Orkney Renewables Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

Orkney Renewables Limited is a private company, limited by shares, incorporated in Scotland, registered number SC395974 . The registered office is 17 Broad Street, Kirkwall, KW15 1DH.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business , and is shown net of VAT.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods) , the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.

2.3. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery	20% reducing balance basis
Motor Vehicles	25% reducing balance basis
Fixtures & Fittings	33.33% straight line basis

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.

2.4. Leasing and Hire Purchase Contracts

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.

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Orkney Renewables Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

2.5. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.6. Financial Instruments

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.

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 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. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss , are assessed for indicators of impairment at each reporting end date.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity .

Classification of financial liabilities

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans, a re initially recognised at transaction price and are subsequently carried at amortised cost using the effective interest rate method . Financial liabilities classified as payable within one year are not amortised.

2.7. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

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Orkney Renewables Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

2.8. Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

2.9. Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

2.10. Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 4 (2024: 4)

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Orkney Renewables Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

4. Tangible Assets

	Plant & Machinery	Motor Vehicles	Fixtures & Fittings	Total
	£	£	£	£
Cost
As at 1 April 2024	62,292	95,976	2,916	161,184
Additions	18,650	12,500	1,998	33,148
Disposals	(884 )	(5,000 )	(704 )	(6,588 )

As at 31 March 2025	80,058	103,476	4,210	187,744

Depreciation
As at 1 April 2024	46,493	10,685	1,604	58,782
Provided during the period	6,817	24,052	1,058	31,927
Disposals	(522 )	(3,418 )	(571 )	(4,511 )

As at 31 March 2025	52,788	31,319	2,091	86,198

Net Book Value
As at 31 March 2025	27,270	72,157	2,119	101,546

As at 1 April 2024	15,799	85,291	1,312	102,402

5. Stocks

	2025	2024
	£	£
Stock	54,000	50,000

6. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	13,594	92,909
Other debtors	137,748	87,540

	151,342	180,449

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Orkney Renewables Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

7. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	39,952	13,453
Trade creditors	86,425	58,706
Amounts owed to participating interests	92,477	93,697
Other creditors	85,238	85,170
Taxation and social security	(5,653 )	21,392

	298,439	272,418

8. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	14,408	53,272

9. Obligations Under Finance Leases and Hire Purchase

	2025	2024
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	39,952	13,453
Later than one year and not later than five years	14,408	53,272

	54,360	66,725

	54,360	66,725

10. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	100	100

11. Directors Advances, Credits and Guarantees

In the year the company advanced loans to certain directors totalling £47,465 (2024: £25,777). The directors repaid £62,269 (2024: £75,126) relating to the outstanding loans. At the year end, those directors owed the company £65,163 (2024: £50,357).

The above loan is unsecured and repayable on demand.

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		101,546		102,402

			101,546		102,402
CURRENT ASSETS
Stocks	5	54,000		50,000
Debtors	6	151,342		180,449
Cash at bank and in hand		47,991		81,222

		253,333		311,671
Creditors: Amounts Falling Due Within One Year	7	(298,439 )		(272,418 )

NET CURRENT ASSETS (LIABILITIES)			(45,106 )		39,253

TOTAL ASSETS LESS CURRENT LIABILITIES			56,440		141,655

Creditors: Amounts Falling Due After More Than One Year	8		(14,408 )		(53,272 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(20,680 )		(24,327 )

NET ASSETS			21,352		64,056

CAPITAL AND RESERVES
Called up share capital	10		100		100
Profit and Loss Account			21,252		63,956

SHAREHOLDERS' FUNDS			21,352		64,056