Year Ended
Registration number:
Vulcan Renewables Limited
Contents
|
Company Information |
|
|
Strategic Report |
|
|
Directors' Report |
|
|
Statement of Directors' Responsibilities |
|
|
Independent Auditor's Report |
|
|
Statement of Income and Retained Earnings |
|
|
Balance Sheet |
|
|
Notes to the Financial Statements |
Vulcan Renewables Limited
Company Information
|
Directors |
S Beveridge S Matthews P Lukas |
|
Company secretary |
Future Biogas Limited |
|
Registered office |
|
|
Auditors |
|
Vulcan Renewables Limited
Strategic Report for the Year Ended 31 March 2026
The directors present their strategic report for the year ended 31 March 2026.
Principal activity
The principal activity of the Company is the generation and sale of electricity and gas from renewable energy sources which is achieved through the construction and operation of an anaerobic digestion ("AD") plant on site in Hatfield, Doncaster.
Fair review of the business
The Company owns an anaerobic digestion (AD) plant which produces green gas that is injected into the UK gas grid. The plant was commissioned in 2013 and has undergone several upgrades since 2018.
Biomethane Production:
Biomethane production totalled 111,214MWh in the year (2025 - 99,413MWh), an increase of 12% on the prior year, due to reduced levels of downtime.
Turnover:
The Company's turnover increased 85% to average £2,361,942 per month (2025 - £1,277,849 per month) due to increased biomethane production and the recognition of export and subsidy revenues on biomethane purchased from third parties following a plant upgrade completed early in the year.
EBITDA:
The Company recorded earnings before interest, tax and depreciation (EBITDA) of £8,889,546 (2025 - £5,583,553), an increase of 59% on the prior year. This was as a result of increased site production and the margin on biomethane purchases.
Principal risks and uncertainties
The Directors recognise the need to identify the key risks and uncertainties the Company faces. These risks relate to events and depend on circumstances that may or may not occur in the future. The principal risks of the Company are laid out below in no particular order.
Vulcan Renewables Limited
Strategic Report for the Year Ended 31 March 2026
Gas prices
20-25% of the Company's total revenue relates to gas export. Energy markets have been subject to significant fluctuations over the last few years, and this volatility is expected to continue due to conflicts in the Middle East and between Russia/Ukraine, temperature extremities and gas storage capacities. The Company has limited uncertainty around future movements in wholesale gas prices by securing a fixed price for up to 90% of the total volume exported, up to 2 years in advance.
Downtime
The Company sources some equipment and spare parts from the European Union and can experience long lead times on such orders. In the event of downtime, these long lead times can lead to a significant loss of revenue. The Company has worked to mitigate this risk by maintaining a significant investment in spare parts. It also has access to stock held by its operator, Future Biogas Limited.
Climate and meteorological conditions
Weather is an important factor in the growing conditions for the Company's main feedstocks, maize and rye. Adverse weather conditions can result in reduced harvest yields (impacting availability of feedstocks for the coming year, potentially leading to the requirement to source additional feedstocks from external parties) and increased feedstock costs (impacting profitability). The Company mitigates these risks through a well diversified and long established feedstock supply chain, and careful stock management.
Health, safety & environment
The Company’s operations are subject to environmental and safety laws and regulations, including those governing the use of hazardous materials. The Company adopts and maintains rigorous health and safety procedures and the Directors believe the Company’s procedures comply with applicable regulations and are proactively managed.
Approved and authorised by the
|
......................................... |
Vulcan Renewables Limited
Directors' Report for the Year Ended 31 March 2026
The directors present their report and the financial statements for the year ended 31 March 2026.
Directors of the Company
The directors who held office during the year were as follows:
Future developments
The Directors expect the future performance of the Company to improve as several upgrade projects are either planned or underway, including:
• plant upgrade - increased gas injection from August 2026
• clamp upgrade - increased availability for feedstock storage from mid 2026
Disclosure of information to the auditors
Each director 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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
The auditors PKF Francis Clark are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved and authorised by the
|
......................................... |
Vulcan Renewables Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 apply them consistently; |
|
• |
make judgements and accounting estimates that are reasonable and prudent; |
|
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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.
