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Company registration number 02453049
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FILING FINANCIAL STATEMENTS
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FOR THE YEAR ENDED 31 DECEMBER 2020
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CONTENTS
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Statement of Financial Position
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Notes to the Financial Statements
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COMPANY INFORMATION
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Moore Stephens (South) LLP
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1
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ENGA LIMITED
REGISTERED NUMBER:02453049
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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Profit and loss account - non-distributable
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Profit and loss account - distributable
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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 Section 1A 'Small Entities' of Financial Reporting Standard 102.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
As permitted by Section 444 of the Companies Act 2006, the directors have not delivered to the Registrar a copy of the company's Statement of Comprehensive Income for the year ended 31 December 2020.
2
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ENGA LIMITED
REGISTERED NUMBER:02453049
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STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf by by:
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D C Forsyth, CA
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The notes on pages 4 to 13 form part of these financial statements.
3
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
These financial statements are presented in Pounds Sterling (GBP), as that is the currency in which (the majority of) the company's transactions are denominated. They comprise the financial statements of the company drawn up for the year ended 31 December 2020.
The continuing activities of Enga Limited ('the company') is the ownership and commercial exploitation of land and forests.
The company is a private company limited by shares and is incorporated in United Kingdom and registered in England. Details of the registered office can be found on the company information page of these financial statements. The company's registered number is 02453049.
2.Accounting policies
The directors have considered a period of at least twelve months from the date on which these financial statements have been signed and having considered all relevant information available to them, believe it appropriate to prepare the financial statements on a going concern basis.
This assessment of going concern includes the expected impact of COVID-19 to the entity in the 12 months following the signing of these financial statements.
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with applicable law and United Kingdom Accounting Standards including Section 1A 'Small Entities' of Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice applicable to Small Entities).
The preparation of financial statements in compliance with Section 1A ‘Small Entities’ of FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company accounting policies.
The following principal accounting policies have been applied:
4
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
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. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the company has transferred the significant risks and rewards of ownership to the buyer;
∙the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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Foreign currency translation
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The company's functional and presentation currency is GBP. Foreign currency transactions are translated into the functional currency using the spot exchange rates at the date of the transactions.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Interest income is recognised in profit or loss using the effective interest method.
5
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
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Current and deferred taxation
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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 reporting 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 Statement of Financial Position 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 reporting date.
6
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
Tangible fixed assets under the cost value 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
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
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Land & commercial forests
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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 the Statement of Comprehensive Income.
As permitted under Financial Reporting Standard 102 Section 1A the directors have elected to record land and commercial forests at valuation. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Statement of Financial Position date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in profit or loss and then transferred to non-distributable reserves, unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are not transferred to non-distributable reserves.
As the company retains the title to salvage the timber the directors are confident that all of the company's assets are insured adequately.
Investments are held at cost less impairment.
Investments in subsidiaries are measured at cost less accumulated impairment.
The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertaking comprise a small-sized group. The company has therefore taken advantage of the exemptions provided by section 399 of the Companies Act 2006 not to prepare group accounts.
7
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
Short term debtors are measured at transaction price, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Financial instruments are recognised in the statement of income and retained earnings when the company becomes a party to the contractual provisions of the instrument. Financial instruments are classified as either 'basic' or 'other' in Chapter 11 of FRS102. The company only enters into basic financial instruments. All financial instruments are initially measured at transaction price. At the end of each reporting period, basic financial instruments are measured at amortised cost.
Short term creditors are measured at the transaction price.
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.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
8
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Judgments in applying accounting policies and key sources of estimation uncertainty
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In the application of the company’s accounting policies, the directors are 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.
Fair value of land and commercial forests
The valuation of the company's land and commercial is inherently subjective due to, among other factors,
the nature of the land/forest, its location and the expected future timber yield from that particular land/forest. As a result, the valuations the company places on its land and commercial forests are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove to be accurate, particularly in periods of volatility or low transaction flow in the market.
The fair value of land and commercial forests is appraised each year either by independent external valuers or on the basis of internal valuations. The best evidence of fair value are current prices in an active market.
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The average monthly number of employees, including directors, during the year was 5 (2019 - 4).
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Dividends paid on ordinary shares
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9
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Charge for the year on owned assets
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The land and commerical forests were valued at the year-end by Gresham House Forestry Limited, advisors in forestry investment and asset management. The historical cost of the land and commercial forests, had they not been revalued, would be £4,831,308.
Biological assets have been disclosed separately as "Commercial Forests" in line with the treatment set out in section 34 of FRS 102.
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10
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Investments in subsidiary companies
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Investment in joint associations
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Amounts owed by joint ventures and associated undertakings
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Prepayments and accrued income
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11
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Accruals and deferred income
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The company currently has no secured liabilties. However, there are fixed charges secured over the following:
The lands and farm at Upper Beoch in favour of Energiekontour UK Limited, a group company.
The windfarm at Kype Muir in favour of Banks Renewables (Kype Muir Windfarm) Limited, the company's main windfarm income customer.
The lands and farm at Longford & Sandy Woods in favour of Energyfarm UK Longhill Burn LLP, a group LLP.
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Charged to the Statement of Comprehensive Income
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The provision for deferred taxation is made up as follows:
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Origination and reversal of timing differences
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12
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Profit and loss account - non-distributable
This represents the revaluation reserve on land and commercial forests.
Profit and loss account - distributable
This represents reserves which can be withdrawn from profits that are made.
An adjustment was made to the prior year comparatives to account for £116,703 of windfarm income not previously accrued into the accounts, and £22,174 of corporation tax on this income.
This resulted in a increase in debtors of £116,703, creditors of £22,174 and profit of £94,529. This therefore increased the distributable profit and loss reserves and net assets by £94,529.
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Related party transactions
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During the year business expenses totalling £9,252 (2019: £17,537) were paid on behalf of the company by directors. A total of £9,252 (2019: £17,537) was remitted back to directors during the year. At 31 December 2020, the balance due to the directors was £nil (2019: £nil).
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The immediate, and ultimate, parent company is Engaholms Forvaltning AB (formerly Engaholms Godsforvaltning AB), a company registered in Sweden. The company was controlled throughout the current and previous year by Mr A J M Koskull, a director, by virtue of his controlling interest in Engaholms Forvaltning AB. The company is exempt from the requirement to prepare group accounts by virtue of section 398 of the Companies Act 2006. These financial statements therefore present information about the company and not about its group.
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Other professional services provided by the auditor
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In common with other small companies of this size and nature the auditor is employed to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.
The auditors' report on the financial statements for the year ended 31 December 2020 was unqualified.
The audit report was signed on 28 September 2021 by Michael Harkness (Senior Statutory Auditor) on behalf of Azets Audit Services.
13
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