Catfoss Renewables Limited - Limited company accounts 18.2

REGISTERED NUMBER: 09175861 (England and Wales)

Report of the Directors and

Unaudited Consolidated Financial Statements for the Year Ended 31 December 2018

for

Catfoss Renewables Limited

Page

Company Information

1

Report of the Directors

2

Consolidated Income Statement

3

Consolidated Other Comprehensive Income

4

Consolidated Balance Sheet

5

Company Balance Sheet

6

Notes to the Consolidated Financial Statements

7

DIRECTORS:

A. P. Foreman

I Roundell

REGISTERED OFFICE:

Tickton Hall

Tickton

Beverley

East Yorkshire

HU17 9RX

REGISTERED NUMBER:

09175861 (England and Wales)

ACCOUNTANTS:

ESR Accountancy Limited

Suite C

The Hall

Lairgate

Beverley

East Yorkshire

HU17 8HL

The directors present their report with the financial statements of the company and the group for the year ended

31 December 2018.

DIRECTORS

A. P. Foreman has held office during the whole of the period from 1 January 2018 to the date of this report.

Other changes in directors holding office are as follows:

N. R. King - resigned 15 August 2018

P. G. Bentham - resigned 15 August 2018

I Roundell - appointed 15 August 2018

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to

small companies.

ON BEHALF OF THE BOARD:

A. P. Foreman - Director

26 March 2019

TURNOVER

257,969

635,607

Cost of sales

951,346

1,909,882

GROSS LOSS

(693,377

)

(1,274,275

)

Distribution costs

-

113,086

Administrative expenses

1,671,151

1,638,555

1,671,151

1,751,641

(2,364,528

)

(3,025,916

)

Other operating income

-

71,696

OPERATING LOSS

4

(2,364,528

)

(2,954,220

)

Interest payable and similar expenses

5

6,518,051

4,660,933

LOSS BEFORE TAXATION

(8,882,579

)

(7,615,153

)

Tax on loss

-

-

LOSS FOR THE FINANCIAL YEAR

(8,882,579

)

(7,615,153

)

Loss attributable to:

Owners of the parent

(8,882,579

)

(7,615,153

)

LOSS FOR THE YEAR

(8,882,579

)

(7,615,153

)

OTHER COMPREHENSIVE INCOME

Unrealised surplus on revaluations

4,000,000

6,000,000

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

4,000,000

6,000,000

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(4,882,579

)

(1,615,153

)

Total comprehensive income attributable to:

Owners of the parent

(4,882,579

)

(1,615,153

)

FIXED ASSETS

Intangible assets

7

2,003,929

2,290,203

Tangible assets

8

26,258,063

21,645,539

Investments

9

-

-

28,261,992

23,935,742

CURRENT ASSETS

Debtors

10

4,075,132

120,876

Cash at bank

-

27

4,075,132

120,903

CREDITORS

Amounts falling due within one year

11

28,646,670

17,775,948

NET CURRENT LIABILITIES

(24,571,538

)

(17,655,045

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,690,454

6,280,697

CREDITORS

Amounts falling due after more than one year

12

2,357,794

65,458

NET ASSETS

1,332,660

6,215,239

CAPITAL AND RESERVES

Called up share capital

100

100

Revaluation reserve

14

21,576,444

17,576,444

Retained earnings

(20,243,884

)

(11,361,305

)

SHAREHOLDERS' FUNDS

1,332,660

6,215,239

The company and the group are entitled to exemption from audit under Section 477 of the Companies Act 2006 for

the year ended 31 December 2018.

The members have not required the company and the group to obtain an audit of its financial statements for the year

ended 31 December 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the group 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 and the group as at the end of each financial year and of the group's 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 and the group.

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006

relating to small companies.

The financial statements were approved by the Board of Directors on 26 March 2019 and were signed on its behalf

by:

A. P. Foreman - Director

FIXED ASSETS

Intangible assets

7

-

-

Tangible assets

8

111,246

111,246

Investments

9

6,532,220

6,532,220

6,643,466

6,643,466

CURRENT ASSETS

Debtors

10

9,331,427

1,081,567

Cash at bank

1

16

9,331,428

1,081,583

CREDITORS

Amounts falling due within one year

11

25,122,049

13,412,417

NET CURRENT LIABILITIES

(15,790,621

)

(12,330,834

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(9,147,155

)

(5,687,368

)

CREDITORS

Amounts falling due after more than one year

12

2,357,794

65,458

NET LIABILITIES

(11,504,949

)

(5,752,826

)

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

(11,505,049

)

(5,752,926

)

SHAREHOLDERS' FUNDS

(11,504,949

)

(5,752,826

)

Company's loss for the financial year

(5,752,123

)

(3,922,887

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2018 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 in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 26 March 2019 and were signed on its behalf by:

A. P. Foreman - Director

1.	STATUTORY INFORMATION

Catfoss Renewables Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

This position includes a consideration that no deferred tax is required to be accounted for on revaluation since

unrelieved tax losses are substantially more than any potential deferred tax liability.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts,

rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2015, is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings

-

not provided

Plant and machinery etc

-

10% on cost

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2017 - NIL).

The average number of employees by undertakings that were proportionately consolidated during the year

was 11 (2017 - 11 ) .

4.	OPERATING LOSS

The operating loss is stated after charging:

Period

1.7.16

Year Ended

to

31.12.18

31.12.17

£

£

Goodwill amortisation

286,274

286,274

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

The group parent company, Catfoss Renewables Limited, suffered expensive interest on short term funding

loans. The directors would express that they do not consider this a normal trading expense.

