REGISTERED NUMBER: SC301103 (Scotland)

Financial Statements

for the Year Ended 31 December 2025

for

Hammars Hill Energy Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

N C Gray

R Gauld

A S Tait

J D Thouless

P Tierney

SECRETARY:

A S Tait

REGISTERED OFFICE:

Ridgeways

Back Road

Stromness

Orkney

KW16 3DS

REGISTERED NUMBER:

SC301103 (Scotland)

ACCOUNTANTS:

Foubister & Bain

4 Broad Street

Kirkwall

Orkney

KW15 1NX

FIXED ASSETS

2,315,780

Tangible assets

4

2,085,016

CURRENT ASSETS

1,186,039

Debtors

5

921,595

2,038,082

Cash at bank

2,207,489

3,224,121

3,129,084

CREDITORS

768,426

Amounts falling due within one year

6

683,962

2,455,695

NET CURRENT ASSETS

2,445,122

4,771,475

TOTAL ASSETS LESS CURRENT LIABILITIES

4,530,138

439,000

PROVISIONS FOR LIABILITIES

400,000

4,332,475

NET ASSETS

4,130,138

CAPITAL AND RESERVES

3,876,359

Called up share capital

3,876,359

456,116

Retained earnings

253,779

4,332,475

SHAREHOLDERS' FUNDS

4,130,138

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2025 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 4 May 2026 and were signed on its behalf by:

N C Gray - Director

1.	STATUTORY INFORMATION

Hammars Hill Energy Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements are presented in sterling and have been prepared on a going concern basis under historical cost convention.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover relates to the sale of electricity and related income and is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is not recognised until the significant risks and rewards of ownership of the electricity have passed to the buyer and the amount of revenue can be readily ascertained.

Tangible fixed assets

Tangible assets are stated at cost (or deemed cost) less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off the cost of each asset less its estimated residual value over its expected useful life.

Short Leasehold

- 5% on cost - straight line

Equipment

- 5% on cost - straight line

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention 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 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.

Classification of financial liabilities

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 liabilities

Basic financial liabilities, including creditors 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. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

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 of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to income statement in the period to which they relate.

Operating leases

Costs relating to operating leases incurred prior to commissioning are included in Tangible Fixed Assets. From the date of commissioning, operating leases are charged to the Income Statement as incurred.

Impairment of Assets

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the income statement unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Directors' remuneration

All payments for services provided by Directors as directors are charged to the Income Statement as Directors' Remuneration. Other services not in connection with the management of the company are charged as appropriate to Tangible Fixed Assets or Income Statement.

Decommissioning costs

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2024 - 2 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

Totals

buildings

etc

£

£

£

COST

At 1 January 2025

6,325,032

969,426

5,355,606

Additions

517

-

517

At 31 December 2025

6,325,549

969,426

5,356,123

DEPRECIATION

At 1 January 2025

4,009,252

607,869

3,401,383

Charge for year

231,281

35,955

195,326

At 31 December 2025

4,240,533

643,824

3,596,709

NET BOOK VALUE

At 31 December 2025

2,085,016

325,602

1,759,414

At 31 December 2024

2,315,780

361,557

1,954,223

Included in the above are historical finance charges, including interest and bank charges, amounting to £50,346 at cost.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade Debtors

218,777

400,066

Sundry Debtors

625,773

702,669

Prepayments

77,045

83,304

921,595

1,186,039

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade Creditors

-

320,382

Tax

364,585

187,470

VAT

159,321

125,242

Accrued Expenses

160,056

135,332

683,962

768,426

7.	CONTINGENT LIABILITIES

The company had contingent liabilities in connection with guarantees and assurances provided in connection with financial and other arrangements associated with the construction and decommissioning of the windfarm on Hammars Hill.These liabilities have not materialised in the construction phase and the decommissioning bond will defray part of the costs related to any final decommissioning of the site.

8.	OTHER FINANCIAL COMMITMENTS

The company has entered into a lease agreement with the landowner R & M Jenkins Limited, on whose land the wind farm is situated, for a period ending no earlier than 30 April 2030.

Annual commitments under the terms of the lease are variable and are calculated as 10% of net turnover per annum but subject to an escalating minimum payment rising annually by £5,000 from a base level of £45,000 to a maximum of £75,000.

Payments under the terms of the lease during the year amounted to £252,954 (2024 - £201,778).

There is also a lease for the switchgear house and wayleave totalling £13,082 per annum.

9.	ULTIMATE CONTROLLING PARTY

The company is under the control of the members as a whole, none of whom have ultimate control.