Garth Wind Limited - Filleted accounts

Garth Wind Limited - Filleted accounts

GARTH WIND LIMITED - Company Information

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Registered number
SC451598
Garth Wind Limited
Filleted Accounts
31 March 2020
Garth Wind Limited
Registered number: SC451598
Balance Sheet
as at 31 March 2020
Notes 2020 2019
£ £
Fixed assets
Tangible assets 3 7,145,867 7,596,192
Current assets
Debtors 4 369,692 255,091
Cash at bank and in hand 619,057 502,571
988,749 757,662
Creditors: amounts falling due within one year 5 (507,887) (874,972)
Net current assets/(liabilities) 480,862 (117,310)
Total assets less current liabilities 7,626,729 7,478,882
Creditors: amounts falling due after more than one year 6 (7,484,090) (7,362,481)
Provisions for liabilities (103,585) (54,084)
Net assets 39,054 62,317
Capital and reserves
Called up share capital 1 1
Profit and loss account 39,053 62,316
Shareholders' funds 39,054 62,317
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
A Nisbet
Director
Approved by the board on 17 June 2020
Garth Wind Limited
Notes to the Accounts
for the year ended 31 March 2020
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).

The presentation currency is £ sterling.
Going Concern
The financial statements have been prepared on the going concern basis. The directors have considered a period of twelve months from the date of signature of the accounts and have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. It is therefore considered appropriate to continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Turnover and revenue recognition
Turnover represents sales in the period net of VAT. Sales are recognised at the point at which the company has fulfilled its contractual obligation and the risks and rewards attaching to the product have been transferred to the customer.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Borrowing costs during the period of construction are capitalised. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows.
Plant and machinery 5% straight line.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Financial instruments
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument.

Basic financial assets and liabilities are recognised initially at transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt interest. Debt instruments are subsequently measured at amortised cost using the effective interest method.

The company applies hedge accounting in relation to the foreign currency risk of unrecognised firm commitments deriving from the construction of wind turbines which are invoiced in Euros.

The hedge of the foreign currency risk of an unrecognised firm commitment is accounted for as a fair value hedge. The gain or loss on the hedging instrument is recognised in profit or loss and the hedging gain or loss on the hedged item adjusts the carrying amount of the hedged item. As the hedged item is an unrecognised firm commitment, the cumulative hedging gain or loss on the hedged item is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss.

No other strategy has been adopted with respect of the risk management of the wind turbines as the company believes the asset to have been appropriately hedged.

The initial carrying amount of the asset or liability that results from the company meeting the firm commitment is adjusted to include the cumulative hedging gain or loss of the hedged item that was recognised in the Balance Sheet.
2 Audit information
The audit report is unqualified.
Senior statutory auditor: Kevin Cattanach
Firm: Whitelaw Wells
Date of audit report: 17 June 2020
3 Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2019 8,436,537
Reclassification (28,501)
At 31 March 2020 8,408,036
Depreciation
At 1 April 2019 840,345
Charge for the year 421,824
At 31 March 2020 1,262,169
Net book value
At 31 March 2020 7,145,867
At 31 March 2019 7,596,192
Finance costs of £386,402 (2019: £386,402) directly attributable to the construction of the tangible fixed assets have been capitalised as part of the cost of these assets.
4 Debtors 2020 2019
£ £
Trade debtors - 182,806
Other debtors 369,692 72,285
369,692 255,091
5 Creditors: amounts falling due within one year 2020 2019
£ £
Bank loans and overdrafts 383,428 741,952
Trade creditors 6,519 2,348
Taxation and social security costs 44,296 38,656
Other creditors 73,644 92,016
507,887 874,972
6 Creditors: amounts falling due after one year 2020 2019
£ £
Bank loans 7,484,090 7,362,481
7 Loans 2020 2019
£ £
Creditors include:
Instalments falling due for payment after more than five years 5,900,314 4,942,014
Secured bank loans 7,980,992 8,196,361
Triodos Bank NV hold a bond, fixed and floating charge over the assets of the company.
8 Other financial commitments
Lease commitments are based on a percentage of gross income each year. There is no minimum commitment.

Other minimum financial commitments total £717,790 (2019: £740,817) in relation to the service and maintenance agreement.
9 Other information
Garth Wind Limited is a private company limited by shares and incorporated in Scotland. Its registered office is:
Keldahoul
Cullivoe
Yell
Shetland
ZE2 9DD
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