Vulcan Renewables Limited
Independent Auditor's Report to the Members of Vulcan Renewables Limited
Opinion
We have audited the financial statements of Vulcan Renewables Limited (the 'Company') for the year ended 31 March 2026, which comprise the Statement of Income and Retained Earnings, Balance Sheet, and Notes to the Financial Statements, including a summary of 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 March 2026 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 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 director's 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Vulcan Renewables Limited
Independent Auditor's Report to the Members of Vulcan Renewables Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
|
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
|
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where 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. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 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.
Vulcan Renewables Limited
Independent Auditor's Report to the Members of Vulcan Renewables Limited
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
As part of our audit planning, we gained an understanding of the company and the industry in which the company operates as part of this assessment to identify the key laws and regulations affecting the company. The key regulations we identified were health and safety regulations, the General Data Protection Regulation (“GDPR”) and RHI sustainability criteria. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and relevant tax legislation.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the company complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the company’s ability to continue trading and the risk of material misstatement to the accounts.
We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements. The key incentive identified is to meet the targets set by the company and we determined that the principal risks were related to the overstatement of result, either through overstating revenue, understating expenditure or management bias in accounting estimates.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances of fraud.
• Discussed with the health and safety officer the policies and procedures in place in relation to health and safety. We reviewed the policies, health and safety risks assessments carried out and board meeting minutes maintained by the wider group.
• Discussed if any incidents have been reported during the year under The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (“RIDDOR”).
• Reviewed the GDPR policy and made enquiries to management as to the occurrence and outcome of any reportable breaches.
• Reviewed third party prepared reports in respect of RHI sustainability criteria compliance.
• Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates.
Because of 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. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
Vulcan Renewables Limited
Independent Auditor's Report to the Members of Vulcan Renewables Limited
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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.
......................................
Centenary House
Peninsula Park
Rydon Lane
Devon
EX2 7XE
Vulcan Renewables Limited
Statement of Income and Retained Earnings
Year Ended 31 March 2026
|
Note |
2026 |
2025 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating profit |
|
|
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar charges |
( |
( |
|
|
Profit before tax |
|
|
|
|
Taxation |
( |
( |
|
|
Profit for the financial year |
|
|
|
|
Retained earnings brought forward |
3,158,658 |
2,467,230 |
|
|
Retained earnings carried forward |
5,383,089 |
3,158,658 |
Vulcan Renewables Limited
Balance Sheet
31 March 2026
|
Note |
2026 |
2025 |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current liabilities |
( |
( |
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Profit and loss account |
|
|
|
|
Shareholders' funds |
|
|
Approved and authorised by the
|
......................................... |
Company Registration Number: 07854815
Vulcan Renewables Limited
Notes to the Financial Statements
Year Ended 31 March 2026
|
General information |
The Company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
United Kingdom
These financial statements were authorised for issue by the
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
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'.
The Company early adopted the amendments to FRS 102 arising from the Periodic Review 2024 during the year ended 31 March 2025. This has resulted in the Company recognising right of use assets and lease liabilities for all leases previously treated as operating leases. Right of use assets are recognised as a sub category within Tangible fixed assets.
Basis of preparation
These financial statements have been prepared using the historical cost convention.
The Company's functional and presentational currency is GBP.
Summary of disclosure exemptions
The Company meets the definition of a qualifying entity under FRS102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its individual financial statements.
Exemptions have been taken in relation to the presentation of a cashflow statement, certain disclosure requirements in relation to basic and non basic financial instruments and disclosure of remuneration of key management personnel. This information is included in the consolidated financial statements of Future Biogas Limited as at 31 March 2026 and these financial statements may be obtained from Companies House.
Vulcan Renewables Limited
Notes to the Financial Statements
Year Ended 31 March 2026
Going concern
The financial statements have been prepared on a going concern basis.
The Company has net current liabilities of £17,267,299 (2025 - £16,772,561). The Company's net current liability position is a result of the outstanding infrastructure loans owed to a group company and related party (together “the ultimate shareholders”). At the period end, there are unsecured loans of £36,076,427 (2025 - £30,904,715) from the ultimate shareholders. These loans are repayable on demand by request of the lender.
The Directors have received confirmation through a letter of intent from the ultimate shareholders that they will not seek repayment of part or all of any loan, for at least twelve months from the date of the approval of these financial statements, where to do so would place the Company in a position where it could not continue to trade as a going concern.
