Company registration number SC445681 (Scotland)
LOCHEND WIND ENERGY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
LOCHEND WIND ENERGY LIMITED
COMPANY INFORMATION
Directors
TP French
SJL Myers
MR Hubbard
(Appointed 19 February 2026)
Company number
SC445681
Registered office
25 Back O Barns
Hamilton
Lanarkshire
Scotland
ML3 6BG
Auditor
Azets Audit Services
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
LOCHEND WIND ENERGY LIMITED
CONTENTS
Page
Directors' Report
1 - 2
Directors' Responsibilities Statement
3
Independent Auditor's Report
4 - 6
Profit and Loss Account
7
Statement of Comprehensive Income
8
Balance Sheet
9
Statement of Changes in Equity
10
Notes to the Financial Statements
11 - 22
LOCHEND WIND ENERGY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

The directors present their annual report and financial statements for the year ended 31 December 2025.

Principal activities

The principal activity of the company is that of electricity generation from its wind turbines.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

BJA Hutt
(Resigned 31 December 2025)
TP French
SJL Myers
MR Hubbard
(Appointed 19 February 2026)
Fair review of the business

The results of the company for the year show a pre-tax profit of £843,743 (2024 - £1,898,671) and turnover of £3,067,759 (2024 - £4,176,015).

The company has 4 operating turbines.

Going concern

The financial statements have been prepared on a going concern basis.

The company meets its day to day working capital requirements through cash generated from operations and finances its activities through bank loan facilities. Further details are given in note 1.

The company and group’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of possible future scenarios arising from the impact on the economy of the ongoing high levels of inflation and the continued unrest in the Middle East. In the directors’ assessment they have considered the effectiveness of available measures to assist in mitigating any impact of the effect of cost increases and delays in repairs.

Consequently after making enquiries, the directors have a reasonable expectation that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.

Disclosure of information to the auditor

Each of the directors has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

LOCHEND WIND ENERGY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -
Reappointment of auditor

The auditor Azets Audit Services will be deemed to be reappointed under section 487(2) of the Companies Act 2006.

Small companies' provision statement

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Approved and authorised for issue by the Board on
11 June 2026
11 June 2026
and signed on its behalf by:
..............................
SJL Myers
Director
LOCHEND WIND ENERGY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

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 Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

LOCHEND WIND ENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOCHEND WIND ENERGY LIMITED
- 4 -
Opinion

We have audited the financial statements of Lochend Wind Energy Limited (the 'company') for the year ended 31 December 2025, which comprise the Profit And Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- the information given in the Directors' R eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the Directors' Report has been prepared in accordance with applicable legal requirements.

LOCHEND WIND ENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOCHEND WIND ENERGY LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you 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; or

- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

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 is available on the Financial Reporting Council’s website at: https://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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment and likely future developments including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

We identified the following applicable laws and regulations as those most likely to have a material impact on the financial statements: Health and Safety; compliance with the UK Companies Act and tax legislation.

LOCHEND WIND ENERGY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOCHEND WIND ENERGY LIMITED (CONTINUED)
- 6 -

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- e nquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- r eading any correspondence with regulators including the Health and Safety Executive;

- r eviewing minutes of board meetings of those charged with governance;

- a ssessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

- r eviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and

- p erforming audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

Owing to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Sarah Simpson BSc BFP FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services, Statutory Auditor
Chartered Accountants
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
30 June 2026
LOCHEND WIND ENERGY LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 7 -
2025
2024
Notes
£
£
Turnover
3
3,067,759
4,176,015
Cost of sales
(637,560)
(667,663)
Gross profit
2,430,199
3,508,352
Administrative expenses
(1,208,565)
(1,192,684)
Operating profit
5
1,221,634
2,315,668
Interest payable and similar expenses
7
(377,891)
(416,997)
Profit before taxation
843,743
1,898,671
Tax on profit
8
(217,716)
(484,957)
Profit for the financial year
626,027
1,413,714

The above results were derived from continuing operations.

