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Registered number: 11944677
GWCM LTD
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE PERIOD ENDED 30 JUNE 2020
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GWCM LTD
REGISTERED NUMBER: 11944677
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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GWCM LTD
REGISTERED NUMBER: 11944677
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 JUNE 2020
The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 April 2021.
The notes on pages 3 to 10 form part of these financial statements.
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GWCM LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2020
GWCM Ltd is a private company limited by shares and incorporated in England. Its registered
office is Clapgate Farm, Ashby Puerorum, Horncastle, Lincolnshire, LN9 6QU
The principal activity of the Company is to support the activities of its subsidiary companies which are involved in the operation of an anaerobic digestion plant exporting electricity to the grid.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The financial statements are presented in sterling which is the functional currency of the Company and rounded to the nearest £.
The following principal accounting policies have been applied:
The Company's financial statements have been prepared on the going concern basis. The Companys reliant on financing provided by its parent Company. The Company’s and the group's ability to continue as a going concern is assisted by the availability of external finance which is provided in the form of a third party loan.
The directors have further considered the Company's position at the time of signing the financial
statements in relation to the effects of Covid-19 and its potential impact on the Company, the group
and the wider economy. Given the nature of the operations of the Company's subsidiaries and the fact that there is a desire from the government for renewable energy usage to increase the directors do not consider that the Company will be significantly affected. Nevertheless, the directors have considered the Company's financial position, togetherwith the range of measures the directors could take to mitigate ongoing costs should they need to.
Based on this, the directors have concluded that they have a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of signing these financial statement, and they therefore continue to adopt the going concen basis of accouting in preparing these financial statements.
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GWCM LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2020
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.
Revenue 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 measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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GWCM LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2020
2.Accounting policies (continued)
All borrowing costs are recognised in profit or loss in the period in which they are incurred.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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GWCM LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2020
2.Accounting policies (continued)
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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 asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, 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.
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The average monthly number of employees, including the directors, during the period was as follows:
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GWCM LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2020
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Charge for the period on owned assets
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Investments in subsidiary companies
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GWCM LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2020
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The following were subsidiary undertakings of the Company:
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Clapgate Farm Energy Limited
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As per company information page
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Grange Farm Renewable Energy Limited
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As per company information page
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Wildmore Renewables Limited
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As per company information page
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Manor Farm Community Energy Limited
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As per company information page
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The aggregate of the share capital and reserves as at 30 June 2020 and the profit or loss for the period ended on that date for the subsidiary undertakings were as follows:
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Aggregate of share capital and reserves
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Clapgate Farm Energy Limited
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Grange Farm Renewable Energy Limited
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Wildmore Renewables Limited
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Manor Farm Community Energy Limited
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GWCM LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2020
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Due after more than one year
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Amounts owed by group undertakings
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Amounts owed by group undertakings
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Prepayments and accrued income
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There are no formal loan agreement in place in relation to amounts owed by group undertakings, the amounts owed are split between due within and after one year based on the amounts expected to be repaid to GWCM Limited in order to enable to GWCM to meet its external debt repayments. The directors consider this presentation to be appropriate and believe this reflects the economic substance of the transactions.
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Secured creditors
Loans amounting to £11,495,365 and net obligations under finance leases and hire purchase contracts amount to £192,661 are secured via a fixed charge over all assets of the group.
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Related party transactions
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The company qualifies for the exemption under FRS 102 to not disclose transactions between wholly owned group members.
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GWCM LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2020
The auditors' report on the financial statements for the period ended 30 June 2020 was unqualified.
The audit report was signed on 13 April 2021 by Ian Fitch FCA (Senior statutory auditor) on behalf of Larking Gowen.
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