The Directors have prepared financial forecasts comprising profit & loss, balance sheet and cashflows covering the period up to 31 March 2028 for the company. Based on these forecasts as well as the reassurances received from the ultimate shareholders that loans will not be called in, unless there are sufficient funds to do so, the Directors have concluded it is appropriate to use the going concern basis in preparing these financial statements.
Revenue recognition
Generation of gas / electricity
Revenue from the sale of gas and electricity is recognised in the period in which it is generated based on contractual terms that exist. Any amounts generated but not billed at the balance sheet date are recognised as revenue and included in debtors as accrued income.
Sale of Green Gas Certificates
As part of the company’s operations, they generate Green Gas Certificates. Revenue from the sale of Green Gas Certificates is recognised as they are generated where a contract exists with a third party to acquire. Where, at the balance sheet date, no contract exists to purchase, Green Gas Certificates are held in stock at an approximation of their cost to generate.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation 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.
Vulcan Renewables Limited
Notes to the Financial Statements
Year Ended 31 March 2026
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Assets under construction are held at cost until they are ready for use. Once ready for use, assets are transferred into the relevant category and are held 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, using the straight line method, as follows:
|
Asset class |
Depreciation method and rate |
|
Right of use assets |
Over the life of the lease |
|
Leasehold improvements |
Over 50 years |
|
Plant and machinery |
Over 20 years from plant commissioning date for assets other than major components with a shorter useful economic life, as detailed below |
|
Plant and machinery - engines |
Over 120,000 running hours |
|
Plant and machinery - other |
Over 2 to 3 years |
|
Office equipment |
Over 4 years |
|
Computer equipment |
Over 4 years |
Stocks
Stocks represent costs of energy crops for use as feedstock in biogas generation, spare parts held for sale or use within plant and machinery on site and Green Gas Certificates. All stocks are valued at the lower of cost and net realisable value.
Provisions
As part of the measurement and recognition of assets and liabilities in the period, the Company has recognised a provision for decommissioning obligations associated with the anaerobic digestion plant. In determining the present value of the provision, assumptions and estimates are made in relation to the discount rates, the expected cost to dismantle and remove the plant from the site and the expected timing of these costs, and this data is compared to industry available data. The carrying amount of the provision as at 31 March 2026 was £645,360 (31 March 2025 - £616,755). The discount rate applied was 4.64%.
Vulcan Renewables Limited
Notes to the Financial Statements
Year Ended 31 March 2026
Leases
The Company recognises a right of use asset and a corresponding lease liability with lease arrangements in which it is the lessee, except for short term leases (defined as leases with a term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the lease term. Lease incentives are spread over the term of the lease.
The lease liability is presented as a separate line in current and non current liabilities. The lease liability is initially measured at the present value of all future lease payments, discounted at the rate implicit in the lease, or if this rate is not readily determined, the incremental borrowing rate of the Company. Lease payments included in the measurement of the lease liability include:
• fixed and variable lease payments, less any lease incentives;
• the amount expected to be payable by the lessee under residual value guarantees;
• the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
• payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest rate method) and by reducing the carrying amount by any lease payments made. The Company remeasures the lease liability and makes a corresponding adjustment to the related right of use asset whenever:
• the lease term has changed or there is a change in the assessment of exercise of a purchase option; or
• a lease contract is modified and the lease modification is not accounted for as a separate lease in which case the liability is remeasured by discounting the revised lease payments using a revised discount rate.
Right of use assets are presented within Tangible Fixed Assets on the Balance Sheet. The right of use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day of the lease and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.
Right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset, unless a lease transfers ownership of the underlying asset or the cost of the right of use assets reflects that the Company expects to exercise a purchase option, in which case the right of use asset is depreciated over the useful life of the underlying asset. The depreciation starts at commencement of the lease.
Vulcan Renewables Limited
Notes to the Financial Statements
Year Ended 31 March 2026
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Loans with group companies and related parties; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for loans with group companies and related parties, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Loans with group companies and related parties are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Key sources of estimation uncertainty
Fixed assets and other non-financial assets are reviewed for impairment at each reporting date. An impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of an asset's net selling price and value in use. For the purposes of assessing impairments, assets are grouped at the lowest levels for which there are separately identifiable cash flows. No impairment charge has been recognised at the year end (2025 - £Nil).