LOCHEND WIND ENERGY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 8 -
2025
2024
£
£
Profit for the year
626,027
1,413,714
Other comprehensive income
Cash flow hedges (loss)/gain arising in the year
(359,536)
56,964
Tax relating to other comprehensive income
89,884
(14,241)
Total other comprehensive income for the year
(269,652)
42,723
Total comprehensive income for the year
356,375
1,456,437
LOCHEND WIND ENERGY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2025
31 December 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
13,119,061
14,256,355
Investments
765,481
1,125,017
13,884,542
15,381,372
Current assets
Debtors
12
1,060,161
1,248,020
Cash at bank and in hand
552,502
1,109,222
1,612,663
2,357,242
Creditors: amounts falling due within one year
13
(2,258,541)
(1,941,184)
Net current (liabilities)/assets
(645,878)
416,058
Total assets less current liabilities
13,238,664
15,797,430
Creditors: amounts falling due after more than one year
14
(8,083,412)
(9,261,680)
Provisions for liabilities
Deferred tax liability
16
2,839,874
3,106,747
(2,839,874)
(3,106,747)
Net assets
2,315,378
3,429,003
Capital and reserves
Called up share capital
17
100
100
Hedging reserve
18
574,110
843,762
Profit and loss reserves
1,741,168
2,585,141
Total equity
2,315,378
3,429,003
The financial statements were approved by the board of directors and authorised for issue on 11 June 2026 and are signed on its behalf by:
SJL Myers
Director
Company registration number SC445681 (Scotland)
LOCHEND WIND ENERGY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 10 -
Share capital
Hedging reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2024
100
801,039
2,697,427
3,498,566
Year ended 31 December 2024:
Profit for the year
-
-
1,413,714
1,413,714
Other comprehensive income:
Cash flow hedges gains
-
56,964
-
56,964
Tax relating to other comprehensive income
-
(14,241)
-
0
(14,241)
Total comprehensive income
-
42,723
1,413,714
1,456,437
Dividends
9
-
-
(1,526,000)
(1,526,000)
Balance at 31 December 2024
100
843,762
2,585,141
3,429,003
Year ended 31 December 2025:
Profit for the year
-
-
626,027
626,027
Other comprehensive income:
Cash flow hedges gains
-
(359,536)
-
(359,536)
Tax relating to other comprehensive income
-
89,884
-
0
89,884
Total comprehensive income
-
(269,652)
626,027
356,375
Dividends
9
-
-
(1,470,000)
(1,470,000)
Balance at 31 December 2025
100
574,110
1,741,168
2,315,378
LOCHEND WIND ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
1
Accounting policies
Company information

The company is a private company limited by share capital, incorporated, registered and domiciled in Scotland.

The address of its registered office is 25 Back O Barns, Hamilton, Lanarkshire ML3 6BG.

1.1
Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Name of parent of group

These financial statements are consolidated in the financial statements of Constantine Wind Energy Limited, the company's parent undertaking. The financial statements of Constantine Wind Energy Limited may be obtained from Companies House.

Summary of disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) Disclosures in respect of each class of share capital have not been presented.

(b) No cash flow statement has been presented for the company.

(c) Disclosures in respect of financial instruments have not been presented.

(d) No disclosure has been given for the aggregate remuneration of key management personnel.

The company has taken advantage of the exemption available under paragraph 33.1A of FRS 102 and does not disclose related party transactions with members of the same group that are wholly owned.

LOCHEND WIND ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 12 -
1.2
Going concern

The company is part of a group headed by Constantine Wind Energy Limited. true

The company has recorded a profit before tax of £843,743 in the year ended 31 December 2025 and has net current liabilities of £645,878.The company has a £9.3m loan with Santander UK plc until December 2027. The loan of secured by fixed and floating charges over the assets of the company in favour of Santander UK plc.

Net current liabilities includes £462,116 due to group undertakings. The company have obtained confirmation from the various group companies that they will not seek repayment of these amounts until such time as the company has the funds available to make such repayments.

The company meets its day to day working capital requirements through cash generated from operations and finances its activities through bank loan facilities.

The financial statements have been prepared on a going concern basis.

The company and group’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of possible future scenarios arising from the impact on the economy of the ongoing high levels of inflation and the continued unrest in the Middle East. In the directors’ assessment they have considered the effectiveness of available measures to assist in mitigating any impact of the effect of cost increases and delays in repairs.

Consequently after making enquiries, the directors have a reasonable expectation that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.

1.3
Turnover

Turnover comprises the fair value of the consideration received or receivable in the ordinary course of the company’s activities net of value added tax and discounts. Turnover is derived from the sale of electricity generated by the company and provided under fixed price supply contracts. Turnover is recognised as supplied into the distribution network.

1.4
Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

1.5
Taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Current tax

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

LOCHEND WIND ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 13 -
Deferred tax

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

1.6
Tangible fixed assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses, except for plant and machinery which is measured at fair value less accumulated depreciation and accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Increases in the carrying amounts arising on revaluation of plant and machinery are recognised, net of tax, in other comprehensive income and accumulated in reserves in shareholders’ equity. To the extent that the increase reverses a decrease previously recognised in profit or loss, the increase is first recognised in profit or loss. Decreases that reverse previous increases of the same asset are first recognised in other comprehensive income to the extent of the remaining surplus attributable to the asset; all other decreases are charged to profit or loss.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Plant and equipment
5% 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.

