Stallcombe Eco Power Ltd - Period Ending 2018-12-31

Registration number: 9559743

Stallcombe Eco Power Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2018

Redwoods
Chartered Certified Accountants
2 Clyst Works
Clyst Road
Topsham
Exeter
Devon
EX3 0DB

Stallcombe Eco Power Ltd

Contents

Company Information	1
Directors' Report	2 to 3
Accountants' Report	4
Profit and Loss Account	5
Statement of Comprehensive Income	6
Balance Sheet	7
Statement of Changes in Equity	8
Notes to the Financial Statements	9 to 15

Stallcombe Eco Power Ltd

Company Information

Directors

Mr P J Rackstraw Mrs A E Liverton

Registered office

Stallcombe House Farm Sanctuary Lane Woodbury Exeter EX5 1EX

Accountants

Redwoods Chartered Certified Accountants 2 Clyst Works Clyst Road Topsham Exeter Devon EX3 0DB

Page 1

Stallcombe Eco Power Ltd

Directors' Report for the Year Ended 31 December 2018

The directors present their report and the financial statements for the year ended 31 December 2018.

Directors of the company

The directors who held office during the year were as follows:

Mr P J Rackstraw

Mrs A E Liverton

Principal activity

The principal activity of the company is production of electricity

In late 2014 a feasibility study was undertaken for a “solar array” on the Stallcombe site and after the necessary planning consents and construction the installation was up and running by autumn 2015. The feasibility study showed the viability and potential to Stallcombe of solar power, the Trustees Annual Report of the time commenting that this “fits well with our philosophy to provide a happy home and safe workplace, with a holistic and organic approach to health and the environment in which we live.”

It was decided at the outset to put the venture into a trading subsidiary, wholly owned by the Stallcombe charity. Whilst still early days the initial philosophy has been successful in delivering the two main drivers for the project:
• Investing in a solar array as an inflation proof investment
• Creating an undertaking that fits Stallcombe's ethical/green approach.

In the year to December 2018 Stallcombe Eco Power Ltd made a small profit of £570 and this was after paying the charity:
• £9,141 by way of interest
• £200 in rent

In addition, there was the primary financial consideration of a saving of approximately £10,000 on energy costs.

During the year the company made a repayment of £20,000 on the loan of £550,000 provided by the charity to finance the project.

It is anticipated that that there will be further growth and improvement in these figures which makes the investment a shrewd one but also makes the charity a net exporter of renewable electricity. A direct consequence of this is that alongside the biomass boiler and heat pumps Stallcombe can promote itself as an organisation only using renewable energy.

The Charity Commission regard such schemes as Eco Power as “social investments” and have creature specific guidance to encourage charities to directly further their aims at the same time potentially achieving a financial return.
 

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Page 2

Stallcombe Eco Power Ltd

Directors' Report for the Year Ended 31 December 2018

Approved by the Board on 24 September 2019 and signed on its behalf by:

.........................................
Mr P J Rackstraw
Director

Page 3

Chartered Certified Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Stallcombe Eco Power Ltd
for the Year Ended 31 December 2018

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Stallcombe Eco Power Ltd for the year ended 31 December 2018 as set out on pages 5 to 15 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at
http://www.accaglobal.com/gb/en/discover/public-value/rulebook.html.

This report is made solely to the Board of Directors of Stallcombe Eco Power Ltd, as a body, in accordance with the terms of our engagement letter dated 5 June 2018. Our work has been undertaken solely to prepare for your approval the accounts of Stallcombe Eco Power Ltd and state those matters that we have agreed to state to the Board of Directors of Stallcombe Eco Power Ltd, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/gb/en/technical-activities/technical-resources-search/2009/
october/factsheet-163-audit-exempt-companies.html. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Stallcombe Eco Power Ltd and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Stallcombe Eco Power Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Stallcombe Eco Power Ltd. You consider that Stallcombe Eco Power Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Stallcombe Eco Power Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Redwoods
Chartered Certified Accountants
2 Clyst Works
Clyst Road
Topsham
Exeter
Devon
EX3 0DB

24 September 2019

Page 4

Stallcombe Eco Power Ltd

Profit and Loss Account for the Year Ended 31 December 2018

	Note	2018 £	2017 £
Turnover		56,540	49,633
Cost of sales		(22,712)	(16,582)
Gross profit		33,828	33,051
Administrative expenses		(24,117)	(24,716)
Operating profit		9,711	8,335
Interest payable and similar expenses		(9,141)	(8,048)
		(9,141)	(8,048)
Profit before tax	3	570	287
Profit for the financial year		570	287

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

The notes on pages 9 to 15 form an integral part of these financial statements.

Page 5

Stallcombe Eco Power Ltd

Statement of Comprehensive Income for the Year Ended 31 December 2018

	2018 £	2017 £
Profit for the year	570	287
Total comprehensive income for the year	570	287

The notes on pages 9 to 15 form an integral part of these financial statements.

Page 6

Stallcombe Eco Power Ltd

(Registration number: 9559743)
Balance Sheet as at 31 December 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	4	360,932	382,374
Current assets
Debtors	5	10,376	10,538
Cash at bank and in hand		54,813	50,448
		65,189	60,986
Creditors: Amounts falling due within one year	6	(35,223)	(33,032)
Net current assets		29,966	27,954
Total assets less current liabilities		390,898	410,328
Creditors: Amounts falling due after more than one year	6	(412,635)	(432,635)
Net liabilities		(21,737)	(22,307)
Capital and reserves
Called up share capital	7	100	100
Profit and loss account		(21,837)	(22,407)
Total equity		(21,737)	(22,307)

For the financial year ending 31 December 2018 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 accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 24 September 2019 and signed on its behalf by:
 

.........................................

