The directors present the strategic report for the year ended 31 December 2025.

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

The results of the year ended 31 December 2025 are set out in the Group Profit and Loss Account and Group Statement of Comprehensive Income on pages 9 and 10.

The group made a profit before tax of £7,707,616 for the year ended 31 December 2025 (2024 - £11,720,708) on revenue of £25,387,323 (2024 - £29,717,221).

The reduction in profit before tax has been driven primarily by normalisation in the PPA market rather than underlying operational performance. During the Russia–Ukraine conflict, elevated wholesale electricity prices created unusually favourable conditions enabling the business to secure higher-value PPAs and benefit from exceptional power pricing. As energy markets have stabilised, PPA prices have progressively levelled out, resulting in lower realised revenues and a corresponding reduction in profitability versus the peak war-period trading environment. The movement therefore reflects broader market reversion rather than a deterioration in the core performance or operational capability of the business.

Interim dividends of £nil (2024 - £3.0m) were paid to shareholders during the year with a further final dividend declared of £7.4m (2024 - £6.9m).

Aligning accounting policies within the wider group, of which the Company and its subsidiaries are part, requires tangible assets to be recognised at cost, less accumulated depreciation and impairment losses.  The carrying value of the assets at the year ended 31 December 2025, within the Company’s underlying subsidiaries, includes £42,065,784 (2024 - £46,785,733) of revaluation reserve from historic cost to fair value which is not recognised on consolidation.

The directors regularly review the operational, financial and external risks of the group. The principal risks are considered to be:

• Operational risks – output from the wind turbines is subject to the amount of wind as well as the number of hours that each turbine is operationally available. Lower wind speeds than anticipated result in less electricity being generated. The company ensures that it has adequate reserves in place to ensure it can withstand significant short term production variances associated with lower than expected wind. Turbines can also suffer mechanical or electrical breakdown, which affects operational availability. To help mitigate against this, the group has in place O&M contracts with specialist service providers, as well as insurance, as available;

• Political risk – regulation of the energy sector continues to be a significant factor. Regulations are often modified. These lead to changes in operating conditions (requiring increased capital or operational spend, such as in the case of changes in business rates or reduced revenues in the case of the changes to indexation). The future level of government-mandated support for renewables has important implications for the industry and could impact the value of and cost of operating renewable projects. However, the directors believe that the main existing renewable energy tariffs supporting the assets owned by the group are secure;

• Financial risks - the financial returns to the group are dependent in part on the price of electricity it is able to sell through Power Purchase Agreements. For income from the majority of its turbines, the group is protected against falls in the price of electricity by the Export Tariff, which effectively provides a floor to the market price. Risk is further mitigated in that the majority of income is from the inflation linked 20 year Feed-in-Tariff;

• Regulatory risks - the operational assets are governed by compliance with the regulations of both the Feed-in-Tariff and Renewable Obligation, but also local authority planning consents. Sites are subject to ad hoc independent audits undertaken by Ofgem in order to maintain accreditation. Close attention is paid to the rules and regulations surrounding the permissibility of refurbishment or replacement of assets, there is a risk that the accreditation could be challenged. Were the challenge to be upheld, that asset’s accreditation could be lost together with the site’s ability to claim the Feed-in-Tariff. There could be additional sanctions or financial penalties applied;

• Default loan covenants relating to the financing agreements are in place. At the time the financing was agreed, assumptions were used to ensure that sufficient cash flows would be generated to ensure default is unlikely. There are also maintenance agreements and some insurance in place to mitigate a proportion of lost revenues from unforeseen operational issues. The loan facilities contain covenants based on trading performance which, if breached, may ultimately require the facility in question to be repaid. The group’s financial performance is reviewed on a quarterly basis to ensure that the mitigation remains appropriate for the business;

• Health and Safety - if inappropriately assessed and managed wind turbines may pose health and safety risks to those working on them or in close proximity. If an accident were to occur and the group found at fault it could be deemed liable for damages and compensation not covered by insurance policies, as well as adverse publicity or reputational damage;

• Cybersecurity - the business relies on IT systems and remote communications to operational sites in its day to day operation. Cyber attack threats on businesses are increasingly becoming more sophisticated as criminals seek to develop new ways to infiltrate individuals and organisations, with the potential to cause operational disruption and financial impacts.

The group's key operational performance indicator is the percentage of time that each turbine is available for generation and the overall level of power performance of each turbine against budgeted production.

The group's key financial performance indicator is the revenue generated from the sale of electricity as well as income earned under the Feed-in-Tariffs.

The group intends to continue actively managing its portfolio of wind assets, including repowering certain sites where there is the opportunity and financial return to do so, as well as pursue new development opportunities. Power prices have settled back to normal levels since the Ukraine conflict and the group will continue to place power contracts at times when it believes best value can be obtain for the period post March 2027. In the event of further decreases in power prices the group is largely protected by its ability to place contracts under the Export Tariff. Cost inflation for parts and labour, as well as availability of parts for certain older turbine models, will continue to impact the group, but the directors are of the view that, given continued reasonable market conditions, the group should continue to grow in revenue and profitability.

