Scot Stability Limited - Period Ending 2022-07-31

Scot Stability Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Unaudited Financial Statements	3 to 8

Scot Stability Limited

Company Information

Directors

Dr Marc Thomas Dr Zhenni Wang

Registered office

272 Bath Street Glasgow G2 4JR

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

Scot Stability Limited

(Registration number: SC668729)
Balance Sheet as at 31 July 2022

	Note	31 July 2022  £	(As restated) 31 July 2021  £
Fixed assets
Investments	4	31	31
Current assets
Debtors	5	553,660	108,157
Cash at bank and in hand		60,476	60,534
		614,136	168,691
Creditors: Amounts falling due within one year	6	(880,533)	(313,260)
Net current liabilities		(266,397)	(144,569)
Net liabilities		(266,366)	(144,538)
Capital and reserves
Called up share capital	7	10	10
Profit and loss account		(266,376)	(144,548)
Total equity		(266,366)	(144,538)

For the financial year ending 31 July 2022 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 in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 28 April 2023 and signed on its behalf by:
 

Dr Marc Thomas
Director

Scot Stability Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2022

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
272 Bath Street
Glasgow
G2 4JR
Scotland

The principal place of business is:
Railway House
Bruton Way
Gloucester
Gloucestershire
GL1 1DG

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 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Scot Stability Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2022

Changes in accounting policy

New standards, interpretations and amendments effective

The following have been applied for the first time from 1 August 2021 and have had an effect on the financial statements:

Capitalisation of origination and development costs

During the year the directors changed the company's policy in respect of the treatment of origination and development costs. Previously the company carried such costs on the balance sheet until a project became viable. Once a project was identified as viable the costs were recharged to a SPV. If a project was considered no longer a viable prospect, then all costs associated with the project were expensed in the period which it was identified as non-viable.

The newly adopted policy expenses all costs incurred on prospective projects expect those which can be transferred to other projects. Costs which are capable of being transferred are held on the balance sheet until they are attached to a viable project.

The new policy has been applied retrospectivley resulting in adjustments to the results reported in the prior period. The impact on the prior period is detailed below.

	Relating to the current period disclosed in these financial statements £	Relating to the prior period disclosed in these financial statements £	Relating to periods before the prior period disclosed in these financial statements £
Additional expenses recognised in the profit and loss	-	103,643	-
Social security and other taxes	-	12,845	-
Amounts owed to related parties	-	(116,488)	-

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Scot Stability Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2022

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Scot Stability Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2022

Trade debtors

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2021 - 2).

4

Investments

	2022 £	2021 £
Investments in subsidiaries	31	31

Subsidiaries	£
Cost
At 1 August 2021	31
Provision
Carrying amount
At 31 July 2022	31
At 31 July 2021	31

Scot Stability Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2022

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Country of incorporation	Holding	Proportion of voting rights and shares held
			2022	2021
Subsidiary undertakings
Rothienorman Flexpower Ltd	Scotland	Ordinary shares	100%	100%
Peterhead Flexpower Ltd	Scotland	Ordinary shares	100%	100%
Kilmarnock Flexpower Ltd	Scotland	Ordinary shares	100%	100%
Blackhillock Flexpower Ltd	Scotland	Ordinary shares	100%	100%

5

Debtors

	Note	31 July 2022  £	(As restated) 31 July 2021  £
Amounts owed by related parties	8	-	98,637
Other debtors		553,660	9,520
		553,660	108,157

6

Creditors

	Note	31 July 2022  £	(As restated) 31 July 2021  £
Due within one year
Trade creditors		4,260	35,573
Amounts due to related parties	8	855,463	263,175
Social security and other taxes		18,560	12,262
Accrued expenses		2,250	2,250
		880,533	313,260

7

Share capital

Allotted, called up and fully paid shares

	31 July 2022		31 July 2021
	No.	£	No.	£
Ordinary shares of £0.00001 each	1,000,000	10.00	1,000,000	10.00

Scot Stability Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2022

8

Related party transactions

Transactions with fellow subsidiaries and immediate parent undertaking
The company has taken advantage of the exemption provided by FRS 102 s33.1A whereby disclosures need not be given of transactions entered into between two or more members of a group, provided that any subsidiary
which is a party to the transaction is wholly owned by such a member.

Transactions with the ultimate parent company
At the balance sheet date the company owed £343,726 (2021 - £261,814) to its ultimate parent company. There were no fixed repayment terms but interest of 10% is charged on the outstanding balance.