ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

As restated

Caseware UK (AP4) 2021.0.152 2021.0.152 2021-12-312021-12-312021-12-31truefalsetruetruetrue42021-01-01false5 NI061631 2021-01-01 2021-12-31 NI061631 2020-01-01 2020-12-31 NI061631 2021-12-31 NI061631 2020-12-31 NI061631 c:PriorPeriodIncreaseDecrease 2021-01-01 2021-12-31 NI061631 c:RestatedAmount 2020-12-31 NI061631 d:Director1 2021-01-01 2021-12-31 NI061631 d:Director2 2021-01-01 2021-12-31 NI061631 d:Director2 2021-12-31 NI061631 d:Director3 2021-01-01 2021-12-31 NI061631 d:Director4 2021-01-01 2021-12-31 NI061631 d:Director5 2021-01-01 2021-12-31 NI061631 d:RegisteredOffice 2021-01-01 2021-12-31 NI061631 c:Buildings 2021-01-01 2021-12-31 NI061631 c:Buildings 2021-12-31 NI061631 c:Buildings 2020-12-31 NI061631 c:Buildings c:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 NI061631 c:Buildings c:PriorPeriodIncreaseDecrease 2021-01-01 2021-12-31 NI061631 c:Buildings c:RestatedAmount 2020-12-31 NI061631 c:Buildings c:ShortLeaseholdAssets 2021-01-01 2021-12-31 NI061631 c:Buildings c:ShortLeaseholdAssets 2021-12-31 NI061631 c:Buildings c:ShortLeaseholdAssets 2020-12-31 NI061631 c:Buildings c:ShortLeaseholdAssets c:PriorPeriodIncreaseDecrease 2021-01-01 2021-12-31 NI061631 c:Buildings c:ShortLeaseholdAssets c:RestatedAmount 2020-12-31 NI061631 c:PlantMachinery 2021-01-01 2021-12-31 NI061631 c:PlantMachinery 2021-12-31 NI061631 c:PlantMachinery 2020-12-31 NI061631 c:PlantMachinery c:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 NI061631 c:PlantMachinery c:PriorPeriodIncreaseDecrease 2021-01-01 2021-12-31 NI061631 c:PlantMachinery c:RestatedAmount 2020-12-31 NI061631 c:OtherPropertyPlantEquipment 2021-01-01 2021-12-31 NI061631 c:OtherPropertyPlantEquipment 2021-12-31 NI061631 c:OtherPropertyPlantEquipment 2020-12-31 NI061631 c:OtherPropertyPlantEquipment c:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 NI061631 c:OtherPropertyPlantEquipment c:PriorPeriodErrorIncreaseDecrease 2021-01-01 2021-12-31 NI061631 c:OtherPropertyPlantEquipment c:RestatedAmount 2020-12-31 NI061631 c:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 NI061631 c:CurrentFinancialInstruments 2021-12-31 NI061631 c:CurrentFinancialInstruments 2020-12-31 NI061631 c:CurrentFinancialInstruments c:WithinOneYear 2021-12-31 NI061631 c:CurrentFinancialInstruments c:WithinOneYear 2020-12-31 NI061631 c:UKTax 2021-01-01 2021-12-31 NI061631 c:UKTax 2020-01-01 2020-12-31 NI061631 c:ShareCapital 2021-12-31 NI061631 c:ShareCapital 2020-12-31 NI061631 c:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 NI061631 c:RetainedEarningsAccumulatedLosses 2021-12-31 NI061631 c:RetainedEarningsAccumulatedLosses c:PriorPeriodIncreaseDecrease 2021-01-01 2021-12-31 NI061631 c:RetainedEarningsAccumulatedLosses 2020-01-01 2020-12-31 NI061631 c:RetainedEarningsAccumulatedLosses 2020-12-31 NI061631 c:RetainedEarningsAccumulatedLosses c:RestatedAmount 2020-12-31 NI061631 c:RetainedEarningsAccumulatedLosses c:PriorPeriodIncreaseDecrease 2020-01-01 2020-12-31 NI061631 c:RetainedEarningsAccumulatedLosses 2020-01-01 NI061631 c:RetainedEarningsAccumulatedLosses c:RestatedAmount 2020-01-01 NI061631 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2021-12-31 NI061631 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2020-12-31 NI061631 c:AcceleratedTaxDepreciationDeferredTax 2021-12-31 NI061631 c:AcceleratedTaxDepreciationDeferredTax 2020-12-31 NI061631 d:OrdinaryShareClass1 2021-01-01 2021-12-31 NI061631 d:OrdinaryShareClass1 2021-12-31 NI061631 d:OrdinaryShareClass1 2020-12-31 NI061631 d:FRS102 2021-01-01 2021-12-31 NI061631 d:Audited 2021-01-01 2021-12-31 NI061631 d:FullAccounts 2021-01-01 2021-12-31 NI061631 d:PrivateLimitedCompanyLtd 2021-01-01 2021-12-31 NI061631 c:WithinOneYear 2021-12-31 NI061631 c:WithinOneYear 2020-12-31 NI061631 c:BetweenOneFiveYears 2021-12-31 NI061631 c:BetweenOneFiveYears 2020-12-31 NI061631 c:MoreThanFiveYears 2021-12-31 NI061631 c:MoreThanFiveYears 2020-12-31 NI061631 2 2021-01-01 2021-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: NI061631

