Lch Biomass Leasing (I) Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—8

1. General Information

Lch Biomass Leasing (I) Limited is a private company, limited by shares, incorporated in England & Wales, registered number 09337639 . The registered office is C/O Cutts And Company, Eden Point , Three Acres Lane, Cheadle Hulme, Cheadle, SK8 6RL and there is no single principal place of business.

The presentational currency of these financial statements is Pound Sterling (£).

Amounts in these financial statements are rounded to the nearest £.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

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

The company is the parent company of a small group and it is exempt from the requirement to prepare consolidated financial statements under section 399 of the Companies Act 2006. The group qualifies as small and has not prepared group accounts.

2.2. Going Concern Disclosure

The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern. The company is reliant upon the continued support of Kyotherm SAS, the company's immediate parent company.

2.3. Significant judgements and estimations

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes might differ from those estimates.

The following judgements have been made by the directors in applying the company's accounting policies:

Property, plant and equipment

Property, plant and equipment is depreciated over the average lease term of the sites on which the assets are sited. This has been estimated by the directors to be 13.5 years (with effect from 1 January 2022) equating to 7.41% per annum.

2.4. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and VAT. Turnover relates to remittances from Ofgem for energy produced by the company at its various sites. Turnover is reduced for estimated rebates and other similar allowances.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the net book value at 1 January 2022 and the cost of the fixed assets purchased thereafter, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery

7.41% per annum

2.6. Foreign Currencies

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

Page 3

Page 4

Lch Biomass Leasing (I) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

2.7. Taxation

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

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

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

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

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

2.8. Borrowing costs

All borrowing costs are recognised in the profit and loss account in the year in which they are incurred.

2.9. Financial instruments

Basic financial instruments are recognised at amortised cost.

Debtors

Short term debtors are measured at transaction price less any impairment.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including loans, are measured at amortised cost.

Derivatives

Interest rate SWAPs are valued at mark to market. Changes in the valuation are taken to the profit and loss account.

Investments

Investments in subsidiaries are valued at cost less impairment.

2.10. Dividends

Equity dividends are recognised when they become legally payable. Interim dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders.

3. Average Number of Employees

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

Page 4

Page 5

Lch Biomass Leasing (I) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

4. Tangible Assets

	Plant & Machinery
	£
Cost
As at 1 January 2025	5,155,516
Additions	57,169
Disposals	(121,683 )

As at 31 December 2025	5,091,002

Depreciation
As at 1 January 2025	2,037,750
Provided during the period	301,118
Disposals	(61,764 )

As at 31 December 2025	2,277,104

Net Book Value
As at 31 December 2025	2,813,898

As at 1 January 2025	3,117,766

5. Investments

	Unlisted
	£
Cost or Valuation
As at 1 January 2025	5,763,063

As at 31 December 2025	5,763,063

Provision
As at 1 January 2025	-

As at 31 December 2025	-

Net Book Value
As at 31 December 2025	5,763,063

As at 1 January 2025	5,763,063

The investment represents a 100% interest in the ordinary share capital of Renewable Heat Generation Limited, a company registered in England & Wales.

Page 5

Page 6

Lch Biomass Leasing (I) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

6. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	19,262	70,464
Prepayments and accrued income	664,680	543,614
Other debtors	115,560	-
Amounts owed by group undertakings	1,764	417

	801,266	614,495
Due after more than one year
Derivative financial assets	220,759	470,990
Amounts owed by group undertakings	1,769,102	3,606,870

	1,989,861	4,077,860

	2,791,127	4,692,355

The derivative financial asset comprises of two interest rate swaps with Virgin Money which are valued at their Mark to Market value at the year end. A debit of £250,231 (2024:£72,053) has been recorded in the fair value reserve. The swaps are due to mature on 31 May 2029 and 29 June 2029.

7. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Trade creditors	23,230	41,983
Bank loans and overdrafts	1,111,305	1,040,148
VAT	-	21,635
Accruals	120,794	91,045

	1,255,329	1,194,811

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

	2025	2024
	£	£
Bank loans	6,035,102	7,146,400
Amounts owed to group undertakings	4,493,873	5,148,289

	10,528,975	12,294,689

Of the creditors falling due after more than one year the following amounts are due after more than five years.

	2025		2024
	£		£
Bank loans	677,866		1,982,470

Page 6

Page 7

Lch Biomass Leasing (I) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

9. Secured Creditors

The bank loans are secured by a fixed and floating charge over the assets of the company.

The bank loans comprise two loans:

Loan 1 - £1,492,304 (2024:£1,932,382) with an interest rate of BOE plus 3.5%, payable in 20 bi-annual instalments by August 2029.

Loan 2 - £2,540,114 (2024:£3,047,180) with an interest rate of BOE plus 3.4%, payable in 20 bi-annual instalments by June 2029.

Loan 3 - £1,665,848 (2024:£1,700,000) with an interest rate of BOE plus 2.95%, payable in 13 bi-annual instalments by June 2031.

Loan 4 - £1,448,141 (2024:£1,506,985) with an interest rate of BOE plus 2.95%, payable in 14 bi-annual instalments by June 2031.

	2025		2024
	£		£
Bank loans and overdrafts	7,146,407		8,186,547

10. Share Capital

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

11. Dividends

	2025	2024
	£	£
On equity shares:
Final dividend paid	-	1,208,000

12. Post Balance Sheet Events

On 24 June 2026 all bank debt was repaid and the derivative financial asset was crystalised following a restructure of the overall Kyotherm SAS group. The bank debt was replace by an equal amount of parent company debt.

13. Related Party Transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose related party transactions with wholly owned subsidiaries within the group.

Long term loan balances with group companies are shown in notes 6 and 8. Trade debtors, trade creditors, prepayments and accrued income and accruals include related party balances of £344 (2024: £39,787), £nil (2024:£31,029), £20,000 (2024:£20,000) and £nil (2024: £60,156) respectively owed to group companies. Short term loan balances with group companies are shown in note 6.

14. Ultimate Parent Undertaking and Controlling Party

The company's ultimate parent undertaking is InfraVia Capital Partners SAS which, on 14 November 2024, acquired 75% of the shares of the company's previous ultimate (and new intermediate) parent company Kyotherm SAS. The group accounts are not available for public access.

The ultimate controlling parties are not disclosed on the Paris Registre du Commerce et des Societes.

Page 7

Page 8

Lch Biomass Leasing (I) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

15. Audit Information

The auditor's report on the accounts of Lch Biomass Leasing (I) Limited for the year ended 31 December 2025 was unqualified.

The auditor's report was signed by Paul Allan Byrne BA (Double Hons) FCA (Senior Statutory Auditor) for and on behalf of Ascendis Audit Limited , Statutory Auditor.

Ascendis Audit Limited

First Floor, East Wing, Sandfield House

Kings Court, Water Lane

Wilmslow

Cheshire

SK9 5AR

Page 8

		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		2,813,898		3,117,766
Investments	5		5,763,063		5,763,063

			8,576,961		8,880,829
CURRENT ASSETS
Debtors	6	2,791,127		4,692,355
Cash at bank and in hand		748,547		693,522

		3,539,674		5,385,877
Creditors: Amounts Falling Due Within One Year	7	(1,255,329 )		(1,194,811 )

NET CURRENT ASSETS (LIABILITIES)			2,284,345		4,191,066

TOTAL ASSETS LESS CURRENT LIABILITIES			10,861,306		13,071,895

Creditors: Amounts Falling Due After More Than One Year	8		(10,528,975 )		(12,294,689 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(425,277 )		(437,838 )

NET (LIABILITIES)/ASSETS			(92,946 )		339,368

CAPITAL AND RESERVES
Called up share capital	10		100		100
Fair value reserve			88,266		338,497
Profit and Loss Account			(181,312 )		771

SHAREHOLDERS' FUNDS			(92,946)		339,368