Sharpness Wind Project Limited - Period Ending 2019-08-31

Sharpness Wind Project Limited

Annual Report and Unaudited Financial Statements
Year Ended 31 August 2019

Registration number: 09259832

Sharpness Wind Project Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Unaudited Financial Statements	4 to 10

Sharpness Wind Project Limited

Company Information

Directors

Mr J J Fabby Mr E J W Bakker

Registered office

Lowin House Tregolls Road Truro Cornwall TR1 2NA

Accountants

Francis Clark LLP Lowin House Tregolls Road Truro Cornwall TR1 2NA

Page 1

Sharpness Wind Project Limited

Balance Sheet

31 August 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	3	1,118,045	1,194,531
Investments	4	372,453	372,453
		1,490,498	1,566,984
Current assets
Debtors	5	40,273	40,682
Cash at bank and in hand		15,557	62,480
		55,830	103,162
Creditors: Amounts falling due within one year	6	(1,565,760)	(1,806,200)
Net current liabilities		(1,509,930)	(1,703,038)
Total assets less current liabilities		(19,432)	(136,054)
Provisions for liabilities		(7,233)	17,661
Net liabilities		(26,665)	(118,393)
Capital and reserves
Called up share capital	8	100	100
Profit and loss account		(26,765)	(118,493)
Total equity		(26,665)	(118,393)

The notes on pages 4 to 10 form an integral part of these financial statements.

Page 2

Sharpness Wind Project Limited

Balance Sheet

31 August 2019

For the financial year ending 31 August 2019 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 and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 29 May 2020 and signed on its behalf by:
 

......................................... Mr J J Fabby Director

Company Registration Number: 09259832

The notes on pages 4 to 10 form an integral part of these financial statements.

Page 3

Sharpness Wind Project Limited

Notes to the Unaudited Financial Statements

Year Ended 31 August 2019

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:
Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

The principal place of business is:
Sharpness Docks
Berkeley
Gloucestershire
GL13 9UX

These financial statements were authorised for issue by the Board on 29 May 2020.

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.

Going concern

The financial statements have been prepared on a going concern basis. The company incurred losses during its start up phase and is reliant on the financial support of the directors / shareholders to enable it to meet liabilities as they fall due. The company is now trading profitably with future revenue is secured under a 20 year power purchase agreement and the directors anticipate that the company's reserves will become positive in due course.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the generation of electricity. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity.

Page 4

Sharpness Wind Project Limited

Notes to the Unaudited Financial Statements

Year Ended 31 August 2019

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are 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 assets

Tangible assets are stated in the balance sheet 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.

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
Plant and machinery	Straight line over 20 years
Motor vehicles	20%, straight line
Leasehold land	Straight line over term of lease

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Page 5

Sharpness Wind Project Limited

Notes to the Unaudited Financial Statements

Year Ended 31 August 2019

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.




 

Page 6

Sharpness Wind Project Limited

Notes to the Unaudited Financial Statements

Year Ended 31 August 2019

3	Tangible assets

	Short leasehold land and buildings £	Motor vehicles  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 September 2018	360,000	22,995	1,002,937	1,385,932
Disposals	-	(22,995)	-	(22,995)
At 31 August 2019	360,000	-	1,002,937	1,362,937
Depreciation
At 1 September 2018	43,200	11,881	136,320	191,401
Charge for the year	14,400	-	50,972	65,372
Eliminated on disposal	-	(11,881)	-	(11,881)
At 31 August 2019	57,600	-	187,292	244,892
Carrying amount
At 31 August 2019	302,400	-	815,645	1,118,045
At 31 August 2018	316,800	11,114	866,617	1,194,531

Included within the net book value of land and buildings above is £302,400 (2018 - £316,800) in respect of short leasehold land and buildings.
 

4	Investments

	2019 £	2018 £
Investments in subsidiaries	372,453	372,453

Subsidiaries	£
Cost or valuation
At 1 September 2018 and 31 August 2019	372,453
Carrying amount
At 31 August 2019	372,453
At 31 August 2018	372,453

Page 7

Sharpness Wind Project Limited

Notes to the Unaudited Financial Statements

Year Ended 31 August 2019

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2019	2018
Subsidiary undertakings
Sharpness Wind Project No 2 Limited	Lowin House, Tregolls Road, Truro, Cornwall TR1 2NA	Ordinary	100%	100%

Sharpness Wind Project No 2 Limited is not trading.

The profit for the financial period of Sharpness Wind Project No 2 Limited was £nil and the aggregate amount of capital and reserves at the end of the period was £360,100.

5

Debtors

	2019 £	2018 £
Trade debtors	10,238	37,774
Other debtors	27,401	-
Prepayments	2,634	2,908
	40,273	40,682

6

Creditors

Creditors: amounts falling due within one year

	Note	2019  £	2018  £
Due within one year
Loans and borrowings	7	826,275	1,128,781
Trade creditors		2,474	3,102
Amounts due to group undertakings	10	360,000	360,000
Social security and other taxes		4,183	10,159
Accrued expenses		372,828	304,158
		1,565,760	1,806,200

Creditors includes a director's loan of £374,402 (2018 - £518,397) which is secured.

Page 8

Sharpness Wind Project Limited

Notes to the Unaudited Financial Statements

Year Ended 31 August 2019

7	Loans and borrowings

	2019 £	2018 £
Current loans and borrowings
Other borrowings	826,275	1,128,781

8	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary shares of £1 each	100	100	100	100

9	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £37,297 (2018 - £37,947). At 31 August 2019 the company had annual commitments under operating leases.

Page 9

Sharpness Wind Project Limited

Notes to the Unaudited Financial Statements

Year Ended 31 August 2019

10	Related party transactions

Summary of transactions with all subsidiaries
 

Sharpness Wind Project No 2 Limited
  The company operates a loan account with its subsidiary company in respect of the assignment of a lease of land at Sharpness Docks. At the balance sheet date the amount due to Sharpness Wind Project No 2 Lmited was £360,000 (2018 £360,000). The loan is interest free.

Summary of transactions with other related parties
 

Mr J J Fabby, Director

Mr Fabby has provided working capital to the company by way of a director's loan. At 31 August 2019 the amount due to Mr Fabby was £374,402 (2018 £518,397). Interest is accruing at 7% per annum on this loan.

Mr E J W Bakker, Director

Mr Bakker has provided working capital to the company by way of a director's loan and a loan from a company under his control. At 31 August 2019 the amount due to Mr Bakker was £231,120 (2018 £389,631) and to the company under his control was £220,753 (2018 £220,753). Interest is accruing at 7% per annum on these loans.



 

Page 10