MANTLIN LIMITED

AUDITED

ANNUAL REPORT
AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED
31 DECEMBER 2021

MANTLIN LIMITED

COMPANY INFORMATION

Directors	Mrs S J Johnston
	Mr S C J Ellis (resigned 16 August 2021)
	Mr N S Parker
	Mr R A J Wright
	Mr P W Kent


Registered number	NI061631


Registered office	42-46 Fountain Street
	Belfast
	Northern Ireland
	BT1 5EF


Independent auditors	Wellden Turnbull Limited
	Chartered Accountants & Statutory Auditors
	Albany House
	Claremont Lane
	Esher
	Surrey
	KT10 9FQ

MANTLIN LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditors' Report	5 - 8
Statement of Income and Retained Earnings	9
Balance Sheet	10
Notes to the Financial Statements	11 - 21

MANTLIN LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

Introduction

The Directors present their strategic report for the Company for the year ended 31 December 2021.

Business review

The Company's principal activity during the year under review continued to be the operation of wind farms.
Key financial and other performance indicators during the year were as follows:

	2021	As restated 2020	Variance
	£	£	%
Turnover	21,610,604	15,615,101	38
Operating profit	14,994,832	8,221,621	82
Profit after tax	11,190,306	7,649,257	46
Net assets	27,645,045	27,337,773	1

Except for net assets all of the Company's KPI's have significantly improved compared to the prior year predominantly because of the increase in market electricity prices in the latter half of 2021.
Net assets have increased by 1% as the dividends declared and paid in the year of £10,883,034 were marginally less than the profit after tax generated in the period.
The increase in electricity prices compensated for a reduction in MWh generated such that revenue increased by 38% compared to 2020.
The reduction in cost of sales, combined with the significant increase in turnover, caused operating profit and profit after tax to increase by 82% and 46% respectively. Cost of sales reduced predominantly due to the reduction in blade repairs in the year compared to the prior year.

Principal risks and uncertainties

In the ordinary course of business, the Company is exposed to and manages a variety of risks in relation to its activities. The management of risk is fundamental to the Company and is closely monitored by the Board of Directors who have responsibility for the overall system of internal control and for reviewing its effectiveness.
The principal risks and uncertainties facing the Company are set out below.

Competitive risks

The Company is reliant on certain key suppliers for contracts which are subject to periodic competitive tender. Renewal of these contracts is not guaranteed and is based on financial and performance criteria.

Legislative risks

The operation of wind farms requires the Company to comply with regulatory standards. These standards are subject to continuous revision and any new Directive may impose additional compliance costs on the Company which would require it to revise its business plan.

