ACCOUNTS - Final Accounts

Creditors: Amounts falling due after more than one year

GCP BIOMASS 3 LIMITED - Company Information

Print Friendly Version

Registered number: 08904990

GCP BIOMASS 3 LIMITED

AUDITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED
31 MARCH 2021

GCP BIOMASS 3 LIMITED

REGISTERED NUMBER: 08904990

BALANCE SHEET

AS AT 31 MARCH 2021


	2021	2020
Note	£	£


Current assets
Debtors: amounts falling due after more than one year	7	-		3,400,000
Cash at bank and in hand		1,217		1,338
		1,217		3,401,338
Creditors: amounts falling due within one year	8	(3,407,879)		(8,300)
Net current (liabilities)/assets			(3,406,662)		3,393,038
Total assets less current liabilities			(3,406,662)		3,393,038
Creditors: amounts falling due after more than one year	9		-		(3,400,000)

Net liabilities			(3,406,662)		(6,962)

Capital and reserves
Called up share capital	10	1,000	1,000
Profit and loss account	11	(3,407,662)	(7,962)
		(3,406,662)	(6,962)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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 income and retained earnings 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 by:

Mrs S J Johnston

Director

Date: 24 August 2021

The notes on pages 2 to 6 form part of these financial statements.

Page 1

GCP BIOMASS 3 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1.	General information

GCP Biomass 3 Limited is a private company, limited by shares, incorporated in England and Wales, registered number 08904990. The registered office is 24 Savile Row, London, W1S 2ES.

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 Section 1A of 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 the Republic of Ireland, including the disclosure and presentation requirements of Section 1A, applicable to small companies. There were no material departures from that standard.

2.3

Going concern

The financial statements have been prepared on a going concern basis. The Company has made loss in the year and is in a net liability position at the year end date. The directors having reviewed the financial position of the Company and in discussion with the Company's lender and borrowers agreed that both the loan creditor balance and loan debtor balance are not fully recoverable. The debtor loan balance has been written down to £nil in the period.
The directors have assessed the risks to the business, including in relation to COVID-19 and believe preparing the financial statements on a going concern basis is appropriate due to the ongoing support of its lender, a company providing infrastructure debt financing. This support gives the Company the financial resources to be able to meet its liabilities as they fall due for the foreseeable future.

2.4

Revenue

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.
Interest receivable is recognised using the effective interest method, which takes into account related fees and transaction costs.

2.5

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.

Page 2

GCP BIOMASS 3 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2.Accounting policies (continued)

2.6

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.

2.7

Creditors

Short term creditors are measured at the transaction price. Loans payable to third parties are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.8

Interest payable

Interest payable is recognised using the effective interest method, which takes into account related fees and transaction costs. Interest payable is included within cost of sales as it is directly attributable to the interest receivable included in revenue.

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.

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.

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.

2.9

Current taxation

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.

Page 3

GCP BIOMASS 3 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2.Accounting policies (continued)

2.10

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

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

The key assumption concerning the future and other key sources of estimation uncertainty at the reporting date that has a risk of causing a material adjustment to the carrying amount of the loan creditor is future inflation rates.
Creditor loans are stated at amortised cost and the effective interest rate calculations are based on the directors' assumption that inflation will not exceed 2.75% per annum over the remaining loan term. If inflation exceeded 2.75% for a substantial period of the loan term, or inflation rate was considerably in excess of 2.75%, there could be a material impact on the carrying value of the loan.
Creditor loan principals are subject to annual inflation indexation based on the Retail Price Index ("RPI") if inflation exceeds 2.75% in a given year equal to half the excess over 2.75%. As the debtor loan balance has been written down to £Nil in the year, the RPI inflation rate should not materially affect the balance of the loan going forward.
Estimates and judgements are continually evaluated and are based on historical experience, independent forecasts and other factors that are believed to be reasonable under the circumstances.
The loan interest receivable and payable calculations and the amortised cost balances for other loans receivable and payable assume that all future loan capital and interest receipts and payments will be in accordance with the current loan agreements for the remaining loan term.

4.	Auditors' remuneration

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

There were no employees in the year under review apart from the directors who did not receive any remuneration.

6.	Exceptional items
		2021	2020
		£	£

Impairment of debtor loan

3,400,000

448,000

In the current year the directors have agreed with the Company's borrowers to write down the value of loan debtors to £nil. This resulted in the recognition of a loss of £3.4m (2020 - £448k).
The directors in discussion with the Company’s lenders agreed that the creditor loan balance is not fully recoverable but is still appropriately held at the written down value of £3.4m brought forward from the prior year. This has resulted in no further write downs in the year (2020 - £458k).

Page 4

GCP BIOMASS 3 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Debtors

Due after more than one year
Amounts owed by group undertakings	-	3,400,000

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

External loans	3,400,000	-
Corporation tax	379	800
Accruals and deferred income	7,500	7,500
	3,407,879	8,300

	External loans	-	3,400,000

External Loan comprise loan notes stated at amortised cost.
The loan notes are secured by a debenture over all assets of the Company, present and future.
At the balance sheet date, the Company was in breach of its contractual obligations to the lender due to one of it's borrower defaulting on the loan as explained in note 2.3. This gives the lender right to declare an Event of Default under the terms of the loan agreement. This would give the lender the right to accelerate repayment of the debt, making it repayable on demand, hence the debt balance has been shown in this financial statement as due within less than one year. The Company remains in dialogue with the lender. The lender has agreed to take no action in respect of these defaults but reserves their rights to do so.

10.	Share capital
		2021	2020
		£	£

Allotted, called up and fully paid

1,000 (2020 - 1,000) Ordinary shares of £1 each	1,000	1,000

Page 5

GCP BIOMASS 3 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

11.

Reserves

Profit and loss account

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

12.	Related party transactions
	The Company is exempt under the terms of Financial Reporting Standard 102 (FRS 102) paragraph 33.1A, 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 consolidated financial statements prepared by the Group.

13.	Parent company

The Company's immediate and ultimate parent undertaking is GCP Intermediary Holdings Limited. The consolidated financial statements of GCP Intermediary Holdings Limited may be obtained from Companies House or from its registered office 24 Savile Row, London, W1S 2ES.

14.	Subsequent events

Subsequent to the year end global economies have been impacted as a result of the COVID-19 virus epidemic. The resolution and impact on the business and wider economy at this stage is uncertain. The Company has the ongoing support of its lender and the directors will constantly review the position, adapting Company strategy in light of new developments as necessary. The directors going concern assessment is set out in note 2.3.

15.	Auditors' information

The auditors' report on the financial statements for the year ended 31 March 2021 was unqualified.

The audit report was signed on 24 August 2021 by Mark Nelligan FCA (Senior Statutory Auditor) on behalf of Wellden Turnbull Limited.

Page 6