The Directors present their strategic report for the year ended 31 March 2025 in accordance with section 414 of the Companies Act 2006.
Background
Diamond Transmission UK Limited (“the Company”, “DTUK”) was incorporated on 24 October 2019. DTUK is a wholly owned subsidiary of DTUK BLK Bidco Holdings Limited (“DTUKBBH”) which is incorporated in the United Kingdom. DTUK’s ultimate parent company is BlackRock Evergreen Infrastructure Partners (Aggregator C) SCSp (''BEIP'') which is a Reserved Alternative Investment Fund registered in Luxembourg.
Diamond Transmission Corporation Limited (''DTC'') transferred its employees to DTUK from 1 November 2024. On 4 December 2024 Mitsubishi Corporation (''MC'') sold 100% of it's shareholding in DTUK to DTUKBBH. .
During the year the Company held equity investments in projects in the UK. The Company has invested in offshore electricity transmission projects in the UK under the long term Offshore Transmission Owner (“OFTO”) offshore transmission licence (“Licence”) issued by the Office of Gas and Electricity Markets (“Ofgem”). The Company’s involvement in the transmission business in the United Kingdom through its investments stands at ten assets (2024: ten assets), with a transmission capacity of 5.7GW (2024: 5.7GW) in total.
Business review and key performance indicators
The Company is engaged in managing its UK OFTO business.
As shown in the Company’s Profit and loss account on page 11, the Company’s operating loss was £1,921k (2024:profit of £33k). The Company is structured to provide asset management services to its investments.
The key financial performance indicator for the Company is earnings, which refers to the net income after tax.
As shown in the Company’s Profit and loss account on page 11, the Company’s earnings decreased by £2,040k to £6,095k (2024: £8,135k) due mainly to an increase in administrative expenses of £2,549k, which resulted from the transfer of DTC's business and operational activities to DTUK.
The Company is structured in a way where the majority of its income is generated from dividends. During the financial year, the Company received dividends as per the following table.
Entity | 2025 | 2024 | |
| Blue Transmission Walney 1 Limited | £1.4m | £2.2m |
| Blue Transmission Walney 2 Limited | £1.1m | £2.0m |
| Blue Transmission Sheringham Shoal Limited | £2.7m | £2.3m |
| Blue Transmission London Array Limited | £2.8m | £1.6m |
| Total | £8.0m | £8.1m
|
The Company's net assets at the year-end were £18,686k (2024: £20,156k), comprised primarily of investments in joint ventures of £15,194k (2024: £15,194k) and cash at bank £3,511k (2024: £4,724k). Total assets decreased by £1,470k, due mainly to the decrease in cash of £1,213k.
The Directors consider the results for the year to be satisfactory and the Directors remain confident that the Company will sustain its underlying level of performance by continuing to operate efficiently and increase revenue by sourcing new investment opportunities.
Non-Financial Indicators
Key non-financial indicators of the Company are:
to ensure a safe and healthy workplace and protect the environment by targeting zero Lost Time Injuries (''LTI's'') and zero reportable environmental incidents,
to maximise the transmission availability by each OFTO project in any given calendar year in excess of the licence target availability of 98%,
To comply with all applicable regulations including zero enforcement actions from the Marine Management Organisation (''MMO'') and zero unauthorised access incidents in accordance with Electricity Safety, Quality and Continuity Regulations (''ESQR''),
to continually improve the performance and delivery from contractors and other third parties to secure the value of the OFTO investment case.
Future prospects
The Directors are not aware, at the date of this report, of any major changes in the Company’s activities for the coming year ahead.
Principal risks and uncertainties
The key risks that the Company faces in its day to day operations can broadly be categorised as relating to credit risk, operational risk and liquidity risk. The Company has adopted various objectives and policies to mitigate these risks in the day to day operations of the Company.
Financial risk management objectives and policies
The Company has adopted the following objectives and policies to mitigate its financial risks.
Credit risk
Credit risk is the risk that a counterparty will not meet its financial obligations resulting in a financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties, and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults.
Operational risk
Operational risk is the risk that the Company suffers a loss directly or indirectly from inadequate or failed internal processes, people and systems or from external events. The Company's senior management ensure that any significant operational risks and their controls are continually reviewed and assessed and, where applicable, corrective action plans are put in place.
Liquidity risk
There is a risk that the Company may need to seek alternative sources of finance if the availability of credit at reasonable cost becomes difficult. Ultimate responsibility for liquidity risk management rests with the Board. The Company has in place an appropriate liquidity risk management framework for the management of the Company's funding and liquidity management requirements.