Technical risks

The Company is exposed to the technical challenges inherent in the operation of a wind farm which, if not carefully managed, could impact electricity generation. To mitigate this technical risk the Company has employed a team of experienced contractors to monitor wind farm performance and advise on appropriate levels of essential spares.

Page 1

MANTLIN LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Revenue market risks

The Company is exposed to the unpredictable nature of wind and changing market prices which has a direct impact on the revenue generated from electricity production and hence profitability. These risks are managed by regularly updating revenue forecasts with market price and wind generation projections prepared by reputable consulting companies. The forecasts are also adjusted to reflect the terms of the underlying power purchase agreements.

This report was approved by the board and signed on its behalf.

Mr P W Kent

Director

Date: 29 June 2022

Page 2

MANTLIN LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

The Directors present their report and the financial statements for the year ended 31 December 2021.

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the Directors are required to:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgements and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Company in the period under review was that of the operation of a wind farm.

Results and dividends

The profit for the year, after taxation, amounted to £11,190,306 (2020 - £7,649,257).

Dividends were declared and paid in the year of £10,883,034 (2020 - £7,638,243).

Directors

The Directors who served during the year were:

Mrs S J Johnston

Mr S C J Ellis (resigned 16 August 2021)

Mr N S Parker

Mr R A J Wright

Mr P W Kent

Future developments

Management will continue to introduce improvements to electricity generation to ensure the continued profitability of the Company in the long term subject to wind performance, volatility in market energy prices and changes to working capital requirements.

Page 3

MANTLIN LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Financial instruments

The Company has established a risk and financial management framework to protect the Company from events that hinder the achievement of the Company's performance objectives. The objective is to limit undue counterparty exposure, ensure sufficient working capital exists and monitor the management of risk at a business unit level. Steps taken by management to achieve this include reviewing asset performance against forecasts to ensure cash flow generation is in line with expectations; monitoring day to day operations to ensure cash inflows are sufficient to cover expected cash outflows; and reviewing financial information on a monthly basis to ensure appropriate financing is in place and available to be deployed as and when required.
The principal risks the Company is exposed to in relation to its financial instruments are set out below.
Credit risk
Credit risk refers to the risk of a loss arising following a customer failing to meet their contractual obligations. The Company manages credit risk by monitoring outstanding amounts due in the context of agreed credit terms.
Liquidity risk
Liquidity risk is the risk that the Company will fail to meet its financial obligations in a timely and cost effective manner due to mismatches in the maturity profile of assets and liabilities. The Company mitigates liquidity risk by managing cash flows to ensure sufficient funds are available to pay liabilities as and when they fall due.

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditors, Wellden Turnbull Limited, were appointed in the year and will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

Mr P W Kent

Director

Date: 29 June 2022

Page 4

MANTLIN LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MANTLIN LIMITED

Opinion

We have audited the financial statements of Mantlin Limited (the 'Company') for the year ended 31 December 2021, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 December 2021 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 5

MANTLIN LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MANTLIN LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of Directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 6

MANTLIN LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MANTLIN LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

∙Enquiry of management and those charged with governance as to actual and potential litigation and claims;

∙Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations;

∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias;

∙Assessing the reasonableness of revenue recognised in the period based on contractual terms and obligations and the requirement of accounting standards;

∙Reviewing the tax provisions of the Company with the assistance of our independent tax specialists; and

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Page 7

MANTLIN LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MANTLIN LIMITED (CONTINUED)

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Nelligan FCA (Senior Statutory Auditor)

for and on behalf of

Wellden Turnbull Limited

Chartered Accountants

Statutory Auditors

Albany House

Claremont Lane

Esher

Surrey

KT10 9FQ

Date: 1 July 2022

Page 8

MANTLIN LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 DECEMBER 2021

		As restated
	2021	2020
Note	£	£


Turnover	4	21,610,604	15,615,101
Cost of sales		(6,593,055)	(7,300,839)
Gross profit		15,017,549	8,314,262
Administrative expenses		(22,717)	(92,641)
Operating profit	5	14,994,832	8,221,621
Interest receivable and similar income	8	-	4,298
Interest payable and similar expenses	9	-	(60,201)
Profit before tax		14,994,832	8,165,718
Tax on profit	10	(3,804,526)	(516,461)
Profit after tax		11,190,306	7,649,257

