Core Scorpio Limited
Core Scorpio Limited
Registered number: 11653373
Directors' Report and
Unaudited Financial Statements
For The Year Ended
31 December 2020
Core Scorpio Limited
Directors' Report and Unaudited Financial Statements
For The Year Ended
31 December 2020
Directors' Report and Unaudited Financial Statements
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| Company Information | 2 |
| Directors' Report | 3—4 |
| Accountant's Report | 5 |
| Statement of Comprehensive Income | 6 |
| Balance Sheet | 7—8 |
| Notes to the Financial Statements | 9—12 |
Core Scorpio Limited
Company Information
For The Year Ended
31 December 2020
Company Information
| Directors |
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| Company Number |
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| Registered Office | Environmental Finance Limited W106 Vox Studios |
| 1-45 Durham Street | |
| London | |
| SE11 5JH | |
| Accountants |
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| Chartered Accountants | |
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| Holt | |
| Wiltshire | |
| BA14 6RL | |
Core Scorpio Limited
Company No. 11653373
Directors' Report For The Year Ended
31 December 2020
Directors' Report
The directors present their report and the financial statements for the year ended
31 December 2020
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Statement of Directors' Responsibilities
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Going Concern
The directors consider the going concern basis to be appropriate having paid due regard to the Company’s projected results
for the 12-month period from the date the financial statements are approved and the anticipated cash flows, availability of
loan facilities and mitigating actions that can be taken during the period.
Whilst the directors anticipate that current plans to refinance group loans will be successful, there is at present no agreement with the parent company that it will continue to support the Company beyond the current maturity date (see Notes 1.2 and 6 of the financial statements). Consequently, the directors acknowledge that a material uncertainty exists around the ability of the Company to extend of refinance the existing loan facility which is presently due for repayment on 31 July 2022.
Principal Activity
The principal activity of the company is activities of other holding companies not elsewhere classified.
Core Scorpio Limited
Directors' Report (continued)
For The Year Ended
31 December 2020
Directors
The directors who held office during the year were as follows:
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Small Company Rules
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
On behalf of the board
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Director
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Core Scorpio Limited
Accountant's Report
For The Year Ended
31 December 2020
Accountant's Report
Chartered Accountant's report to the directors on the preparation of the unaudited statutory accounts of
Core Scorpio Limited
For The Year Ended 31 December 2020
In order to assist you to fulfil your duties under the Companies Act 2006, I have prepared for your approval the accounts of
Core Scorpio Limited
For The Year Ended 31 December 2020 which comprise the Profit and Loss Account, the Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given to us.
As a practising member of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/membership/regulations-standards-and-guidance.
This report is made solely to the directors of
Core Scorpio Limited
, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of
Core Scorpio Limited
and state those matters that we have agreed to state to the directors of
Core Scorpio Limited
, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than
Core Scorpio Limited
and its directors, as a body, for our work or for this report.
It is your duty to ensure that
Core Scorpio Limited
has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit or loss of
Core Scorpio Limited
. You consider that
Core Scorpio Limited
is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit of the accounts of
Core Scorpio Limited
. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the financial statements.
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Chartered Accountants
24 The Glove Factory
Holt
Wiltshire
BA14 6RL
Core Scorpio Limited
Statement of Comprehensive Income
For The Year Ended
31 December 2020
Statement of Comprehensive Income
| 31 December 2020 | 31 December 2019 | |||
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| Notes | £ | £ | ||
| Administrative expenses |
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| Other operating income |
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| OPERATING LOSS |
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| Other interest receivable and similar income |
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| Interest payable and similar charges |
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| LOSS FOR THE FINANCIAL YEAR |
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| OTHER COMPREHENSIVE INCOME: | ||||
| Other comprehensive income for the year | - | - | ||
| Total comprehensive income for the year |
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The notes on pages 9 to 12 form part of these financial statements.
Core Scorpio Limited
Balance Sheet
As at
31 December 2020
Balance Sheet
| 31 December 2020 | 31 December 2019 | ||||
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| Notes | £ | £ | £ | £ | |
| FIXED ASSETS | |||||
| Intangible Assets | 3 |
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| CURRENT ASSETS | |||||
| Debtors | 4 |
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| Cash at bank and in hand |
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| Creditors: Amounts Falling Due Within One Year | 5 |
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| NET CURRENT ASSETS (LIABILITIES) |
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| TOTAL ASSETS LESS CURRENT LIABILITIES |
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| Creditors: Amounts Falling Due After More Than One Year | 6 |
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| NET LIABILITIES |
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| CAPITAL AND RESERVES | |||||
| Called up share capital | 7 |
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| Profit and Loss Account |
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| SHAREHOLDERS' FUNDS | (102,655) | (54,177) | |||
Core Scorpio Limited
Balance Sheet (continued)
As at
31 December 2020
Directors' responsibilities:
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The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. -
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. -
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
On behalf of the board
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Director
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The notes on pages 9 to 12 form part of these financial statements.
Core Scorpio Limited
Notes to the Financial Statements
For The Year Ended
31 December 2020
Notes to the Financial Statements
1.
Accounting Policies
1.1.