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

The results for the year are set out on page 9.

Interim dividends of £nil (2024: £3.0m) were paid to the shareholders during the year with a further final dividend declared of £7.4m (2024 - £6.9m).

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

The group finances its activities with a combination of bank loans and cash and short-term deposits. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the group's operating activities. The group also enters derivative transactions principally interest rate swaps which are used to manage the interest rate risk arising from the group's sources of finance and an inflation swap to secure attractive financing terms against a portfolio of turbines with inflation linked FiT revenues. The group does not trade in financial instruments.

The group and company's risk management policies are established to identify and analyse the risk faced by the group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the group’s activities.

The main risks associated with the group’s financial instruments have been identified as credit risk and liquidity risk. The main risk associated with the company's financial instruments has been identified as liquidity risk. All financial instruments are denominated in pound sterling and therefore there is no exchange rate risk.

Credit risk

Credit risk is the risk of financial loss if a customer or counterparty fails to meet its contractual obligations and arises from the group’s trade debtors due from customers and the company's amounts due from related parties. The directors consider the group and company’s exposure to credit risk to be acceptable and normal for an entity of its size as the majority of the company’s financial assets comprise amounts due from group undertakings.

Liquidity risk

Liquidity risk is the risk that the group and company will not be able to meet its financial obligations as they fall due. The group and company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk damage to the company’s reputation, by monitoring existing facilities and cashflows against forecast requirements.

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

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

The group’s forecasts and projections for the next twelve months show that the group 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 group 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.

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.

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

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 group and company, and of the profit or loss of the group 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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Constantine Wind Energy Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025, which comprise the Group Profit and Loss Account,

the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows, 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 group's and the parent company's affairs as at 31 December 2025 and of the group's 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 group and parent 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 group's and parent 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 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 group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company 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.

As explained more fully in the Directors' Responsibilties 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

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.

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

• enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• reading any correspondence with regulators including the Health and Safety Executive;

• reviewing minutes of board meetings of those charged with governance;

• assessing 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 entity through enquiry and inspection; 

• reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• performing 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.

The above results were derived from continuing operations.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,538,867 (2024 - £3,057,774).

Constantine Wind Energy Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales.

The address of its registered office is First Floor, River Court, The Old Mill Office Park, Mill Lane, Godalming, Surrey GU7 1EZ.

The group consists of Constantine Wind Energy Limited and all of its subsidiaries.

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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

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

The parent company 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) No separate cash flow statement has been presented for the parent company.

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

(c) Disclosure has not been repeated for the aggregate remuneration of key management personnel.

The parent 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.

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2025.

A subsidiary is an entity controlled by the group. Control is achieved where the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The results of subsidiaries acquired or disposed of during the year are included in the profit and loss account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.

A joint venture is a contractual arrangement undertaking in which the group exercises joint control over the operating and financial policies of the entity. Where the joint venture is carried out through an entity, it is treated as a jointly controlled entity. The group’s share of the profits less losses of associates and of jointly controlled entities is included in the consolidated profit and loss account and its interest in their net assets is recorded on the balance sheet using the equity method.

Associates are those entities in which the group has significant influence, but not control, over the financial and operating policies. Significant influence is presumed to exist when the group holds between 20 and 50 percent of the voting power of another entity.

The group has recorded a profit before tax of £7.7m in the year ended 31 December 2025 and has net current liabilties of £14.1m at the year end (excluding non-current debtors), which includes £18.7m dividends due to shareholders. The shareholders have indicated that they will not seek repayment of this amount until such time as the company has the funds available to make such repayments. The group has a banking facility of £69.1m with Scottish Widows Limited agreed and drawn down. This facility is secured by charges over the assets of this wider banking group in favour of Lloyds Bank plc, acting as security agent for Scottish Widows Limited. The loan is repayable in semi-annual payments to 31 March 2038 and is subject to a fixed interest rate of 2.12%, for the life of the loan. The group also has a £9.3m loan with Santander UK plc until December 2027. This loan is secured by fixed and floating charges over the assets of the company in favour of Santander UK plc and is subject to interest at SONIA +2.10% with semi-annual capital and interest payments to 30 June 2027 and a final repayment on 31 December 2027.

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

The group manages 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 group’s forecasts and projections for the next twelve months show that the group 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 group 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.

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 group and provided under fixed price supply contracts and income earned under the Feed-in-Tariff. This turnover is recognised as supplied into the distribution network.

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.

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.

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.

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.

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Negative goodwill

Negative goodwill arising on the acquisition of an entity represents the excess of the deficit of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Negative goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Negative goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Negative goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets that are acquired by the company are stated at cost less accumulated amortisation and less accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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

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:

Investments in subsidiaries are carried at cost less impairment in the company balance sheet.

