ACCOUNTS - Final Accounts
ACCOUNTS - Final Accounts
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Registered number:
FOR THE YEAR ENDED 31 MARCH 2023
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BRIDGWATER RESOURCE RECOVERY LIMITED
COMPANY INFORMATION
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BRIDGWATER RESOURCE RECOVERY LIMITED
CONTENTS
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BRIDGWATER RESOURCE RECOVERY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present their report and the financial statements for the year ended 31 March 2023.
The directors who served during the year were:
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements 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 to 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.
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BRIDGWATER RESOURCE RECOVERY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
The Company has net liabilities of £330,976 at 31 March 2023 (2022 - £301,134) and is dependent upon the continued support of its funders, from whom it has received letters of support.
Additional funding has been received from the shareholders as the funding requirement was increased partly as a result of delays incurred in the construction programme, but also due to BREF requirements necessitating the implementation of additional capital equipment. The shareholders have confirmed their intention to continue supporting the company, and this support ensures that the company will continue to meet all liabilities as they fall due for payment for at least the next 12 months from the date of this report. Within 12 months of this report, it is expected that the company will be operational, and the directors have prepared a future cash flow model which shows that once operational the company will be profitable and cash generative. They are encouraged by forecasted electricity prices and their experiences with other projects which give them confidence that the assumptions in the model are reasonable. Accordingly, the going concern basis has been adopted in preparing the financial statements.
The auditors, Ryecroft Glenton, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board on
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BRIDGWATER RESOURCE RECOVERY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRIDGWATER RESOURCE RECOVERY LIMITED
We have audited the financial statements of Bridgwater Resource Recovery Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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BRIDGWATER RESOURCE RECOVERY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRIDGWATER RESOURCE RECOVERY LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Directors' Report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
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BRIDGWATER RESOURCE RECOVERY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRIDGWATER RESOURCE RECOVERY LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which the audit was considered capable of detecting irregularities including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙the Responsible Individual ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the infrastructure sector;
∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
∙we ensured that the identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: -
∙making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
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BRIDGWATER RESOURCE RECOVERY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRIDGWATER RESOURCE RECOVERY LIMITED (CONTINUED)
To address the risk of fraud through management bias and override of controls, we: -
∙performed analytical procedures to identify any unusual or unexpected relationships;
∙tested journal entries to identify unusual transactions; and
∙assessed whether judgements and assumptions made in determining the accounting estimates set out in the notes were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: -
∙agreeing financial statement disclosures to underlying supporting documentation;
∙reading the minutes of meetings of those charged with governance;
∙enquiring of management as to actual and potential litigation and claims;
∙reviewing correspondence with HMRC, relevant regulators and the Company’s legal advisors; and
∙discussing laws and regulations with those responsible for monitoring compliance. We noted no issues from our discussions and subsequent evidence provided which suggested any material misstatements of the financial statements.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditors
32 Portland Terrace
NE2 1QP
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BRIDGWATER RESOURCE RECOVERY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
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BRIDGWATER RESOURCE RECOVERY LIMITED
REGISTERED NUMBER: 08932414
BALANCE SHEET
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 10 to 17 form part of these financial statements.
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BRIDGWATER RESOURCE RECOVERY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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BRIDGWATER RESOURCE RECOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Bridgwater Resource Recovery Limited, company number 08932414 is a private company limited by shares incorporated in the United Kingdom under the Companies Act 2006. The address of the registered office is given on the company information page and the trading address is Showground Distribution Park, Showground Road, Bridgwater, TA6 6PS.
The principal activity of the Company is the ownership of a facility in Bridgwater, Somerset to generate energy from the processing of waste materials. The facility is currently under construction.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
These financial statements are prepared and rounded to the nearest whole £, being the functional currency of the business.
The disclosure requirements of Section 1A of FRS102 have been applied.
The following principal accounting policies have been applied:
The Company has net liabilities of £330,976 at 31 March 2023 (2022 - £301,134) and is dependent upon the continued support of its funders, from whom it has received letters of support.
Additional funding has been received from the shareholders as the funding requirement was increased partly as a result of delays incurred in the construction programme, but also due to BREF requirements necessitating the implementation of additional capital equipment. The shareholders have confirmed their intention to continue supporting the company, and this support ensures that the company will continue to meet all liabilities as they fall due for payment for at least the next 12 months from the date of this report. Within 12 months of this report, it is expected that the company will be operational, and the directors have prepared a future cash flow model which shows that once operational the company will be profitable and cash generative. They are encouraged by forecasted electricity prices and their experiences with other projects which give them confidence that the assumptions in the model are reasonable. Accordingly, the going concern basis has been adopted in preparing the financial statements.
Tangible fixed assets under the cost model are stated at historical cost less any impairment loss. Cost includes professional fees and other directly attributable costs that are necessary to bring the asset to its operating condition.
No depreciation is provided on land as it is deemed to have an unlimited useful life.
No depreciation has been provided on the asset still under construction at the Balance Sheet date.
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BRIDGWATER RESOURCE RECOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
During the construction phase of the project, construction costs are included in the company's Balance Sheet within fixed assets under assets under construction. Costs incurred in respect of future activity on the contract are capitalised only to the extent it is probable they will be recovered. This is valued at the lower of cost and estimated net realisable value.
The recorded costs comprise directly attributable costs incurred during the period on the construction including construction costs, associated legal and professional fees and insurance. In addition, operational costs necessary for the testing of the asset are also capitalised, including any incidental income (see Note 3).
Upon completion, associated construction costs, having been capitalised to the balance sheet will be transferred to the relevant fixed asset category. As stated under the tangible fixed assets policy, depreciation will then charged once construction of the asset is completed.
The asset under construction will take a substantial period of time to be ready for its intended use and as such, interest costs have been capitalised as part of the cost of assets under construction.
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BRIDGWATER RESOURCE RECOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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BRIDGWATER RESOURCE RECOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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. Key sources of estimation uncertainty The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. Capitalisation of costs of testing and incidental income The directors are mindful that until the asset is at a specific optimisation, and all milestone certificates have been received, that the plant is not considered to be fully operational, and at the intended level of operation. As such, the costs of testing and maintaining the asset whilst it is under construction, and any incidental income from this process, is capitalised in accordance with the applicable financial reporting framework, specifically Section 17 of FRS 102. Impairment of tangible fixed assets Determining whether tangible fixed assets are impaired requires an estimation of the value in use of the related asset. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the asset and the discount rate in order to calculate present value. Forecast output is based on studies carried out at the commencement of each project, adjusted for experience as necessary. Electricity prices are determined with reference to externally sourced forward price curves, on contracted rates as appropriate. Forecasts cover the expected life of each project. There is no evidence of impairment.
The Company has no employees (2022 - none).
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BRIDGWATER RESOURCE RECOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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BRIDGWATER RESOURCE RECOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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BRIDGWATER RESOURCE RECOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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BRIDGWATER RESOURCE RECOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
In the directors' opinion, there is no ultimate controlling party.
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