Retained earnings
- as previously stated		28,211,446	28,119,921
- correction of a prior period error	20	(873,674)	(793,163)
At the beginning of the year as restated		27,337,772	27,326,758

Profit for the year		11,190,306	7,649,257
Dividends declared and paid	11	(10,883,034)	(7,638,243)
Retained earnings at the end of the year		27,645,044	27,337,772

There were no recognised gains and losses for 2021 or 2020 other than those included in the statement of income and retained earnings.

The notes on pages 11 to 21 form part of these financial statements.

Page 9

MANTLIN LIMITED

REGISTERED NUMBER: NI061631

BALANCE SHEET

AS AT 31 DECEMBER 2021

		As restated
	2021	2020
Note	£	£

Fixed assets
Tangible assets	12		18,671,507		21,415,427
Current assets
Debtors: amounts falling due within one year	13	5,689,885		5,884,741
Cash at bank and in hand	14	11,437,770		4,294,083
		17,127,655		10,178,824
Creditors: amounts falling due within one year	15	(4,362,862)		(1,112,310)
Net current assets			12,764,793		9,066,514
Total assets less current liabilities			31,436,300		30,481,941
Provisions for liabilities
Deferred tax	17	(3,791,255)		(3,144,168)
			(3,791,255)		(3,144,168)
Net assets			27,645,045		27,337,773

Capital and reserves
Called up share capital	18	1	1
Profit and loss account	19	27,645,044	27,337,772
		27,645,045	27,337,773

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr P W Kent

Director

Date: 29 June 2022

The notes on pages 11 to 21 form part of these financial statements.

Page 10

MANTLIN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1.	General information

Mantlin Limited is a private company, limited by shares and incorporated in Northern Ireland, registration number NI061631. The registered office is 42-46 Fountain Street, Belfast, Northern Ireland, BT1 5EF. The principal place of business is Slieve Rushen Phase II, Derrylin, Northern Ireland, BT92 9AU.

2.Accounting policies

2.1

Basis of preparation of financial statements

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 judgement in applying the Company's accounting policies (see note 3).

These 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:

2.2

Compliance with accounting standards

The financial statements have been prepared using FRS102, the financial reporting standard applicable in the UK and Republic of Ireland. There were no material departures from that standard.

2.3

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of GAHL Finco Limited as at 31 December 2021 and these financial statements may be obtained from Companies House.

2.4

Revenue

Turnover 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.

2.5

Operating leases: the Company as lessee

The fixed element of rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 11

MANTLIN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

2.7

Finance costs

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.

2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.9

Tangible fixed assets

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.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Page 12

MANTLIN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

2.9

Tangible fixed assets (continued)

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance methods as set out below..

The estimated useful lives range as follows:

Freehold land	-		Not depreciated
Short-term leasehold property	-	21	years on a straight line basis
Plant and machinery	-	5	years on a straight line basis
Other fixed assets	-	20	years on a reducing balance 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.

2.10

Debtors

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.

2.11

Cash and cash equivalents

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.

2.12

Creditors

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.

2.13

Financial instruments

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.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Page 13

MANTLIN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

2.13

Financial instruments (continued)

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 the Statement of Income and Retained Earnings.

2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements, management is required to make judgements, estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.
The following are the Company's key sources of estimation uncertainty:

Decommissioning liabilities

Provision has not been recognised in respect of wind farm site restoration costs on the basis that the directors have determined the likelihood of a liability arising is remote based on the assumptions that the scrap value of the turbines will be sufficient to cover any decommissioning costs and that there is also the potential that the wind farm will be re-energised and the related site lease renewed. If circumstances indicate otherwise, the company will recognise an appropriate provision.

Turnover

The whole of the turnover is attributable to the Company's principal activity.