As part of the measurement and recognition of assets and liabilities in the period, the company has recognised a provision for decommissioning obligations associated with the biogas plants. In determining the present value of the provision, assumptions and estimates are made in relation to the discount rates, the expected cost to dismantle and remove the plants from the site and the expected timing of these costs, and this data is compared to industry available data. The carrying value of such provisions and discount rates applied are included within the accounting policy for provisions.
|
Turnover |
100% of the company's revenue was generated in the UK (2025: 100%).
Vulcan Renewables Limited
Notes to the Financial Statements
Year Ended 31 March 2026
|
Other operating income |
The analysis of the Company's other operating income for the year is as follows:
|
2026 |
2025 |
|
|
Rental income |
|
|
|
Feedstock sales |
- |
1,826 |
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2026 |
2025 |
|
|
Depreciation expense |
|
|
|
Foreign exchange gains |
( |
( |
|
Low value and short term lease expense |
|
|
|
Loss on disposal of property, plant and equipment |
- |
|
|
Staff costs |
The average number of persons employed by the Company (including directors) during the year, was
|
Auditor's remuneration |
|
2026 |
2025 |
|
|
Auditors remuneration |
|
|
|
Other interest receivable and similar income |
|
2026 |
2025 |
|
|
Other finance income |
|
|
Vulcan Renewables Limited
Notes to the Financial Statements
Year Ended 31 March 2026
|
Interest payable and similar expenses |
|
2026 |
2025 |
|
|
Interest payable to shareholders |
|
|
|
Other finance costs |
|
|
|
Interest on lease obligations |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2026 |
2025 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
( |
( |
|
10,415 |
(18,560) |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Arising from changes in tax rates and laws |
- |
|
|
Total deferred taxation |
|
|
|
Tax expense in the income statement |
|
|
Vulcan Renewables Limited
Notes to the Financial Statements
Year Ended 31 March 2026
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2025 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2026 |
2025 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
( |
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Tax decrease arising from group relief |
- |
( |
|
Increase/(decrease) in UK and foreign current tax from unrecognised tax loss or credit |
|
( |
|
Deferred tax (credit)/expense from unrecognised temporary difference from a prior period |
( |
|
|
Total tax charge |
|
|
The total value of the unrecognised deferred tax asset is £Nil (2025: £Nil)
Deferred tax
Deferred tax assets and liabilities
|
2026 |
Asset |
Liability |
|
Fixed asset timing differences |
- |
|
|
Short term timing differences |
|
- |
|
|
|
|
2025 |
Asset |
Liability |
|
Fixed asset timing differences |
- |
|
|
Losses and other deductions |
|
- |
|
Short term timing differences |
|
- |
|
|
|
Vulcan Renewables Limited
Notes to the Financial Statements
Year Ended 31 March 2026
|
Tangible assets |
|
Land and buildings |
Plant and machinery |
Assets under construction |
Right of use assets |
Total |
|
|
Cost or valuation |
|||||
|
At 1 April 2025 |
|
|
|
|
|
|
Additions |
- |
|
|
|
|
|
Disposals |
- |
- |
( |
- |
( |
|
Transfers |
- |
|
( |
- |
- |
|
At 31 March 2026 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 April 2025 |
|
|
- |
|
|
|
Charge for the year |
|
|
- |
|
|
|
At 31 March 2026 |
|
|
- |
|
|
|
Carrying amount |
|||||
|
At 31 March 2026 |
|
|
|
|
|
|
At 31 March 2025 |
|
|
|
|
|
Included within the net book value of land and buildings above is £3,109,751 (2025 - £3,109,751) in respect of freehold land and buildings, £56,443 (2025 - £57,989) in respect of long leasehold land and buildings.