The Board of Directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard to a range of matters when making decisions for the long term. Key decisions and matters that are of strategic importance to the Company are appropriately informed by s172 factors.
Through an open and transparent dialogue with our key stakeholders, we have been able to develop a clear understanding of their needs, assess their perspectives and monitor their impact on our strategic ambition and culture. As part of the Board's decision-making process, the Board consider the potential impact of decisions on relevant stakeholders whilst also having regard to a number of broader factors, including the impact of the Company's operations on the community and the environment, responsible business practices and the likely consequences of decisions in the long term.
Approved by the Board of Directors and signed on behalf of the Board by:
The Directors of the Company have pleasure in presenting their report, together with the audited Financial Statements, for the year ended 31 March 2025.
Information presented in other sections
Information relating to business review, future developments and principal risks and uncertainties has been included in the Strategic Report and forms part of this report by cross reference.
Directors
The Directors who held office during the year were as follows:
G Thornton
M Pitts (Resigned 23 July 2025)
M Porter (Appointed 24 March 2025)
E Vera (Appointed 4 December 2024)
D O'Brien (Appointed 4 December 2024, resigned 30 June 2025)
S Tetot (Appointed 4 December 2024, resigned 24 March 2025)
S Inano (Resigned 4 December 2024)
A Kadota (Appointed 15 April 2024, resigned 4 December 2024)
Those serving up to the date of approval of these Financial Statements are included in Company information.
Directors' indemnities
The Company has granted an indemnity to its Directors to provide appropriate cover for their reasonable actions on behalf of the Company. In addition, Directors’ and Officers’ Liability and Company Reimbursement Insurance cover has been in place throughout the year. Such indemnities, which constitute a qualifying third-party indemnity provision as defined by section 234 of the Companies Act 2006, remain in force as at the date of approving the Directors’ report.
Political contributions and charitable donations
The Company made no political contributions or charitable donations during the year (2024: £nil).
Dividends
An interim dividend of £8,000k was paid to DTUKBBH during the year (2024: £10,800k to DTC). An interim dividend of £2,000k was proposed on 23 July 2025 and paid on 24 July 2025.
Post balance sheet events
There were no post balance sheet events.
Going concern
After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Financial Statements.
Further details are set out in note 1.1 to the Financial Statements.
The Directors are responsible for preparing the Annual Report 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 international accounting standards. 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:
properly select and apply accounting policies;
present information, including accounting policies in a manner that provides relevant, reliable, comparable and understandable information;
provide additional disclosures when compliance with the specific requirements of the financial reporting framework are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
make an assessment of the Company's ability to continue as a going concern.
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.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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.
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 course of 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.
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities statement, 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 is 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.
Auditor's 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 an auditor's report 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.
A further description of our responsibilities for the audit of the Financial Statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
We considered the nature of the Company’s industry and its control environment, and reviewed the Company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the Directors about their own identification and assessment of the risks of irregularities, including those that are specific to the Company's business sector.
We obtained an understanding of the legal and regulatory frameworks that the Company operates in, and identified the key laws and regulations that:
had a direct effect on the determination of material amounts and disclosures in the Financial Statements. These included UK Companies Act, tax legislation; and
do not have a direct effect on the Financial Statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty. These included Employment Law and UK General Data Protection Regulation.
We discussed among the audit engagement team such as IT Specialist regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the Financial Statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
In addition to the above, our procedures to respond to the risks identified included the following:
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the Financial Statements;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
reading minutes of meetings of those charged with governance.
Report on other legal and regulatory requirements
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 Directors’ report for the financial year for which the Financial Statements are prepared is consistent with the Financial Statements; and
the strategic report and the Directors’ report have been prepared in accordance with applicable legal requirements.
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 any material misstatements in the strategic report or the Directors’ report.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report in respect of the following matters 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.
We have nothing to report in respect of these matters.
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 an auditor's report 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.
All the above results for the year are derived entirely from continuing activities.
The Company has no other comprehensive income or expenses other than those included in the results above and therefore no separate other comprehensive income and expenses has been presented before ''Profit and total comprehensive income for the year''.
Company information
DTUK is a private company limited by shares incorporated in England and Wales. The registered office is Mid City Place, 71 High Holborn, London, United Kingdom, WC1V 6BA. The Company's principal activities and nature of its operations are disclosed in the Directors' report.
Basis of accounting
A summary of the material accounting policies, which have been applied consistently throughout the current period, except as noted, is set out below.
The Financial Statements have been prepared under the historical cost accounting convention in pounds sterling because that is the currency of the primary economic environment in which the Company operates.