1.7
Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs.

The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

1.8
Trade and other debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

LOCHEND WIND ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -
1.9
Trade and other creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

1.10
Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

1.11
Provisions

A provision is recognised in the balance sheet when the company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.

1.12
Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Fixed payments made under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease. Payments made under operating leases whose rental is based either entirely or partially upon turnover generated by a specific asset are recognised in the profit and loss account in the period in which the turnover is earned.

1.13
Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

1.14

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

LOCHEND WIND ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
1.15
Derivative financial instruments and hedging
Derivatives

Derivative financial instruments are recognised at fair value. The gain or loss on remeasurement to fair value is recognised immediately in the profit and loss account. However, where derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged (see below).

Cash flow hedges

Where a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognised asset or liability, or a highly probable forecast transaction, the effective part of any gain or loss on the derivative financial instrument is recognised directly in Other Comprehensive Income (“OCI”). Any ineffective portion of the hedge is recognised immediately in profit or loss.

For cash flow hedges, where the forecast transactions resulted in the recognition of a non-financial asset or non-financial liability, the hedging gain or loss recognised in OCI is included in the initial cost or other carrying amount of the asset or liability. Alternatively when the hedged item is recognised in the profit and loss account the hedging gain or loss is reclassified to the profit and loss account.

When a hedging instrument expires or is sold, terminated or exercised, or the entity discontinues designation of the hedge relationship but the hedged forecast transaction is still expected to occur, the cumulative gain or loss at that point remains in equity and is recognised in accordance with the above policy when the transaction occurs. If the hedged transaction is no longer expected to take place, the cumulative unrealised gain or loss recognised in equity is recognised immediately in the profit and loss account.

2
Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The directors do not consider there to be any judgements in the application of these accounting policies that have significant effect on the financial statements.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Useful economic lives of tangible assets

The directors have applied a useful economic life of 20 years to tangible fixed assets and consider this to be appropriate based upon their expected lives.

Estimation of fair value of plant and machinery

The directors have applied the revaluation model to plant and machinery and determined their fair value on the basis of discounted cash flow projections based upon reliable estimates of future cash flows (Level 3 fair value measurements).

LOCHEND WIND ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 16 -
3
Turnover
2025
2024
£
£
Turnover analysed by class of business
Sale of goods
3,054,009
4,096,637
Other revenue
13,750
79,378
3,067,759
4,176,015
4
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
2,810
2,650
5
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
4,680
(11,274)
Depreciation of owned tangible fixed assets
1,137,294
1,137,293
Operating lease charges
189,443
259,242
Amortisation of arrangement fees
31,296
31,296
6
Directors' remuneration, staff numbers and costs

The directors received no remuneration for their services to the company during the current or prior year and were the only employees of the company in the year.

2025
2024
Number
Number
Directors
3
3
7
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
377,891
416,997
LOCHEND WIND ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 17 -
8
Taxation
2025
2024
£
£
Current tax
Tax relating to prior year adjustments recognised in profit or loss
-
0
(1,100)
Group tax relief
394,705
448,328
Total current tax
394,705
447,228
Deferred tax
Origination and reversal of timing differences
(176,989)
33,375
Adjustment in respect of prior periods
-
0
4,354
Total deferred tax
(176,989)
37,729
Total tax charge
217,716
484,957

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
843,743
1,898,671
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
210,936
474,668
Tax effect of expenses that are not deductible in determining taxable profit
6,780
7,035
Adjustments in respect of prior years
-
0
(1,100)
Deferred tax adjustments in respect of prior years
-
0
4,354
Taxation charge for the year
217,716
484,957

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2025
2024
£
£
Deferred tax arising on:
Revaluation of financial instruments treated as cash flow hedges
(89,884)
14,241
9
Dividends
2025
2024
£
£
Final dividend of £14,700 (2024 - £15,260) per ordinary share
1,470,000
1,526,000
LOCHEND WIND ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 18 -
10
Tangible fixed assets
Plant and equipment
£
Cost or valuation
At 1 January 2025 and 31 December 2025
21,571,389
Depreciation and impairment
At 1 January 2025
7,315,034
Depreciation charged in the year
1,137,294
At 31 December 2025
8,452,328
Carrying amount
At 31 December 2025
13,119,061
At 31 December 2024
14,256,355

There are charges over certain of the company's plant and machinery and leasehold interests in favour of Santander, a funding provider, for all amounts due to them.

