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Registered number: 14573978
NORFOLK ENVIRONMENTAL CREDITS LIMITED
(A Company Limited by Guarantee)
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 MARCH 2025
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NORFOLK ENVIRONMENTAL CREDITS LIMITED
(A Company Limited by Guarantee)
REGISTERED NUMBER: 14573978
BALANCE SHEET
AS AT 31 MARCH 2025
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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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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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NORFOLK ENVIRONMENTAL CREDITS LIMITED
(A Company Limited by Guarantee)
REGISTERED NUMBER: 14573978
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2025
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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 profit and loss account 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 on 22 October 2025.
................................................
P Courtier
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D E Lorimer
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The notes on pages 3 to 9 form part of these financial statements.
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NORFOLK ENVIRONMENTAL CREDITS LIMITED
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Norfolk Environmental Credits Limited is a private company limited by guarantee, incorporated in England and Wales, with a company registration number of 14573978. The address of the registered office is The Horizon Centre Broadland Business Park, Peachman Way, Norwich, NR7 0WF. These financial statements cover a 12 month period, these are not directly comparable with the previous 15 month period.
Norfolk Environmental Credits Limited is an innovative joint venture company between Breckland Council, Broadland District Council, North Norfolk District Council and South Norfolk Council. This joint venture has since been extended to Norwich City Council who joined from 24 April 2025. The company has been established to provide housing developers across Norfolk with access to environmental mitigation schemes to support and enable the delivery of sustainable housing development, unlocking the building of new homes without weakening environmental protections.
Nutrient mitigation schemes are secured in accordance with the legal and technical requirements of Natural England and Local Planning Authorities. Norfolk Environmental Credits provides housing developers with a simple and streamlined mechanism to offset the nutrient loadings arising from new development, helping to protect our rivers and waterways for future generations.
Norfolk Environmental Credits has entered into contractual agreements with a range of third parties to secure environmental mitigation. To satisfy the relevant legislative framework these contracts will be up to 90 years in duration for Nutrient Neutrality. Additionally, the company will also act as agents to trade environmental mitigation to the development sector which has been appropriately secured by third party mitigation providers. All schemes will require monitoring and potential enforcement throughout that time. Norfolk Environmental Credits is not a direct provider of mitigation solutions itself and therefore the company is not seeking to acquire land or capital assets. Income received from the sale of environmental credits is recycled to deliver further mitigation schemes and strengthen the company’s portfolio.
The financial statements are rounded to the nearest £.
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 following principal accounting policies have been applied:
The directors are continually assessing the impact of the current economic climate. They have not encountered any significant adverse impacts as a result. The company will continue with the support of its members, the councils listed above, and therefore the directors deem it appropriate to prepare the accounts on a going concern basis.
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NORFOLK ENVIRONMENTAL CREDITS LIMITED
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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.
The sales contracts include the neutrient neutality credits required to support planning applications and service for a period of either 6 or 90 years for the ongoing monitoring required for the sale of nutrient neutrality credits, this revenue is recognised over the period to which the contracts relate.
Interest income is recognised in profit or loss using the effective interest method.
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.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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NORFOLK ENVIRONMENTAL CREDITS LIMITED
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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.
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.
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.
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NORFOLK ENVIRONMENTAL CREDITS LIMITED
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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The average monthly number of employees, including directors, during the year was 4 (2024 - 4).
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Charge for the year on owned assets
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NORFOLK ENVIRONMENTAL CREDITS LIMITED
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Trade creditors due between 2 and 5 years
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Trade creditors due after 5 years
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NORFOLK ENVIRONMENTAL CREDITS LIMITED
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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NORFOLK ENVIRONMENTAL CREDITS LIMITED
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.
The company has entered into contractual and legal agreements with third-party landowners and mitigation providers to deliver nutrient mitigation schemes.
Under the terms of these agreements, the company is responsible for ensuring that the mitigation measures are implemented, maintained, and monitored in accordance with the requirements set out by Natural England and the relevant Local Planning Authorities (LPAs). In the event that a mitigation provider fails to meet its obligations, the company may be required to:
- Secure alternative mitigation measures,
- Refund or replace environmental credits issued to developers, or
- Face enforcement action under Section 106 agreements or Conservation Covenants.
As at the reporting date, no breaches have occurred therefore no provision has been recognised in these financial statements as the risk is possible but not probable. The company continues to monitor all mitigation schemes to manage this risk.
The company operates a defined benefit pension schemes which are open to all staff. The company's contributions are charged to the profit and loss account in the year which they are made. The pension charge for the year was £1,010 (2024 - £Nil). Contributions totalling £Nil (2024 - £Nil) were outstanding at the year end.
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Related party transactions
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During the year, the company occupied premises owned by Broadland District Council, a member of the company, rent-free.
The company has not entered into a formal lease agreement, and no amounts were paid or are payable in respect of rent for the year ended 31 March 2025.
No amounts were outstanding at the year-end in respect of this arrangement.
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