Company No: SC782427 (Scotland)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	31.12.2025		31.12.2024
		£		£
Fixed assets
Tangible assets	3	3,227,108		2,986,421
		3,227,108		2,986,421
Current assets
Stocks		1,472		0
Debtors	4	86,444		23,287
Cash at bank and in hand	5	197,490		239,218
		285,406		262,505
Creditors: amounts falling due within one year	6	( 11,941)		( 17,426)
Net current assets		273,465		245,079
Total assets less current liabilities		3,500,573		3,231,500
Creditors: amounts falling due after more than one year	7	( 4,054,014)		( 3,505,961)
Net liabilities		( 553,441)		( 274,461)
Capital and reserves
Called-up share capital	8	1		1
Profit and loss account		( 553,442 )		( 274,462 )
Total shareholder's deficit		( 553,441)		( 274,461)

For the financial year ending 31 December 2025 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The member has 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 Profit and Loss Account has not been delivered.

The financial statements of Corran Dearg Limited (registered number: SC782427) were approved and authorised for issue by the Board of Directors on 15 September 2026. They were signed on its behalf by:

Mr S A H Fritsch 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 period, unless otherwise stated.

General information and basis of accounting

Corran Dearg 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 C/O Turcan Connell Princes Exchange, 1 Earl Grey Street, Edinburgh, EH3 9EE, United Kingdom.

The financial statements have been prepared under the historical cost convention, 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 note that the business has net liabilities of £553,441. The Company is supported through loans from group companies. The directors have confirmed that the loan facilities will continue to be available for at least 12 months from the date of signing these financial statements and the group will continue to support the Company. Given the current position, the directors believe that any foreseeable debts can be met 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.

Reporting period length

The financial statements cover the twelve months to 31 December 2025. The comparative figures cover the period from incorporation on 13 September 2023 to 31 December 2024 and as such, the comparatives are not directly comparable.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business. Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

For the sale of carbon credits, revenue will be recognised instantly upon the transfer of ownership of verified carbon credits. At this point, the corresponding per unit cost of the carbon credit is deregistered from stock and recognised as a cost of sale. See stock accounting policy for further details.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable.

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 is 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 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:

Land and buildings	not depreciated
Assets under construction	not depreciated
Plant and machinery	61 years straight line

Assets in the course of construction are not depreciated until the asset is brought into use.

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 charged to profit or loss.

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 Profit and Loss Account as described below.

Non-financial assets
At each balance sheet date, the company reviews its tangible 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).

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. In respect of carbon credits, the cost includes the depreciation charge on capitalised expenditure and any direct expenditure, offset by any government grant under the accrual model that has subsidised the creation of the carbon credits in stock.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks 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

Cash and cash equivalents are basic financial assets and include 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.

Basic financial assets
Basic financial assets, which include debtors and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, 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.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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.

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.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

2. Employees

	Year ended 31.12.2025		Period from 13.09.2023 to 31.12.2024
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	0		0

3. Tangible assets

	Land and buildings		Assets under construc- tion		Plant and machinery		Total
	£		£		£		£
Cost
At 01 January 2025	2,676,814		0		309,607		2,986,421
Additions	0		226,384		30,000		256,384
Disposals	0		( 2,000)		( 6,000)		( 8,000)
Transfers	0		14,438		( 14,438)		0
At 31 December 2025	2,676,814		238,822		319,169		3,234,805
Accumulated depreciation
At 01 January 2025	0		0		0		0
Charge for the financial year	0		0		7,697		7,697
At 31 December 2025	0		0		7,697		7,697
Net book value
At 31 December 2025	2,676,814		238,822		311,472		3,227,108
At 31 December 2024	2,676,814		0		309,607		2,986,421

4. Debtors

	31.12.2025		31.12.2024
	£		£
Amounts owed by Group undertakings	42,432		21,311
Other debtors	44,012		1,976
	86,444		23,287

5. Cash and cash equivalents

	31.12.2025		31.12.2024
	£		£
Cash at bank and in hand	197,490		239,218

6. Creditors: amounts falling due within one year

	31.12.2025		31.12.2024
	£		£
Trade creditors	0		12,000
Other creditors	11,941		5,426
	11,941		17,426

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

	31.12.2025		31.12.2024
	£		£
Amounts owed to Group undertakings	3,822,325		3,264,082
Other creditors	231,689		241,879
	4,054,014		3,505,961

8. Called-up share capital

	31.12.2025		31.12.2024
	£		£
Allotted, called-up and fully-paid
1 Ordinary share of £ 1.00	1		1

9. Related party transactions

The Company has availed of the exemption provided in FRS 102 Section 33 Related Party Disclosures not to disclose transactions entered into with fellow group companies that are wholly owned within the group of companies of which the Company is a wholly owned member.

10. Events after the Balance Sheet date

After the balance sheet date, the company has submitted a grant application to Scottish Forestry as part of its ongoing woodland creation exercise. It is anticipated that the capital grants will be received in the year ended 31 December 2026 accounting period and the company will also be in receipt of annual recurring management grants to support the project.