These Financial Statements have been prepared in accordance with United Kingdom adopted International Accounting Standards.
From 1 April 2024 the Company changed from the FRS101 accounting framework to the full United Kingdom adopted International Accounting Standards. The change resulted in additional disclosure requirements but the accounting policies remained the same. There is no transitional impact due to change in accounting framework in the opening balance sheet 1 April 2024.
The Company has reported a statement of cash flows with comparatives as required by the new framework.
Adoption of new and revised Standards
Amendments to IFRSs and the new Interpretation that are mandatorily effective for the current year
New and revised standards and interpretations adopted in the year, which were effective in the year, which were effective for annual periods on or after 1 January 2024 included:
IFRS 16 (amendments) - Lease liability in a sale and leaseback
IAS 1 (amendments) - Classification of liabilities as current or non-current
The application of the above standards has not had any significant impact on the amounts reported in these Financial Statements and therefore disclosures have not been made.
At the date of authorisation of these Financial Statements, the following Standards and Interpretations which have not been applied in these Financial Statements, were in issue but not yet effective and in some cases had not yet been adopted in the UK:
IAS 21 (amendment) - The effect of Changes in foreign exchange rates
IFRS 18 - Presentation and disclosures in financial statements
IFRS19 - Subsidiaries without public accountability: Disclosures
The Directors have considered the impact of the above standards. Their view is that the impact of the remaining above standards on the Financial Statements would be negligible.
No new standards or interpretations were early adopted by the Company during the year.
The Company’s business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report.
The Company’s principal source of liquidity is its cash at bank, which is approximately £5m at the date of approval of the Financial Statements.
The Directors have considered forecasts for both the Company and its direct and indirect investees taking account of the current market conditions, which demonstrate that the Company should be able to continue to operate within the level of its current resources over the 12 month period from the date of approval of these Financial Statements.
The level of operating expenses is not expected to change significantly from current levels. The Company cannot be forced to provide additional funding to its investees without its agreement under the terms of the shareholder agreements to which the Company and its direct investees are party. However, should the Company be requested to provide additional cash to its investees, the Company expects to have access to sufficient funds, either from its own resources or by way of issuing equity to its parent to be able to do so.
Based on the factors above, and after making enquiries, the Directors have a reasonable expectation that the Company has adequate resources available to continue in operational existence for at least the next 12 months from the date of approval of these Financial Statements. Accordingly, the Company continues to adopt the going concern basis in preparing the annual report and Financial Statements.
Revenue comprises income derived from service fees from its investee companies, which are all located within the United Kingdom, and is recognised over time as the services provided are consumed.
Interest receivable is recognised on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated cash receipts through the expected life of the financial asset to that asset’s net carrying amount. During the year the Company did not have any material interest income.
Dividend income from investments is recognised when the Company’s right to receive payment has been established.
Property, plant and equipment are stated at cost less depreciation. The carrying value of property, plant and equipment is reviewed for impairment when events or changes in circumstances indicate the carrying value may not be realisable.
Depreciation is provided at rates calculated to amortise the cost, less estimated residual value over its expected useful life on the following bases:
Furniture, fixture and equipment 33.33% per annum on cost
Leasehold building structures 20% per annum on cost
Investments are stated at purchased cost on acquisition less any provision for impairment where appropriate. The Company reviews its investments for indicators of impairment. If the carrying amount of non-current asset investments is not recoverable, the carrying value of the investment is written down to its recoverable amount.
These Financial Statements are individual Financial Statements, which do not include the consolidated figures of the Company’s investments.
Current tax is provided at amounts expected to be paid (or recovered) using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred taxation is provided in full on temporary differences that result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at the future date, at rates expected to apply when they crystallise based on current tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Temporary differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the Financial Statements.
Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered. Deferred tax assets and liabilities are not discounted.
On 11 July 2023, the UK finance (No 2) Act 2023 enacted the Pillar Two income taxes legislation. The Company is within the scope of Pillar Two legislation. The Company has assessed the impact of the the Pillar Two legislation and concluded there is no impact given that the Company tax rate is above 15%.
The Company operates a defined contribution pension scheme and the pension charge in the profit and loss account represents the amounts payable by the Company to the fund in respect of the year. Differences between charges accruing during the year and cash payments are included as either accruals or prepayments in the balance sheet.
The Company applies IFRS 16 ‘Leases’.
To the extent that a right-of-control exists over an asset subject to a lease, a right-of-use asset, representing the Company’s right to use the underlying leased asset, and a lease liability, representing the Company’s obligation to make lease payments, are recognised in the balance sheet.
