Ayrenergy Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC363794 (Scotland)

Unaudited Financial Statements

for the Year Ended 31 August 2018

for

Ayrenergy Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

N J Skea

Mrs L K Skea

W J H Kirkness

SECRETARY:

Mrs L K Skea

REGISTERED OFFICE:

Barns of Ayre

Deerness

Orkney

KW17 2QJ

REGISTERED NUMBER:

SC363794 (Scotland)

ACCOUNTANTS:

Foubister & Bain

4 Broad Street

Kirkwall

Orkney

KW15 1NX

FIXED ASSETS

4,147,417

Tangible assets

3

3,887,342

CURRENT ASSETS

183,621

Debtors

4

173,702

969,887

Cash at bank

952,652

1,153,508

1,126,354

CREDITORS

377,516

Amounts falling due within one year

5

401,386

775,992

NET CURRENT ASSETS

724,968

4,923,409

TOTAL ASSETS LESS CURRENT LIABILITIES

4,612,310

CREDITORS

(3,174,123

)

Amounts falling due after more than one year

6

(2,964,933

)

(137,972

)

PROVISIONS FOR LIABILITIES

(186,834

)

1,611,314

NET ASSETS

1,460,543

CAPITAL AND RESERVES

1,040,266

Called up share capital

780,394

-

Capital Redemption Reserve

259,872

571,048

Retained earnings

420,277

1,611,314

SHAREHOLDERS' FUNDS

1,460,543

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

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

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 on 18 December 2018 and were signed on its behalf by:

N J Skea - Director

1.	STATUTORY INFORMATION

Ayrenergy Ltd 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 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.

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

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

Wind Turbine

5 % on cost - Straight line

Plant and Machinery

25% on cost - Straight line

Depreciation will be provided from the first month after the date of commissioning of the wind turbine in order to write off

the asset over its estimated useful life.

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.

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.	TANGIBLE FIXED ASSETS

Land,

buildings

Plant and

and

machinery

Totals

turbines

etc

£

£

£

COST

At 1 September 2017

and 31 August 2018

5,202,240

5,201,516

724

DEPRECIATION

At 1 September 2017

1,054,823

1,054,099

724

Charge for year

260,075

260,075

-

At 31 August 2018

1,314,898

1,314,174

724

NET BOOK VALUE

At 31 August 2018

3,887,342

3,887,342

-

At 31 August 2017

4,147,417

4,147,417

-

Included in the above are finance charges, including interest and bank charges amounting to £170,261 at cost. (2017 -

£170,261)

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

158,750

168,459

Other debtors

14,952

15,162

173,702

183,621

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts

209,190

141,787

Trade creditors

10,756

7,274

Taxation

32,803

42,955

Other creditors

148,637

185,500

401,386

377,516

6.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Bank loans

2,914,933

3,124,123

Other creditors

50,000

50,000

2,964,933

3,174,123

2018

2017

£

£

Amounts falling due in more than five years:

Repayable by instalments

Operating Loan B

176,579

514,347

Operating Loan C

1,500,000

1,500,000

1,676,579

2,014,347

The creditor of £50,000 represents loans by participants as at 31 August 2018 (2017 - £50,000).

7.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Bank loans

3,124,123

3,265,910

The bank loan is secured by a bond and floating charge over the whole assets of the company. The bank also has a

non-residential mortgage over the lease at the Barns of Ayre site.

8.	CONTINGENT LIABILITIES

The company has contingent liabilities in connection with guarantees and assurances provided in connection with financial

and other arrangements associated with the construction of the windfarm.

9.	OTHER FINANCIAL COMMITMENTS

The company has entered into a lease agreement with the landowner Norrian Limited, on whose land the wind turbines are

situated.

Annual commitments under the terms of the lease are calculated as 6% of the gross turnover per annum.

Payments due under the terms of the lease during the year amounted to £57,272 (2017 - £58,008). The sum due to Norrian

Limited, a related company at 31 August 2018 was £143,465 (2017 - £163,497).

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At 31 August 2018 the company had loans of £25,000 from Mr & Mrs Norman Skea together with a further loan of

£25,000 from Mr & Mrs W Kirkness. (2017 - £50,000).