Company No: SC419022 (Scotland)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2026		2025
		£		£
Fixed assets
Tangible assets	3	2,759,255		3,072,647
		2,759,255		3,072,647
Current assets
Debtors
- due within one year	4	738,124		705,685
- due after more than one year	4	362,494		0
Cash at bank and in hand		1,070,384		1,780,264
		2,171,002		2,485,949
Creditors: amounts falling due within one year	5	( 855,785)		( 1,260,736)
Net current assets		1,315,217		1,225,213
Total assets less current liabilities		4,074,472		4,297,860
Creditors: amounts falling due after more than one year	6	( 128,358)		( 561,445)
Provision for liabilities	7	( 575,640)		( 623,650)
Net assets		3,370,474		3,112,765
Capital and reserves
Called-up share capital	8	1,000		1,000
Profit and loss account		3,369,474		3,111,765
Total shareholders' funds		3,370,474		3,112,765

For the financial year ending 31 March 2026 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Cloffrickford Renewable Energy Company Limited (registered number: SC419022) were approved and authorised for issue by the Board of Directors on 25 August 2026. They were signed on its behalf by:

David Christie Smith Director

Valerie Kilburn Smith Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Cloffrickford Renewable Energy Company Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the Company's registered office is Cloffrickford, Auchnagatt, Ellon, AB41 8YD, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Statement of Income and Retained Earnings in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Turnover represents amounts invoiced for renewable energy generated net of VAT. Turnover is recognised on generation of electricity. Income is recognised on an accruals basis where it is capable of being reliably measured. Where no reliable estimate is possible, income is recognised on a receipt basis.

Employee benefits

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

Termination benefits are recognised as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

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 fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Plant and machinery	20 % reducing balance
Vehicles	25 % reducing balance
Other property, plant and equipment	20 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charge to profit or loss.

Included in plant & machinery is a decommissioning provision of £55,000 (2025 - £55,000) which is not depreciated.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.

Non-financial assets
At each balance sheet date, the Company reviews its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.

If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs.

Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less.

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Employees

	2026		2025
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	9		9

3. Tangible assets

	Plant and machinery		Vehicles		Other property, plant and equipment		Total
	£		£		£		£
Cost
At 01 April 2025	42,411		9,750		6,269,256		6,321,417
At 31 March 2026	42,411		9,750		6,269,256		6,321,417
Accumulated depreciation
At 01 April 2025	29,648		9,247		3,209,875		3,248,770
Charge for the financial year	2,553		126		310,713		313,392
At 31 March 2026	32,201		9,373		3,520,588		3,562,162
Net book value
At 31 March 2026	10,210		377		2,748,668		2,759,255
At 31 March 2025	12,763		503		3,059,381		3,072,647

4. Debtors

	2026		2025
	£		£
Debtors: amounts falling due within one year
Other debtors	738,124		705,685
Debtors: amounts falling due after more than one year
Amounts owed by related parties	362,494		0

5. Creditors: amounts falling due within one year

	2026		2025
	£		£
Bank loans	408,496		399,288
Trade creditors	90,968		98,266
Taxation and social security	294,974		623,820
Other creditors	61,347		139,362
	855,785		1,260,736

The bank loans are secured by a floating charge over the assets of the company and includes a share pledge in respect of the issued shares of the company.

Included in other creditors are amounts due in respect of the settlement agreement. The settlement amount in respect of an overpayment with a customer. This is a result of a customer incorrectly calculating embedded benefits and overpaying Cloffrickford, this was due to no fault by Cloffrickford. As at March 2026 this has been repaid in full.

6. Creditors: amounts falling due after more than one year

	2026		2025
	£		£
Bank loans	82,039		515,126
Other creditors	46,319		46,319
	128,358		561,445

The bank loans are secured by a floating charge over the assets of the company and includes a share pledge in respect of the issued shares of the company.

7. Provision for liabilities

	2026		2025
	£		£
Deferred tax	520,640		568,650
Other provisions	55,000		55,000
	575,640		623,650

As a result of the company's investment in wind turbines, there is an obligation to decommission the windfarm at the end of its useful life. The company has recognised £55,000 on the decommissioning of the operations which represents the net present value of anticipated future costs as at 31 March 2026. Whilst it is expected a market for expired assets will exist, the provision cannot and does not anticipate any associated future income.

8. Called-up share capital

	2026		2025
	£		£
Allotted, called-up and fully-paid
1,000 Ordinary shares of £ 1.00 each	1,000		1,000

9. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

	2026		2025
	£		£
Within one year	135,000		135,000
Between one and five years	540,000		540,000
After five years	1,192,111		1,327,111
	1,867,111		2,002,111

10. Related party transactions

Transactions with entities in which the entity itself has a participating interest

At the year end, included within the other creditors balance is £486 (2024- £486) due to a company under common control in respect of shared expenses.

During the year electricity of £26,412 (2025 - £28,804) has been charged by Skelmonae. At the year end, a balance of £2,606 (2025 - £2,603) is included within accruals due to Skelmonae.

The company also operates a loan account with Cardinghill Renewables Limited ("Cardinghill"). The directors are also directors of Cardinghill. Included in debtors at the year end is a balance of £423,650 (2025 - £23,650) due from Cardinghill. A loan of £400,000 was advanced to Cardinhill during the year. Repayment terms have been agreed and interest of 3.5% is charged on any outstanding balance.

Transactions with the entity's directors

	2026		2025
	£		£
Director Loan due to company	42,988		2,988

At 1 April 2025, a director owed the company £2,988. During the year, the company paid advances to the director of £160,000 and the director repaid the company £120,000. The balance due to the company by the director at 31 March 2026 was £42,988. There are no fixed repayment terms. Loan interest is charged at 3.75% per annum . There are no fixed repayment terms.

11. Ultimate controlling party

The shares in issue are held by Triodos Bank N.V. under a share pledge arrangement. The day to day operations of the company are managed and controlled by the directors, subject to the provisions of the share pledge agreement.