All right-of-use assets are measured initially at cost and include the amount of initial measurement of the lease liability plus any initial direct costs if any, including advance lease payments, and an estimate of the dismantling, removal and restoration costs required under the terms of the lease.
Depreciation is charged to profit and loss so as to depreciate the right-of-use asset on a straight line basis from the date commencement of the lease, through to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. Where the lease term includes an option to extend that lease, and it is reasonably certain that the option will be exercised, then the lease term is deemed to include the extension period. Where the lease contains a purchase option the asset is written off over the useful life of the asset when it is reasonably certain that the purchase option will be exercised.
Lease liabilities have been measured at the present value of the future lease payments, discounted using the interest rate implicit in the lease, if readily determinable. If the implicit interest rate cannot be readily determined, an estimate of the Company’s incremental borrowing rate at the date of initial application of IFRS 16 has been used. Finance charges are recognised in profit and loss over the period of the lease.
Lease expenses for leases with duration of one year or less and of low-value assets are not recognised in balance sheet and are charged to profit and loss when incurred. Low-value assets are determined based on quantitative criteria.
A gain or loss is recognised in the statement of comprehensive income by the Company when leases are terminated and the underlying right of use asset and lease liability balances are written off.
The Company’s Financial Statements are presented in pounds sterling which is the currency of the primary economic environment in which it operates and is deemed to be its functional currency. Transactions in currencies other than the entity’s functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the date of the transactions. Monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates ruling at the balance sheet date. Gains and losses on translation are included in the profit and loss account.
Financial instruments
Financial instruments are recognised in the Company’s balance sheet when the Company becomes a party to the contractual provisions of the instrument. The classification depends on the nature and purpose of the financial assets or liability determined at the time of initial recognition.
Cash and cash equivalents
Cash and cash equivalents comprise cash and current account balances with financial institutions, with less than three months’ maturity from the date of acquisition.
Financial assets
Financial assets that have cash flows which are solely payments of principal and interest are measured initially at fair value plus transaction costs and subsequently at amortised cost, less any impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial in comparison with carrying value.
Impairment of financial assets
For financial assets recognised at amortised cost allowance is made for expected credit losses at each reporting date. The Directors have determined with the assistance of the parent company a methodology of assessing the credit risk applicable to each counterparty of each financial instrument. The Directors have then used these credit risk assessments to determine a financial value attributable to each risk. The Directors have also put in place an annual review to see if there has been any significant change in the risk profile of each counterparty and assess the adequacy of any impairment in line with the principles included in IFRS 9.
Financial liabilities and equity
Debt and equity instruments are classified either as financial liabilities or as equity in accordance with the substance of the contractual arrangement.
Financial liabilities are recognised initially at fair value plus transaction costs and subsequently at amortised cost. Equity instruments issued by the Company are recorded when the proceeds are received, net of direct issue costs.
Fair value measurements
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.
All assets and liabilities for which fair value is measured or disclosed in the Financial Statements are categorised within the fair value hierarchy levels 1 to 3 based on the degree to which the fair value is observable:
Level 1 - fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 - fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3 - Fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
For assets and liabilities that are recognised in the Financial Statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of each reporting period.
Critical accounting estimates and judgements
In applying the Company’s accounting policies, which are described above, the Directors are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.
Recoverability of investments
During the year, the Directors have considered the recoverability of the Company’s investments in associated undertakings of £15,194k (2024: £15,194k). The recoverability of these investments is dependent on the revenue generated from the ten offshore transmission owners (“OFTOs”) assets, Blue Transmission Walney 1 Limited (“BTW1”), Blue Transmission Walney 2 Limited (“BTW2”), Blue Transmission Sheringham Shoal Limited (“BTSS”), Blue Transmission London Array Limited (“BTLA”), Diamond Transmission Partners BBE Limited (“DTPBBE”), Diamond Transmission Partners RB Limited (“DTPRB”), Diamond Transmission Partners Galloper Limited (“DTPG”), Diamond Transmission Partners Walney Extension Limited (“DTPWE”), Diamond Transmission Partners Hornsea One Limited (“DTPHO”) and Diamond Transmission Partners Hornsea Two Limited (''DTPHT'').
The Directors have reviewed the Company’s investments to assess whether there are any indicators that the carrying value of these balances may be impaired below their recoverable amount.
The Directors’ review of the recoverability of investments by assessing the factors above along with a detailed analysis does not suggest any indicators of impairment. The investments continue to progress in a satisfactory manner, and the Directors are therefore confident that the carrying amount of the assets will be recovered in full.
Key sources of estimation uncertainty
There were no key estimates.
