BELMONT_INVESTMENTS_LIMIT - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Belmont Investments Limited's principal activity is that of a non-trading intermediate holding company.

The company is a private company limited by shares and is incorporated and domiciled in Wales. The address of its registered office is: 2 Park Pavilions Clos Llwyn Cwm, Valley Way, Enterprise Park, Swansea, SA6 8QY.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income

• Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Energist (Holdings) Limited as at 31 December 2020 and these consolidated financial statements may be obtained from Companies House.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

The company has taken advantage of the exemption afforded to wholly owned subsidiaries not to disclose details of related party transactions with wholly owned subsidiaries of the group.

These financial statements are prepared on the going concern basis. The director has a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the director is aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern.

The company is reporting a result of £Nil (2019: £Nil) for the year ended 31 December 2020 and at this date had net current liabilities of £2,223,703 (2019: £2,223,703), principally relating to amounts due to fellow Energist group companies. The Energist group, headed by the ultimate parent company Energist (Holdings) Limited, continues to report losses. As at 31 December 2020 the group has net current assets of £219,862 (2019: £94,108) but remains reliant on the long terms support of its shareholders, to whom £65,458,083 was due after more than one year as at 31 December 2020 (2019: £55,955,448).

The situation arising during the year in the UK and globally in respect of Covid-19 and the measures taken by both the UK Government to contain the virus has had a significant impact on the business in the post year end period. The group has taken action to safeguard its operations during this period.

The directors have undertaken a review of the group's financial position. The directors have prepared forecasts, including a consideration of where disruption from Covid-19 continues to impact the customer base or supply chain. The forecasts indicate, with on-going shareholder support, and based on the anticipated level of sales, there is a reasonable expectation that the company and group will be able to operate within its current level of agreed facilities for a period of at least 12 months from the date of approval of these financial statements.

The group's shareholders continue to demonstrate their commitment and support to the group, and during the year invested additional loans into Energist (Holdings) Limited as well as waiving the commencement of repayments on these and existing loans until 31 December 2023. Further the directors have obtained confirmation from the group's shareholders that it is their current intention to support the business to enable the group to meet its financial commitments for a period of at least 12 months from the date of approval of these financial statements,

The extent of any future impact of Covid-19 is unclear and it is difficult to evaluate all the potential implications on the group's trade, customers, suppliers and the wider economy. Should the forecast level of sales and profitability not be achieved, the business would need to seek further funding in order to bridge the cashflow position. This represents a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern. However, after considering the above matters, and the expected continued support of the group's shareholders, the directors are satisfied that it is appropriate to continue to prepare the financial statements on a going concern basis. The financial statements therefore do not include the adjustments required should the Company be unable to continue as a going concern.

Interests in subsidiaries are initally measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The financial statements have been prepared on a going concern basis, which assumes that sufficient funds will be available for the group to continue in operational existence for the foreseeable future. More details are set out in note 1.2 of the accounting policies.

The average monthly number of persons (including directors) employed by the company during the year was:

No directors received emoluments during the year for their services to the company (2019: £Nil). The directors are employed and remunerated by another group entity for their services to the group as a whole, and it is not possible to distinguish the amounts attributable for services provided to Belmont Investments Limited.

Financial liabilities measured at amortised cost comprise amounts owed to group undertakings and accruals.

Both classes of shares rank pari passau in all aspects apart from that Ordinary A shares have priority of return of funds in the event of a winding up of the company.

Share premium

Share premium represents the amount subscribed for share capital in excess of the nominal value. There was no movement on the share premium account during the financial year.

Profit and loss account

The profit and loss account represents the accumulated profits, losses and distributions of the company.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The company has entered into cross guarantees for the group's bank in respect of the borrowings of its subsidiary Energist Limited. At 31 December 2020 the contingent liability in respect of the borrowings was £92,327 (2019: £107,500).

The company is part of a cross guarantee to secure the shareholder loans and loan notes of its Ultimate Parent Company. As at 31 December 2020, the value of these outstanding loans and loan notes, including accrued interest and redemption premiums was £25,173,514 (2019: £23,514,481).

Details of the company's subsidiaries at 31 December 2020 are as follows:

Energist Limited is a wholly owned subsidiary of Belmont Investments Limited.

Energist NA is a wholly owned subsidiary of Energist Limited.

The directors have reviewed the carrying values of the company's investments as at 31 December 2020, and in their opinion believe that the carrying values are appropriate based on current underlying financial positions of each company.

The directors regard Energist (Holdings) Limited, a company registered in England and Wales as the ultimate parent company. Energist (Holdings) Limited has a 100% interest in the equity capital of Belmont Investments Limited.

The parent company of the largest and smallest group to include the Company in its consolidated financial statements is Energist (Holdings) Limited, a company registered in England and Wales. Copies of its consolidated financial statements are available from Companies House.

As at 31 December 2020 the directors consider the ultimate controlling party to be Beaubridge Energist LLP by virtue of its shareholding in Energist (Holdings) Limited. The directors considered there to be no ultimate controlling party as at 31 December 2019.