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.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stock is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to it's present location and condition.

Stock held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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 group will not be able to collect all amounts due according to the original terms of the receivables.

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 group 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.

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 group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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.

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

A provision is recognised in the balance sheet when the group 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.

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

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.

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).

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.

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 judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Non-recognition of a deferred tax asset - Deferred tax assets have not been recognised in full due to the uncertainty surrounding their future recovery.

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 which 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:

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

The company paid £475,315 as a deposit for two turbines during the prior year. The supplier of the turbines has since gone into liquidation and discussions over the recovery of the funds are ongoing. Due to the uncertainty surrounding recovery of any funds the company has made the decision to provide against half the desposit in the prior year and the remaining half of the deposit in these financial statements.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

The key management of the group are considered to be the directors of Constantine Wind Energy Limited whose remuneration is stated above and the finance director. Total key management remuneration, including employers national insurance and pension is £696,242 (2024 - £668,355).

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:

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:

Licence rights represent amounts paid to secure electricity generation rights.

There are charges over certain of the group's leasehold interests, in favour of funders, for all amounts due to them.

The amortisation of goodwill and negative goodwill is recognised in administrative expenses.

There are charges over certain of the group's plant and machinery in favour of external finance providers, for all amounts due to them.

Details of the company's subsidiaries at 31 December 2025 are as follows:

The registered address for all subsidiaries is First Floor, River Court, The Old Mill Office Park, Mill Lane, Godalming, Surrey GU7 1EZ, with the exception of Lochend Wind Energy Limited, Gardrum Farm Wind Energy Limited, Monan Wind Company Limited and Logoch Windfarm Ltd which are registered at 25 Back O Barns, Hamilton, Lanarkshire, Scotland ML3 6BG, and Wind Harvest Limited which is Corrary Farm, Glenelg, Kyle IV40 8JX.

All subsidiaries are incorporated in England and Wales with the exception of Wind Harvest Limited, Lochend Wind Energy Limited, Gardrum Farm Wind Energy Limited, Monan Wind Company Limited and Logoch Windfarm Ltd which are incorporated in Scotland.

Subsequent to the year end, as part of a group reorganisation, the group has additional subsidiaries being CWE Delta Limited and CWE Echo Limited.

Other financial assets includes an interest rate swap in favour of Lochend Wind Energy Limited in respect of the bank loan from Santander, used to manage interest rate risk, designated as fair value through the hedging reserve. The fair value at the year end of £765,481 asset (2024 - £1,127,017 asset) 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. The valuation of this instrument fluctuates on a daily basis.

Other financial liabilities also includes an inflation rate swap in favour of CWE B Limited, taken out as a condition of the refinancing and used to manage the inflation linked revenue received in its subsidiaries, which is designated as fair value through the hedging reserve on consolidation. The fair value at the year end is £10,059,139 (2024 - £12,170,066) is based on a mid-market marked to market valuation. The valuation of this instrument fluctuates on a daily basis.

Group

£4,069,834 (2024 - £4,060,152) of non-current other debtors comprises £447,191 (2024 - £401,633) which represent restoration bonds due back on the decommissioning of turbine sites and £3,622,643 (2024 - £3,658,519) of cash held as collateral in favour of Scottish Widows Limited in respect of bank borrowings in place at year end.

Borrowings - Scottish Widows

At the start of 2021, a new group banking facility of £96.2m with Scottish Widows Limited was agreed and drawn down by CWE B Limited as head of the new banking facility group. This facility now stands at £69.1m at 31 December 2025. It is secured by charges over the assets of the wider banking group in favour of Scottish Widows Limited, is repayable in semi-annual instalments to 31 March 2038 and is subject to a fixed interest rate of 2.12% for the life of the loan.

Offset against this bank loan is £614,597 (2024 - £682,886) in respect of loan arrangement fees not amortised.

The amount falling due after more than five years is £37,109,824 (2024 - £44,128,754).

Borrowings - Santander

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 at SONIA + 2.10% with 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 loan 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.

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

There are £473,876 (2024 - £1,582,154) of unused tax losses for which no deferred tax asset is recognised in the balance sheet.

The unprovided deferred tax asset has not been recognised due to uncertainty surrounding its future recovery.

The group operates a defined contribution pension scheme. Contributions totalling £1,463 (2024 - £1,418) were payable to the scheme at the end of the year and are included in creditors.

Operating leases whose rental payments are based either entirely or partially upon turnover generated by a specific asset are recognised in the profit and loss in the period in which the turnover is earned.

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

Amounts contracted for but not provided in the financial statements:

During the year, management charges totalling £30,000 (2024 - £30,000) were incurred from Constantine Group Limited. The group were also recharged expenditure of £97,855 (2024 - £91,616). At the year end, the balance outstanding was £14,015 (2024 - £9,464).

At the year end each of Constantine Energy Limited and Jemm Capital Limited own 50% of the ordinary shares of Constantine Wind Energy Limited.

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