Basis of Preparation of Financial Statements
TUnless otherwise specified, the financial statements have been prepared under the historical cost convention and in accordance with FRS 102 Section 1A – The Financial Reporting Standard applicable in the UK and Republic of Ireland (March 2018) and the Companies Act 2006. The March 2018 edition of FRS 102 includes certain amendments arising from the Financial Reporting Council’s triennial review of the standard. There is no material effect on the amounts recognised in these financial statements as a result of early adoption of these amendments.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company’s accounting policies.
The following principal accounting policies have been applied.
1.2.
Going Concern Disclosure
The significant debtor and creditor amounts in the balance sheet are due from and owed to respectively the company’s subsidiary and its parent company, and are structured flexibly (without fixed interest or repayments of principal other than at maturity – see further comment below) so as to fall due and be payable in a back to back manner as the company realises income and gains. On an ongoing basis, the company incurs limited administrative expenses, which can be met from management services income.
Whilst the directors anticipate that current plans to refinance group loans will be successful, there is at present no agreement with the parent company that it will continue to support the Company beyond the current repayment date (see Note 9 of the financial statements). Consequently, the directors acknowledge that a material uncertainty exists around the ability of the Company to extend or refinance the existing loan facility with the parent company, which is presently due for repayment on 31 December 2021. Notwithstanding the aforementioned, at the time of approving the financial statements, a review of the cash flow forecasts for the business indicates that for the foreseeable future the Company will be able to settle demands and liabilities as they fall due from cash from operations and existing working capital. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3.
Intangible Fixed Assets and Amortisation - Other Intangible
Intangible assets comprise goodwill on acquisiition of subsidiary. Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life.
The estimated useful lives range as follows:
Goodwill - 23 years
1.4.
Interest Income
Interest income is recognised in the Statement of comprehensive income using the effective interest method.
Core Scorpio Limited
Notes to the Financial Statements (continued)
For The Year Ended
31 December 2020
1.5.
Finance costs
Finance costs are charged to the Statement of Comprehensive Income 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.
1.6. Trade and other debtors
Short term debtors are measured at their transaction value, less any impairment.
1.7. Trade and other creditors
Short term creditors are measured at their transaction cost.
1.8. 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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible into known amounts of cash with insignificant risk of change in value.
2.
Average Number of Employees
Average number of employees, including directors, during the year was as follows: 4 (2019: 4)
3.
Intangible Assets
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| Net Book Value | |||
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On 7 December 2018 CORE Scorpio Limited acquired a 50.1% stake in the shares and voting rights of Sherrifhales Solar Community Interest Company at an investment cost of £187,968 for the shares of the company. The acquisition method of accounting has been used.
Core Scorpio Limited
Notes to the Financial Statements (continued)
For The Year Ended
31 December 2020
4.
Debtors
| 31 December 2020 | 31 December 2019 | ||
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| Due within one year | |||
| Prepayments and accrued income |
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| Called up share capital not paid |
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| Amounts owed by group undertakings |
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| Due after more than one year | |||
| Amounts owed by group undertakings |
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5.
Creditors: Amounts Falling Due Within One Year
| 31 December 2020 | 31 December 2019 | ||
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| Trade creditors |
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| VAT |
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| Accruals and deferred income |
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| Amounts owed to group undertakings |
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Creditors: Amounts Falling Due After More Than One Year
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| Amounts owed to group undertakings |
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As at the date of signing the accounts, the above loan is repayable to the parent company by 31 December 2021 or such later date at the parent company’s discretion.
Core Scorpio Limited
Notes to the Financial Statements (continued)
For The Year Ended
31 December 2020
8.
Related Party Transactions
During the year CORE Scorpio Limited had other operating income of £20,000 relating to management services provided to its subsidiary. As at the year end, this total amount is included within Debtors: Amounts falling due within one year.
As at the year end there was a balance owed from its subsidiary totalling £1,060,000 (2019 - £1,060,000) included within Debtors: Amounts falling due after more than one year. The company charged interest in the period on this balance of £58,250 (2019 - £60,580), interest amount included within Debtors: Amounts falling due within one year.
As at the year end, further amounts totalling £84,580 were due to the Company from its subsidiary, included within Debtors: Amounts falling due within one year.
As at the year end, there was a balance due to the parent company of £1,500,681 (2019 - £1,517,472) included in Creditors: Amounts falling due after more than one year. The Company accrued interest in the period on this balance of £83,612 (2019 - £91,860), of which an amount of £72,000 is included within Creditors: Amounts falling due within one year (Amounts owed to group undertakings).
9.
Ultimate Controlling Party
The parent and ultimate controlling party is Community Owned Renewable Energy LLP (CORE LLP) which is registered in England and Wales. It prepares publicly available accounts and its registered office is Environmental Finance Limited, W106 Vox Studios, 1-45 Durham Street, London, United Kingdom, SE11 5JH.
10.
General Information
Core Scorpio Limited
is a private company, limited by shares, incorporated in England & Wales, registered number
11653373
. The registered office is Environmental Finance Limited W106 Vox Studios, 1-45 Durham Street, London, SE11 5JH.