Beaubridge Energist LLP is a limited liability partnership incorporated in England and Wales. The registered office is Kintyre House, 70 High Street, Fareham, Hampshire, United Kingdom, PO16 7BB.
These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. 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 financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The limited liability partnership has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the limited liability partnership as an individual entity and not about its group.
These financial statements are prepared on the going concern basis. The members have a reasonable expectation that the limited liability partnership will continue in operational existence for the foreseeable future.
As at the year end, the LLP has net assets of £88,422 (2024 - £90,642).
The LLP is an investment vehicle with investment in and loan notes and and loan facility issued to Energist (Holdings) Limited. Energist (Holdings) Limited Group has made losses in the year ended 31 December 2024 of £856,102 (2023 - £203,076) and had net liabilities of £71,286,830 (2023 - £70,430,728) as at that date.
Beaubridge Energist LLP has continued to provide financial support to Energist (Holdings) Limited. The investment and loan notes issues to the subsidiary entity are subordinated to the loan facility. The loan facility carries a redemption premium of 400%.
Management of Beaubridge Energist LLP have reviewed the financial position of Energist (Holdings) limited and are of the view that 10% of the loan facility capital of the brought forward balance, £2,334,453 plus the full £260,000 advanced in a prior year, will be recoverable over time. The relevant provision has therefore been made against these income streams.
The LLP has made losses in the year due to administrative expenses and provision against loan interest, redemption premium and associated income. However, the LLP's members are continuing to support the LLP and therefore, management are satisfied that it is appropriate to continue to adopt the going concern basis of accounting in the preparation of the LLP's financial statements.
The LLP's main source of income comprises interest receivable on its loan note investments and loan facility. Interest is recognised in accordance with the terms of the agreements and, where applicable, is allocated over the term of the agreement at a constant rate on the carrying amount. This is included in the accounts net of any withholding taxes.
Investments are stated at the lower of cost and recoverable amount.
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the limited liability partnership. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The limited liability partnership 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 limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 limited liability partnership after deducting all of its liabilities.
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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.
Drawings, members' interests and members' remuneration
No member has any automatic right to make drawings from the LLP. The level and timing of drawings is determined by the members taking into account the LLP's cash requirements.
Capital contributions are allocated pro rata to members' capital accounts in accordance with schedule 2 of the members' agreement or such other amount as agreed by ordinary resolution.
Members' capital contributions can be repaid only with agreement of the members.
Profits are allocated to members in accordance with the members' agreement.
As at the year end, the tota loan facility capital amounted to £2,594,453 (2024 - £2,594,453). Management consider £260,000 of this balance and 10% of the remaining balance (£2,334,453) to be fully recoverable. As a result the necessary provisions have been made and this is shown in the balance above.
Creditors are paid in advance of capital loans and debts due to and from the members. In the event of winding up, the creditors of the LLP will be paid before members' distributions or repayment of capital.
Profits of losses are allocated to Members' Capital Accounts at the end of such period as agreed by the members.
No restrictions or limitations exist on the ability of the members to reduce the amount of 'Members' other interest;.
During the year the limited liability partnership entered into the following transactions with related parties:
A company under the control of Beaubridge Energist LLP
As at the year end, the LLP owed a company under its control £134 (2024 - £134) in relation to shares acquired during a previous year.
The LLP advanced £Nil (2024 - £Nil) during the year to the company under its control as part of the original loan facility. This is included within amounts owed by group undertakings.
Interest and redemption premiums of £30,431,509 (2024 - £30,431,509) have been accrued in respect of the loan notes and loan facility, of which £Nil relates to the year under review.
As at the year end, the total loan facility capital amounted to £2,594,453 (2024 - £2,594,453). Management consider £260,000 of this balance plus 10% of the remaining balance (£2,334,453) to be fully recoverable.
The loans were due for repayment to the LLP on 31 December 2023. The LLP has since agreed to extend the loan repayment term for the foreseeable future and these loans are now repayable on demand.
Loans which remained outstanding from former members who resigned from the LLP were incorrectly retained within members capital. These have now been restated as a current liability as the loans are repayable on demand.
Monitoring fees were recorded as income in Beaubridge Energist LLP based on a historical members agreement between two related parties to which Beaubridge Energist LLP also had an interest. There was no separate agreement between the related parties and Beaubridge Energist LLP to which the monitoring fees related and so this should not have been recorded within the accounts of the LLP.
The monitoring fees had been fully provided against and so there is no overall impact on the profit and loss account or opening equity.