Mr P J Rackstraw
Director

The notes on pages 9 to 15 form an integral part of these financial statements.

Page 7

Stallcombe Eco Power Ltd

Statement of Changes in Equity for the Year Ended 31 December 2018

	Share capital £	Profit and loss account £	Total £
At 1 January 2018	100	(22,407)	(22,307)
Profit for the year	-	570	570
Total comprehensive income	-	570	570
At 31 December 2018	100	(21,837)	(21,737)

	Share capital £	Profit and loss account £	Total £
At 1 January 2017	100	(22,694)	(22,594)
Profit for the year	-	287	287
Total comprehensive income	-	287	287
At 31 December 2017	100	(22,407)	(22,307)

The notes on pages 9 to 15 form an integral part of these financial statements.

Page 8

Stallcombe Eco Power Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Stallcombe House Farm
Sanctuary Lane
Woodbury
Exeter
EX5 1EX

These financial statements were authorised for issue by the Board on 24 September 2019.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The accounts are presented in £ sterling and are rounded to £1.

Judgements

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Page 9

Stallcombe Eco Power Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Solar array	5% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Its loan from its parent Stallcombe House was initially recognised at the undiscounted amount of the cash received and subsequently its carrying amount is adjusted to reflect any accrued interest payable.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Page 10

Stallcombe Eco Power Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

Financial instruments

Classification
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities, such as trade and other accounts receivable and payable and loans from banks/other parties.
 Recognition and measurement
As an entity within a public benefit group the company has adopted accounting policies consistent with the public benefit concessionary loan accounting treatment. Its loan from its parent Stallcombe House was initially recognised at the undiscounted amount of the cash received and subsequently its carrying amount is adjusted to reflect any accrued interest payable.
 Impairment
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset’s carrying amount and the present value of estimated cash flows, discounted at the assets original effective interest rate.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset’s carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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.

The company does not use derivative financial instruments or hedging.
 

Current versus non-current classification

Current liabilities are liabilities that the company expects to settle within 12 months after the reporting period or does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

Non current liabilities are liabilities which are not current.

3	Profit before tax

Arrived at after charging/(crediting)

	2018 £	2017 £
Depreciation expense	21,442	21,442

Page 11

Stallcombe Eco Power Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

4	Tangible assets

	Solar array  £	Total £
Cost or valuation
At 1 January 2018	428,832	428,832
At 31 December 2018	428,832	428,832
Depreciation
At 1 January 2018	46,458	46,458
Charge for the year	21,442	21,442
At 31 December 2018	67,900	67,900
Carrying amount
At 31 December 2018	360,932	360,932
At 31 December 2017	382,374	382,374

5

Debtors

	2018 £	2017 £
Trade debtors	9,217	9,410
Prepayments	-	615
Other debtors	1,159	513
	10,376	10,538

6

Creditors

Creditors: amounts falling due within one year

	Note	2018 £	2017 £
Due within one year
Bank loans and overdrafts	8	29,141	28,048
Trade creditors		4,500	3,404
Accruals and deferred income		1,582	1,580
		35,223	33,032

Creditors: amounts falling due after more than one year

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	8	412,635	432,635

Page 12

Stallcombe Eco Power Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

7	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary of £1 each	100	100	100	100

8	Loans and borrowings

	2018 £	2017 £
Non-current loans and borrowings
Other borrowings	412,635	432,635

	2018 £	2017 £
Current loans and borrowings
Other borrowings	29,141	28,048

Other borrowings

Loan from Stallcombe House with a carrying amount of £441,776 (2017 - £460,683) is denominated in with a nominal interest rate of 1.5% above base.

The loan from Stallcombe House has been secured by a charge against the assets of the company.

9	Related party transactions

Summary of transactions with parent

Stallcombe House, 100% parent.
 The company has sold electricity to its parent company, Stallcombe House, and paid rent to the charity.
 

Income and receivables from related parties

2018	Parent £
Sale of goods	26,638
Amounts receivable from related party	8,241

Page 13

Stallcombe Eco Power Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

2017	Parent £
Sale of goods	20,514
Amounts receivable from related party	6,152

Expenditure with and payables to related parties

2018	Parent £
Leases	200

2017	Parent £
Leases	200

Loans from related parties

2018	Parent £
At start of period	460,683
Repaid	(28,048)
Interest transactions	9,141
At end of period	441,776

2017	Parent £
At start of period	482,079
Repaid	(29,444)
Interest transactions	8,048
At end of period	460,683

Terms of loans from related parties

Interest has been charged on this loan at 1.5% above bank base rate.
 

10	Financial instruments

Categorisation of financial instruments

	2018 £	2017 £
Loan commitments measured at cost less impairment	441,776	460,683
	441,776	460,683

Items of income, expense, gains or losses

The total interest expense for financial liabilities not measured at fair value through profit or loss is £9,141 (2017 - £8,048).

Page 14

Stallcombe Eco Power Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

11	Parent and ultimate parent undertaking

The company's immediate parent is Stallcombe House, incorporated in England and Wales.

 

Page 15