6.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not

presented as part of these financial statements.

7.	INTANGIBLE FIXED ASSETS

Group

Goodwill

£

COST

At 1 January 2018

and 31 December 2018

2,846,251

AMORTISATION

At 1 January 2018

556,048

Charge for year

286,274

At 31 December 2018

842,322

NET BOOK VALUE

At 31 December 2018

2,003,929

At 31 December 2017

2,290,203

8.	TANGIBLE FIXED ASSETS

Group

Freehold

Plant and

Office

property

machinery

equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 January 2018

14,082,000

8,145,539

-

22,227,539

Additions

-

611,932

592

612,524

Revaluations

2,000,000

2,000,000

-

4,000,000

At 31 December 2018

16,082,000

10,757,471

592

26,840,063

DEPRECIATION

At 1 January 2018

and 31 December 2018

582,000

-

-

582,000

NET BOOK VALUE

At 31 December 2018

15,500,000

10,757,471

592

26,258,063

At 31 December 2017

13,500,000

8,145,539

-

21,645,539

Cost or valuation at 31 December 2018 is represented by:

Freehold

Plant and

Office

property

machinery

equipment

Totals

£

£

£

£

Valuation in 2018

2,000,000

2,000,000

-

4,000,000

Valuation in 2017

6,000,000

-

-

6,000,000

Valuation in 2016

6,000,000

-

-

6,000,000

Valuation in 2015

-

5,576,445

-

5,576,445

Cost

2,082,000

3,181,026

592

5,263,618

16,082,000

10,757,471

592

26,840,063

If freehold property had not been revalued it would have been included at the following historical cost:

31.12.18

31.12.17

£

£

Cost

2,082,000

2,082,000

Aggregate depreciation

582,000

582,000

Value of land in freehold land and buildings

1,500,000

1,500,000

Freehold land and buildings were valued on an open market basis on 25 May 2016 by Lambert Smith Hampton

.

Subsidiary assets, the Gateshead Battery Energy Storage Project and Gateshead Reserve Power Project were

valued on 3rd November, 2017 by independent commercial valuers Jones Lang LaSalle Limited. They

provided a current market value of the Project in Gateshead, Newcastle which has existing planning consent

and is deemed to be 'construction ready'.

Company

Plant and

machinery

£

COST

At 1 January 2018

and 31 December 2018

111,246

NET BOOK VALUE

At 31 December 2018

111,246

At 31 December 2017

111,246

9.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertakings

£

COST

At 1 January 2018

and 31 December 2018

6,532,220

NET BOOK VALUE

At 31 December 2018

6,532,220

At 31 December 2017

6,532,220

The group or the company's investments at the Balance Sheet date in the share capital of companies include

the following:

Subsidiaries

Graphite Enterprises (DEP) Limited

Registered office:

Nature of business: Land management

%

Class of shares:

holding

Ordinary

100.00

31.12.18

31.12.17

£

£

Aggregate capital and reserves

15,491,453

13,492,115

Loss for the year/period

(662

)

(50

)

Graphite Resources (DEP) Limited

Registered office:

Nature of business: Waste recycling

%

Class of shares:

holding

Ordinary

100.00

31.12.18

31.12.17

£

£

Aggregate capital and reserves

1,954,361

2,797,881

Loss for the year/period

(2,843,520

)

(3,405,940

)

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

31.12.18

31.12.17

31.12.18

31.12.17

£

£

£

£

Trade debtors

-

30,915

-

-

Amounts owed by group undertakings

-

-

5,443,194

1,049,426

Amounts owed by associates

1,135,484

-

1,131,020

-

Other debtors

405,635

-

405,635

-

VAT

5,075

23,780

1,478

32,041

Called up share capital not paid

100

100

100

100

Prepayments

2,528,838

66,081

2,350,000

-

4,075,132

120,876

9,331,427

1,081,567

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

31.12.18

31.12.17

31.12.18

31.12.17

£

£

£

£

Bank loans and overdrafts

14

-

-

-

Other loans

20,700,000

12,680,000

20,700,000

10,350,000

Hire purchase contracts

-

21,820

-

21,820

Trade creditors

524,290

385,474

91,676

51,026

Amounts owed to associates

5,672,185

3,243,763

3,140,226

2,108,846

Social security and other taxes

12,405

84,412

-

-

Other creditors

154

-

-

-

Directors' current accounts

1,448,745

939,087

1,170,147

782,725

Accrued expenses

288,877

421,392

20,000

98,000

28,646,670

17,775,948

25,122,049

13,412,417

12.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group

Company

31.12.18

31.12.17

31.12.18

31.12.17

£

£

£

£

Other loans - 2-5 years

2,300,016

-

2,300,016

-

Hire purchase contracts

57,778

65,458

57,778

65,458

2,357,794

65,458

2,357,794

65,458

13.	SECURED DEBTS

The following secured debts are included within creditors:

Group

Company

31.12.18

31.12.17

31.12.18

31.12.17

£

£

£

£

Hire Purchase

57,777

87,278

57,777

87,278

Other Loans

2,300,016

-

2,300,016

-

2,357,793

87,278

2,357,793

87,278

14.

RESERVES

Group

Revaluation

reserve

£

At 1 January 2018

17,576,444

Increase in the period

4,000,000

At 31 December 2018

21,576,444