All turnover arose within the United Kingdom.

	Exchange differences	6,839	12,986
	Other operating lease rentals	147,756	146,115

Page 14

MANTLIN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

6.	Auditors' remuneration
		2021	2020
		£	£

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements

6,200

10,835

The Company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the group accounts of the parent Company.

Employees

The average monthly number of employees, including the Directors, during the year was as follows:

	2021	2020
	No.	No.

Directors	4	5

8.	Interest receivable
		2021	2020
		£	£

Other interest receivable

4,298

9.	Interest payable and similar expenses
		2021	2020
		£	£

Other interest payable

60,201

Page 15

MANTLIN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Corporation tax
Current tax on profits for the year	2,849,018	214,296
Adjustments in respect of previous periods	308,421	181,061
Total current tax	3,157,439	395,357

Deferred tax
Origination and reversal of timing differences	(262,814)	(234,550)
Changes to tax rates	909,901	355,654
Total deferred tax	647,087	121,104


	Taxation on profit on ordinary activities	3,804,526	516,461

Profit on ordinary activities before tax

14,994,832

8,165,718

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	2,849,018	1,551,486
Effects of:
Expenses not deductible for tax purposes	-	6,213
Capital allowances for year in excess of depreciation	(262,814)	(234,550)
Adjustments to tax charge in respect of prior periods	308,421	181,061
Impact of change in tax rate	909,901	355,654
Group relief	-	(1,343,403)
Total tax charge for the year	3,804,526	516,461

Factors that may affect future tax charges

In March 2021, the Chancellor announced an increase in the corporation tax rate from 19% to 25% with effect from 1 April 2023. This was substantively enacted on 24 May 2021.

Page 16

MANTLIN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

11.	Dividends
		2021	2020
		£	£

Equity dividends on ordinary shares paid

10,883,034

7,638,243

12.	Tangible fixed assets

	Freehold property	Short-term leasehold property	Plant and machinery	Other fixed assets	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2021 (as previously stated)	-	-	41,674	51,277,303	51,318,977
Prior Year Adjustment	576,000	2,980,463	-	(3,556,463)	-
At 1 January 2021 (as restated)	576,000	2,980,463	41,674	47,720,840	51,318,977
Additions	-	-	-	126,000	126,000
At 31 December 2021	576,000	2,980,463	41,674	47,846,840	51,444,977
Depreciation
At 1 January 2021 (as previously stated)	-	-	32,679	28,628,843	28,661,522
Prior Year Adjustment	-	1,242,028	-	-	1,242,028
At 1 January 2021 (as restated)	-	1,242,028	32,679	28,628,843	29,903,550
Charge for the year on owned assets	-	141,890	1,775	2,726,255	2,869,920
At 31 December 2021	-	1,383,918	34,454	31,355,098	32,773,470
Net book value
At 31 December 2021	576,000	1,596,545	7,220	16,491,742	18,671,507
At 31 December 2020 (as restated)	576,000	1,738,435	8,995	19,091,997	21,415,427

Freehold property comprises freehold land which is not depreciated.
Refer to note 20 for details of the prior year adjustments recorded in the period.
The third party borrowings of the Company's parent, GAHL Finco Limited, are secured by a legal charge over all assets of the Company, present and future.

Page 17

MANTLIN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

13.

Debtors

						As restated
					2021	2020
					£	£


Other debtors	90,913	316,581
Prepayments and accrued income	5,598,972	5,110,280
Corporation tax	-	457,880
	5,689,885	5,884,741

Refer to note 20 for details of the prior year adjustments recorded in the period.

14.	Cash and cash equivalents
		2021	2020
		£	£

	Cash at bank and in hand	11,437,770	4,294,083

15.	Creditors: Amounts falling due within one year
		2021	2020
		£	£

Trade creditors	936,256	773,285
Amounts owed to group undertakings	120,000	-
Corporation tax	2,699,560	-
Accruals and deferred income	607,046	339,025
	4,362,862	1,112,310

Amounts owed to group undertakings are interest free and repayable on demand.

