financial Statements
for the Period from 1 July 2023 to 31 December 2024 (continued)

2	Accounting policies (continued)

Development costs

The company expenses all research costs as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved processes, is capitalised as an intangible asset if the process is technically and commercially feasible and the company has sufficient resources and the intention to complete development. All other development expenditures and expenditures on research activities are recognised in the Statement of Income and Retained Earnings.

Intangible assets

The company makes provision for amortisation of intangible assets; this provision requires estimates of the useful economic lives and residual values for the underlying assets. These estimates are based on a variety of factors which may be uncertain. The carrying amount at the year end is £220,155 (2023 - nil).

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Development costs	straight line over 10 years

Cash and cash equivalents

Cash and cash equivalents are comprised of the bank current account balance and are subject to an insignificant risk of change in value.

Receivables

Trade and other receivables that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment.

Payables

Trade and other payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade and other payables are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade and other payables that are payable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be paid. Those that are payable after more than one year or that constitute a financing transaction are recorded initially at transaction price and subsequently at amortised cost using the effective interest method.

Sunborn Energy Limited

Notes to the Unaudited Financial Statements
for the Period from 1 July 2023 to 31 December 2024 (continued)

2	Accounting policies (continued)

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

3	Staff numbers

The average number of persons employed by the company (including directors) during the period, was 2 (2023 - 0).

4

Taxation

Tax charged/(credited) in the income statement

	1 Jul 23 to 31 Dec 24 £	23 Jun 22 30 Jun 23 £
Current taxation
UK corporation tax	-	-
	-	-

The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 19% (2023 - 19%).

The differences are reconciled below:

	1 Jul 23 to 31 Dec 24 £	23 Jun 22 30 Jun 23 £
Loss before tax	(7,185)	-
Corporation tax at standard rate	(1,365)	-
Effect of tax losses	1,365	-
Total tax charge/(credit)	-	-

Sunborn Energy Limited

Notes to the Unaudited Financial Statements
for the Period from 1 July 2023 to 31 December 2024 (continued)

5	Intangible assets

	Development costs £
Cost
Additions	220,155
At 31 December 2024	220,155
Carrying amount
At 31 December 2024	220,155

6	Receivables

	31 Dec 24 £	30 Jun 23 £
Other receivables	8,139	1
Prepayments	61,616	-
	69,755	1

7	Cash and cash equivalents

	31 Dec 24 £	30 Jun 23 £
Cash at bank	10,644	-

8

Payables

	Note	31 Dec 24 £	30 Jun 23 £
Due within one year
Other payables		3,189	-
Accruals and deferred income		147,441	-
		150,630	-
Due after one year
Other payables		157,108	-

Sunborn Energy Limited

Notes to the Unaudited Financial Statements
for the Period from 1 July 2023 to 31 December 2024 (continued)

9	Share capital and reserves

Allotted, called up and fully paid shares

	31 Dec 24		30 Jun 23
	No.	£	No.	£
Ordinary shares of £1	1	1	1	1

Reserves

The retained earnings reserve represents cumulative profit or losses net of dividends paid and other adjustments.

 

10

Control

The ultimate controlling party is H Niemi by virtue of his shareholding.

11	Events after the financial period

There have been no significant events between the year end and the date of approval of these financial statements which would require a change to, or disclosure in, the financial statements.