|
|
|
Buildings |
5 - 20% straight line |
|
Plant & machinery |
20 - 67% straight line |
|
|
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. |
|
|
Impairment of fixed assets |
|
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
|
|
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
|
|
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
|
|
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
|
|
Cash at bank and in hand |
|
Cash at bank and in hand 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. |
|
|
Stocks |
|
Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. |
|
|
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss. |
|
|
Financial instruments |
|
The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument. |
|
|
Financial assets and liabilities are offset, with 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 |
|
Basic financial assets, which include debtors, 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. |
|
|
Basic financial liabilities |
|
Basic financial liabilities, including creditors and loan notes, 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. |
|
|
Equity instruments |
|
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
|
|
Deferred tax |
|
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. |
|
|
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority. |
|
|
Foreign exchange |
|
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income statement for the period. |
|
|
Leases |
|
Rentals payable under operating leases are charged against income on a straight line basis over the lease term. |
|
|
| 2 |
Critical accounting 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. |
|
|
Critical judgements |
|
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
|
|
Impairment of Fixed Assets |
|
At each reporting period end, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication of impairment. If there is any such indication, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). There are inherent uncertainties in any fair value estimation, particularly in relation to valuations determined using long term discounted cash flows. Due to inherent uncertainties in any valuation technique, especially under volatile economic, political and environmental conditions (including the Covid-19 outbreak), the eventual realised recoverable amount could materially differ from the estimated recoverable amount. The most critical estimates are considered to be the discount rate which is based on the directors’ historical experience and their view of rates within the sector, the directors’ estimates of future maintainable EBITDA based on sustainable operating performance of the operating plant and the directors’ assessment of the economic period of the leasehold asset available under the lease terms including the tenant right to extend the lease term under option. |
|
|
Deferred Tax |
|
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. |
|
| 3 |
Operating loss |
|
|
|
|
|
|
2025 |
|
2023 |
|
Operating loss for the year is stated after charging: |
£ |
£ |
|
|
Fees payable to the company's auditor for the audit of the company's financial statements |
|
11,750 |
|
7,500 |
|
|
|
|
|
|
|
|
|
|
| 4 |
Employees |
|
|
|
|
|
|
2025 |
|
2023 |
|
|
Average number of persons employed by the company |
- |
|
- |
|
|
|
|
|
|
|
|
|
| 5 |
Tangible fixed assets |
|
|
|
|
Land and buildings |
|
Plant and machinery etc |
|
Total |
| £ |
£ |
£ |
|
Cost |
|
At 1 October 2023 |
12,577,266 |
|
257,189 |
|
12,834,455 |
|
Additions |
29,599 |
|
146,217 |
|
175,816 |
|
At 31 March 2025 |
12,606,865 |
|
403,406 |
|
13,010,271 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 October 2023 |
3,771,553 |
|
122,974 |
|
3,894,527 |
|
Charge for the period |
961,772 |
|
173,163 |
|
1,134,935 |
|
At 31 March 2025 |
4,733,325 |
|
296,137 |
|
5,029,462 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 31 March 2025 |
7,873,540 |
|
107,269 |
|
7,980,809 |
|
At 30 September 2023 |
8,805,713 |
|
134,215 |
|
8,939,928 |
|
|
|
|
|
|
|
|
|
|
Included within the carrying amount of buildings is loan interest totalling £1,242,309 (2023: £1,393,399), and assets held under financial lease agreements totalling £45,698 (2023: £51,182). |
|
|
| 6 |
Debtors |
2025 |
|
2023 |
| £ |
£ |
|
|
Trade debtors |
30,121 |
|
28,098 |
|
Other debtors |
906,332 |
|
838,344 |
|
|
|
|
|
|
936,453 |
|
866,442 |
|
|
|
|
|
|
|
|
|
|
| 7 |
Creditors: amounts falling due within one year |
2025 |
|
2023 |
| £ |
£ |
|
|
Obligations under finance lease and hire purchase contracts |
14,638 |
|
11,027 |
|
Trade creditors |
609,419 |
|
348,120 |
|
Other creditors |
2,945,359 |
|
1,937,983 |
|
|
|
|
|
|
3,569,416 |
|
2,297,130 |
|
|
|
|
|
|
|
|
|
|
Included within other creditors is £2,424,543 (2023: £1,652,124) due within the next year for repayments of long term loan notes detailed in Note 8. |
|
|
Kanadevia Inova Biogas HoldCo Limited has fixed charges over certain assets of the company as well as a floating charge over the entire property and undertaking of the company. |
