Ethical Energy Developments Ltd - Period Ending 2020-07-31

Ethical Energy Developments Ltd

Contents

Balance Sheet	1 to 2
Notes to the Financial Statements	3 to 7

Ethical Energy Developments Ltd

Balance Sheet

31 July 2020

	Note	2020 £	2019 £
Fixed assets
Tangible assets	4	115,419	125,448
Current assets
Debtors	5	10,898	12,624
Cash at bank and in hand		5,079	1,238
		15,977	13,862
Creditors: Amounts falling due within one year	6	(94,714)	(86,977)
Net current liabilities		(78,737)	(73,115)
Total assets less current liabilities		36,682	52,333
Creditors: Amounts falling due after more than one year	6	(18,949)	(29,285)
Provisions for liabilities	8	(3,356)	(3,917)
Net assets		14,377	19,131
Capital and reserves
Called up share capital		3	3
Profit and loss account		14,374	19,128
Total equity		14,377	19,131

Ethical Energy Developments Ltd

Balance Sheet

31 July 2020

For the financial year ending 31 July 2020 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 3 November 2020 and signed on its behalf by:
 

......................................... Mr P McIntosh Director

Company Registration Number: 08164283

Ethical Energy Developments Ltd

Notes to the Financial Statements

Year Ended 31 July 2020

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:
C/O PVM Consultants Limited
Trevithick
Brunel Business Park
St Austell
Cornwall
PL25 4TJ

These financial statements were authorised for issue by the Board on 3 November 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.

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 value added tax, returns, rebates and discounts and after eliminating sales within the company.

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.

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.

Ethical Energy Developments Ltd

Notes to the Financial Statements

Year Ended 31 July 2020

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	8% reducing balance

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; 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.

Except for bank loans, 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.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

Ethical Energy Developments Ltd

Notes to the Financial Statements

Year Ended 31 July 2020

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 0 (2019 - 0).

4	Tangible assets

	Other property, plant and equipment  £
Cost or valuation
At 1 August 2019	200,424
At 31 July 2020	200,424
Depreciation
At 1 August 2019	74,976
Charge for the year	10,029
At 31 July 2020	85,005
Carrying amount
At 31 July 2020	115,419
At 31 July 2019	125,448

5

Debtors

	2020  £	2019  £
Trade debtors	548	4,358
Other debtors	673	33
Prepayments and accrued income	9,677	8,233
	10,898	12,624

Ethical Energy Developments Ltd

Notes to the Financial Statements

Year Ended 31 July 2020

6

Creditors

Creditors: amounts falling due within one year

	Note	2020 £	2019  £
Due within one year
Loans and borrowings	7	9,777	11,278
Trade creditors		1,780	2,290
Other creditors		82,482	72,723
Accrued expenses		675	686
		94,714	86,977

Creditors: amounts falling due after more than one year

	Note	2020 £	2019 £
Due after one year
Loans and borrowings	7	18,949	29,285

7	Loans and borrowings

	2020 £	2019 £
Loans and borrowings due after one year
Bank borrowings	18,949	29,285

	2020 £	2019 £
Current loans and borrowings
Bank borrowings	9,777	11,278

The bank has a fixed and floating charge over the company assets. The directors have given a personal guarantee over the loan amount.

8	Deferred taxation

Provisions for liabilities includes £3,356 (2019 - £3,917) related to deferred tax caused by timing differences between accounting profit and taxable profit. Included in the statement of income and retained earnings is taxation of (£561) (2019 - £1,507) related to movements in deferred tax.

Ethical Energy Developments Ltd

Notes to the Financial Statements

Year Ended 31 July 2020

9	Share capital

Allotted, called up and fully paid shares

	2020		2019
	No.	£	No.	£
Ordinary shares of £0.10 (2019 - £1) each	30	3.00	3	3

On 7 November 2019, there was a sub-division of shares. This changed the nominal value of the shares in issue from £1 per ordinary share to £0.10 per ordinary share, resulting in the total number of shares issued increasing from 3 to 30 shares.

10	Related party transactions

Loans from related parties

2020	Entities with joint control or significant influence £
At start of period	24,241
Advanced	18,000
At end of period	42,241

2019	Entities with joint control or significant influence £	Other related parties £
At start of period	26,741	26,241
Repaid	(2,500)	(26,241)
At end of period	24,241	-

Terms of loans from related parties

Loans owed to other related parties are interest free and repayable on demand.