Fraddon Biogas Limited - Period Ending 2020-12-31

Fraddon Biogas Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 11

Fraddon Biogas Limited

Company Information

Directors

Mr A Laniado Mr J Lourens

Registered office

Penare Farm Higher Fraddon St Columb TR9 6NL

Accountants

Francis Clark LLP Chartered Accountants Centenary House Peninsula Park Rydon Lane Exeter EX2 7XE

Fraddon Biogas Limited

Balance Sheet

31 December 2020

	Note	2020 £	2019 £
Fixed assets
Tangible assets	5	6,897,937	7,236,632
Current assets
Debtors	6	1,163,921	1,172,684
Creditors: Amounts falling due within one year	7	(485,100)	(899,378)
Net current assets		678,821	273,306
Total assets less current liabilities		7,576,758	7,509,938
Creditors: Amounts falling due after more than one year	7	(12,392,961)	(10,950,194)
Provisions for liabilities		900,000	900,000
Net liabilities		(3,916,203)	(2,540,256)
Capital and reserves
Called up share capital	9	20	20
Share premium reserve		2,214,533	2,214,533
Profit and loss account		(6,130,756)	(4,754,809)
Shareholders' deficit		(3,916,203)	(2,540,256)

Fraddon Biogas Limited

Balance Sheet

31 December 2020

For the financial year ending 31 December 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 22 June 2021 and signed on its behalf by:
 

......................................... Mr J Lourens Director

Company Registration Number: 08803919

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 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 and principal place of business is:
Penare Farm
Higher Fraddon
St Columb
TR9 6NL

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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', including Section 1A, and the Companies Act 2006. There are no material departures from FRS102.

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.

Going concern

The directors of the company have considered the impact of COVID-19. In the opinion of the directors, the company has sufficient working capital within existing facilities to continue to trade for the foreseeable future, and therefore the financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax.

Tax

Tax is recognised in the 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.

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.

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2020

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	5% straight line

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2020

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors; 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.

 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 5 (2019 - 4).

4	Other income

Other income of £3.4m in the profit and loss account relates to compensation received in relation to a legal matter during the previous year (2019).

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2020

5	Tangible assets

	Plant and machinery  £	Total £
Cost or valuation
At 1 January 2020	9,408,182	9,408,182
Additions	138,647	138,647
At 31 December 2020	9,546,829	9,546,829
Depreciation
At 1 January 2020	2,171,550	2,171,550
Charge for the year	477,342	477,342
At 31 December 2020	2,648,892	2,648,892
Carrying amount
At 31 December 2020	6,897,937	6,897,937
At 31 December 2019	7,236,632	7,236,632

6

Debtors

	2020 £	2019 £
Trade debtors	8,531	22,632
Prepayments	112,947	72,134
Other debtors	1,042,443	1,077,918
	1,163,921	1,172,684

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2020

7

Creditors

	Note	2020 £	2019 £
Due within one year
Loans and borrowings	8	307,980	405,219
Trade creditors		151,815	331,552
Taxation and social security		-	7,336
Accruals and deferred income		25,305	155,271
		485,100	899,378

	Note	2020 £	2019 £
Due after one year
Loans and borrowings	8	12,392,961	10,950,194

	2020 £	2019 £
Due after more than five years
After more than five years not by instalments	12,392,961	10,950,194

	-	-

Included in creditors are the following amounts due after more than five years:

Loan notes held by equity shareholders

The company has issued debentures that are repayable 20 years from the date of issue. Interest is accrued at 12.5%.

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2020

8	Loans and borrowings

	2020 £	2019 £
Current loans and borrowings
Bank overdrafts	307,980	397,595
Hire purchase contracts	-	7,624
	307,980	405,219

	2020 £	2019 £
Loans and borrowings due after one year
Loan notes held by equity shareholders (secured)	12,392,961	10,950,194

Loans and borrowings

Included in loans and borrowings at the 2020 year end is £15,558,845 (2019 - £14,123,702) on which security has been provided. The debentures £12,392,961 (2019 £10,950,194) are secured on the assets of the company. The hire purchase liabilities £Nil (2019 £7,624) are secured on the assets to which they relate.

9	Share capital

Allotted, called up and fully paid shares

	2020		2019
	No.	£	No.	£
Ordinary shares of £0.01 each	1,000	10.00	1,000	10.00
Ordinary A shares of £0.01 each	1,000	10.00	1,000	10.00
	2,000	20.00	2,000	20.00

Rights, preferences and restrictions

The Ordinary and Ordinary A shares have full voting rights and are entitled to dividends and any other distributions.

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2020

10	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £1,580,000 (2019 - £1,670,000).

Fraddon Biogas Limited

Notes to the Financial Statements

Year Ended 31 December 2020

11	Related party transactions

Summary of transactions with other related parties

Eternity Capital Management Limited
(A shareholder of the company)

 During the year Eternity Capital Management Limited agreed to waive its entitlement to management charges levied on the company in respect of the majority of charges arising in the current and previous year, resulting in a credit in the year of £55,802 (2019: a charge of £60,000). The management charges were payable to Eternity Capital Management Limited, a company wholly owned by A Laniado.