The average monthly number of persons (including Directors) employed by the Company during the year was:
The Company had a total of 8 Directors during the year. The remuneration for the Directors who served as employees of other companies within the group as well as the Company were directly paid by the parent company(s) and it is not practicable to allocate the amounts paid to them between their services as Directors to the Company and their services as employees to other companies within the group.
The revenue of the Company is wholly based in the United Kingdom and is received in terms of agreements with the Company's customers.
Rates of taxation - current and future years
The main rate of corporation tax in the UK in the prior period and current year is 25%. The carrying value of the deferred taxation balances included in these Financial Statements at 31 March 2025 and 2024 has been calculated at 25% on the basis that all of the deferred tax balance is likely to be recovered or settled in the foreseeable future.
Future tax charges, and therefore the Company’s future effective tax rate, could be impacted by changes in legislation or the interpretation of existing legislation by the Company and or the relevant tax authorities.
On 11 July 2023, the UK finance (No 2) Act 2023 enacted the Pillar Two income taxes legislation. The Company is within the scope of Pillar Two legislation. The Company has assessed the impact of the the Pillar Two legislation and concluded there is no impact given that the Company tax rate is above 15%.
The Company had a rental agreement for the Company’s office for 5 years. This rental agreement was terminated on 1 November 2024 and a new rental agreement for the Company's offices was agreed for 11 months from 1 November 2024.
As a result of the termination of the rental agreement, the asset and lease liability were written off resulting in a gain of £50k.
The cash out-flow on lease liabilities during the year was £92k (2024: £158k).
The principal activity of the investments is to be involved in the offshore electricity transmission business under the long term OFTO licences provided by Ofgem. The OFTO businesses own and manage high voltage offshore transmission systems that connect offshore wind farms to the national grid onshore. The Company does not have sole control, as the Company contractually agreed sharing of control over the above investments with its equity partners, hence they are accounted for as joint ventures.
The Directors have reviewed the carrying value of the investments at the balance sheet date on the basis of the overall project status as discussed in note 1.5 and are of the opinion that no provision for impairment is required.
Details of investments in which the Company holds any class of share capital at 31 March 2025 are listed in note 23.
* The carrying value of the investments in DTPHOH and DTPHTH are £200 (2024: £200) and £250 (2024: £250) respectively. Due to rounding these are shown as nil.
Deferred taxation assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred taxation asset to be recovered.
No deferred tax asset has been recognised in respect of tax losses amounting to £1,751k due to uncertain timing of when the Company would have taxable profits available to offset against carried forward tax losses.
The Directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
No significant receivable balances are impaired at the reporting end date.
Included within Amounts owed to related parties are administrative, management and support fees payable to holding companies (see related party note 21). As the Company was sold during the financial year, there are no outstanding balances payable.
The Company commenced operating a defined contribution pension scheme for all qualifying employees since 1 November 2024 (prior to 1 November 2024, by DTC , a parent company of DTUK until 4 December 2024). The assets of the scheme are held separately from those of the Company in an independently administered fund.
Interim ordinary dividends were paid during the year to the Company’s immediate parent undertaking – DTUKBBK (2024: DTC).
Details of the Company's joint ventures at 31 March 2025 are as follows:
Credit Risk
The Company does not currently hold any commercial loans. The credit risk on cash balances at 31 March 2025 is limited because the counterparties are banks with a high credit rating assigned by international credit rating agencies.
Market Risk
The Company is exposed to the changes in foreign currency exchange and interest rates. The Company considers interest rate risk to be immaterial and therefore no sensitivity analysis has been performed. The Company is mainly exposed to the currency of the United Kingdom (Sterling).
Liquidity Risk
Details of the financial liabilities of the Company are included in Trade and other payables (note 14). The Company manages its liquidity risk by monitoring its financing requirements and maintaining adequate cash and cash equivalents to cover its liabilities as and when they fall due.
Capital risk management
The Company's objective when managing capital (which is comprised ultimately of equity as there is no debt) are to safeguard the Company's ability to continue as a going concern, in order to provide returns for shareholders and to maintain an optimal structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may issue new shares or sell assets to return capital to shareholders.
There were no post balance sheet events.
At 31 March 2025, the immediate parent undertaking is DTUKBBH registered in England and Wales. The company address is Intertrust UK, 1 Bartholomew Lane, London, EC2N 2AX, United Kingdom. On 4 December 2024 Mitsubishi Corporation (''MC'') which is incorporated in Japan sold 100% of it's shareholding in DTUK to DTUKBBH. The ultimate controlling party of DTUKBBH is BlackRock Inc. which is incorporated in Delaware, USA.