16.	Financial instruments
		2021	2020
		£	£

	Financial assets
	Financial assets measured at fair value through profit or loss	11,437,770	4,294,083

Financial assets measured at fair value through profit or loss comprise of cash and cash equivalents.

Page 18

MANTLIN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

17.	Deferred taxation

		2021
		£

	At beginning of year	(3,144,168)
	Charged to profit or loss	(647,087)
	At end of year	(3,791,255)

The provision for deferred taxation is made up as follows:
	2021	2020
	£	£

Accelerated capital allowances

(3,791,255)

(3,144,168)

18.	Share capital
		2021	2020
		£	£

Allotted, called up and fully paid

1 (2020 - 1) Ordinary share of £1.00	1	1

19.

Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

Page 19

MANTLIN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

20.	Prior year adjustment

The following prior year adjustments were recorded in the period:

1.In the prior year operation and management fees relating to the operation of the wind turbines were presented in administrative expenses. During the year management reviewed the nature of the expense and concluded that it is more appropriate to present these fees in cost of sales. An amount of £460,659 has been reclassified from administrative expenses to cost of sales. The impact on the profit for the prior year was £Nil.

2.In prior years freehold and leasehold land were categorised as 'Other fixed assets'. Management have reviewed the categorisation of fixed assets and have concluded that it is more appropriate to present freehold and leasehold land seperately. To correct the classification error an amount of £576,000 was reclassified from 'Other fixed assets' to 'Freehold property' and an amount of £2,980,463 was reclassified from 'Other fixed assets' to 'Short-term leasehold property'. The impact on the profit for the prior year was £Nil.

3.In prior years leasehold land previously included in 'Other fixed assets' was, in error, not depreciated causing the profit and loss account to be overstated.

4.In prior years a rent prepayment was incorrectly calculated causing the profit and loss account to be understated.

The table below sets out the impact of adjustments 3 and 4 on the prior year financial statements:

		As previously stated	Adjustment 3	Adjustment 4	As restated
		£	£	£	£


Brought forward retained earnings	28,119,921	(1,099,704)	306,541	27,326,758
Fixed assets	22,657,455	(1,242,028)	-	21,415,427
Prepayments and accrued income	4,741,927	-	368,354	5,110,280
Profit after tax	7,729,768	(142,324)	61,813	7,649,257

Not later than 1 year	80,147	80,147
Later than 1 year and not later than 5 years	347,981	338,850
Later than 5 years	670,586	759,864
	1,098,714	1,178,861

The future minimum lease payments disclosed in the prior year were understated by £233,893. The prior year figures have been restated to correct for this.

Page 20

MANTLIN LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

22.Financial commitments

At 31 December 2021, the Company had entered into the following financial commitments. The commitments have been calculated based on the non-cancellable period set out in the underlying contracts. The amounts stated represent the base charges. Actual payments will be adjusted for inflation indexation and are therefore greater than the amounts stated below.

					Total commitment
					£


	Management Service Agreement	99,396
	Turbine Servicing Agreement	621,000
	Other agreements	110,438
		830,834

Total commitments disclosed above are due less than one year.

23.	Related party transactions
	The Company is exempt under the terms of Financial Reporting Standard 102 (FRS102) Section 33 paragraph 1A, from disclosing related party transactions with other group companies, on the grounds that the Company is wholly owned within the Group and the Company is included in the consolidated financial statements prepared by the Group.

24.	Controlling party

The Company's immediate parent company is GAHL Finco Limited, a company incorporated in England and Wales.
The ultimate parent and controlling party is Gravis Asset Holdings Limited, a company incorporated in England and Wales.
The smallest group of undertakings into which the results of the Company are consolidated is headed by GAHL Finco Limited. The largest group of undertakings into which the results of the Company are consolidated is headed by Gravis Asset Holdings Limited.
The registered office address for both GAHL Finco Limited and Gravis Asset Holdings Limited is 24 Savile Row, London, W1S 2ES. The consolidated financial statements are available from the registered office address and Companies House.

Page 21