|
Stocks |
|
2026 |
2025 |
|
|
Feedstock |
|
|
|
Spare parts |
|
|
|
Other stocks |
|
|
|
Work in progress |
|
|
|
Green Gas Certificates |
502,901 |
374,445 |
|
|
|
Vulcan Renewables Limited
Notes to the Financial Statements
Year Ended 31 March 2026
|
Debtors |
|
2026 |
2025 |
|
|
Trade debtors |
|
|
|
Amounts owed by group undertakings |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Accrued income |
|
|
|
Corporation tax asset |
|
|
|
|
|
|
Cash and cash equivalents |
|
2026 |
2025 |
|
|
Cash at bank |
|
|
|
Creditors |
|
Note |
2026 |
2025 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to group undertakings |
|
- |
|
|
Other creditors |
|
- |
|
|
Accruals |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
Vulcan Renewables Limited
Notes to the Financial Statements
Year Ended 31 March 2026
|
Loans and borrowings |
Non-current loans and borrowings
|
2026 |
2025 |
|
|
Lease obligations |
|
|
Current loans and borrowings
|
2026 |
2025 |
|
|
Lease obligations |
|
|
|
Loans due to group companies |
11,582,774 |
14,443,271 |
|
Loans due to related parties |
|
|
|
Loans due to immediate parent undertaking |
13,365,105 |
2,584,575 |
|
|
|
|
The company has a loan with another group entity. At the balance sheet the total amount due was £11,582,774 (including capitalised interest) (2025 - £14,443,271). The loan is repayable on demand by discretion of the group company, hence is shown as due within one year. The loan attracts an interest rate of 9.8%. Interest is capitalised quarterly if not paid.
The company has a loan with a related party. At the balance sheet the total amount due was £11,128,548 (including capitalised interest) (2025 - £13,876,869). The loan is repayable on demand by discretion of the related party, hence is shown as due within one year. The loan attracts an interest rate of 9.8%. Interest is capitalised quarterly if not paid.
The company has a loan with its immediate parent undertaking. At the balance sheet the total amount due was £13,365,105 (including capitalised interest) (2025 - £2,584,575). The loan is repayable on demand by discretion of the immediate parent undertaking, hence is shown as due within one year. The loan attracts an interest rate of 10%. Interest is capitalised quarterly if not paid.
Vulcan Renewables Limited
Notes to the Financial Statements
Year Ended 31 March 2026
|
Lease obligations |
The total of future minimum lease payments is as follows:
|
2026 |
2025 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
Less finance costs to be recognised in future periods |
(3,153,425) |
(3,117,157) |
|
|
|
|
Provisions for liabilities |
|
Deferred tax |
Decommissioning provision |
Total |
|
|
At 1 April 2025 |
|
|
|
|
Increase (decrease) in existing provisions |
|
|
|
|
At 31 March 2026 |
|
|
|
|
|
|||
Decommissioning provision
A provision is made in the accounts for the reinstatement costs for the Company to return the land to its original state after the lease ends. The expected reinstatement costs of £1,542,425 are adjusted for inflation and then discounted annually at a rate of 4.64% over the remaining lease term of 36 years.
|
Share capital |
Allotted, called up and fully paid shares
|
2026 |
2025 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
1 |
|
1 |
Vulcan Renewables Limited
Notes to the Financial Statements
Year Ended 31 March 2026
|
Related party transactions |
The immediate parent undertaking is AD Holdco 1 Limited. Future Biogas Limited own a 51% controlling stake in AD Holdco 1 Limited. As such all balances due to and from companies in the wider Future Biogas Group have been designated as due to / from group undertakings. Amounts owed to the remaining 49% owner have been categorised as amounts due to related parties.
The company transacts with companies in the wider Future Biogas Group in the normal course of business. During the year the company made sales of £14,458 (2025 - £15,775) and purchases of £4,125,202 (2025 - £2,790,860) with non wholly owned companies within the Future Biogas Group. At the balance sheet date the company was due £136,741 and owed £Nil to companies in the Future Biogas Group.
The company has a loan due to a company in the wider Future Biogas Group. During the year interest of £1,415,187 (2025 - £841,332) has been charged and the amount outstanding at the period end is £11,582,774 (2025 - £14,443,271). The loan is unsecured and repayable on demand.
The company has a loan due to the remaining 49% shareholder of AD Holdco 1 Limited. During the year interest of £1,359,689 (2025 - £1,899,317) has been charged and the amount outstanding at the period end is £11,128,548 (2025 - £13,876,869). The loan is unsecured and repayable on demand.
The company has taken advantage of the exemption available under Section 33.1A of FRS 102 not to disclose transactions between 100% owned group undertakings.
|
Parent and ultimate parent undertaking |
The Company's immediate parent is
The most senior parent entity producing publicly available financial statements is
The ultimate controlling party is