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| Directors |
Silke Ehrhart (Appointed 2 June 2020) |
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Robert Howard Johnson (Appointed 7 May 2020) |
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Vanessa Godefroy (Appointed 15 May 2020) |
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Olivier Terneaud (Appointed 7 May 2020) |
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Sam Roch-Perks |
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Hugh Kelly (Resigned 5 June 2020) |
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Kevin Banister (Resigned 2 March 2020) |
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| Company Secretary |
Hugh C Kely |
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| Company Number |
11116383 |
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| Registered Office and Business Address |
Bridge Innovation Centre |
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Pembrokeshire Science & Technology Park |
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Pembroke Dock |
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SA72 6UN |
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| Auditors |
KPMG LLP |
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Chartered Accountants and Statutory Auditor |
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15 Canada Square, |
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London |
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E14 5GL |
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| Bankers |
Bank of Ireland |
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53 The Square |
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Crossmaglen |
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Newry |
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BT35 9HQ |
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| 2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements. |
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Statement of compliance |
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The financial statements of the company for the period ended 31 December 2020 have been prepared in accordance with the provisions of FRS 102 Section 1A (Small Entities) and the Companies Act 2006. |
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Basis of preparation |
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The financial statements have been prepared in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
Going concern
Notwithstanding net current liabilities of £1.3mn as at 31 December 2020, a loss for the year then ended of £0.048mn, the financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons:
The directors have prepared project development cost forecasts for a period of 12 months from the date of approval of these financial statements which indicate that, taking account of reasonably possible downsides, the company will have sufficient funds, through funding from its immediate parent company TotalEnergies Offshore Wind Holdings UK Limited to meet its liabilities as they fall due for the period. The borrowing facility of £72mn provided by TotalEnergies Offshore Wind Holdings UK Limited is not due for repayment until 2026 at project completion and as at 31 August 2021, £54.9mn of the facility is undrawn to meet future project costs.
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the approval of the financial statements and therefore have prepared the financial statements on a going concern basis. |
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Intangible fixed assets |
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Grid Connection expenditure is written off in the same year unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period from which the company is expected to benefit. Amortisation is not provided for until the grid connection becomes operational. |
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Tangible fixed assets and depreciation |
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Tangible fixed assets are stated at cost or at valuation, less accumulated depreciation if applicable. The charge to depreciation is calculated to write off the original cost or valuation of tangible fixed assets, less their estimated residual value, over their expected useful lives as follows: |
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Plant and machinery |
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10% Straight line |
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Development Costs |
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0% |
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The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.
Development costs are costs in relation to tangible assets that are not yet brought into use. Accordingly, Development costs are depreciated at 0%. |
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Trade and other debtors |
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Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts. |
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Cash and cash equivalents |
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Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the Balance Sheet bank overdrafts are shown within Creditors. |
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Borrowing costs |
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Borrowing costs relating to the acquisition of assets are capitalised at the appropriate rate by adding them to the cost of assets being acquired. Investment income earned on the temporary investment of specific borrowings pending their expenditure on the assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred. |
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Trade and other creditors |
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Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. |
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Taxation and deferred taxation |
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Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Balance Sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.
Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.
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. |
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Foreign currencies |
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Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Balance Sheet date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Profit and Loss Account. |
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Grid Connection |
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Financial Instruments |
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Other financial instruments |
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Other financial instruments not meeting the definition of Basic Financial Instruments are recognised initially at fair value. Subsequent to initial recognition other financial instruments are measured at fair value with changes recognised in profit or loss. |
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Ordinary share capital |
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The ordinary share capital of the company is presented as equity. |
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| 16. |
PARENT AND ULTIMATE PARENT COMPANY |
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The immediate parent company isTotalEnergies Offshore Wind Holdings UK Limited. |
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The company's ultimate parent undertaking is Total Energies. |
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Copies of the financial statements of Total Energies can be obtained from:
2, Place Jean Millier, La Defense 6, 92400 Courbevoie, France. |
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Total Energies is the largest and smallest group for which group financial statements are prepared. |
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Total Energies is a company registered in France. |
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