Revaluation

On 5 May 2020 the company's plant and machinery was revalued to fair value on the basis of discounted cash flow projections based upon estimates of future cash flows.

The directors are satisfied that the carrying amount at the year end does not differ materially from the fair value of the plant and machinery.

Had this class of asset been measured on a historical cost basis, the carrying amount would have been £6,443,251 (2024 - £6,993,608).

11
Financial instruments
2025
2024
£
£
Carrying amount of financial assets include:
Instruments measured at fair value through profit or loss
765,481
1,125,017

Details of other non-current financial assets

Other financial assets comprise an interest rate swap, used to manage interest rate risk, designated as fair value through the hedging reserve. The fair value is based on a mid-market marked to market valuation. The fair value of a financial instrument 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.

LOCHEND WIND ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 19 -
12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Other debtors
17,000
-
0
Prepayments and accrued income
870,161
1,075,020
887,161
1,075,020
2025
2024
Amounts falling due after more than one year:
£
£
Other debtors
173,000
173,000
Total debtors
1,060,161
1,248,020

Details of non-current debtors

Other debtors includes £173,000 (2024 - £173,000) which represents restoration bonds due back on the decommissioning of the turbines sites.

13
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans
15
1,178,268
1,051,823
Trade creditors
32,681
25,826
Amounts owed to group undertakings
462,116
202,054
Group relief
394,705
448,328
Taxation and social security
129,158
128,739
Accruals and deferred income
61,613
84,414
2,258,541
1,941,184
14
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Bank loans and overdrafts
15
8,083,412
9,261,680
LOCHEND WIND ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
15
Loans and overdrafts
2025
2024
£
£
Bank loans
9,261,680
10,313,503
Payable within one year
1,178,268
1,051,823
Payable after one year
8,083,412
9,261,680

Borrowings
Lochend Wind Energy Limited has a loan of £9.3m from Santander UK plc until December 2027. The loan is secured by a fixed and floating charge over the assets of the company in favour of Santander UK plc and is subject to interest as SONIA + 2.10% semi-annual capital and interest payments to 30 June 2027 and a final repayment on 31 December 2027. There is an interest rate swap in place for the whole of the loan subject to a fixed rate of interest of 3.70%.

Offset against the bank loans is £61,338 (2024 - £92.634) in respect of loan arrangement fees not amortised.

The amount falling due after more than five years is £nil (2024 - £nil).

Subsequent to the year end, the Santander loan has been repaid and replaced with a loan from Lombard.

16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated tax depreciation
172,512
349,501
Revaluation reserve
2,475,992
2,475,992
Revaluation of cash-flow hedges
191,370
281,254
2,839,874
3,106,747
2025
Movements in the year:
£
Liability at 1 January 2025
3,106,747
Credit to profit or loss
(176,989)
Credit to other comprehensive income
(89,884)
Liability at 31 December 2025
2,839,874
LOCHEND WIND ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
17
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
100
100
100
100
18
Hedging reserve
2025
2024
£
£
At the beginning of the year
843,762
801,039
Gains and losses on cash flow hedges
(359,536)
56,964
Tax on gains and losses on cash flow hedges
89,884
(14,241)
At the end of the year
574,110
843,762

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments relating to hedged transactions that have not yet occured.

19
Operating lease commitments
As lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2025
2024
£
£
Within one year
128,983
125,771
20
Related party transactions

During the year Lochend Wind Energy Limited recognised £20,000 (2024 - £20,000) in management charges from Constantine Wind Energy Limited in the profit and loss account.

21
Ultimate controlling party

The company's immediate parent is Constantine Wind Energy Limited.

The most senior parent entity producing publicly available financial statements is Constantine Wind Energy Limited. These financial statements are available upon request from Companies House.

LOCHEND WIND ENERGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
21
Ultimate controlling party
(Continued)
- 22 -

The ultimate controlling party is Constantine Group Limited and Jemm Capital Limited, in so much as they act in concert.

The parent of the largest group in which these financial statements are consolidated is Constantine Wind Energy Limited, incorporated in England.

The address of Constantine Wind Energy Limited is First Floor, River Court, The Old Mill Office Park, Mill Lane, Godalming, Surrey GU7 1EZ.

Subsequent to the year end, as part of a group reorganisation, the immediate ownership of the company was transferred to CWE Echo Limited. There has been no change in the ultimate controlling party.

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