|
|
Interest of 4% per annum is payable on loans of £250,000 (2023: £250,000). During the 18 months to 31 March, £15,014 (2023: £10,000) was charged through profit and loss. |
|
|
| 8 |
Creditors: amounts falling due after one year |
2025 |
|
2023 |
| £ |
£ |
|
|
Obligations under finance lease and hire purchase contracts |
2,451 |
|
22,151 |
|
Payable by instalments 1 - 5 years |
4,018,636 |
|
3,270,585 |
|
Payable by instalments after 5 years |
26,954,701 |
|
23,474,975 |
|
|
|
|
|
|
30,975,788 |
|
26,767,711 |
|
|
|
|
|
|
|
|
|
|
Interest of 12.5% per annum is payable on loans of £33,397,880 (2023: £28,147,684). During the 18 months to 31 March, £5,667,071 (2023: £3,268,055) was charged through profit and loss. In April 2020, all loan note instruments and associated interest were consolidated into fixed rate secured loan notes. |
|
|
| 9 |
Called up share capital |
2025 |
|
2023 |
| £ |
£ |
|
Ordinary share capital Issued and fully paid |
|
200 Ordinary shares of £1 each |
|
200 |
|
200 |
|
|
|
|
|
|
|
|
|
|
| 10 |
Operating lease commitments |
|
|
Lessee |
|
The company has entered into an agreement for the lease of land until 25 September 2040, with a break option on the 20th anniversary of the project's commercial operations date. |
|
|
Future minimum lease payments under non-cancellable operating leases are as follows: |
|
|
|
|
|
|
2025 |
|
2023 |
| £ |
£ |
|
|
Not later than one year |
|
|
|
|
62,100 |
|
55,000 |
|
Later than 1 year and not later than 5 years |
248,400 |
|
220,000 |
|
Later than five years |
651,965 |
|
660,000 |
|
|
|
|
|
|
962,465 |
|
935,000 |
|
| 11 |
Contingent liabilities |
|
|
The company is exposed to contingent liabilities amounting to a maximum potential payment of £183,305. The contingent liability relates to a historic disputed balance with a company which is a related party by virtue of common directorship. |
|
|
Such contingencies were classified by the directors as less than probable but not remote. The directors consider that the ultimate resolution of the matter will not have a material effect on its financial position or result of operations. |
|
|
| 12 |
Related party transactions |
|
|
As at the year end, the company owed Kanadevia Inova Biogas HoldCo Limited £33,397,880 (2023: £28,147,684). This balance is included within notes 7 and 8. Interest of £5,667,071 (2023: £3,266,974) was charged on these loans during the 18 months to 31 March. |
|
|
Interest of £11,438 (2023: £9,640) has been accrued on the loan from Kanadevia Inova Biogas HoldCo Limited and is included within note 7 under "other creditors". |
|
|
Kanadevia Inova Capital ltd is a subsidiary of the company's ultimate parent company. |
|
|
Two directors of the company, Christopher Jones and David Jones, are partners in D & J A Jones. As at the year end, the company owed loans to D & J A Jones of £250,000 (2023: £250,000), this balance is included within note 7. Interest of £15,014 (2023: £10,000) was charged on these loans during the 18 months to 31 March. As at the year end, interest of £61,561 (2023: £46,548) was accrued on these loans and is included within note 7 under "other creditors". |
|
|
|
|
|
|
|
2025 |
|
2023 |
| £ |
£ |
|
Transactions with related parties |
|
|
During the year the company entered into the following transactions with related parties: |
|
|
Sales made to entities with common control or common significant influence |
|
|
|
3,196 |
|
7,345 |
|
|
|
|
|
|
|
|
|
|
Purchases made from entities with common control or common significant influence: |
|
|
Feedstock |
|
|
|
|
1,698,805 |
|
1,145,668 |
|
Goods and services |
|
|
|
|
1,602,930 |
|
1,154,959 |
|
|
|
|
|
|
3,301,735 |
|
2,300,627 |
|
|
|
|
|
|
|
2025 |
|
2023 |
| £ |
£ |
|
|
In addition to the disclosures above, further trading balances due from related parties are set out below: |
|
|
Amounts due from related parties |
|
|
|
3,836 |
|
4,225 |
|
|
|
|
|
|
|
|
|
|
Amounts due to related parties |
|
|
|
532,854 |
|
267,295 |
|
|
|
|
|
|
|
|
|
|
| 13 |
Change of name |
|
|
Effective 25th April 2025, the company changed its name from Gravel Pit Biogas Limited to Kanadevia Inova Biogas Gravel Pit Limited. |
|
|
| 14 |
Parent Company |
|
|
At the year end the immediate controlling entity is Kanadevia Inova Biogas HoldCo Limited, a company registered in England, due to its majority shareholding in the company. The ultimate controlling party is Kanadevia Corporation, a company registered in Japan. |
|
|
| 15 |
Other information |
|
|
Kanadevia Inova Biogas Gravel Pit ltd is a private company limited by shares and incorporated in England. Its registered office is: |
|
|
123 Pall Mall |
|
London |
|
SW1Y 5EA |
|
| 16 |
Audit report information |
|
|
As the income statement has been omitted from the filing copy of the financial statements, the
following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006: |
|
|
The auditor's report was unqualified. |
|
The senior statutory auditor was Kenneth McDowell |
|
The auditor was Saffery LLP. |
|
The audit report was signed on |
16/10/2025 |